Company Registration No. 06626061 (England and Wales)
UNIVERSAL MARINE MEDICAL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
UNIVERSAL MARINE MEDICAL LIMITED
COMPANY INFORMATION
Directors
C L Rees
(Appointed 13 May 2021)
J F Nasso
(Appointed 13 May 2021)
Company number
06626061
Registered office
Unit 24a
Romsey Industrial Estate
Greatbridge Road
Romsey
Hampshire
United Kingdom
SO51 0HR
Auditor
Azets Audit Services
Secure House
Lulworth Close
Chandlers Ford
Southampton
Hampshire
SO53 3TL
UNIVERSAL MARINE MEDICAL LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 23
UNIVERSAL MARINE MEDICAL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 1 -

The directors present the strategic report for the year ended 31 December 2021.

Principal activities and review of the business

The company’s principal activity in the year under review continued to be that of supplying medicines and medical supplies to the maritime sector.

 

The company's key performance indicators during the year were as follows:

 

31-Dec-21        31-Dec-20

£ £

 

Turnover 18,154,370        15,216,544

 

Gross profit 4,271,028         3,393,627

 

Profit before tax for the year 1,525,203 1,733,441

 

Net current assets 2,662,657 1,427,704

 

The increase in the company's turnover and corresponding growth of gross profit is mainly driven by strengthened relationships with key customers and additional demand for covid-related supplies. The continued demand for our products has led to an increase in gross profit to 23.53%.

Principal risks and uncertainties

The principal risks and uncertainties facing the company can be categorised as competitive, economic and intercompany.

 

Competitive risks

The market for the supply of medicines and medical consumables remains extremely competitive. The company seeks to manage the risk of losing customers to key competitors (both within the UK, Europe and the rest of the world) by maintaining strong relationships with key customers and providing niche offerings at competitive prices.

 

Economic risks

The company is part of a group that is profitable and cash generative, therefore does not foresee any need to arrange external funding.

 

The spread of COVID-19 from Dec 2019 has severely impacted many businesses around the world. In many countries, many businesses especially in the leisure sector were forced to curtail operations.

 

The company continues to monitor the impact of COVID-19 and has implemented several measures to mitigate the risks identified. The company is taking the necessary steps to minimise the risk of contributing to the spread of the virus, which includes the supply of PPE to employees and contractors. In addition, all employees are briefed and trained on working in a clean environment.

 

The recovery of the global economy will be highly dependent on the future course of the COVID-19 pandemic, economic relief efforts, and vaccine roll-out. The company has benefited from the pandemic by having deeper relationships with our key customers and being presented with the opportunity to supply covid related products to non-core customers.

 

lntercompany risks

The company is a subsidiary of Unimed Holdings LLC which has associated companies across the globe. There is a high level of dependence on the group entities in ensuring supplies to our customers in an efficient and strategic manner.

UNIVERSAL MARINE MEDICAL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -

On behalf of the board

C L Rees
Director
11 May 2022
UNIVERSAL MARINE MEDICAL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2021.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

D Schaefer
(Resigned 14 May 2021)
P D Slade
(Resigned 14 May 2021)
C L Rees
(Appointed 13 May 2021)
J F Nasso
(Appointed 13 May 2021)
Statement of directors' responsibilities

The directors are responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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:

 

 

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 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.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
C L Rees
Director
11 May 2022
UNIVERSAL MARINE MEDICAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF UNIVERSAL MARINE MEDICAL LIMITED
- 4 -
Opinion

We have audited the financial statements of Universal Marine Medical Limited (the 'company') for the year ended 31 December 2021 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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:

Basis for opinion

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 Auditor's 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 UK, including the FRC’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.

Conclusions relating to going concern

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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

UNIVERSAL MARINE MEDICAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF UNIVERSAL MARINE MEDICAL LIMITED
- 5 -
Matters on which we are required to report by exception

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 and the directors' report.

 

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

Auditor's responsibilities for the audit of the financial statements

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 auditor's 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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

UNIVERSAL MARINE MEDICAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF UNIVERSAL MARINE MEDICAL LIMITED
- 6 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to them in an auditor's 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 member for our audit work, for this report, or for the opinions we have formed.

Michael Wesley FCA (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
12 May 2022
Chartered Accountants
Statutory Auditor
Secure House
Lulworth Close
Chandlers Ford
Southampton
Hampshire
SO53 3TL
UNIVERSAL MARINE MEDICAL LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021
- 7 -
2021
2020
Notes
£
£
Turnover
3
18,154,370
15,216,544
Cost of sales
(13,883,342)
(11,822,917)
Gross profit
4,271,028
3,393,627
Administrative expenses
(2,832,266)
(1,844,431)
Other operating income
86,441
184,503
Operating profit
4
1,525,203
1,733,699
Interest payable and similar expenses
7
-
0
(258)
Profit before taxation
1,525,203
1,733,441
Tax on profit
8
(303,510)
(331,787)
Profit for the financial year
1,221,693
1,401,654

The profit and loss account has been prepared on the basis that all operations are continuing operations.

UNIVERSAL MARINE MEDICAL LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 8 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
9
180,226
184,277
Current assets
Stocks
10
968,550
2,070,101
Debtors
11
5,000,873
3,069,806
Cash at bank and in hand
1,620,278
1,397,295
7,589,701
6,537,202
Creditors: amounts falling due within one year
12
(4,927,044)
(5,109,498)
Net current assets
2,662,657
1,427,704
Total assets less current liabilities
2,842,883
1,611,981
Creditors: amounts falling due after more than one year
13
(2,790)
(7,052)
Provisions for liabilities
Deferred tax liability
15
43,386
29,915
(43,386)
(29,915)
Net assets
2,796,707
1,575,014
Capital and reserves
Called up share capital
17
500
500
Profit and loss reserves
2,796,207
1,574,514
Total equity
2,796,707
1,575,014
The financial statements were approved by the board of directors and authorised for issue on 11 May 2022 and are signed on its behalf by:
C L Rees
Director
Company Registration No. 06626061
UNIVERSAL MARINE MEDICAL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
- 9 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2020
500
172,860
173,360
Year ended 31 December 2020:
Profit and total comprehensive income for the year
-
1,401,654
1,401,654
Balance at 31 December 2020
500
1,574,514
1,575,014
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
1,221,693
1,221,693
Balance at 31 December 2021
500
2,796,207
2,796,707
UNIVERSAL MARINE MEDICAL LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 10 -
2021
2020
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
592,536
1,263,585
Interest paid
-
0
(258)
Income taxes paid
(326,684)
-
0
Net cash inflow from operating activities
265,852
1,263,327
Investing activities
Purchase of tangible fixed assets
(37,564)
(39,937)
Net cash used in investing activities
(37,564)
(39,937)
Financing activities
Payment of finance leases obligations
(5,305)
(5,508)
Net cash used in financing activities
(5,305)
(5,508)
Net increase in cash and cash equivalents
222,983
1,217,882
Cash and cash equivalents at beginning of year
1,397,295
179,413
Cash and cash equivalents at end of year
1,620,278
1,397,295
UNIVERSAL MARINE MEDICAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 11 -
1
Accounting policies
Company information

Universal Marine Medical Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 24a, Romsey Industrial Estate, Greatbridge Road, Romsey, Hampshire, United Kingdom, SO51 0HR.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company has adopted disclosure exemptions in line with paragraph 33.1A of FRS102 and has not disclosed intra-group related party transactions.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

The company’s, and wider group’s key industry served is cruise lines, which have been required to cancel operations in the aftermath of the pandemic. However, the demand for cruising holidays has picked up more recently and this has helped our sales. Credit risk from the company’s traditional customer base has remained stable and debtor recoverability continues to be maintained within acceptable levels.

 

Management and directors continue to monitor the company’s performance throughout the pandemic to ensure the risks associated with reduced trading from traditional customers is mitigated. To safeguard the company’s operational performance, it has been maximising purchases from the three largest pharmaceutical suppliers in Europe, plus utilising its direct accounts with the big pharmaceutical manufacturers. This has helped continuity of inbound supply and has increased the fulfilment of orders to customers.

 

The company directors have regular communication with the Group Board of Directors and they consider the group's resources are sufficient to continue supporting Universal Marine Medical Limited. The parent company has provided assurances that it will continue to support the company and will not require repayment of the funds advanced until such time that Universal Marine Medical Limited can meet all its liabilities.

 

The directors consider that the steps introduced, along with the support from the group, will ensure that the company can continue as a going concern for a period of at least 12 months from the date of signing these financial statements. As such, the directors consider it appropriate that the accounts are prepared on a going concern basis.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

UNIVERSAL MARINE MEDICAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 12 -

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, 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.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
20% reducing balance
Plant and equipment
25% reducing balance
Fixtures and fittings
25% reducing balance or 10% straight line basis
Motor vehicles
20% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.6
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

UNIVERSAL MARINE MEDICAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 13 -
Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.8
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

UNIVERSAL MARINE MEDICAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 14 -
1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.12
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.13
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

UNIVERSAL MARINE MEDICAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 15 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

Judgements

 

Impairment of tangible fixed assets

 

The directors have determined whether there are any indications of impairment of the company's tangible fixed assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.

 

Deferred revenue and cost of goods sold

 

The directors assess the progress of each contract at year end and allocate revenue and cost of goods sold to the appropriate financial period.

 

Ongoing legal cases

 

The directors have estimated the provision by considering claims in progress and in their professional judgement the likely liability of the company taking account of insurance cover in place.

 

Determination of finance or operating lease

 

These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.

 

Key sources of estimation uncertainty

 

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year are detailed below:

 

Depreciation and residual values of tangible fixed assets

 

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and project disposal values.

 

Allowances for doubtful debts

 

The company maintains allowances for doubtful debts for estimated losses resulting from the subsequent inability of customers to make required payments. If the financial conditions of customers were to deteriorate, resulting in impairment of the ability to make payments, additional allowances may be required in future periods.

UNIVERSAL MARINE MEDICAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
2
Judgements and key sources of estimation uncertainty
(Continued)
- 16 -

Stock provisioning

 

The company deems it necessary to consider the recoverability of the cost of stock and the associated provisioning required. When calculating the stock provision, management considers the nature, expiry date and condition of the stock, as well as applying assumptions around anticipated saleability of finished goods.

3
Turnover and other revenue
2021
2020
£
£
Turnover analysed by geographical market
UK
4,035,337
1,379,306
Europe
3,841,055
5,100,111
Rest of World
10,277,978
8,737,127
18,154,370
15,216,544
2021
2020
£
£
Other significant revenue
Management fees
86,441
184,503
4
Operating profit
2021
2020
Operating profit for the year is stated after charging:
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
109,696
128,938
Fees payable to the company's auditor for the audit of the company's financial statements
13,975
10,950
Depreciation of owned tangible fixed assets
39,042
34,653
Depreciation of tangible fixed assets held under finance leases
2,573
3,149
Operating lease charges
110,114
115,256
UNIVERSAL MARINE MEDICAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 17 -
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2021
2020
Number
Number
Directors
2
2
Operations
12
14
Operations - Purchasing
2
2
Finance and Adminstration
8
8
Sales and Account Management
8
9
Total
32
35

Their aggregate remuneration comprised:

2021
2020
£
£
Wages and salaries
1,549,756
1,096,366
Social security costs
100,104
105,758
Pension costs
137,133
28,826
1,786,993
1,230,950
6
Directors' remuneration
2021
2020
£
£
Remuneration for qualifying services
213,389
80,000
Company pension contributions to defined contribution schemes
115,697
2,400
329,086
82,400

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2020 - 1).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2021
2020
£
£
Remuneration for qualifying services
180,055
80,000
Company pension contributions to defined contribution schemes
114,697
2,400
UNIVERSAL MARINE MEDICAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 18 -
7
Interest payable and similar expenses
2021
2020
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
-
0
258
8
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
290,052
326,684
Adjustments in respect of prior periods
(13)
-
0
Total current tax
290,039
326,684
Deferred tax
Origination and reversal of timing differences
13,471
5,103
Total tax charge
303,510
331,787

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2021
2020
£
£
Profit before taxation
1,525,203
1,733,441
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
289,789
329,354
Tax effect of expenses that are not deductible in determining taxable profit
-
0
115
Tax effect of utilisation of tax losses
-
0
(4,398)
Adjustments in respect of prior years
(13)
-
0
Capital allowances in excess of depreciation
(573)
1,332
Deferred tax adjustments
13,471
5,103
Temporary timing differences
836
281
Taxation charge for the year
303,510
331,787
UNIVERSAL MARINE MEDICAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 19 -
9
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2021
30,656
38,298
311,005
18,750
398,709
Additions
9,865
9,454
18,245
-
0
37,564
At 31 December 2021
40,521
47,752
329,250
18,750
436,273
Depreciation and impairment
At 1 January 2021
8,089
19,284
182,399
4,660
214,432
Depreciation charged in the year
5,454
5,733
27,855
2,573
41,615
At 31 December 2021
13,543
25,017
210,254
7,233
256,047
Carrying amount
At 31 December 2021
26,978
22,735
118,996
11,517
180,226
At 31 December 2020
22,567
19,014
128,606
14,090
184,277

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2021
2020
£
£
Motor vehicles
11,517
14,090
10
Stocks
2021
2020
£
£
Finished goods and goods for resale
968,550
2,070,101
11
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
2,870,853
1,296,089
Other debtors
911,285
779,249
Prepayments and accrued income
1,028,846
786,828
4,810,984
2,862,166
UNIVERSAL MARINE MEDICAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
11
Debtors
(Continued)
- 20 -
2021
2020
Amounts falling due after more than one year:
£
£
Prepayments and accrued income
189,889
207,640
Total debtors
5,000,873
3,069,806
12
Creditors: amounts falling due within one year
2021
2020
Notes
£
£
Obligations under finance leases
14
3,566
4,609
Trade creditors
2,577,131
2,551,248
Amounts owed to group undertakings
779,904
1,117,881
Corporation tax
290,039
326,684
Other taxation and social security
55,806
60,839
Other creditors
28,096
23,404
Accruals and deferred income
1,192,502
1,024,833
4,927,044
5,109,498

Obligations under finance leases are secured against the assets to which they relate.

13
Creditors: amounts falling due after more than one year
2021
2020
Notes
£
£
Obligations under finance leases
14
2,790
7,052

Obligations under finance leases are secured against the assets to which they relate.

14
Finance lease obligations
2021
2020
Future minimum lease payments due under finance leases:
£
£
Within one year
3,566
4,609
In two to five years
2,790
7,052
6,356
11,661
UNIVERSAL MARINE MEDICAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 21 -
15
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2021
2020
Balances:
£
£
Accelerated capital allowances
44,222
30,196
Retirement benefit obligations
(836)
(281)
43,386
29,915
2021
Movements in the year:
£
Liability at 1 January 2021
29,915
Charge to profit or loss
13,471
Liability at 31 December 2021
43,386
16
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
137,133
28,826

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

17
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
500
500
500
500
18
Financial commitments, guarantees and contingent liabilities

The company has a cross guarantee with Universal Marine Medical Supply International LLC, an intermediate parent company. Under certain circumstances, Universal Marine Medical Limited may be required to provide funds for the repayment of loans held by Universal Marine Medical Supply International LLC. At 31 December 2021, there was no liability payable by Universal Marine Medical Limited in respect of these loans.

 

UNIVERSAL MARINE MEDICAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 22 -
19
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2021
2020
£
£
Within one year
84,795
64,711
Between two and five years
328,116
247,067
In over five years
5,664
130,000
418,575
441,778
20
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
Purchases
2021
2020
2021
2020
£
£
£
£
Other related parties
3,454
30,332
627,529
2,300,990
2021
2020
Amounts due to related parties
£
£
Other related parties
-
75,440
2021
2020
Amounts due from related parties
£
£
Other related parties
-
879
UNIVERSAL MARINE MEDICAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 23 -
21
Cash generated from operations
2021
2020
£
£
Profit for the year after tax
1,221,693
1,401,654
Adjustments for:
Taxation charged
303,510
331,787
Finance costs
-
0
258
Depreciation and impairment of tangible fixed assets
41,615
37,802
Movements in working capital:
Decrease/(increase) in stocks
1,101,551
(1,598,508)
(Increase)/decrease in debtors
(1,931,067)
71,648
(Decrease)/increase in creditors
(144,766)
1,018,944
Cash generated from operations
592,536
1,263,585
22
Analysis of changes in net funds
1 January 2021
Cash flows
31 December 2021
£
£
£
Cash at bank and in hand
1,397,295
222,983
1,620,278
Obligations under finance leases
(11,661)
5,305
(6,356)
1,385,634
228,288
1,613,922
23
Ultimate controlling party

The immediate parent company is Universal Medical Supply Acquisition LLC, incorporated in the United States of America.

 

The ultimate parent company is Unimed Holdings LLC, incorporated in the United States of America. The address from which the consolidated financial statements can be obtained is 27 Sylvaton Terrace, Staten Island, NY 10305, United States of America.

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