Registered number:
FOR THE YEAR ENDED 31 MARCH 2020
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GLOBAL INKJET SYSTEMS LIMITED
COMPANY INFORMATION
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GLOBAL INKJET SYSTEMS LIMITED
CONTENTS
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GLOBAL INKJET SYSTEMS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2020
Global Inkjet Systems Limited is a global leader in the development and supply of software, electronics and components to industrial inkjet printing businesses. The Company supplies printhead data path and top-level control software integrating all the core components of an industrial inkjet system along with associated ink delivery systems. Our technology drives thousands of inkjet printheads in single pass, XY scanning, 3D and custom-figured systems worldwide with our customers integrating our products into their industrial inkjet printers and using our technology as a platform for rapid product development.
Whilst the Company faced more challenging market conditions during the year, with turnover decreasing by 25% and a loss for the year of £349,159 (2019 – profit of £502,856), through careful management of working capital the Company was able to maintain a strong cash balance at the year end of £2,020,393 (2019 - £2,042,397) which is regarded as being satisfactory.
The Company’s strong market position is based upon its ability to develop and produce superior products compared to its competitors and is therefore subject to the risk that development uncertainties are encountered or that new competitors enter the market. The Company is reliant upon recruiting suitably qualified and experienced staff in all departments with a consequent risk that this is a constraint on growth.
In addition the worldwide impact of COVID-19 has been devastating in economic and human terms. The Directors have considered the risks to the Company as a result of the virus, which chiefly surrounds the potential for a decline in sales as customers look to curb investment in capital projects. This risk is monitored closely by management. In forecasting an assessment has been made as to the potential impact a contraction in sales would have with appropriate measures identified to reduce costs, in conjunction with the financial support programmes announced by the UK government which the Company has taken advantage of to mitigate financial risk. The Company is also taking appropriate measures to mitigate the health risk to employees by following the appropriate Government guidelines. Financial Risk Management The Company uses various financial instruments, including its trade debtors and trade creditors that arise directly from its operations, which expose the Company to credit risk and currency risk. The directors review and agree policies for managing these risks which are summarised below. Credit Risk The Company’s credit risk is primarily attributable to its trade debtors. The Company is at risk to the extent that a customer may be unable to pay the debt; this risk is mitigated by on-going customer relationships. Credit limits are reviewed by the finance team on a regular basis in conjunction with debt ageing and collection history. Currency Risk The Company undertakes trading transactions in currencies other than sterling and is therefore exposed to foreign exchange risk. Transaction exposures are managed through the use of foreign currency bank accounts.
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GLOBAL INKJET SYSTEMS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
This report was approved by the board
and signed on its behalf.
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GLOBAL INKJET SYSTEMS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2020
The directors present their report and the financial statements for the year ended 31 March 2020.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the
financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year
. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the directors are required to:
∙
select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙
make judgements and accounting estimates that are reasonable and prudent;
∙
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The loss for the year, after taxation, amounted to £
349,159
(2019 -
profit
£
502,856
)
.
The directors have not recommended a final dividend.
The directors who served during the year were:
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GLOBAL INKJET SYSTEMS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
The Company continues to invest in research and development and together with its significant resources, is well placed to continue delivering on its strategy.
The Company continues to invest in research and development work in order to further develop its technologies. All expenditure is written off as incurred.
Each of the persons who are
directors at the time when this Directors' Report is approved has confirmed that:
The global health crisis caused by COVID-19 has had a significant impact on all businesses. Since the pandemic was declared in March 2020 it has been taken into consideration within all balances included in these financial statements. In addition, the Directors have assessed the potential impact of this uncertain situation on the Company, implementing short-term actions, as well as identifying longer-term measures which could be taken, in order to mitigate the negative effects arising during this period of interrupted trading. Given the Company’s strong cash position, combined with the above actions, the directors believe the Company is well placed to manage its business risks successfully in the current economic climate and remain comfortable with the going concern assessment.
The auditors, Peters Elworthy & Moore, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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GLOBAL INKJET SYSTEMS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GLOBAL INKJET SYSTEMS LIMITED
We have audited the financial statements of Global Inkjet Systems Limited (the 'Company') for the year ended 31 March 2020, which comprise the Profit and Loss Account, the Balance Sheet, the Statement of Changes in Equity, the Statement of Cash Flows
and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards,
including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
∙
the directors
' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
∙
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
The directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' Report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material
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GLOBAL INKJET SYSTEMS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GLOBAL INKJET SYSTEMS LIMITED (CONTINUED)
misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙
the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
As explained more fully in the Directors' Responsibilities Statement on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
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GLOBAL INKJET SYSTEMS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GLOBAL INKJET SYSTEMS LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at:
www.frc.org.uk/auditorsresponsibilities
. This description forms part of our Auditors' Report.
This report is made solely to the Company's members
in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditors
Salisbury House
Station Road
CB1 2LA
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GLOBAL INKJET SYSTEMS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2020
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GLOBAL INKJET SYSTEMS LIMITED
REGISTERED NUMBER:
06012630
BALANCE SHEET
AS AT
31 MARCH 2020
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
The notes on pages 13 to 24 form part of these financial statements.
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GLOBAL INKJET SYSTEMS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED
31 MARCH 2020
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GLOBAL INKJET SYSTEMS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2020
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GLOBAL INKJET SYSTEMS LIMITED
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2020
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GLOBAL INKJET SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
The Company is limited by shares and incorporated in England. Its registered office is St Johns Innovation Centre, Cambridge, CB4 0WS.
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
2.
ACCOUNTING POLICIES
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of
Financial Reporting Standard 102, the Financial Reporting Standard applicable in
the UK and the Republic of Ireland and the Companies Act 2006
.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
Based on this review, and noting the Company’s strong cash position, the Directors believe the Company will have sufficient resources to meet its liabilities as they fall due for the foreseeable future and therefore continue to adopt the going concern basis in preparing the financial statements.
Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
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GLOBAL INKJET SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
2.
ACCOUNTING POLICIES (CONTINUED)
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Turnover from the sale of goods is recognised when all of the significant risks and rewards of ownership of the product are transferred to the buyer. In the normal course of business this is upon despatch to the customer. Turnover from a contract to provide services is recognised in the period in which the services are provided when the amount of turnover can be measured reliably and it is probable that the Company will receive the consideration due under the contract.
Rentals paid under operating leases are charged to the Profit and Loss Account on a straight line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight line basis over their useful economic lives which is deemed to be three years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only. The contributions are recognised as an expense in the Profit and Loss Account when they fall due. Amounts not paid are shown in other creditors as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
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GLOBAL INKJET SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
2.
ACCOUNTING POLICIES (CONTINUED)
The Company has taken advantage of the optional exemption available on transition to FRS 102 which allows entities that had not previously applied FRS20 share-based payments to not apply FRS 102 to equity instruments that were granted before the date of transition, or to liabilities arising from share-based payment transactions that were settled before the transition date.
Capitalised development is amortised over the value of its useful economic life, deemed to be three years on a straight line basis.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Profit and Loss Account.
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GLOBAL INKJET SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
2.
ACCOUNTING POLICIES (CONTINUED)
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first outbasis. Work in progress and finished goods include labour and attributable overheads.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short term debtors are measured at transaction price, less any impairment.
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.
Short term creditors are measured at the transaction price. Other financial liabilities are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the Balance Sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the Balance Sheet date.
The key judgements and estimates relate to the provision for slow-moving and obsolete stock. Provision is made against significantly aged stocks and other specific stock as considered necessary by management.
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GLOBAL INKJET SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
The directors consider it seriously prejudicial to the interests of the Company to disclose geographical information regarding turnover.
The whole turnover is attributable to the principal activity of the Company.
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GLOBAL INKJET SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
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GLOBAL INKJET SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
10.
TAXATION (CONTINUED)
The Company takes advantage of the enhanced tax deductions for research and development expenditure and expects to continue to be able to do so. At 31 March 2020 the Company had estimated tax losses of £1,090,000 (2019 - £1,090,000) available to carry forward against future corporation tax profits. The Company has not recognised the deferred tax asset arising from the losses carried forwards due to uncertainty as to when taxable profits will arise.
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GLOBAL INKJET SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
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GLOBAL INKJET SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
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GLOBAL INKJET SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
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GLOBAL INKJET SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
Share premium account
Profit and loss account
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GLOBAL INKJET SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
As described in the Directors' Report and going concern accounting policy, the Directors have assessed the potential impact of this uncertain situation on the Company, implementing short-term actions, as well as identifying longer-term measures which could be taken, in order to mitigate the negative effects arising during this period of interrupted trading. Given the Company’s strong cash position, combined with the above actions, the directors believe the Company is well placed to manage its business risks successfully in the current economic climate and remain comfortable with the going concern assessment.
The Company is controlled by Mr and Mrs Geddes.
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