LAT Water Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 09420392 (England and Wales)

Financial Statements for the Year Ended 31 December 2021

for

LAT Water Limited

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

3

DIRECTORS:

M C Hardiman

C P M Champness

H Wang

C Soames

REGISTERED OFFICE:

Unit 1

Rivermead Business Park

Pipers Way

Thatcham

Berkshire

RG19 4EP

REGISTERED NUMBER:

09420392 (England and Wales)

AUDITORS:

Haines Watts (Berkhamsted) Limited

Chartered Accountants and

Statutory Auditors

4 Claridge Court

Lower Kings Road

Berkhamsted

Hertfordshire

HP4 2AF

FIXED ASSETS

Intangible assets

4

453,954

376,265

Tangible assets

5

135,388

54,710

Investments

6

245,308

-

834,650

430,975

CURRENT ASSETS

Stocks

-

355,591

Debtors

7

1,081,345

538,586

Cash at bank

2,520,457

552,752

3,601,802

1,446,929

CREDITORS

Amounts falling due within one year

8

320,335

461,579

NET CURRENT ASSETS

3,281,467

985,350

TOTAL ASSETS LESS CURRENT LIABILITIES

4,116,117

1,416,325

CREDITORS

Amounts falling due after more than one year

9

1,546,055

60,549

NET ASSETS

2,570,062

1,355,776

CAPITAL AND RESERVES

Called up share capital

10

3,307

1,938

Share premium

6,616,577

3,835,310

Share option reserve

132,007

-

Retained earnings

(4,181,829

)

(2,481,472

)

SHAREHOLDERS' FUNDS

2,570,062

1,355,776

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 by the Board of Directors and authorised for issue on 30 September 2022 and were signed on its behalf by:

M C Hardiman - Director

1.	STATUTORY INFORMATION

LAT Water 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 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. The Directors have tested their cash flow analysis to take into account the impact on their business of possible scenarios alongside the measures that they can take to mitigate the impact of possible scenarios 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.

The financial statements are presented in Pounds Sterling and rounded to the nearest pound.

Significant judgements and estimates

In preparing the financial statements it is necessary to make certain judgements, estimates and assumptions that affect the amounts recognised in the financial statements. These assumptions are reassessed annually as part of the accounts preparation process.

The critical judgments that the directors have made in the process of applying the company's accounting policies that have the most significant effect on the statutory financial statements are discussed below.

(i) Patents

As management judge that the majority of future profits will fall into the Patent Box regime, deferred tax assets have been recognised at the 10% future tax rate only. There are no further significant judgements or estimates in the accounts.

Turnover

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

The company delivers long-term projects where material elements may be partly progressed as at the balance sheet date. Such elements are accounted for as long-term contracts, with estimates made on Stage of Completion, using

- for build elements: the input method comparing costs incurred to date to those still to come to complete the project,

- for warranty elements: the period of warranty elapsed compared to the period still to run.

As at 31 December 2021, no material contracts existed where the split of revenues to be apportioned to differing contract elements required accounting policy disclosure.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2021, is being amortised evenly over its estimated useful life of ten years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of ten years.

Lease inception - transaction costs incurred at the inception of the lease are amortised evenly over the remaining period of the lease to which they relate. These are currently a maximum of five years.

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Where parts of an item of tangible fixed assets have different useful lives, they are accounted for a separate items of tangible fixed assets.

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

Plant and machinery

- 25% on cost

Fixtures and fittings

- 25% on cost

Computer equipment

- 33% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Inventories

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.

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.

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 17 (2020 - 13 ) .

4.	INTANGIBLE FIXED ASSETS

Patents

Legal

and

fees

Lease

Goodwill

licences

capitalised

inception

Totals

£

£

£

£

£

COST

At 1 January 2021

13,000

499,248

288,316

8,250

808,814

Additions

48,583

98,964

-

-

147,547

At 31 December 2021

61,583

598,212

288,316

8,250

956,361

AMORTISATION

At 1 January 2021

-

143,407

288,317

825

432,549

Amortisation for year

4,858

63,344

-

1,656

69,858

At 31 December 2021

4,858

206,751

288,317

2,481

502,407

NET BOOK VALUE

At 31 December 2021

56,725

391,461

(1

)

5,769

453,954

At 31 December 2020

13,000

355,841

(1

)

7,425

376,265

5.	TANGIBLE FIXED ASSETS

Fixtures

Plant and

and

Computer

machinery

fittings

equipment

Totals

£

£

£

£

COST

At 1 January 2021

4,045

48,385

28,373

80,803

Additions

125,898

1,080

13,422

140,400

At 31 December 2021

129,943

49,465

41,795

221,203

DEPRECIATION

At 1 January 2021

1,011

12,096

12,986

26,093

Charge for year

33,430

12,370

13,922

59,722

At 31 December 2021

34,441

24,466

26,908

85,815

NET BOOK VALUE

At 31 December 2021

95,502

24,999

14,887

135,388

At 31 December 2020

3,034

36,289

15,387

54,710

6.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

Additions

245,308

At 31 December 2021

245,308

NET BOOK VALUE

At 31 December 2021

245,308

7.

DEBTORS

31.12.21

31.12.20

as restated

£

£

Amounts falling due within one year:

Trade debtors

81,120

87,283

Amounts owed by associates

110,459

-

Other debtors

444,604

183,189

636,183

270,472

Amounts falling due after more than one year:

Other debtors

445,162

268,114

Aggregate amounts

1,081,345

538,586

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.21

31.12.20

as restated

£

£

Trade creditors

122,672

260,940

Taxation and social security

61,474

25,957

Other creditors

136,189

174,682

320,335

461,579

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.21

31.12.20

as restated

£

£

Government loans

1,421,367

-

Trade creditors

94,414

-

Other creditors

30,274

60,549

1,546,055

60,549

Government loans are secured against total collective assets of the company.

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.12.21

31.12.20

value:

as restated

£

£

330,734

Ordinary

0.01

3,307

1,938

During the year, a further 12,636 Ordinary shares, and 124,275 Ordinary Class A shares, were issued and paid in full.

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

The Report of the Auditors was unqualified.

Shaun Brownsmith (Senior Statutory Auditor)

for and on behalf of Haines Watts (Berkhamsted) Limited

12.	SHARE-BASED PAYMENT TRANSACTIONS

The company operates a share-based payment schemes for its employees which is an approved EMI scheme.

Employee share option scheme

Employees were are granted share options in the company as part of the employee share scheme on 22 July 2020. The options are granted with a fixed exercise price, are exercisable one years after the date of grant and expire ten years after the date of grant.

Employees are not entitled to dividends until the shares are exercised. Employees are required to remain in employment with the company until exercise, otherwise the awards lapse. On exercise of the options by the employees, the company issues equity shares of £0.01 each.

A reconciliation of share option movements over the year to 31 December 2021 is shown below:

2021

2020

No

Exercise Price

No

Exercise Price

Outstanding at 1 January

10,911

£447,897

10,911

£447,897

Granted

-

-

-

-

Forfeited

(7,292

)

(£299,337

)

-

-

Outstanding at 31 December

3,619

£148,560

10,911

£447,897