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Registered number: 07857151


 
 
 
 
 
 
NXSTAGE MEDICAL UK, LTD.
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

 
NXSTAGE MEDICAL UK, LTD.
 

COMPANY INFORMATION


Directors
Laura Bell 
Antony Mazzei 
Christopher James Slater 




Registered number
07857151



Registered office
Nunn Brook Road
Huthwaite

Sutton-In-Ashfield

Nottinghamshire

NG17 2HU




Independent auditors
Wilder Coe Ltd
Chartered Accountants & Statutory Auditors

1st Floor Sackville House

143-149 Fenchurch Street

London

EC3M 6BL





 
NXSTAGE MEDICAL UK, LTD.
 

CONTENTS



Page
Strategic Report
 
1 - 3
Directors' Report
 
4 - 5
Independent Auditors' Report
 
6 - 9
Statement of Income and Retained Earnings
 
10
Balance Sheet
 
11
Notes to the Financial Statements
 
12 - 20

 
NXSTAGE MEDICAL UK, LTD.
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

Objectives
 
The long-term objective of Nxstage Medical UK Limited (the 'company') is to deliver profitable sales performance to the NxStage Medical Inc group (the 'group') in order to support continued investment in the group, reduce borrowings and support future dividends to shareholders.
In pursuing this objective, the company intends to maintain sound financial management and avoid excessive risks.

Key business strategies
 
In pursuit of its objectives the company has a number of key business strategies which have been successfully implemented over recent years.
We aim to secure increased sales through:
• keeping patient health and welfare at the forefront of all our activities;
• providing the best quality dialysis equipment and consumables to our customer base;
• increasing product ranges with our existing customer base;
• the development of new customers in the UK market; and
• introducing new and innovative service models in patient care.
We plan to improve our gross margin levels through the introduction of new product ranges, controlling our logistics and overhead costs and improving manufacturing efficiencies.
We aim to have sufficient local finance for our activities, not withstanding our ongoing access to additional group funds to enable opportunities to be secured as they arise.
Strategy is continually reviewed by the board in the light of the wider group strategies and performance, and also the changing market conditions, to ensure it remains appropriate to achieve the company's objectives.

Principal risks and uncertainties
 
The key risk areas of the company are:
• customer tender pricing affecting sales and gross margin;
• the loss of key customer accounts; and
• foreign exchange risks.
The company seeks to manage as far as possible the key risks that it faces.
Customer pricing is under continual review and is managed through our sales team, which has continued to be developed during the year. Excellent customer service and product and service quality as well as strong customer relations will continue to mitigate pricing pressures generated by the ongoing funding restrictions faced by the NHS. Further efforts to diversify our activities will also help address this concern.
Debt finance is available internally within the wider group if required. We anticipate our local trading position will be sufficient to support our working capital requirements throughout 2023 and into 2024.
Covid-19
The health and wellbeing of its people is the company's number one priority and a range of measures to protect its staff have been implemented throughout the Covid-19 pandemic. At the same time, the company recognises its vital role in continuing to supply essential healthcare services and products. Due to the dedication, commitment and hard work of its people, the company's supply chains are functioning adequately. Although the company has experienced increased demand, the company continues to monitor the situation and is taking appropriate measures to adapt to the changing market and to ensure that it has adequate stock levels should the demand further increase.

Page 1

 
NXSTAGE MEDICAL UK, LTD.
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Key performance indicators
 
The company uses a number of financial measures to monitor progress against strategies and corporate objectives. These are summarised below:
                                                                                                                        
  2022           2021
                                                                                                                          £000           £000
Turnover                                                                                                       9,879         10,289
Profit before taxation                                                                                       371          1,165

During the year, performance has been satisfactory and as far as the board is aware, this is likely to be the case in the forthcoming year.
Future prospects
The board is confident that the company's strategy will continue to deliver results that meet our shareholders' expectations in the years to come.
Turnover decreased by 4% in the year, and Profit before Tax decreased by 68%.
Based on the company's forecasts, this trading position provides access to sufficient working capital for the company to trade on an orderly basis for the foreseeable future.
The company continues to place patient care and wellbeing at the head of its schedule of corporate objectives, and this strategy leads to a culture of providing superior customer service which will drive the company towards its anticipated future success.
Employees
The company seeks to ensure that all employees, job applicants and prospective job applicants are afforded equality of job opportunity in all areas of employment.
The company's Health & Safety Policy fully recognises the company's responsibility for the health and safety of employees and members of the community in which they work.
The company places considerable value on the involvement of its employees and has continued its practice of keeping them informed of matters affecting them as employees, and on various matters affecting the performance of the company.
Directors' duties
When a director is inducted, they are briefed on the significant responsibility that comes with the role. Directors are responsible for supporting the organisation's mission, maintaining strategic direction, ensuring compliance with all applicable legal requirements and standards, and maintaining the organisation's financial wellbeing. Directors are also able to access external professional advice to strengthen their understanding of the role. In large organisations, it is common for the board to delegate duties through a governance framework, which allows some decision-making to be made by other members of the leadership team. These decisions are regularly reviewed through monthly board meetings, where colleagues representing significant areas of the business are invited to present on key topics.





 
Page 2

 
NXSTAGE MEDICAL UK, LTD.
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Our business relationships
To achieve long-term growth, we understand the need to develop and maintain strong business relationships with key stakeholder groups including:
• customers;
• suppliers;
• regulatory bodies;
• employees; and
• communities and environmental impact.
Stakeholder feedback is important to deliver strategic growth, and we continually assess such feedback during 360, contract, and account reviews.

Community
 
We are committed to strengthening our relationships with the local community. Within the business we have a dedicated Community and Social Committee. Their mission is to provide social events for employees in the local area and to support both local and national charities. Our vision is to improve a sense of community and togetherness both inside and outside of the office, with our colleagues and neighbours. An example of a regular campaign is Choctober in support of the National Kidney Federation, however we also support local homeless and pet charities by organising donations of equipment and food through the office network.


This report was approved by the board.



Christopher James Slater
Director

Date: 28 September 2023
Page 3

 
NXSTAGE MEDICAL UK, LTD.
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

The directors present their report and the audited financial statements for the year ended 31 December 2022.

Directors' responsibilities statement

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 judgments and accounting estimates that are reasonable and prudent; and

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 2006They 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.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Principal activity

The principal activity of the company continues to be the promotion, sale and distribution of renal care products manufactured by the group within the United Kingdom.

Director

The directors who served during the year were:

J. H. Burbank (resigned 1 August 2023)
W. J. Valle (resigned 29 August 2023)
The directors who were appointed after the year end were:
A. Mazzei (appointed 24 July 2023)
C. J. Slater (appointed 24 July 2023) 
L. Bell (appointed 24 July 2023) 
 
Page 4

 
NXSTAGE MEDICAL UK, LTD.
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022


Auditors

The auditorsWilder Coe Ltdwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 28 September 2023 and signed on its behalf.
 





Christopher James Slater
Director
Page 5

 
NXSTAGE MEDICAL UK, LTD.
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NXSTAGE MEDICAL UK, LTD.
 

Opinion


We have audited the financial statements of Nxstage medical UK, Ltd. the 'Company') for the year ended 31 December 2022, which comprise the Statement of Income and Retained Earnings, the Balance Sheet and the related notes, including a summary of significant accounting policiesThe 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).


Except for the possible effects of the matters described in the Basis for qualified opinion section of our report, in our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2022 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for qualified opinion


With respect to tangible fixed assets £3,226,670 of tangible fixed assets which were recorded as additions in the previous period are in dispute. This amount relates to an invoice received which is included in accruals. The total amount is in dispute and until the matter is settled, no depreciation is being charged. In addition, an accrual for equipment of £1,840,000 has been included to reflect a potential charge for 2021 and 2022 should the dispute be settled. Owing to the fact that these amounts are currently under investigation by the company, we were unable to obtain sufficient appropriate audit evidence regarding the total value of tangible fixed assets and accruals. 


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.


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.


Page 6

 
NXSTAGE MEDICAL UK, LTD.
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NXSTAGE MEDICAL UK, LTD. (CONTINUED)


Other information


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 ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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.


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 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:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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.


Page 7

 
NXSTAGE MEDICAL UK, LTD.
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NXSTAGE MEDICAL UK, LTD. (CONTINUED)


Auditors' 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 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:

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.
The following laws and regulations were identified as being of significance to the entity:
 
Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, company law, tax and pensions legislation and distributable profits legislation; and

Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include the RoHS directive, employment law and health and safety legislation.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
Where irregularities have been found and treatments have differed from what we have expected additional procedures have been conducted to ratify the discrepancies. If the irregularity is financial in nature then samples have been extended, and the irregular items extrapolated to ensure that no material misstatement has occurred. These irregularities are also communicated to management so that they can rectify the discrepancies or provide an explanation for the difference. Where the irregularity is a difference in treatment to what we had expected this has been communicated to management and additional explanation has been added ensure adequate disclosure where necessary.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
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.
 



Page 8

 
NXSTAGE MEDICAL UK, LTD.
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NXSTAGE MEDICAL UK, LTD. (CONTINUED)


Use of our 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 2006Our 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.





Caryl King BSc ACA (Senior Statutory Auditor)
for and on behalf of
 


 
Wilder Coe Ltd
Chartered Accountants & Statutory Auditors
1st Floor Sackville House
143-149 Fenchurch Street
London
EC3M 6BL

 

Date: 29 September 2023
Page 9

 
NXSTAGE MEDICAL UK, LTD.
 

STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2022

2022
2021
Note
£
£

  

Turnover
 4 
9,878,543
10,288,779

Cost of sales
  
(8,836,890)
(8,458,625)

Gross profit
  
1,041,653
1,830,154

Administrative expenses
  
(670,997)
(665,078)

Profit on ordinary activities before taxation
 5 
370,656
1,165,076

Tax on profit
 8 
(176,668)
(165,356)

Profit for the financial year
  
193,988
999,720

Retained earnings at the beginning of the year
  
1,594,872
595,152

Profit for the year
  
193,988
999,720

Retained earnings at the end of the year
  
1,788,860
1,594,872

The notes on pages 12 to 20 form part of these financial statements.
Page 10

 
NXSTAGE MEDICAL UK, LTD.
REGISTERED NUMBER: 07857151

BALANCE SHEET
AS AT 31 DECEMBER 2022

2022
2021
Note
£
£

Fixed assets
  

Tangible assets
 9 
5,185,373
5,887,433

Current assets
  

Stocks
 10 
1,760,891
1,149,839

Debtors
 11 
2,097,349
1,680,884

Cash at bank and in hand
  
606,237
1,396,960

  
4,464,477
4,227,683

Creditors: amounts falling due within one year
 12 
(6,100,856)
(6,910,175)

Net current liabilities
  
 
 
(1,636,379)
 
 
(2,682,492)

Total assets less current liabilities
  
3,548,994
3,204,941

Provisions for liabilities
  

Deferred tax
  
(442,684)
(292,619)

Net assets
  
3,106,310
2,912,322


Capital and reserves
  

Alotted, called up and fully paid share capital
  
1,317,450
1,317,450

Profit and loss account
  
1,788,860
1,594,872

Equity shareholders' funds
  
3,106,310
2,912,322


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 September 2023.




Christopher James Slater
Director

The notes on pages 12 to 20 form part of these financial statements.

Page 11

 
NXSTAGE MEDICAL UK, LTD.
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

1.


General information

NxStage Medical UK, Ltd. (Company number: 07857151), having its registered office and principal place of business at Nunn Brook Road, Huthwaite, Sutton-In-Ashfield, Nottinghamshire, NG17 2HU, is a private limited company incorporated in England and Wales.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The following principal accounting policies have been applied:

  
2.2

Statement of Cash Flows

The Company has taken advantage of the exemption in Financial Reporting Standard 102, Section 1.12 from the requirement to provide a Statement of Cash Flows on the grounds that it is a qualifying entity and the ultimate parent prepares consolidated group accounts. 

 
2.3

Turnover

Turnover is recognised when the risks and rewards associated with the provision of treatments has substantially transferred, in accordance with the contract with the respective healthcare body. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of turnover can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are provided when all of the following conditions are satisfied:
the amount of turnover can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Page 12

 
NXSTAGE MEDICAL UK, LTD.
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.4

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date.

 
2.5

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.
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:

Plant and machinery
-
Straight-line between 5 and 7 years

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 Statement of Income and Retained Earnings.

 
2.6

Stocks

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 out basis. 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 the Statement of Income and Retained Earnings.

Page 13

 
NXSTAGE MEDICAL UK, LTD.
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.7

Debtors

Short-term debtors are measured at transaction price, less any impairment.

 
2.8

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

 
2.9

Creditors

Short-term creditors are measured at the transaction price.

 
2.10

Foreign currency translation

Functional and presentation currency
The Company's functional and presentational currency is British Pound Sterling (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.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Income and Retained Earnings.

 
2.11

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.

 
2.12

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Statement of Income and Retained Earnings in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

Page 14

 
NXSTAGE MEDICAL UK, LTD.
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

3.


Judgments in applying accounting policies 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 amounts of assets and liabilities that are not readily apparent from other sources. These estimates and 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 if the revision only affects that period, or in the period of the revision and future periods if the revision affects both current and future periods. 
Included in fixed assets and accrued expenses are amounts that are subject to some estimation uncertainty when determining the likely settlement value. The range of estimation uncertainty for some of these amounts could be material. See basis for qualified audit opinion paragraph for more detail.


4.


Turnover

An analysis of turnover by class of business is as follows:


2022
2021
£
£

Sales to customers
9,873,382
10,288,304

Intercompany recharges
5,161
475

9,878,543
10,288,779


Analysis of turnover by country of destination:

2022
2021
£
£

United Kingdom
9,873,382
10,288,304

Rest of the world
5,161
475

9,878,543
10,288,779



5.


Operating profit

The operating profit is stated after charging:

2022
2021
£
£

Exchange differences
36,694
51,379

Page 15

 
NXSTAGE MEDICAL UK, LTD.
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2022
2021
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
15,500
15,000

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.


7.


Employees

Staff costs were as follows:


2022
2021
£
£

Wages and salaries
-
(20,867)

Social security costs
-
628

-
(20,239)




The average monthly number of employees, including the directors, during the year was as follows:


        2022
        2021
            No.
            No.







Employees
2
4

Page 16

 
NXSTAGE MEDICAL UK, LTD.
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

8.


Taxation


2022
2021
£
£

Corporation tax


Current tax on loss/profit for the year
26,603
-


Deferred tax


Origination and reversal of timing differences
150,065
165,356


Taxation on profit on ordinary activities
176,668
165,356

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2021 - lower than) the standard rate of corporation tax in the UK of 19% (2021 - 19%). The differences are explained below:

2022
2021
£
£


Profit on ordinary activities before tax
370,656
1,165,076


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
70,425
221,364

Effects of:


Expenses not deductible for tax purposes
-
221

Capital allowances for year in excess of depreciation
8,742
(274,148)

Creation of tax losses
-
52,563

Utilisation of tax losses
(52,564)
-

Deferred tax charge
150,065
165,356

Total tax charge for the year
176,668
165,356


Factors that may affect future tax charges

As at 31 December 2022, there were tax losses of £Nil (2021: £276,648) which were available for offset against future tax profits. 

Page 17

 
NXSTAGE MEDICAL UK, LTD.
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

9.


Tangible fixed assets





Plant and machinery

£



Cost


At 1 January 2022
8,525,001


Additions
399,383


Disposals
(614,790)



At 31 December 2022

8,309,594



Depreciation


At 1 January 2022
2,637,568


Charge for the year on owned assets
486,653



At 31 December 2022

3,124,221



Net book value



At 31 December 2022
5,185,373



At 31 December 2021
5,887,433


10.


Stocks

2022
2021
£
£

Finished goods and goods for resale
1,760,891
1,149,839



11.


Debtors

2022
2021
£
£

Amounts due within one year

Trade debtors
1,981,981
1,587,150

Other debtors
115,368
93,734

2,097,349
1,680,884


Page 18

 
NXSTAGE MEDICAL UK, LTD.
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

12.


Creditors: Amounts falling due within one year

2022
2021
£
£

Trade creditors
271,487
252,283

Amounts owed to group undertakings
26,599
1,947,389

Corporation tax
26,603
-

Accruals and deferred income
5,776,167
4,710,503

6,100,856
6,910,175



13.


Deferred taxation




2022
2021


£

£






At beginning of year
(292,619)
(127,477)


Charged to profit or loss
(150,065)
(165,142)



At end of year
(442,684)
(292,619)

The deferred taxation balance is made up as follows:

2022
2021
£
£


Accelerated capital allowances
(442,684)
(345,182)

Tax losses carried forward
-
52,563


14.


Related party transactions

The Company has taken advantage of Section 33.1A of FRS 102 in not disclosing transactions between wholly-owned members of a group.


15.


Ultimate parent undertaking

As at 31 December 2022 and 31 December 2021, the ultimate parent undertaking was Fresenius Medical Care AG & Co. KGaA, a listed company incorporated in Germany.
Consolidated financial statements are available from the following address:
Else-Kröner-Straße 1,
61352 Bad Homburg v.d. Höhe,
Germany

Page 19

 
NXSTAGE MEDICAL UK, LTD.
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

16.


Post balance sheet events

On 1 September 2023 Fresenius Medical Care (Holding) Limited replaced Nxstage Medical Inc as  the immediate parent undertaking.


Page 20