Company registration number 06535447 (England and Wales)
NICOBLOC PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
NICOBLOC PLC
COMPANY INFORMATION
Directors
A Haymes
G Hayes
C Newman
J Dennehy
Company number
06535447
Registered office
20-22 Wenlock Road
London
England
N1 7GU
Auditor
Grunberg & Co Limited
5 Technology Park
Colindeep Lane
Colindale
London
United Kingdom
NW9 6BX
NICOBLOC PLC
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 21
NICOBLOC PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2022
- 1 -
The directors present the strategic report for the year ended 31 March 2022.
RESULTS AND PERFORMANCE
In the face of a continuing tough economic climate, we have continued to strive towards increasing awareness of the NicoBloc brand across the globe in the current financial year, thereby laying the foundations for strong financial performances going forward.
This year we have refocussed our sales strategy to concentrate of supplying national government health authorities for supporting their national smoking cessation programmes. NicoBloc is particularly attractive to Middle Eastern, African and Asian countries as it is free of any drug components unlike other smoking cessation products. We have engaged a sales partner that is specialised in selling at national government level. We expect the first order for 1 million units to be supplied to the Ministry of Health in Vietnam after the year end.
We have an offer in principle from UAE investment office of His Highness Sheikh Hamdan who allocate 10% of their investment fund for humanitarian purposes of which they have decided that NicoBloc falls into this category. The investment will be for 85% of the project cost of $30 million. The reason why it is 85% is because NicoBloc is not offering any collateral. The return to the fund is 6% of NicoBloc profits.
The Sheikh is 51% partner together with NicoBloc principal directors of 49% into a newly registered NicoBloc company based in Dubai. We expect these funds to be forthcoming early 2023 following the due diligence visit of senior personnel from the fund to the UK and Ireland during January 2022 who wish to witness our manufacturing partner producing NicoBloc. The Dubai fund are waiting to see sight of the first order from Vietnam together with the associated Letter of Credit prior to release of funds. The Directors expect to be back in Dubai early 2023 to conclude this investment.
The investment will allow us to complete R&D on our two new products, one of which has received interest from a number of tobacco companies and the US FDA where tobacco companies will soon be forced to lower nicotine levels under the FDA new rulings.
We are pleased to report that shareholders have lent the company over £250,000 this year in addition to last year’s investment which underlines the confidence of our investors in the future of NicoBloc. Brexit has not had an effect on the business as such since all product is produced in, and shipped from, the Republic of Ireland.
In line with our accounting policy, we have written down the value of patents in line with their estimated useful life which has impacted profitability as it has done each year. However, the remaining patents were revalued by an established Intellectual Property valuation company in December 2017 that potentially values our patents at ten times the original valuation which was set many years ago before we entered international markets. Until the patents are revalued which we intend to do after investment allows us to file new patents and extend the life of the existing patents, we understand our auditors are required to make a limitation of scope comment in relation to the current patent valuation
PRINCIPAL RISKS AND UNCERTAINTIES
A pertinent risk in prior years has been the securing of finance to adequately develop our products and increase the strength of our brand. This year, we have received a draft term sheet from a Middle Eastern Sovereign Fund which is dependent upon securing the first contract from a national government Ministry of Health
NICOBLOC PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 2 -
OUTLOOK
Due to Covid 19, the company's plans to start production and supplying units from April 2020 were delayed as the governments switched their focus to tackling the Covid-19 from other health concerns. As the countries start to gain control and recover from the Covid-19 pandemic, we are confident that the governments will switch their focus back to other health concerns affecting their nations and will proceed with the orders of the Nicobloc products late 2022/early 2023.
The company will continue to receive the investment required to meet the working capital requirement to enable production to commence in the near future.
We are confident with the new sales strategy of selling at national government level to support national smoking cessation programmes we can achieve significant growth of the company through large government contracts which in turn will increase brand awareness of our products across the globe. With the introduction of our product for cigarette companies to reduce the nicotine content of manufactured cigarettes we envisage significant opportunities from this sector.
Key performance indicators
The loss for the year amounted to £
156,566
(2021 : £131,654) which was reflective of costs and overheads being closely controlled and managed.
A Haymes
Director
21 December 2022
NICOBLOC PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2022
- 3 -
The directors present their annual report and financial statements for the year ended 31 March 2022.
Principal activities
The principal activity of the company continued to be that of Consumer Healthcare business.
Results and dividends
The results for the year are set out on page 9.
No dividends will be distributed for the year ended 31 March 202
2
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
A Haymes
G Hayes
C Newman
J Dennehy
Financial instruments
Liquidity risk
The objective of the company in managing liquidity risk is to ensure that it can meet its financial obligations as and when they fall due. The company expects to meet its financial obligations through operating cash flows and support from its shareholders
Interest rate risk
The company's borrowings relate to short term loan received from the bank. Given the prevailing low interest base rate, the board believe the risk to be minimal.
Foreign currnacy risk
The company is exposed to currency exchange rate risk due to a significant proportion of its receivables and payables being denominated in non-Sterling currencies. The net exposure of each currency is monitored and managed.
Auditor
The auditors, Grunberg & Co Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s
auditor
is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s
auditor
is aware of that information.
On behalf of the board
A Haymes
Director
21 December 2022
NICOBLOC PLC
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2022
- 4 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
NICOBLOC PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NICOBLOC PLC
- 5 -
We have audited the financial statements of Nicobloc PLC (the 'company') for the year ended 31 March 2022 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion, except for the effects of the matter described in the
Basis for qualified opinion section,
the financial statements:
-
give a true and fair view of the state of the company's affairs as at 31 March 2022 and of its loss for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for qualified opinion
The Company holds patents and licenses as intangible assets carried at cost less accumulated amortisation. As at the year end, the carrying value was £
193,313
. Due to the Company's continued difficulties in generating sales due to the impact of Covid-19 and other issues, there is a material concern over the carrying value of these intangible assets. Due to a lack of a formal valuation being undertaken by the directors, we were unable to satisfy ourselves by alternative means concerning the lack of a need to potentially impair the intangible assets. Consequently we were unable to determine whether any adjustment to this amount was necessary.
We conducted our audit in accordance with International Standards on Auditing (UK) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
NICOBLOC PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NICOBLOC PLC
- 6 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors'
r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In respect solely of the limitation on our work relating to stock, described above:
-
we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and
-
we were unable to determine whether adequate accounting records had been maintained.
Except for the matter described in the basis for qualified opinion section of our report, in the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.
Arising solely from the limitation on the scope of our work relating to intangible assets
and deferred Income
referred to above:
-
We have not obtained all the information and explanations that we considered necessary
-
for the purpose of our audit; and
-
we were unable to determine whether adequate accounting records have been kept.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of
remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of
financial statements
that are free from material misstatement, whether due to fraud or error. In preparing the
financial statements
, the
directors are
responsible for assessing the company
'
s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have
no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the
financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with
ISAs (UK)
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements
.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below
.
NICOBLOC PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NICOBLOC PLC
- 7 -
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and
non-compliance with laws and regulations, we considered the following:
- the nature of the industry and sector, including the impact of the COVID-19 global pandemic across the UK and
whether the financial results of our client differed from the industry trends;
- the legal and regulatory framework that the Company operates in, focusing on provisions of those laws and regulations
that had a direct effect on the determination of material amounts and disclosures in the financial statements;
- the matters discussed among the audit engagement team during the planning process regarding how and where fraud
might occur in the financial statement and any potential indicators of fraud.
Audit procedures performed included the reviewing the financial statement disclosures and testing to supporting
documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect
on the financial statements; discussions with the directors' on their own assessment of the risks that irregularities may
occur either as a result of fraud or error, their assessment of compliance with laws and regulations and whether they were
aware of any instances of non-compliance, including any potential litigation or claims; performing analytical procedures
to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; in
addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and
other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential
bias; inspection of relevant legal correspondence and board minutes; and evaluating the business rationale of any
significant transactions that are unusual or outside the normal course of business
As a result of our assessment, it is considered that there are no laws and regulations for which non-compliance may be
fundamental to the operating aspects of the business. However, laws and regulations considered to have a direct effect
on the financial statements included the UK Companies Act, Employment Laws, Tax and Pensions legislation and
Health & Safety legislation
.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including
fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the
nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently
more difficult to detect than irregularities that result from error. There is an unavoidable risk that material misstatements
may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
NICOBLOC PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NICOBLOC PLC
- 8 -
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Gedalia Waldman BA FCA
Senior Statutory Auditor
For and on behalf of Grunberg & Co Limited
22 December 2022
Chartered Accountants
Statutory Auditor
5 Technology Park
Colindeep Lane
Colindale
London
United Kingdom
NW9 6BX
NICOBLOC PLC
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2022
- 9 -
2022
2021
Notes
£
£
Administrative expenses
(140,995)
(124,431)
Other operating income
1,042
208
Operating loss
6
(139,953)
(124,223)
Interest payable and similar expenses
9
(16,613)
(7,431)
Loss before taxation
(156,566)
(131,654)
Tax on loss
10
Loss for the financial year
(156,566)
(131,654)
NICOBLOC PLC
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2022
31 March 2022
- 10 -
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
11
193,313
254,191
Tangible assets
12
941
108
194,254
254,299
Current assets
Debtors
13
314,154
255,451
Cash at bank and in hand
235
265
314,389
255,716
Creditors: amounts falling due within one year
14
(993,307)
(828,209)
Net current liabilities
(678,918)
(572,493)
Total assets less current liabilities
(484,664)
(318,194)
Creditors: amounts falling due after more than one year
15
(38,430)
(48,334)
Net liabilities
(523,094)
(366,528)
Capital and reserves
Called up share capital
17
1,500,202
1,500,202
Share premium account
189,229
189,229
Profit and loss reserves
(2,212,525)
(2,055,959)
Total equity
(523,094)
(366,528)
The financial statements were approved by the board of directors and authorised for issue on 21 December 2022 and are signed on its behalf by:
A Haymes
Director
Company Registration No. 06535447
NICOBLOC PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 April 2020
1,500,202
189,229
(1,924,305)
(234,874)
Year ended 31 March 2021:
Loss and total comprehensive income for the year
-
-
(131,654)
(131,654)
Balance at 31 March 2021
1,500,202
189,229
(2,055,959)
(366,528)
Year ended 31 March 2022:
Loss and total comprehensive income for the year
-
-
(156,566)
(156,566)
Balance at 31 March 2022
1,500,202
189,229
(2,212,525)
(523,094)
NICOBLOC PLC
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2022
- 12 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
1
13,452
(11,548)
Interest paid
(16,613)
(6,433)
Net cash outflow from operating activities
(3,161)
(17,981)
Investing activities
Purchase of tangible fixed assets
(1,013)
Net cash used in investing activities
(1,013)
-
Financing activities
Repayment of borrowings
(998)
Repayment of bank loans
(8,053)
41,889
Dividends paid
(31,523)
Net cash (used in)/generated from financing activities
(8,053)
9,368
Net decrease in cash and cash equivalents
(12,227)
(8,613)
Cash and cash equivalents at beginning of year
(13,547)
(4,934)
Cash and cash equivalents at end of year
(25,774)
(13,547)
Relating to:
Cash at bank and in hand
235
265
Bank overdrafts included in creditors payable within one year
(26,009)
(13,812)
NICOBLOC PLC
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 13 -
1
Cash generated from/(absorbed by) operations
2022
2021
£
£
Loss for the year after tax
(156,566)
(131,654)
Adjustments for:
Finance costs
16,613
7,431
Amortisation and impairment of intangible assets
60,878
60,878
Depreciation and impairment of tangible fixed assets
180
54
Movements in working capital:
(Increase)/decrease in debtors
(58,703)
2,206
Increase in creditors
151,050
49,537
Cash generated from/(absorbed by) operations
13,452
(11,548)
2
Analysis of changes in net debt
1 April 2021
Cash flows
31 March 2022
£
£
£
Cash at bank and in hand
265
(30)
235
Bank overdrafts
(13,812)
(12,197)
(26,009)
(13,547)
(12,227)
(25,774)
Borrowings excluding overdrafts
(56,479)
8,053
(48,426)
(70,026)
(4,174)
(74,200)
3
Accounting policies
Company information
Nicobloc PLC is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
20-22 Wenlock Road, London, England, N1 7GU.
3.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
NICOBLOC PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
3
Accounting policies
(Continued)
- 14 -
3.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
3.3
Intangible fixed assets other than goodwill
Intangible assets
represents Patents which
are stated at cost less accumulated amortisation
.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values on the following bases:
Patents
Over their estimated useful life.
3.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Computers
33.33% on reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
3.5
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
3.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
NICOBLOC PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
3
Accounting policies
(Continued)
- 15 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in
profit
or
loss
, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade creditors
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
3.7
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
3.8
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
NICOBLOC PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
3
Accounting policies
(Continued)
- 16 -
3.9
Foreign exchange
Transactions in currencies other than
pounds sterling
are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
4
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
5
Revenue
2022
2021
£
£
Grants received
1,042
208
The turnover and loss before taxation are attributable to the one principal activity of the company.
The
analysis of turnover by class of business
and
geographical market
for the year ended 31 March 202
2 and 31 March 2021
not considered to be applicable
, as the company has not received turnover in these years.
6
Operating loss
2022
2021
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange gains
(12,212)
(9,023)
Government grants
(1,042)
(208)
Fees payable to the company's auditor for the audit of the company's financial statements
11,000
11,088
Depreciation of owned tangible fixed assets
180
54
Amortisation of intangible assets
60,878
60,878
NICOBLOC PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 17 -
7
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
4
4
8
Directors' remuneration
No remuneration was paid to the directors.
9
Interest payable and similar expenses
2022
2021
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
4,441
1,098
Other interest on financial liabilities
2,017
1,095
6,458
2,193
Other finance costs:
Interest on finance leases and hire purchase contracts
1,042
208
Finance costs for financial instruments measured at fair value through profit or loss
998
Other interest
9,113
4,032
16,613
7,431
10
Taxation
NICOBLOC PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
10
Taxation
(Continued)
- 18 -
No liability to UK corporation tax arose for the year ended 31 March 202
2
nor for the year ended
31 March 202
1
.
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is
explained below:
2022
2021
£
£
Loss before taxation
(156,566)
(131,654)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
(29,748)
(25,014)
Unutilised tax losses carried forward
18,255
13,563
Permanent capital allowances in excess of depreciation
11,493
11,451
Taxation charge for the year
-
-
At the balance sheet date, the company had a potential deferred tax asset of £
112
,
033
(202
1
: £
95,510
) in respect of
these unutilised trading losses. As it cannot be foreseen, with any underlying certainty, as to when this asset will be
realised in the near future, it has not been recognised in the accounts.
The Finance Bill 2021 enacted provisions to increase the main rate of corporation tax to 25% from the current rate of
19% from 1 April 2023. As it is unclear as to whether any deferred tax asset will be realised or whether the deferred
tax liability will be settled prior to the new corporation tax rate being applied, the current corporation tax rate of 19%
has continued to be utilised in calculating deferred tax.
11
Intangible fixed assets
Patents
£
Cost
At 1 April 2021 and 31 March 2022
1,521,955
Amortisation and impairment
At 1 April 2021
1,267,764
Amortisation charged for the year
60,878
At 31 March 2022
1,328,642
Carrying amount
At 31 March 2022
193,313
At 31 March 2021
254,191
NICOBLOC PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
11
Intangible fixed assets
(Continued)
- 19 -
During the year, no impairment provisions have been made against intangible fixed assets.
The patents are carried at amortised cost, in the opinion of the directors, and based on professional valuations
undertaken in 2017, the fair value of the patents is estimated to be in the region of $40 million to $50 million.
12
Tangible fixed assets
Computers
£
Cost
At 1 April 2021
2,419
Additions
1,013
At 31 March 2022
3,432
Depreciation and impairment
At 1 April 2021
2,311
Depreciation charged in the year
180
At 31 March 2022
2,491
Carrying amount
At 31 March 2022
941
At 31 March 2021
108
During the year, no impairment provisions have been made against any class of tangible fixed assets.
13
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
226,184
214,297
Other debtors
566
2,836
Prepayments and accrued income
87,404
38,318
314,154
255,451
During the year, no impairment provisions have been made against any class of debtors.
NICOBLOC PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 20 -
14
Creditors: amounts falling due within one year
2022
2021
Notes
£
£
Bank loans and overdrafts
16
36,005
21,957
Trade creditors
86,397
83,816
Other creditors
279,170
133,032
Accruals and deferred income
591,735
589,404
993,307
828,209
15
Creditors: amounts falling due after more than one year
2022
2021
Notes
£
£
Bank loans and overdrafts
16
38,430
48,334
16
Loans and overdrafts
2022
2021
£
£
Bank loans
48,426
56,479
Bank overdrafts
26,009
13,812
74,435
70,291
Payable within one year
36,005
21,957
Payable after one year
38,430
48,334
The loans are secured by personal guarantee given by 2 of the directors.
17
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of 0.1p each
1,500,202,290
1,500,202,290
1,500,202
1,500,202
Each of the ordinary shares have equal voting rights.
NICOBLOC PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 21 -
18
Reserves
Called-up share capital represents the nominal value of shares that have been issued.
Retained earnings include all current and prior period retained profits and losses, all of which do not contain any
non distributable reserves.
19
Related party transactions
Transactions with related parties
During the year under review,
royalties
amounting to £
30
,000
(202
1
: £27,055)
and consultancy fees amounting to £2,500 (2021 : £0)
were paid to the directors.
Other than the directors, there are no other key management personnel.
20
Ultimate controlling party
There is no ultimate controlling party.
2022-03-31
2021-04-01
false
CCH Software
CCH Accounts Production 2022.300
A Haymes
G Hayes
C Newman
J Dennehy
06535447
2021-04-01
2022-03-31
06535447
bus:Director1
2021-04-01
2022-03-31
06535447
bus:Director2
2021-04-01
2022-03-31
06535447
bus:Director3
2021-04-01
2022-03-31
06535447
bus:Director4
2021-04-01
2022-03-31
06535447
bus:RegisteredOffice
2021-04-01
2022-03-31
06535447
2022-03-31
06535447
2020-04-01
2021-03-31
06535447
core:RetainedEarningsAccumulatedLosses
2020-04-01
2021-03-31
06535447
core:RetainedEarningsAccumulatedLosses
2021-04-01
2022-03-31
06535447
core:OtherResidualIntangibleAssets
2022-03-31
06535447
core:OtherResidualIntangibleAssets
2021-03-31
06535447
core:PatentsTrademarksLicencesConcessionsSimilar
2022-03-31
06535447
core:PatentsTrademarksLicencesConcessionsSimilar
2021-03-31
06535447
2021-03-31
06535447
core:ComputerEquipment
2022-03-31
06535447
core:ComputerEquipment
2021-03-31
06535447
core:CurrentFinancialInstruments
core:WithinOneYear
2022-03-31
06535447
core:CurrentFinancialInstruments
core:WithinOneYear
2021-03-31
06535447
core:Non-currentFinancialInstruments
core:AfterOneYear
2022-03-31
06535447
core:Non-currentFinancialInstruments
core:AfterOneYear
2021-03-31
06535447
core:CurrentFinancialInstruments
2022-03-31
06535447
core:CurrentFinancialInstruments
2021-03-31
06535447
core:ShareCapital
2022-03-31
06535447
core:ShareCapital
2021-03-31
06535447
core:SharePremium
2022-03-31
06535447
core:SharePremium
2021-03-31
06535447
core:RetainedEarningsAccumulatedLosses
2022-03-31
06535447
core:RetainedEarningsAccumulatedLosses
2021-03-31
06535447
core:ShareCapital
2020-03-31
06535447
core:SharePremium
2020-03-31
06535447
core:RetainedEarningsAccumulatedLosses
2020-03-31
06535447
1
2021-04-01
2022-03-31
06535447
1
2020-04-01
2021-03-31
06535447
2021-03-31
06535447
2020-03-31
06535447
core:WithinOneYear
2022-03-31
06535447
core:WithinOneYear
2021-03-31
06535447
core:IntangibleAssetsOtherThanGoodwill
2021-04-01
2022-03-31
06535447
core:PatentsTrademarksLicencesConcessionsSimilar
2021-04-01
2022-03-31
06535447
core:ComputerEquipment
2021-04-01
2022-03-31
06535447
core:UKTax
2021-04-01
2022-03-31
06535447
core:UKTax
2020-04-01
2021-03-31
06535447
core:PatentsTrademarksLicencesConcessionsSimilar
2021-03-31
06535447
core:ComputerEquipment
2021-03-31
06535447
core:Non-currentFinancialInstruments
2022-03-31
06535447
core:Non-currentFinancialInstruments
2021-03-31
06535447
bus:PrivateLimitedCompanyLtd
2021-04-01
2022-03-31
06535447
bus:FRS102
2021-04-01
2022-03-31
06535447
bus:Audited
2021-04-01
2022-03-31
06535447
bus:FullAccounts
2021-04-01
2022-03-31
xbrli:pure
xbrli:shares
iso4217:GBP