DST Innovations Limited - Filleted accounts

Registered number

07858050

DST Innovations Limited

Unaudited Filleted Accounts

30 November 2017

DST Innovations Limited
Registered number:		07858050
Directors' Report

The directors present their report and accounts for the year ended 30 November 2017.

Principal activities
The company's principal activity continued to be the research and development of printed electronic circuitry on plastic and flexible substrates to create modular light weight digital displays and lighting. In addition, the company is developing technology to create longer life and faster charging power storage devices. During the year to 30th November 2017, the company took its first steps into the marketplace. Our products have generated a great deal of interest and enquiries, which we are working to convert into orders during the forthcoming year.

Directors
The following persons served as directors during the year:
	Anthony Miles
	Mathew Gilliat-Smith
	Peter Worrall
	Harold Morley
	Desmond Reeves
	Graham Spensley
	Maxwell Audley

Small company provisions
This report has been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime.

This report was approved by the board on 14 August 2018 and signed on its behalf.





Anthony Miles
Director

DST Innovations Limited
Registered number:		07858050
Balance Sheet
as at 30 November 2017

Notes			2017			2016
£				£
Fixed assets
Tangible assets	3		112,241			58,951

Current assets
Stocks		52,333			-
Debtors	4	911,463			194,960
Cash at bank and in hand		406,883			7,481
		1,370,679			202,441

Creditors: amounts falling due within one year	5	(2,399,707)			(1,107,701)

Net current liabilities			(1,029,028)			(905,260)

Total assets less current liabilities			(916,787)			(846,309)

Creditors: amounts falling due after more than one year	6		(1,521,162)			(300,000)



Net liabilities			(2,437,949)			(1,146,309)

Capital and reserves
Called up share capital			2,570			2,410
Share premium			2,985,133			2,448,545
Share option payment reserve	12		3,298			-
Profit and loss account			(5,428,950)			(3,597,264)

Shareholders' funds			(2,437,949)			(1,146,309)

The directors are satisfied that the company is entitled to exemption from the requirement to obtain an audit under section 477 of the Companies Act 2006.
The members have not required the company to obtain an audit in accordance with section 476 of the Act.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.




Anthony Miles
Director
Approved by the board on 14 August 2018

DST Innovations Limited
Notes to the Accounts
for the year ended 30 November 2017


1	Accounting policies

	Basis of preparation
	The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard).

	Turnover
	Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.

	Tangible fixed assets
	Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:

	Equipment	25-50% straight line

	Stocks
	Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.

	Debtors
	Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.

	Creditors
	Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.

	Taxation
	A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.

	Provisions
	Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.

	Foreign currency translation
	Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.

	Leased assets
	A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.

	Pensions
	Contributions to defined contribution plans are expensed in the period to which they relate.

	Share-based payments
	Equity-settled transactions The cost of equity-settled transactions with employees is measured by reference to the fair value of the equity instruments granted at the date at which they are granted and is recognised as an expense over the vesting period, which ends on the date on which the relevant employees become fully entitled to the award. Fair value is determined by an external valuer using an appropriate pricing model. In valuing equity-settled transactions, no account is taken of any vesting conditions, other than conditions linked to the price of the shares of the company (market conditions) and non vesting conditions. No expense is recognised for awards that do not ultimately vest, except for awards where vesting is conditional upon a market or non vesting condition, which are treated as vesting irrespective of whether or not the market or non vesting condition is satisfied, provided that all other performance conditions are satisfied. At each balance sheet date before vesting, the cumulative expense is calculated, representing the extent to which the vesting period has expired and management's best estimate of the achievement or otherwise of non-market conditions and of the number of equity instruments that will ultimately vest or in the case of an instrument subject to a market condition, be treated as vesting as described above. The movement in cumulative expense since the previous balance sheet date is recognised in the income statement, with a corresponding entry in equity. Where the terms of an equity-settled award are modified or a new award is designated as replacing a cancelled or settled award, the cost based on the original award terms continues to be recognised over the original vesting period. In addition, an expense is recognised over the remainder of the new vesting period for the incremental fair value of any modification, based on the difference between the fair value of the original award and the fair value of the modified award, both as measured on the date of the modification. No reduction is recognised if this difference is negative. Where an equity-settled award is cancelled, it is treated as if it had vested on the date of cancellation, and any cost not yet recognised in the profit and loss account for the award is expensed immediately. Any compensation paid up to the fair value of the award at the cancellation or settlement date is deducted from equity, with any excess over fair value expensed in the profit and loss account.

2	Employees		2017		2016
Number				Number

	Average number of persons employed by the company		15		11


3	Tangible fixed assets
					Plant and machinery etc
£
	Cost
	At 1 December 2016				146,565
	Additions				95,734
	At 30 November 2017				242,299

	Depreciation
	At 1 December 2016				87,614
	Charge for the year				42,444
	At 30 November 2017				130,058

	Net book value
	At 30 November 2017				112,241
	At 30 November 2016				58,951


4	Debtors		2017		2016
£				£

	Trade debtors		263,196		-
	Corporation tax - Research and development tax credit receivable		287,497		118,408
	Other taxes and social security		153,923		18,268
	Other debtors		206,847		58,284
			911,463		194,960


5	Creditors: amounts falling due within one year		2017		2016
£				£

	Trade creditors		276,640		139,044
	Taxation and social security costs		17,450		10,090
	Other creditors		2,105,617		958,567
			2,399,707		1,107,701


6	Creditors: amounts falling due after one year		2017		2016
£				£

	Other creditors		1,521,162		300,000

	Included in Creditors: amounts falling due after one year are Advances of £1,521,162 (2016: £300,000) received in respect of shares issued in January 2018.


7	Share-based payments

	An Enterprise Management Incentive share option scheme was approved in September 2017. Under this scheme the options will vest if the employees who have been granted the options satisfy the working time requirements for the period up to and and including the date of sale of the company. The options will lapse should the employee either leave employment or not meet the defined working time requirements. The contractual life of the options is ten years. The range of exercise prices for options outstanding at the end of the year was £1.55 to £3.33. There are no cash settlement alternatives. During the year the total number of share options granted was 505,700, with a weighted average fair value of the options granted being £0.26 each. The fair value of these equity settled options granted is estimated as at the date of grant based on a third party investment undertaken on an arm's length basis and taking into account performance of the business since that date and the terms and conditions upon which the options are granted. The expense recognised for these equity settled share-based payments during the year to 30 November 2017 is £3,298 (2016: £nil).

8	Other information

	DST Innovations Limited is a private company limited by shares and incorporated in England and Wales. Its registered office is:
	Ground Floor
	6 Bridgend Business Centre
	Bennett Street
	Bridgend
	CF31 3SH