Impression Technologies Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 08013870 (England and Wales)

Unaudited Financial Statements for the Year Ended 31 December 2019

for

Impression Technologies Limited

Page

Company Information

1

Abridged Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

I T Jenks

Professor J Lin

IP2IPO Services Limited

Mercia Fund Management (Nominees) Ltd

J M Watkins

R Q Vevers

SECRETARY:

B B Girvan

REGISTERED OFFICE:

Unit E, Lyons Park

46 Sayer Drive

Coventry

West Midlands

CV5 9PF

REGISTERED NUMBER:

08013870 (England and Wales)

ACCOUNTANTS:

Silvester Parker Limited

The Spinney

Beausale

Warwick

Warwickshire

CV35 7NU

FIXED ASSETS

Tangible assets

4

70,245

108,670

Investments

5

1

1

70,246

108,671

CURRENT ASSETS

Debtors

6

5,673,058

4,498,317

Cash at bank and in hand

475,063

806,474

6,148,121

5,304,791

CREDITORS

Amounts falling due within one year

4,377,223

824,515

NET CURRENT ASSETS

1,770,898

4,480,276

TOTAL ASSETS LESS CURRENT LIABILITIES

1,841,144

4,588,947

CREDITORS

Amounts falling due after more than one year

(16,638

)

(23,522

)

PROVISIONS FOR LIABILITIES

(182,950

)

(20,648

)

ACCRUALS AND DEFERRED INCOME

-

(142,718

)

NET ASSETS

1,641,556

4,402,059

CAPITAL AND RESERVES

Called up share capital

8

1,065

1,065

Share premium

10,919,094

10,919,094

Other reserves

18,200

18,200

Retained earnings

(9,296,803

)

(6,536,300

)

SHAREHOLDERS' FUNDS

1,641,556

4,402,059

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2019.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2019 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.

All the members have consented to the preparation of an abridged Balance Sheet for the year ended 31 December 2019 in accordance with Section 444(2A) of the Companies Act 2006.

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

The financial statements were approved by the Board of Directors and authorised for issue on 17 November 2020 and were signed on its behalf by:

R Q Vevers - Director

1.	STATUTORY INFORMATION

Impression Technologies 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 directors have prepared annual budgets and cash flow projections that extend beyond 12 months from the date of this report. The Covid 19 pandemic has caused considerable economic uncertainty but the directors are actively monitoring the situation as it develops.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under finance lease, over the lease term, whichever is the shorter.

Plant and machinery etc - Some assets at 25% on cost and some assets at 20% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Financial instruments

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment.

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement.

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

Expenditure on research and development is treated as revenue expenditure and written off in the year in which it is incurred.

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

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 42 (2018 - 41 ) .

4.	TANGIBLE FIXED ASSETS

Totals

£

COST

At 1 January 2019

155,738

Additions

10,328

At 31 December 2019

166,066

DEPRECIATION

At 1 January 2019

47,068

Charge for year

48,753

At 31 December 2019

95,821

NET BOOK VALUE

At 31 December 2019

70,245

At 31 December 2018

108,670

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Totals

£

COST

At 1 January 2019

and 31 December 2019

51,500

DEPRECIATION

At 1 January 2019

5,192

Charge for year

10,300

At 31 December 2019

15,492

NET BOOK VALUE

At 31 December 2019

36,008

At 31 December 2018

46,308

5.	FIXED ASSET INVESTMENTS

Information on investments other than loans is as follows:

Totals

£

COST

At 1 January 2019

and 31 December 2019

1

NET BOOK VALUE

At 31 December 2019

1

At 31 December 2018

1

6.

DEBTORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.19

31.12.18

£

£

Other debtors

363,780

363,780

The amount included in other debtors falling due after more than one year is a cash deposit held as security for the lease payments relating to the company's premises.

7.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

31.12.19

31.12.18

£

£

Net obligations repayable:

Within one year

6,884

6,884

Between one and five years

16,638

23,522

23,522

30,406

Non-cancellable operating

leases

31.12.19

31.12.18

£

£

Within one year

201,750

201,750

Between one and five years

807,000

823,140

In more than five years

168,125

381,076

1,176,875

1,405,966

8.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.12.19

31.12.18

value:

£

£

323,016

Ordinary.

0.001

323

323

306,278

Series A Preference shares

0.001

306

306

436,048

Series B Preference shares

0.001

436

436

1,065

1,065

Share capital is treated as an equity instrument where there is evidence of a residual interest in the assets of an entity after deducting all its liabilities. Accordingly, a financial instrument is treated as equity if:

- there is no contractual obligation to deliver cash or other financial assets or to exchange financial assets or liabilities on terms that may be unfavourable; and

- the instrument is a non-derivative that contains no contractual obligations to deliver a variable number of shares or is a derivative that will be settled only by the company exchanging a fixed amount of cash or other assets for a fixed number of the company's own equity instruments.

Where shares are issued for a value in excess of their nominal value, the resultant premium is included in a share premium account.

Preference shares, which result in fixed returns to the holder or are mandatorily redeemable on a specific date, are classified as liabilities. The dividends on these shares are recognised in the income statement as interest expense.

9.	CONTINGENT LIABILITIES

The company's wholly-owned subsidiary, Coventry International Pressing Company Limited, has a £1,400,000 loan from Birmingham City Council, the balance on the loan at 31 December 2019 was £1,166,666. The company has guaranteed the repayment of the loan and issued a debenture in favour of Birmingham City Council.

The company has received loans of £2,950,000 during 2019 from two of its shareholders which are secured against all of the assets of the company under a debenture.

10.	RELATED PARTY DISCLOSURES

Coventry International Pressing Company Limited

Subsidiary

During the year the company has re-charged £75,996 (2018, £75,996) of costs to Coventry International Pressing Company Limited to cover a proportion of the shared salaries and overhead costs which have been borne by Impression Technologies as the parent company. Also during the year Coventry International Pressing Company Limited have charged Impression Technologies £152,597 (2018, £136,078) for the use of the press required for activities associated with the grant projects,

At the 31 December 2019 the company had a debtor balance with Coventry International Pressing Company Limited of £4,579,439 (2018, £3,838,871). The amount is unsecured and interest free with no fixed date of repayment and is repayable on demand.

11.	RESEARCH AND DEVELOPMENT TAX CREDITS

As in previous years the company has claimed on a cash repayment basis against the HMRC Research and Development tax credit scheme.

£16,923 was received in January 2019 in respect of the 2017 accounts against the RDEC scheme. This was followed by £177,378 received in September 2019 against the SME scheme and £113,715 received in October 2019 against the RDEC scheme both in respect of the 2018 accounts. The total of £318,016 has been recognised in the Income Statement for the year to 31 December 2019.

The same approach will be applied for qualifying expenditure in the year to 31 December 2019.