Synaptec Ltd - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: SC472060 (Scotland)

Financial Statements for the Year Ended 31 December 2019

for

Synaptec Ltd

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

3

DIRECTORS:

P J G Orr

Dr C Booth

N A Ellis

Dr P Niewczas

D C N Pratt

T G Mckinstry

SECRETARY:

P J G Orr

REGISTERED OFFICE:

120 Bothwell Street

Glasgow

G2 7JL

REGISTERED NUMBER:

SC472060 (Scotland)

AUDITORS:

Johnston Carmichael LLP

227 West George Street

Glasgow

G2 2ND

FIXED ASSETS

Tangible assets

4

54,529

12,470

CURRENT ASSETS

Stocks

62,323

52,014

Debtors

5

204,752

55,181

Cash at bank

2,703,489

288,291

2,970,564

395,486

CREDITORS

Amounts falling due within one year

6

24,637

48,612

NET CURRENT ASSETS

2,945,927

346,874

TOTAL ASSETS LESS CURRENT LIABILITIES

3,000,456

359,344

CAPITAL AND RESERVES

Called up share capital

8

239

158

Share premium

9

3,215,788

401,487

Share based payments reserve

9

20,839

-

Retained earnings

9

(236,410

)

(42,301

)

SHAREHOLDERS' FUNDS

3,000,456

359,344

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 Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 12 August 2020 and were signed on its behalf by:

P J G Orr - Director

1.	STATUTORY INFORMATION

Synaptec Ltd is a private company, limited by shares , registered in Scotland. 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.

Prior year adjustments

The directors have revisited the classifications of certain balances and transaction totals included within the 2018

financial statements. Following this review the following reclassifications have been made;

Accrued income of £41,219 disclosed in the prior year within stocks has been reclassified to debtors to better

reflect the nature of the balance. The reclassification has resulted in the balance of stocks previously disclosed

decreasing from £93,233 to £52,104 and the balance of debtors previously disclosed increasing from £13,962 to

£55,181.

Grant income recognised in the prior year statement of comprehensive income of £223,690 has been reclassified

from turnover to other operating income, again to better reflect the nature of the income received. The

reclassification has resulted in 2018 turnover decreasing from £468,135 to £244,445 and 2018 other operating

income increasing from £Nil to £223,690.

Turnover

Turnover represents income from the sale of the company's products and is recognised at the fair value of the

consideration received or receivable for goods provided in the normal course of business. Turnover is recognised

when the significant risks and rewards of ownership of the goods have passed to the buyer, the amount of

revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will

flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Where product sales include predetermined milestones such as product testing or installation, turnover is

recognised on completion of these milestones.

Tangible fixed assets

Tangible fixed assets are stated at historical cost less accumulated depreciation and any 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 operating in the manner intended by management.

Depreciation is charged to profit or loss over the estimated useful life economic lives as follows-

-Plant and machinery- Over 5 years on straight line basis

-Computer and equipment- 33% on cost.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes

expenditure incurred in acquiring the stocks, production or conversion costs and other costs in bringing them to

their existing location and condition .

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is

reduced to its estimated selling price less costs to complete and sell. The impairment is recognized immediately

within profit and loss.

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 statement of financial position date.

Research and Development tax credits are recognised at the fair value of the asset received or receivable when

there is reasonable assurance that claims will be successful.

Deferred tax

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

statement of financial position 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 on research and development is written off in the year in which it is incurred.

Foreign currencies

Transactions in foreign currencies are translated to the company's functional currency at the foreign exchange

rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the

balance sheet date are retranslated to the functional currency at the foreign exchange rate ruling at that date.

Foreign exchange differences arising on translation are recognized in profit or loss.

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.

Government grants

Government grants are recognsied at the fair value of the asset received or receivable when there is reasonable

assurance that the grant conditions will be met and the grants will be received.

Government grants relating to turnover are recognised as income over the periods when the related costs are

incurred.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company

has adequate resources to continue in operational existence for the foreseeable future. In forming this assessment,

the directors have considered existing company resources as well as forecast trading and cash flows for a period

of at least twelve months from the approval of the financial statements. The directors have also considered the

impact of the Global COVID-19 pandemic and are confident that they can manage any short term operational or

commercial challenges presented by the pandemic.

Based on the above factors the directors continue to adopt the going concern basis of accounting in preparing the

financial statements.

Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value

of the equity instruments granted. Where material, the fair value determined at the grant date is expensed on a

straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A

corresponding adjustment is made to equity.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 11 (2018 - 6 ) .

4.	TANGIBLE FIXED ASSETS

Plant and

Computer

machinery

equipment

Totals

£

£

£

COST

At 1 January 2019

18,025

650

18,675

Additions

51,503

6,980

58,483

At 31 December 2019

69,528

7,630

77,158

DEPRECIATION

At 1 January 2019

6,008

197

6,205

Charge for year

13,906

2,518

16,424

At 31 December 2019

19,914

2,715

22,629

NET BOOK VALUE

At 31 December 2019

49,614

4,915

54,529

At 31 December 2018

12,017

453

12,470

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.19

31.12.18

as restated

(Unaudited)

£

£

Other debtors

338

-

Accrued income

91,217

41,219

Tax

99,673

-

VAT

9,147

9,298

Prepayments

4,377

4,664

204,752

55,181

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.19

31.12.18

as restated

(Unaudited)

£

£

Trade creditors

17,257

22,825

Tax

-

(30,734

)

Social security and other taxes

-

7,867

Other creditors

900

2,195

Accruals and deferred income

6,480

46,459

24,637

48,612

7.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

31.12.19

31.12.18

as restated

(Unaudited)

£

£

Between one and five years

12,750

-

8.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.12.19

31.12.18

value:

£

£

238,571

Ordinary

£0.00

1

239

158

80,595 Ordinary shares of £0.001 each were allotted as fully paid at a premium of £37.28 per share during the

year.

The company operates an equity settled EMI Share Option Scheme. During the year, 2,354 (2018 - Nil) share

options were granted to employees by the company. At 31 December 2019, the total number of options

outstanding under the scheme was 4,634 (2018 - 2,280) with an exercise price raging between £12.48 and

£37.28. The share options vest on their grant date but can only be exercised on certain exit events or at the

discretion of the board.

9.

RESERVES

Share

based

Retained

Share

payments

earnings

premium

reserve

Totals

£

£

£

£

At 1 January 2019

(42,301

)

401,487

-

359,186

Deficit for the year

(194,109

)

(194,109

)

Credit to equity for equity settled share based payment transactions

-

-

20,839

20,839

Share Premium on share

-

2,814,301

-

2,814,301

At 31 December 2019

(236,410

)

3,215,788

20,839

3,000,217

10.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

The figures for the comparative year have not been audited.

James Hamilton (Senior Statutory Auditor)

for and on behalf of Johnston Carmichael LLP