C-Probe Systems Limited - Period Ending 2018-12-31

Registration number: 04824597

C-Probe Systems Limited

Unaudited Financial Statements

for the Year Ended 31 December 2018

C-Probe Systems Limited

Contents

Statement of Financial Position	1 to 2
Notes to the Financial Statements	3 to 11

C-Probe Systems Limited

(Registration number: 04824597)
Statement of Financial Position as at 31 December 2018

	Note	2018 £	2017 £
Fixed assets
Tangible assets	4	9,248	13,534
Current assets
Stocks	5	16,000	20,213
Debtors	6	276,277	337,277
Cash at bank and in hand		117	5,869
		292,394	363,359
Creditors: Amounts falling due within one year	7	(564,777)	(384,705)
Net current liabilities		(272,383)	(21,346)
Total assets less current liabilities		(263,135)	(7,812)
Creditors: Amounts falling due after more than one year	7	(43,902)	(117,770)
Provisions for liabilities		(11,490)	(11,490)
Net liabilities		(318,527)	(137,072)
Capital and reserves
Called up share capital		100	100
Profit and loss account		(318,627)	(137,172)
Shareholders' funds		(318,527)	(137,072)

The notes on pages 3 to 11 form an integral part of these financial statements.

Page 1

C-Probe Systems Limited

(Registration number: 04824597)
Statement of Financial Position as at 31 December 2018

For the financial year ending 31 December 2018 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 Income Statement has been taken.

Approved and authorised by the Board on 27 September 2019 and signed on its behalf by:
 

.........................................

Mr S C Davis
Director

.........................................

Mr G Jones
Director

The notes on pages 3 to 11 form an integral part of these financial statements.

Page 2

C-Probe Systems Limited

Notes to the Financial Statements for the Year Ended 31 December 2018

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:
Unit 2
Sherdley Road Industrial Estate
Wharton Street
St Helens
Lancashire
WA9 5AA

These financial statements were authorised for issue by the Board on 27 September 2019.

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.

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.

Going concern

At the balance sheet date, the company's liabilities exceeded its assets. The company is relying on the continuing support of its creditors and there is no indication that they will not continue to give financial support to the company for the foreseeable future and for a period not less than 12 months from the date of signing these financial statements.

On this basis, the directors consider it appropriate to prepare the accounts on the going concern basis. However, should the financial support mentioned above not be forthcoming the going concern basis used in preparing the company's accounts may be invalid and adjustments would have to be made to reduce the value of assets to their realisable amount and provide for any further liabilities which might arise. The accounts do not include any adjustment to the company's assets or liabilities that might be be necessary should this basis not continue to be appropriate.

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.

Page 3

C-Probe Systems Limited

Notes to the Financial Statements for the Year Ended 31 December 2018

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.

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
Office Equipment	25% Straight line
Plant and test equipment	25% Straight line
Furniture and fixtures	25% Straight line

Development costs & License Fees

Development expenditure incurred on an individual project is carried forward when it's future recoverability can reasonably be regarded as assured. Any expenditure carried forward is amortised in line with the expected future sales from the related project.

License fees are capitalised on the balance sheet and amortised over the period of each license.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Licence fee	10% Straight line
Development costs	50% Straight line

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.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Page 4

C-Probe Systems Limited

Notes to the Financial Statements for the Year Ended 31 December 2018

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability in the statement of financial position. The corresponding dividends relating to the liability component are charged as interest expense in the income statement,
 
 

Page 5

C-Probe Systems Limited

Notes to the Financial Statements for the Year Ended 31 December 2018

3	Intangible assets

	Development costs  £	Total £
Cost or valuation
At 1 January 2018	155,094	155,094
At 31 December 2018	155,094	155,094
Amortisation
At 1 January 2018	155,094	155,094
At 31 December 2018	155,094	155,094
Carrying amount
At 31 December 2018	-	-

4	Tangible assets

	Fixtures and fittings £	Plant and machinery £	Office equipment £	Motor vehicles  £
Cost or valuation
At 1 January 2018	2,586	36,756	28,123	-
Additions	-	-	-	10,095
Disposals	-	-	-	(2,895)
At 31 December 2018	2,586	36,756	28,123	7,200
Depreciation
At 1 January 2018	1,555	24,525	27,851	-
Charge for the year	647	9,185	154	1,681
Eliminated on disposal	-	-	-	(181)
At 31 December 2018	2,202	33,710	28,005	1,500
Carrying amount
At 31 December 2018	384	3,046	118	5,700
At 31 December 2017	1,031	12,231	272	-

Page 6

C-Probe Systems Limited

Notes to the Financial Statements for the Year Ended 31 December 2018

	Total £
Cost or valuation
At 1 January 2018	67,465
Additions	10,095
Disposals	(2,895)
At 31 December 2018	74,665
Depreciation
At 1 January 2018	53,931
Charge for the year	11,667
Eliminated on disposal	(181)
At 31 December 2018	65,417
Carrying amount
At 31 December 2018	9,248
At 31 December 2017	13,534

Page 7

C-Probe Systems Limited

Notes to the Financial Statements for the Year Ended 31 December 2018

5

Stocks

	2018 £	2017 £
Other inventories	16,000	20,213

6

Debtors

	Note	2018 £	2017 £
Trade debtors		24,651	63,461
Amounts owed by group undertakings and undertakings in which the company has a participating interest	11	26,089	129,673
Other debtors		225,537	144,143
		276,277	337,277

Page 8

C-Probe Systems Limited

Notes to the Financial Statements for the Year Ended 31 December 2018

7

Creditors

Creditors: amounts falling due within one year

	Note	2018 £	2017 £
Due within one year
Bank loans and overdrafts	8	160,875	134,477
Trade creditors		21,925	107,839
Amounts owed to group undertakings and undertakings in which the company has a participating interest	11	287,919	-
Taxation and social security		51,074	45,734
Other creditors		42,984	96,655
		564,777	384,705

Creditors: amounts falling due after more than one year

	Note	2018 £	2017 £
Due after one year
Loans and borrowings	8	43,902	117,770

8	Loans and borrowings

	2018 £	2017 £
Non-current loans and borrowings
Bank borrowings	43,902	117,770

	2018 £	2017 £
Current loans and borrowings
Bank borrowings	160,759	134,477
Bank overdrafts	116	-
	160,875	134,477

Secured creditors
The loan from F W Capital Limited is secured by way of a debenture dated 15 January 2015 over the fixed and floating assets of the company. The bank loan is secured in favour of The Royal Bank of Scotland by a debenture dated 26 September 2007 over the fixed and floating assets of the company.
 

Page 9

C-Probe Systems Limited

Notes to the Financial Statements for the Year Ended 31 December 2018

9	Financial commitments, guarantees and contingencies

The company was subject to a counter-claim against a debt recovery suit that it has filed against a client in the USA. This was a long-standing dispute being dealt with through the company's insurers. Following the year end the claim was settled on a no fault basis through the insurers of the US contractor and C-Probe Systems Limited. The net cost to C-Probe Systems Ltd was US$5,000 (£3,925).

10	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 5 (2017 - 5).

Page 10

C-Probe Systems Limited

Notes to the Financial Statements for the Year Ended 31 December 2018

11	Related party transactions

Transactions with directors

2018	At 1 January 2018 £	Advances to directors £	At 31 December 2018 £
Mr S C Davis
Amounts advanced	103,512	44,870	148,382
Interest charged	-	3,169	3,169
	103,512	48,039	151,551
Mr G Jones
Amounts advanced	7,245	5,900	13,145
Interest charged	-	269	269
	7,245	6,169	13,414

Interest is charged, at HMRC's Official Rate, on sums advanced to directors when the cumulative amount outstanding exceeds £10,000.

2017	At 1 January 2017 £	Advances to directors £	At 31 December 2017 £
Mr S C Davis
Amounts advanced	83,028	17,727	100,755
Interest charged	-	2,757	2,757
	83,028	20,484	103,512
Mr G Jones
Amounts advanced	-	7,245	7,245
	-	7,245	7,245

12	Parent and ultimate parent undertaking

The company's immediate parent is C-Probe Group Limited, incorporated in England and Wales. The registered office is Unit 2 Sherdley Road Industrial Estate, Wharton Road, St Helens, Lancashire, WA9 5AA.

 

Page 11