Saab Seaeye Limited - Limited company accounts 20.1

REGISTERED NUMBER: 02022671 (England and Wales)

SAAB SEAEYE LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

M D Bates

T Broom

A M Gustafsson

J M Robertson

N C Kolmodin

SECRETARY:

S Kilpatrick

REGISTERED OFFICE:

20 Brunel Way

Segensworth East

Fareham

Hampshire

PO15 5SD

REGISTERED NUMBER:

02022671 (England and Wales)

AUDITORS:

Hopper Williams & Bell Limited

Statutory Auditor

Highland House

Mayflower Close

Chandler's Ford

Eastleigh

Hampshire

SO53 4AR

The directors present their strategic report for the year ended 31 December 2021.

REVIEW OF BUSINESS

Saab Seaeye Limited is the world's leading electric underwater robotics company, with the most advanced range of tethered, autonomous and hybrid electric robotic systems, engineered to address the diverse range of tasks found across commercial, defence and scientific markets. Our principal activity in the year under review was the design, manufacture, maintenance and sale of underwater robotic equipment.

The results for the company for the year ended 31 December 2021 show sales of £21.5m (2020: £16.8m) and a pre-tax profit of £77k (2020: loss of £2.6m).

Our chief market, the offshore energy sector, is moving to the gradual recovery phase of the cycle with the industry keenly focused on new technology to deliver essential cost reductions and improvements to health and safety and reduce environmental impact.

The company has continued to make significant strategic investments strengthening our portfolio and technology leadership whilst enhancing our production, manufacturing and project execution capability. The costs of these investments have been expensed in the year.

Alongside the offshore energy sector we are active in other global markets that have a growing demand for advanced underwater robotic systems. Notably the company has continued to grow in nuclear decommissioning, marine science, aqua-culture, and defence.

Despite challenges in our core market, the financial position of the company remains healthy and the directors look forward to capitalising on the strong interest in our products from a wide range of markets over the coming years.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and execution of the company's strategy are subject to a number of risks. The key business risks are delays in the timing of decisions within the offshore energy sector relating to new project start-ups, capital expenditure, and our customers' access to finance. The extent to which these risks will be exacerbated and compounded by the ongoing impacts of Coronavirus on the global economy and supply chains is very uncertain.

KEY PERFORMANCE INDICATORS

The company measures many Key Performance Indicators (KPIs) and the main ones used by the company are turnover and gross margin percentage. These KPIs were as follows:

Turnover - £21.5m (2020: £16.8m)

Gross margin percentage - 20.7% (2020: 5.1%)

FUTURE OUTLOOK

The offshore energy industry's focus on driving down the cost of offshore operations, improving health and safety and reducing carbon footprint is expected to drive sales for the company in the short term. In the medium and long term these factors will combine with the traditional drivers of supply and demand and an ageing installed global fleet to further increase sales.

Growth is forecast across all our other markets where we see a strong interest in our products and technology.

To meet the significant opportunities ahead we will continue to spend on R&D, leverage developments from within the wider Saab Group, and harness the rapid advances in digitalisation. We will continue investments developing and expanding key competences, building more strategic partnerships, and improving our operations. The board resolved to invest in additional facilities in 2022.

ON BEHALF OF THE BOARD:

J M Robertson - Director

14 October 2022

The directors present their report with the financial statements of the company for the year ended 31 December 2021.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2021.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2021 to the date of this report.

M D Bates

T Broom

A M Gustafsson

J M Robertson

Other changes in directors holding office are as follows:

B A Johansson - resigned 25 March 2021

N C Kolmodin was appointed as a director after 31 December 2021 but prior to the date of this report.

A Vosu and U P Nilsson ceased to be directors after 31 December 2021 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

J M Robertson - Director

14 October 2022

Opinion

We have audited the financial statements of Saab Seaeye Limited (the 'company') for the year ended 31 December 2021 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of 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 the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2021 and of its profit 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 opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 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.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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.

We have nothing to report in respect of the following matters where 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 directors' 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 Statement of Directors' Responsibilities set out on page four, 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 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.

Auditors' 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 a Report of the Auditors 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.

Extent to which the audit was capable of detecting irregularities, including fraud

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. Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities even though the audit has been properly planned and performed in accordance with the ISAs (UK). The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- We obtained an understanding of the legal and regulatory frameworks that are applicable to the company, and the industry in which it operates. These include but are not limited to compliance with the Companies Act 2006, UK Generally Accepted Accounting Practice, and the relevant tax compliance regulations for the company.

- We obtained an understanding of how the company is complying with these frameworks through discussions with management.

- We enquired with management whether there were any instances of non-compliance with laws and regulations or whether they had knowledge of actual or suspected fraud. These enquiries are corroborated through follow-up audit procedures including but not limited to a review of legal and professional costs, correspondence and a review of board minutes.

- We assessed the susceptibility of the company's financial statements to material misstatement, including the risk of fraud and management override of controls. We designed our audit procedures to respond to this assessment, including the identification and testing of any related party transactions and the testing of journal transactions that arise from management estimates, that are determined to be of significant value or unusual in their nature.

- We assessed the appropriateness of the collective competence and capabilities of the engagement team, including consideration of the engagement team's knowledge and understanding of the industry in which the company operates in, and their practical experience through training and participation with audit engagements of a similar nature.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

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 a Report of the Auditors 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.

Richard Hurst FCA (Senior Statutory Auditor)

for and on behalf of Hopper Williams & Bell Limited

Statutory Auditor

Highland House

Mayflower Close

Chandler's Ford

Eastleigh

Hampshire

SO53 4AR

17 October 2022

TURNOVER

3

21,471,114

16,845,552

Cost of sales

(17,019,884

)

(15,981,727

)

GROSS PROFIT

4,451,230

863,825

Administrative expenses

(4,363,507

)

(3,692,547

)

87,723

(2,828,722

)

Other operating income

10,228

211,874

OPERATING PROFIT/(LOSS)

5

97,951

(2,616,848

)

Interest payable and similar expenses

6

(21,307

)

(23,860

)

PROFIT/(LOSS) BEFORE TAXATION

76,644

(2,640,708

)

Tax on profit/(loss)

7

390,253

680,599

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

466,897

(1,960,109

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

466,897

(1,960,109

)

FIXED ASSETS

Intangible assets

8

642,243

1,097,429

Tangible assets

9

252,549

232,959

Investments

10

2

2

894,794

1,330,390

CURRENT ASSETS

Stocks

11

10,427,437

10,495,375

Debtors

12

10,225,046

5,812,177

Cash at bank and in hand

4,958,117

2,381

25,610,600

16,309,933

CREDITORS

Amounts falling due within one year

13

(12,400,720

)

(4,002,546

)

NET CURRENT ASSETS

13,209,880

12,307,387

TOTAL ASSETS LESS CURRENT LIABILITIES

14,104,674

13,637,777

CAPITAL AND RESERVES

Called up share capital

16

10,408

10,408

Retained earnings

17

14,094,266

13,627,369

SHAREHOLDERS' FUNDS

14,104,674

13,637,777

The financial statements were approved by the Board of Directors and authorised for issue on 14 October 2022 and were signed on its behalf by:

J M Robertson - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2020

10,408

15,587,478

15,597,886

Changes in equity

Total comprehensive income

-

(1,960,109

)

(1,960,109

)

Balance at 31 December 2020

10,408

13,627,369

13,637,777

Changes in equity

Total comprehensive income

-

466,897

466,897

Balance at 31 December 2021

10,408

14,094,266

14,104,674

1.	STATUTORY INFORMATION

Saab Seaeye 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 FRS 102 "The Financial Reporting Standards 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 amounts in these financial statements are rounded to the nearest £1.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

Going concern

The ultimate parent company (Saab AB) has confirmed that it will, if required, provide financial support to the company for at least twelve months following the date of approval of the financial statements. The going concern basis has therefore been applied in preparing the financial statements.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

the requirement of paragraph 33.7.

Preparation of consolidated financial statements

The financial statements contain information about Saab Seaeye Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 401 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Saab AB, which has its registered office at SE-581 88 Linköping, Sweden.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Critical accounting judgements and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year relate primarily to the recognition of revenue, the valuation of stock, the valuation of warranty provisions, and the valuation of the deferred tax asset. The deferred tax asset (£1.3m as at 31 December 2021) arises as a result of accumulated trading losses. The recovery of this asset is dependent on the company making sufficient taxable profits against which the losses can be relieved. Management have prepared trading forecasts which demonstrate that this will be the case. In their view it is probable that the deferred tax asset will be realised and consequently it has been recognised as an asset.

Turnover

Turnover represents net sales of goods, excluding value added tax. Turnover is recognised to the extent that the company has fulfilled its contractual obligations.

Government grants

The following government grant has been received during the year:

- Coronavirus Job Retention Scheme: the accrual model has been used to recognise the grant on a systematic basis over the periods in which the related staff costs are incurred.

Goodwill and investment in subsidiary

In September 2013 the company acquired 100% of the issued share capital of Hydro-Lek Limited at initially recognised its investment in the subsidiary at the cost of acquisition. In January 2016 the underlying trade and assets were hived up to the company. Goodwill arising at the date of acquisition was therefore recognised as part of the hive-up. The goodwill is being amortised from the date of acquisition over its expected useful life of ten years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Short leasehold

-

Over the length of the lease

Plant and machinery

-

3-7 years straight line

Fixtures and fittings

-

Straight line over 3 - 5 years

Motor vehicles

-

Straight line over 3 - 5 years

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 recognised in the income statement.

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

Stocks and work in progress include costs of conversion, specifically the costs of direct labour and a systematic allocation of fixed and variable production overheads that are incurred in converting materials into finished goods.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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

Expenditure for research undertaken in an effort to gain new scientific or technological knowledge is expensed when incurred. Expenditure for development, where the research results or other knowledge is applied to new or improved products or processes, is recognised as an asset in the balance sheet from the time when the company can demonstrate the following:

(a) The technical feasibility of completing the intangible asset so that it will be available for use or sale.

(b) Its intention to complete the intangible asset and use or sell it.

(c) Its ability to use or sell the intangible asset.

(d) How the intangible asset will generate probable future economic benefits.

(e) The availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset.

(f) Its ability to measure reliably the expenditure attributable to the intangible asset during its development.

The carrying amount includes expenditure for material, direct expenditure for salaries and, if applicable, other expenditure that is considered directly attributable to the asset. Other expenditures for development are written off as an expense when they arise. Development expenditure is recognised in the balance sheet at cost less accumulated amortisation and any impairment losses. Expenditure is amortised over its useful economic life of seven years. The expense is classified under administrative expenses.

No further research and development costs are to be capitalised following a change in policy to come in line with the policies of the parent company. The existing capitalised research and development costs will continue to be amortised on the same basis.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the profit and loss account 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.

Financial assets

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 assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Basic financial assets, which include trade and other receivables 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 financial transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Financial liabilities

Basic financial liabilities, which include trade and other payables, are initially measured at transaction price and subsequently measured at amortised cost, unless the arrangement constitutes a financing transaction where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Equity instruments

Equity instruments issued by the company are recorded at the fair value of the proceeds received net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

3.

TURNOVER

The turnover and profit (2020 - loss) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2021

2020

£

£

United Kingdom

6,008,557

6,288,284

Europe

4,492,067

2,019,558

United States of America

355,442

868,490

South America

4,607,947

3,298,482

Rest of the world

6,007,101

4,370,738

21,471,114

16,845,552

4.	EMPLOYEES AND DIRECTORS

2021

2020

£

£

Wages and salaries

4,631,053

4,867,143

Social security costs

501,051

494,635

Other pension costs

401,808

422,647

5,533,912

5,784,425

The average number of employees during the year was as follows:

2021

2020

Engineering

42

42

Production

68

68

Administration

9

10

Sales

9

10

128

130

2021

2020

£

£

Directors' remuneration

353,798

347,107

Directors' pension contributions to money purchase schemes

47,589

45,444

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

2

Information regarding the highest paid director is as follows:

2021

2020

£

£

Emoluments etc

140,903

144,357

Pension contributions to money purchase schemes

14,437

12,853

5.	OPERATING PROFIT/(LOSS)

The operating profit (2020 - operating loss) is stated after charging:

2021

2020

£

£

Hire of plant and machinery

72,690

57,530

Other operating leases

342,838

360,059

Depreciation - owned assets

142,876

145,108

Goodwill amortisation

212,200

212,199

Development costs amortisation

242,986

242,985

Auditors' remuneration

22,125

21,065

Auditors' remuneration for non audit work

9,900

10,665

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2021

2020

£

£

Bank interest

21,307

23,860

7.

TAXATION

Analysis of the tax credit

The tax credit on the profit for the year was as follows:

2021

2020

£

£

Current tax:

UK corporation tax

(165,488

)

(183,953

)

Deferred tax

(224,765

)

(496,646

)

Tax on profit/(loss)

(390,253

)

(680,599

)

Reconciliation of total tax credit included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2021

2020

£

£

Profit/(loss) before tax

76,644

(2,640,708

)

Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 19% (2020 - 19%)

14,562

(501,735

)

Effects of:

Expenses not deductible for tax purposes

1,938

142

assets

R&D expenditure credit

(165,488

)

(183,953

)

Amortisation not allowable

86,485

86,485

Difference in deferred tax rates

(319,803

)

(81,538

)

Other differences

(7,947

)

-

Total tax credit

(390,253

)

(680,599

)

8.	INTANGIBLE FIXED ASSETS

Development

Goodwill

costs

Totals

£

£

£

COST

At 1 January 2021

and 31 December 2021

1,593,886

1,700,896

3,294,782

AMORTISATION

At 1 January 2021

1,060,999

1,136,354

2,197,353

Amortisation for year

212,200

242,986

455,186

At 31 December 2021

1,273,199

1,379,340

2,652,539

NET BOOK VALUE

At 31 December 2021

320,687

321,556

642,243

At 31 December 2020

532,887

564,542

1,097,429

9.	TANGIBLE FIXED ASSETS

Fixtures

Short

Plant and

and

Motor

leasehold

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST

At 1 January 2021

855,763

1,210,932

412,300

21,999

2,500,994

Additions

-

39,899

122,567

-

162,466

At 31 December 2021

855,763

1,250,831

534,867

21,999

2,663,460

DEPRECIATION

At 1 January 2021

853,472

1,040,269

352,295

21,999

2,268,035

Charge for year

2,291

96,656

43,929

-

142,876

At 31 December 2021

855,763

1,136,925

396,224

21,999

2,410,911

NET BOOK VALUE

At 31 December 2021

-

113,906

138,643

-

252,549

At 31 December 2020

2,291

170,663

60,005

-

232,959