Ensilica Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 04220106 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MAY 2018

FOR

ENSILICA LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

I W E Lankshear

M N Hodgkins

REGISTERED OFFICE:

West Forest Gate

Wellington Road

Wokingham

Berkshire

RG40 2AT

REGISTERED NUMBER:

04220106 (England and Wales)

ACCOUNTANTS:

Hackett Griffey LLP

Chartered Certified Accountants

2 Mill Road

Haverhill

Suffolk

CB9 8BD

FIXED ASSETS

Intangible assets

4

1,684,877

-

Tangible assets

5

53,829

88,478

Investments

6

102

2

1,738,808

88,480

CURRENT ASSETS

Stocks

29,689

264,997

Debtors

7

2,629,773

2,981,175

Cash at bank and in hand

406,476

265,372

3,065,938

3,511,544

CREDITORS

Amounts falling due within one year

8

1,158,400

1,351,044

NET CURRENT ASSETS

1,907,538

2,160,500

TOTAL ASSETS LESS CURRENT LIABILITIES

3,646,346

2,248,980

PROVISIONS FOR LIABILITIES

430,106

89,842

NET ASSETS

3,216,240

2,159,138

CAPITAL AND RESERVES

Called up share capital

1,973

1,700

Retained earnings

3,214,267

2,157,438

SHAREHOLDERS' FUNDS

3,216,240

2,159,138

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 May 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 May 2018 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 of Part 15 of the Companies Act 2006 relating to small companies.

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 on 30 January 2019 and were signed on its behalf by:

I W E Lankshear - Director

M N Hodgkins - Director

1.	STATUTORY INFORMATION

Ensilica 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.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Preparation of consolidated financial statements

The financial statements contain information about Ensilica Limited as an individual company and do not contain

consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of

the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Revenue recognition

Revenue is recognised to the extent that the company obtains the right to consideration in exchange for its

performance. Revenue is measured at the fair value of the consideration received, excluding discounts, rebates,

VAT and other sales taxes or duty.

Sale of goods

Revenue from the sale of goods or services is recognised when the significant risks and rewards of ownership of

the goods or services have passed to the buyer, usually on dispatch of the goods or provision of the service and

the amount of revenue can be measured reliably and 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.

Depreciation and residual value

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

Office equipment

-

25% on reducing balance

Computer equipment

-

33% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost, less provision for impairment.

Stocks and work in progress

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 are valued at the lower of cost and net realisable value. Cost includes all directly attributable costs

incurred in bringing each product to its present location and condition. Net realisable value is based on

estimated selling price less any further costs expected to be incurred in completion and sale.

Financial instruments

Debt finance

Debt finance is considered to be basic financial instruments and initially recorded at the present value of future

payments discounted at the market rate of interest. Subsequently, they are measured at amortised cost using the

effective interest method.

Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short term deposits with

an original maturity date of three months or less.

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

Development costs are incurred solely for the purpose of the design and supply of the end customer chip to a

customer who will use such a chip as a basis for an end product for its customer.

The capitalisation of development costs is subject to a degree of judgement in respect of the viability of new

technology and know-how, supported by the results of testing and customer trials and by forecasts for the overall

value and timing of sales which may be impacted by other future factors which could impact the assumptions

made.

Amortisation commences once management consider that the asset is available for use, ie when it it is judged to

be in the location and condition necessary for it to be capable of operating in the manner intended by

management and the cost amortised over the estimated useful life of the know-how based on expected customer

product cycles and lives.

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.

Leasing commitments

Rentals under operating leases are charged to the profit and loss account on a straight line basis over the lease

period. Where assets are financed by leasing agreements ('finance leases') the assets are included in the balance

sheet at cost less depreciation in accordance with the company's normal accounting policies. Obligations under

such agreements are included in creditors net of finance charges allocated to future periods.

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 53 (2017 - 42 ) .

4.	INTANGIBLE FIXED ASSETS

Development

costs

£

COST

Additions

1,684,877

At 31 May 2018

1,684,877

NET BOOK VALUE

At 31 May 2018

1,684,877

Development costs represent expenditure on individual projects which is carried forward when its future

recoverability can be foreseen with reasonable assurance and is amortised in line with sales from the related

projects. These are considered to be special circumstances why capitalised development costs are not to be

treated as a realised loss when determining distributable reserves.

5.	TANGIBLE FIXED ASSETS

Office

Computer

equipment

equipment

Totals

£

£

£

COST

At 1 June 2017

31,647

196,392

228,039

Additions

4,117

10,781

14,898

At 31 May 2018

35,764

207,173

242,937

DEPRECIATION

At 1 June 2017

23,052

116,509

139,561

Charge for year

7,418

42,129

49,547

At 31 May 2018

30,470

158,638

189,108

NET BOOK VALUE

At 31 May 2018

5,294

48,535

53,829

At 31 May 2017

8,595

79,883

88,478

6.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST OR VALUATION

At 1 June 2017

2

Additions

100

At 31 May 2018

102

NET BOOK VALUE

At 31 May 2018

102

At 31 May 2017

2

Cost or valuation at 31 May 2018 is represented by:

Shares in

group

undertakings

£

Valuation in 2016

(26,885

)

Valuation in 2017

(6,574

)

Cost

33,561

102

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Trade debtors

1,247,037

2,234,159

Amounts owed by group undertakings

204,967

477

Other debtors

56,926

61,716

Taxation

667,038

433,408

VAT

5,618

132,702

Prepayments and accrued income

448,187

118,713

2,629,773

2,981,175

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2018

2017

£

£

Other loans

250,000

-

Trade creditors

293,125

362,486

Social security and other taxes

112,418

92,041

Other creditors

3,567

10,324

Deferred income

195,773

405,062

Accrued expenses

303,517

481,131

1,158,400

1,351,044

9.	SECURED DEBTS

The following secured debts are included within creditors:

2018

2017

£

£

Other loans

250,000

-

The loan is secured by a fixed and floating charge over the assets of the company.

10.	OTHER FINANCIAL COMMITMENTS

The total amount of commitments, guarantees and contingencies is £246,544 (2017: £164,655).