Diamond Microwave Devices Limited - Period Ending 2019-12-31

Registered number: 05882717

Diamond Microwave Devices Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2019

Diamond Microwave Devices Limited

Balance Sheet as at 31 December 2019

	Note	2019 £	2018 £
Fixed assets
Tangible assets	4	2,208	16,646
Current assets
Stocks	5	470	48,675
Debtors	6	240,478	255,115
Cash at bank and in hand		247,213	12,408
		488,161	316,198
Creditors: Amounts falling due within one year	7	(50,144)	(298,093)
Net current assets		438,017	18,105
Net assets		440,225	34,751
Capital and reserves
Called up share capital		250	250
Share premium reserve		-	4,400,139
Profit and loss account		439,975	(4,365,638)
Total equity		440,225	34,751

For the financial year ending 31 December 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 30 April 2020 and signed on its behalf by:
 

T R Rowbotham - Director
Diamond Microwave Devices Limited (Registered number: 05882717)

Diamond Microwave Devices Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
C/O Longwall Venture Partners LLP
Quad One
Becquerel Avenue
Harwell
OX11 0RA
United Kingdom

These financial statements were authorised for issue by the Board on 30 April 2020.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Diamond Microwave Devices Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Fixtures and fittings	Straight line basis between 36 and 60 months

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Diamond Microwave Devices Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

3	Staff numbers

The average number of persons employed by the company during the year, was 6 (2018 - 6).

4	Tangible assets

	Furniture, fittings and equipment  £	Total £
Cost or valuation
At 1 January 2019	317,782	317,782
Additions	1,694	1,694
Disposals	(16,494)	(16,494)
At 31 December 2019	302,982	302,982
Depreciation
At 1 January 2019	301,136	301,136
Charge for the year	3,251	3,251
Eliminated on disposal	(3,613)	(3,613)
At 31 December 2019	300,774	300,774
Carrying amount
At 31 December 2019	2,208	2,208
At 31 December 2018	16,646	16,646

5

Stocks

	2019 £	2018 £
Work in progress	470	48,535
Other inventories	-	140
	470	48,675

Diamond Microwave Devices Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

6

Debtors

	Note	2019 £	2018 £
Trade debtors		227,092	227,448
Amounts owed by group undertakings	9	869	-
Other debtors		12,517	27,667
Total current trade and other debtors		240,478	255,115

7

Creditors

Creditors: amounts falling due within one year

	Note	2019 £	2018 £
Due within one year
Trade creditors		1,956	51,112
Amounts owed to group undertakings and undertakings in which the company has a participating interest	9	-	158,305
Taxation and social security		34,540	49,314
Other creditors		-	2,763
Accrued expenses		13,648	36,599
		50,144	298,093

8	Share capital

Allotted, called up and fully paid shares

	2019		2018
	No.	£	No.	£
Ordinary Shares of £0.001 each	250,000	250.00	250,000	250.00

Diamond Microwave Devices Limited

Notes to the Financial Statements for the Year Ended 31 December 2019

9	Related party transactions

Summary of transactions with parent

As at the reporting date the company was owed £869 by the parent company. At the end of 2018 this balance was £158,305 owing to the parent. This inter-company loan is included within Other Debtors.
 

Summary of transactions with other related parties

During the year the company signed a licensing agreement with a new company, Diamond Microwave Limited for part of its product portfolio. As part of the agreement items of stock were transferred to Diamond Microwave Limited totalling approximately £10,000 for nil consideration. Richard Lang, director of the company, is also a director of Diamond Microwave Limited.

Greens Business Services Ltd have provided Diamond Microwave Devices Limited with advice and consultancy services during the year (totalling £32,843). Derek Green, who served briefly as a director of the company from April to July 2019 is a director of Greens Business Services Ltd. All transactions were conducted on a commercial arms length basis.

Certain investors are entitled to monitoring fees under the terms of their investment. During the year the ERA Foundation (represented on the board by Dr Rowbotham) were paid fees of £10,000. Oxford Technology ECF (GP) LLP (of whom David Denny is a controlling party) were paid fees of £10,000.
 

10	Parent and ultimate parent undertaking

The company's immediate parent is Diamond Microwave Holdings Limited, incorporated in England and Wales.