Process Vision Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 10223848 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2020

FOR

PROCESS VISION LIMITED

Page

Company Information

1

Balance Sheet

2

Statement of Changes in Equity

4

Notes to the Financial Statements

5

DIRECTORS:

P G A Stockwell

J W T Fisher

S J Foale

SECRETARY:

S J Foale

REGISTERED OFFICE:

5 Beechwood

Lime Tree Way

Chineham Park

Basingstoke

Hampshire

RG24 8WA

REGISTERED NUMBER:

10223848 (England and Wales)

ACCOUNTANTS:

Haines Watts

Advantage

87 Castle Street

Reading

Berkshire

RG1 7SN

FIXED ASSETS

Intangible assets

4

1,283,085

855,607

Tangible assets

5

66,740

37,153

Investments

6

7,218

7,218

1,357,043

899,978

CURRENT ASSETS

Debtors

7

136,362

178,563

Cash at bank

-

3,463

136,362

182,026

CREDITORS

Amounts falling due within one year

8

1,291,051

805,679

NET CURRENT LIABILITIES

(1,154,689

)

(623,653

)

TOTAL ASSETS LESS CURRENT LIABILITIES

202,354

276,325

CREDITORS

Amounts falling due after more than one year

9

34,478

-

NET ASSETS

167,876

276,325

CAPITAL AND RESERVES

Called up share capital

12

17,787

16,459

Share premium

1,815,478

1,432,592

Retained earnings

(1,665,389

)

(1,172,726

)

SHAREHOLDERS' FUNDS

167,876

276,325

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2020 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 25 June 2020 and were signed on its behalf by:

P G A Stockwell - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 April 2018

13,921

(396,235

)

707,928

325,614

Prior year adjustment

-

34,343

-

34,343

As restated

13,921

(361,892

)

707,928

359,957

Changes in equity

Issue of share capital

2,538

-

724,664

727,202

Total comprehensive income

-

(729,212

)

-

(729,212

)

Balance at 31 March 2019

16,459

(1,091,104

)

1,432,592

357,947

Prior year adjustment

-

(81,622

)

-

(81,622

)

As restated

16,459

(1,172,726

)

1,432,592

276,325

Changes in equity

Issue of share capital

1,328

-

382,886

384,214

Total comprehensive income

-

(492,663

)

-

(492,663

)

Balance at 31 March 2020

17,787

(1,665,389

)

1,815,478

167,876

1.	STATUTORY INFORMATION

Process Vision Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.

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

Revenue

Revenue is recognised to the extent that is it probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Intangible assets

Subsequent to initial recognition, intangible assets are stated at cost less any accumulated amortisation and accumulated impairment. Intangible assets are amortised on a straight line basis over their estimated useful lives. The carrying value of the intangible assets is reviewed for impairment if events or changes in circumstances indicate the carrying value may not be recoverable.

The useful economic lives of intangible assets are as follows:

Development cost - 10 years

Patents - 10 years

Amortisation of the assets will begin when development is complete and the assets are available for use.

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operation the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Leasehold improvements - 20% Straight line basis

Plant and machinery - 20% Straight line basis

Fixtures and fittings - 20% Straight line basis

Office equipment - 25% Straight line basis

Development test rig - 20% Straight line basis

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or there is an indication of significant change since the last reporting date.

Government grants

Grants of a revenue nature are recognised in the profit and loss in the same period as the related expenditure.

Grants relating to capital expenditure are deferred and recognised as a separate liability.

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Financial instruments

Financial liabilities and equity are classified according to the substance of the financial instrument's contractual obligations, rather than its legal form.

The Company's cash at bank and in hand, other debtors, trade and other creditors, amounts owed to group undertakings and accruals are measured initially at the transaction price, including transaction cost, and subsequently at amortised cost using the effective interest method. Debt instruments that re payable or receivable within one year are measured at the undiscounted amount of the cash or other consideration expected to be paid or received.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development

Research costs are expensed as incurred. Development expenditure on an individual project is recognised as an intangible asset when the Company can demonstrate all of the following:

- The technical feasibility of completing the intangible asset so that the asset will be available for use or sale;

- Its intention to complete and its ability to use or sell the asset;

- How the asset will generate future economic benefits;

- The availability of resources to complete the asset;

- The ability to measure reliably the expenditure during development.

Following initial recognition of the development expenditure as an asset, the asset is carried at cost less any accumulated amortisation and accumulated impairment losses. Amortisation of the asset begins when development is complete and the asset is available for use. It is amortised over the period of expected future benefit. During the period of development, the asset is tested for impairment annually.

Foreign currencies

Foreign currency transactions are translated at rates ruling when they occurred. Foreign currency monetary assets and liabilities are translated at the rates ruling at the balance sheet date. Any differences are taken to profit or loss.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Share based payments

The cost of equity-settled transactions with employees is measured by reference to the fair value at the date at which they are granted and is recognised as expense over the vesting periods, which end on the date on which the relevant employees become fully entitled to the award. In the absence of an independent valuation, fair value is determined based on recent transactions regarding the sale of shares in the company to independent third party investors.

At each balance sheet date before vesting, the cumulative expense is calculated, representing the extent to which the vesting period has expired and management's best estimate of the achievement or otherwise of non-market conditions and the number of equity instruments that will ultimately vest, or in the case of an instrument subject to a market condition be treated as vesting as described above. The movement in cumulative expense since the previous balance sheet date is recognised in profit of loss, with a corresponding entry in equity.

Going concern

The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. In particular, in response to the COVID-19 pandemic, the Directors have tested their cash flow analysis to take into account the impact on their business of possible scenarios brought on by the impact of COVID-19, alongside the measures that they can take to mitigate the impact. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 9 (2019 - 7 ) .

4.	INTANGIBLE FIXED ASSETS

Patents

and

Development

licences

costs

Totals

£

£

£

COST

At 1 April 2019

184,873

765,089

949,962

Additions

55,698

371,780

427,478

At 31 March 2020

240,571

1,136,869

1,377,440

AMORTISATION

At 1 April 2019

and 31 March 2020

-

94,355

94,355

NET BOOK VALUE

At 31 March 2020

240,571

1,042,514

1,283,085

At 31 March 2019

184,873

670,734

855,607

5.	TANGIBLE FIXED ASSETS

Fixtures

Leasehold

Plant and

and

improvements

machinery

fittings

£

£

£

COST

At 1 April 2019

4,668

1,000

4,000

Additions

-

49,254

-

At 31 March 2020

4,668

50,254

4,000

DEPRECIATION

At 1 April 2019

934

400

1,600

Charge for year

933

6,767

800

At 31 March 2020

1,867

7,167

2,400

NET BOOK VALUE

At 31 March 2020

2,801

43,087

1,600

At 31 March 2019

3,734

600

2,400

Development

testing

Office

rig

equipment

Totals

£

£

£

COST

At 1 April 2019

22,000

30,018

61,686

Additions

-

984

50,238

At 31 March 2020

22,000

31,002

111,924

DEPRECIATION

At 1 April 2019

8,800

12,799

24,533

Charge for year

4,400

7,751

20,651

At 31 March 2020

13,200

20,550

45,184

NET BOOK VALUE

At 31 March 2020

8,800

10,452

66,740

At 31 March 2019

13,200

17,219

37,153

6.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 April 2019

and 31 March 2020

7,218

NET BOOK VALUE

At 31 March 2020

7,218

At 31 March 2019

7,218

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

as

restated

£

£

Trade debtors

1,207

-

Other debtors

36,157

62,225

Tax

64,998

67,619

VAT

10,440

28,051

Prepayments and accrued income

23,560

20,668

136,362

178,563

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

as

restated

£

£

Bank loans and overdrafts

59,750

-

Hire purchase contracts (see note 10)

9,851

-

Trade creditors

122,832

159,458

Social security and other taxes

8,219

17,961

Other creditors

97,311

109,131

Loans from directors

273,925

68,925

Accruals and deferred income

131,906

78,984

USA accrued costs

128,039

136,576

Deferred government grants

459,218

234,644

1,291,051

805,679

Subsequent to the year-end the amount due to P G A Stockwell of £23,925 was converted into additional share capital.

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2020

2019

as

restated

£

£

Hire purchase contracts (see note 10)

34,478

-

10.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase

contracts

2020

2019

as

restated

£

£

Net obligations repayable:

Within one year

9,851

-

Between one and five years

34,478

-

44,329

-

Non-cancellable

operating leases

2020

2019

as

restated

£

£

Within one year

82,225

71,330

Between one and five years

165,592

247,817

247,817

319,147

11.	SECURED DEBTS

The following secured debts are included within creditors:

2020

2019

as

restated

£

£

Hire purchase contracts

44,329

-

Hire purchase amounts due are secured against the underlying assets.

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2020

2019

value:

as restated

£

£

1,778,718

Ordinary

£0.01

17,787

16,459

13.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

At the year-end loans owed to P G A Stockwell totalled £23,925 (2019: £18,925) and are included within creditors. There were no terms and conditions attached to amounts owed to P G A Stockwell.

At the year-end loans owed to J W T Fisher totalled £250,000 (2019: £50,000). Interest payable by the company to J W T Fisher in respect of the loan balance during the year totalled £27,500 (2019: £1,000). At the year-end interest due to J W T Fisher, in addition to the above totalled £28,500 (2019: £1,000). Interest is charged at 1% per month.

At the year-end £75,000 (2019: £100,000) of creditors were personally guaranteed by P G A Stockwell. Interest has been accrued on the above balance.

14.	POST BALANCE SHEET EVENTS

Subsequent to the year end the company has issued a further 217,019 Ordinary shares of £0.01 for £2 each, with total consideration of £434,038.

15.	SHARE-BASED PAYMENTS

The company operates and unapproved equity-settled share based payment remuneration scheme.

At the year-end 47,288 share options had been granted, of which 14,022 related to options granted to two directors.

The directors have considered the impact of the share based payment charge and do not consider this to be material to the current year's financial statements.