Registered number:
FOR THE YEAR ENDED 31 MARCH 2022
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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 2022
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 Covid-19 continues to feature in the commercial landscape, the year saw a significant increase in turnover of 22%. Gross Profit margins remained healthy with Gross Profit increasing to £4,120,104 (2021 - £3,760,608). The Company continues to manage cash carefully with the balance increasing to £3,364,548 (2021 - £3,077,541). On 4th January 2022 the entire share capital in the Company was bought by Nano Dimension Ltd enhancing the Company’s competitive position.
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.
Whilst the direct impacts on the Company of Covid are now receding, the economic aftermath remains challenging particularly in terms of the supply of critical electronic components. The company is actively managing this situation globally and has taken appropriate steps to mitigate this. The Company’s strong cash position and order book mean that it is well placed to perform strongly. 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 2022
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 2022
The directors present their report and the financial statements for the year ended 31 March 2022.
The profit for the year, after taxation, amounted to £
81,001
(2021 -
£
544,569
)
.
The directors have not recommended a final dividend.
The directors who served during the year were:
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.
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GLOBAL INKJET SYSTEMS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
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.
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 2022, 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).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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GLOBAL INKJET SYSTEMS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GLOBAL INKJET SYSTEMS LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
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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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
∙
we identified the laws and regulations applicable to the Company through discussions with directors and other management, and from our commercial knowledge and experience of the sector;
∙
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, including the Companies Act 2006, taxation legislation and pension legislation;
∙
we also reviewed minutes and other available information for evidence of non-compliance with laws and regulations which we considered may have an indirect material effect on the financial statements or the operations of the Company, including data protection, anti-bribery, employment and health and safety legislation;
∙
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
∙
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
∙
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
∙
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we;
∙
tested the appropriateness of journal entries and other adjustments;
∙
designed procedures to identify unexpected or unusual journals for testing to confirm the validity of such postings;
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GLOBAL INKJET SYSTEMS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GLOBAL INKJET SYSTEMS LIMITED (CONTINUED)
∙
assessed whether the accounting judgements and assumptions made in the financial statements were indicative of potential bias; and
∙
evaluated the business rationale of any significant transactions that were unusual or outside of the normal course of business.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
∙
agreeing financial statement disclosures to underlying supporting documentation;
∙
reading the minutes of meetings of those charged with governance; and
∙
enquiring of management as to actual and potential litigation and claims.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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, as a body,
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, as a body, 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 2022
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GLOBAL INKJET SYSTEMS LIMITED
REGISTERED NUMBER:
06012630
BALANCE SHEET
AS AT
31 MARCH 2022
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 25 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 2022
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GLOBAL INKJET SYSTEMS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2022
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GLOBAL INKJET SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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:
The Directors have prepared forecasts for 2022/23 and considered the trading period beyond this. In light of the global pandemic, the Directors have stress tested the forecasts, chiefly reflecting differing levels of sales.
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
Transactions and balances
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GLOBAL INKJET SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.
ACCOUNTING POLICIES (CONTINUED)
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. 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. Grants of a revenue nature are recognised in the Profit and Loss Account in the same period as the related expenditure.
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GLOBAL INKJET SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.
ACCOUNTING POLICIES (CONTINUED)
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
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.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
Capitalised development is amortised over the value of its useful economic life, deemed to be three years on a straight line basis.
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GLOBAL INKJET SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.
ACCOUNTING POLICIES (CONTINUED)
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 profit or loss.
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GLOBAL INKJET SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
2.
ACCOUNTING POLICIES (CONTINUED)
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 2022
Page 18
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GLOBAL INKJET SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
Page 19
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GLOBAL INKJET SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
11.
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 2022 the Company had estimated tax losses of £3,140,000 (2021 - £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 forward due to uncertainty as to when the profits will arise.
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GLOBAL INKJET SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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GLOBAL INKJET SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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GLOBAL INKJET SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
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GLOBAL INKJET SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
During the year 1,086 shares were issued above nominal value at a price of £30.59 per share.
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 2022
On 4 January 2022 the company was acquired by Nano Dimension Limited, a public company limited by shares and incorporated in Israel. Its registered office is 2 Ilan Ramon, Ness Ziona, 7403635 Israel.
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