REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 |
FOR |
OMRON HEALTHCARE UK LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023 |
FOR |
OMRON HEALTHCARE UK LIMITED |
OMRON HEALTHCARE UK LIMITED (REGISTERED NUMBER: 02498080) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Director | 4 |
Report of the Independent Auditors | 6 |
Statement of Profit or Loss and Other Comprehensive Income |
10 |
Statement of Financial Position | 11 |
Statement of Changes in Equity | 12 |
Statement of Cash Flows | 13 |
Notes to the Statement of Cash Flows | 14 |
Notes to the Financial Statements | 15 |
OMRON HEALTHCARE UK LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MARCH 2023 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Statutory Auditor |
44 Grand Parade |
Brighton |
BN2 9QA |
OMRON HEALTHCARE UK LIMITED (REGISTERED NUMBER: 02498080) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
The director presents his strategic report for the year ended 31 March 2023. |
REVIEW OF BUSINESS AND KEY PERFORMANCE INDICATORS |
The Statement of Income as set out on page 10 records the profit for the year. |
The company continues to use its established key performance indicators to monitor and measure progress. These include Turnover, Operating Profit, Variance against the Budget and prior year and Profit before Tax. |
Turnover |
OMRON manufacture and supply a range of medical devices which help consumers and clinicians monitor chronic diseases such as hypertension. |
The fiscal year 2022 has seen a period of recovery in the offline market with stores seeing new demand for home devices so that consumers can monitor conditions at home. The UK market is characterised by pharmacy, retail, professional and online channels for medical devices. The end of the pandemic saw the start of more promotions across retail and the return of OMRON managed its operations successfully and continued to deliver innovative products to consumers and clinicians. |
The company concentrates on the main activity which is the distribution of Healthcare products. |
Operating Profit |
The company's operating result decreased to a loss of £0.908m (2022 - profit £.0239 m). |
The decrease in operating result is largely due to the above factors. |
Profit after Tax |
The company's result after taxation decreased to a loss of£0.907 m (2022: £0.195 m). |
The decrease in result before tax is mainly due to the above factors. |
OMRON HEALTHCARE UK LIMITED (REGISTERED NUMBER: 02498080) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The company is part of the Omron Corporation Group and operates within the healthcare industry. OMRON Healthcare is a leader in medical equipment for therapy and health monitoring. Our range of products includes blood pressure monitors, respiratory therapy devices, electronic fever thermometers and body fat monitors among others. By looking beyond the technology, our real commitment lies in building healthy lives. We aim to provide a total healthcare management service, aimed at preventing and improving such increasingly common health problems as hypertension, respiratory problems, diabetes and obesity. |
The wider economic impacts from Brexit, Covid-19 have lessened over the months, but the global shortage of components and the inflationary considerations all through the supply chain remain an alert to the Company. Contingency plans are in hand at both OC and EMEA levels and actions are being implemented. Careful cost management remains a priority. |
The Director remains optimistic regarding the long-term prospects of the Company. Whilst challenges remain, a Brexit deal is in place, there are no more Covid governmental restrictions in place and component shortage mitigation plans are active, which is providing optimism. The extent to which the current inflationary pressures on materials and higher logistics costs impacting the business remains uncertain, but the Director continues to closely monitor the developments and their impact on the Company. |
The company is part to the group's corporation-wide internal control and risk management system, especially in terms of the accounting processes, which helps analyse and manage the company's risk situation. The risk management system serves to identify and evaluate developments that could trigger significant disadvantages and to avoid risks that would jeopardize the continued existence of the company. |
The risk management system regulates the identification, recording, assessment, documentation and reporting of risks and is integrated into the company's strategy, planning and budgeting processes. By including risk management in the management and reporting systems, the company ensures that risk management is an integral component of business processes. |
FINANCIAL RISKS |
Currency risk |
The company is exposed to translation and foreign exchange risk. These risks are mitigated, where possible, by undertaking transactions with overseas customers and suppliers in £ sterling. |
Liquidity and cashflow risk |
The company seeks to manage liquidity risk by ensuring sufficient cash is available to meet foreseeable needs and to invest cash assets safely and profitably. Financial support is also available from the ultimate parent company. |
ON BEHALF OF THE BOARD: |
OMRON HEALTHCARE UK LIMITED (REGISTERED NUMBER: 02498080) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31 MARCH 2023 |
The director presents his report with the financial statements of the company for the year ended 31 March 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of the distribution of healthcare products. |
DIVIDENDS |
No interim dividend was paid during the year. The director recommends a final dividend of £ |
The total distribution of dividends for the year ended 31 March 2023 will be £ |
The directors have proposed no dividend be paid in September 2023. |
DIRECTOR |
The director holding office at 31 March 2023 did not hold any beneficial interest in the issued share capital of the company at 1 April 2022 or 31 March 2023. |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with UK-adopted international accounting standards. Under company law the director must not approve the financial statements unless he is 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 director is required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
OMRON HEALTHCARE UK LIMITED (REGISTERED NUMBER: 02498080) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31 MARCH 2023 |
AUDITORS |
The auditors, Chariot House Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
OMRON HEALTHCARE UK LIMITED |
Opinion |
We have audited the financial statements of Omron Healthcare UK Limited (the 'company') for the year ended 31 March 2023 which comprise the Statement of Profit or Loss and Other Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the UK. |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 March 2023 and of its loss for the year then ended; |
- | have been properly prepared in accordance with IFRSs as adopted by the UK; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 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 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 director's 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 director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit: |
- | the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
OMRON HEALTHCARE UK LIMITED |
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 Report of the Director. |
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: |
- | 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 director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
OMRON HEALTHCARE UK LIMITED |
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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We identified that the following laws and regulations are central to the company: |
- Companies Act 20006 |
- Health & safety regulations |
We did not find any instances of non-compliance or breaches of the legislation framework applicable to the company. |
We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. |
We identified that the following areas were of high risk: |
- Completeness of income. We performed various audit tests to ensure that income was not materially understated in the financial statements. |
- Management override of controls. We performed various audit tests to ensure there was no material management override of controls |
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation.. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel when considered necessary. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of management bias by the directors that represented a risk of material misstatement due to fraud. |
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 Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
OMRON HEALTHCARE UK LIMITED |
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 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 a Report of the Auditors 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 and Statutory Auditor |
44 Grand Parade |
Brighton |
BN2 9QA |
OMRON HEALTHCARE UK LIMITED (REGISTERED NUMBER: 02498080) |
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
CONTINUING OPERATIONS |
Revenue |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
OPERATING (LOSS)/PROFIT | ( |
) |
Finance costs | 4 | (1,867 | ) | (671 | ) |
Finance income | 4 | 28,934 | 1,855 |
(LOSS)/PROFIT BEFORE INCOME TAX | 5 | ( |
) |
Income tax | 6 | ( |
) |
(LOSS)/PROFIT FOR THE YEAR | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
OMRON HEALTHCARE UK LIMITED (REGISTERED NUMBER: 02498080) |
STATEMENT OF FINANCIAL POSITION |
31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
ASSETS |
NON-CURRENT ASSETS |
Owned |
Property, plant and equipment | 8 |
Right-of-use |
Property, plant and equipment | 8, 16 |
CURRENT ASSETS |
Inventories | 9 |
Trade and other receivables | 10 |
Cash and cash equivalents | 11 |
TOTAL ASSETS |
EQUITY |
SHAREHOLDERS' EQUITY |
Called up share capital | 12 |
Retained earnings | 13 |
TOTAL EQUITY |
LIABILITIES |
NON-CURRENT LIABILITIES |
Financial liabilities - borrowings |
Interest bearing loans and borrowings | 15 |
CURRENT LIABILITIES |
Trade and other payables | 14 |
Financial liabilities - borrowings |
Interest bearing loans and borrowings | 15 |
Tax payable |
TOTAL LIABILITIES |
TOTAL EQUITY AND LIABILITIES |
The financial statements were approved by the director and authorised for issue on |
OMRON HEALTHCARE UK LIMITED (REGISTERED NUMBER: 02498080) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 March 2023 |
OMRON HEALTHCARE UK LIMITED (REGISTERED NUMBER: 02498080) |
STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Lease interest paid | (1,867 | ) | (671 | ) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Interest received |
Net cash from investing activities |
Cash flows from financing activities |
Payment of lease liabilities | ( |
) | ( |
) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
2,385,884 |
Cash and cash equivalents at end of year | 2 |
OMRON HEALTHCARE UK LIMITED (REGISTERED NUMBER: 02498080) |
NOTES TO THE STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 MARCH 2023 |
1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE INCOME TAX TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
(Loss)/profit before income tax | ( |
) |
Depreciation charges |
Finance costs | 1,867 | 671 |
Finance income | (28,934 | ) | (1,855 | ) |
(911,662 | ) | 261,212 |
(Increase)/decrease in inventories | ( |
) |
Decrease in trade and other receivables |
Increase/(decrease) in trade and other payables | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 March 2023 |
31/3/23 | 1/4/22 |
£ | £ |
Cash and cash equivalents | 1,971,066 | 1,628,545 |
Year ended 31 March 2022 |
31/3/22 | 1/4/21 |
£ | £ |
Cash and cash equivalents | 1,628,545 | 2,385,884 |
OMRON HEALTHCARE UK LIMITED (REGISTERED NUMBER: 02498080) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
1. | STATUTORY INFORMATION |
Omron Healthcare UK Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
OMRON HEALTHCARE UK LIMITED (REGISTERED NUMBER: 02498080) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
2. | ACCOUNTING POLICIES |
Basis of preparation |
Standard adopted by the company |
- IFRS 16 Leases. |
Short term leases and leases of low-value assets |
From the accounting period to 31st March 2021 the company has decided to fully apply IFRS 16 using the modified retrospective approach and therefore the comparative information has not been restated |
At the inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. IFRS 16. |
As a lessee |
At commencement or on modification of a contract that contains a lease component, along with one or more other lease or non-lease components, the Company accounts for each lease component separately from the non-lease components. The Company allocates the consideration in the contract to each lease component on the basis of its relative stand-alone price and the aggregate stand-alone price of the non-lease components. |
The Company recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. |
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Company by the end of the lease term or the cost of the right-of-use asset reflects that the Company will exercise a purchase option. In that case the right-of-use asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability. |
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company's incremental borrowing rate. |
Lease payments included in the measurement of the lease liability comprise the following: |
- fixed payments, including in-substance fixed payments; |
- variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date |
- amounts expected to be payable under a residual value guarantee; and |
- the exercise price under a purchase option that the Company is reasonably certain to exercise, |
- lease payments in an optional renewal period if the Company is reasonably certain to exercise an extension option, and |
- penalties for early termination of a lease unless the Company is reasonably certain not to terminate early. |
OMRON HEALTHCARE UK LIMITED (REGISTERED NUMBER: 02498080) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, there is a change in the Company's estimate of the amount expected to be payable under a residual value guarantee, if the Company changes its assessment of whether it will exercise a purchase, extension or termination option or if there is a revised in-substance fixed lease payment. |
When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, to the extent that the right-of-use asset is reduced to nil, with any further adjustment required from the remeasurement being recorded in profit or loss. |
Going Concern |
The Board conclude that it is appropriate to adopt the going concern basis of accounting because there are no material uncertainties related to events or conditions that may cast significant doubt about the ability of the Company to continue as a going concern. |
As described in the Strategic Report on page 3, the Board has assessed the risks arising from the COVID-19 outbreak, but does not consider that there is a going concern implication. |
Preparation of consolidated financial statements |
The Company's ultimate parent undertaking, Omron Healthcare Europe BV, includes the Company in its consolidated financial statements which are prepared in accordance with Part 9 of Book 2 of the Dutch Civil Code, are available to the public and may be obtained from the address given in note 15. |
Revenue recognition |
The company has only one reportable segment from which it generates income. This is the sale/ distribution of healthcare products purchased exclusively from its holding company, Omron Healthcare Europe BV. The company is part of its ultimate parent company's, Omron Corporation, global network, as a result, sales are restricted to customers based in the United Kingdom. |
The company recognises revenue from the sale of goods when a product is sold and delivered to the customer. Sales are mainly in the form of bulk sales to a relatively small number of customers. The company does offer credit terms to bulk sales customers and these are negotiated on an individual customer basis with the company. A much smaller proportion of sales are made to online customers direct from the company's website, but this ceased in the year to 31 March 2021. Online customers were required to make full payment of the transaction price at the time of the order is placed. It is the company's policy that online customers have with a right to return products within 28 days of purchase. Accumulated experience is used to estimate such returns at the time of sale. Because the number of products returned has been steady, it is highly probable that a significant reversal in the cumulative revenue recognised will not occur. The company has an obligation to repair or replace faulty products under its standard warranty terms. The possibility of any outflow of economic benefits is considered to be remote, see note 18. The validity of theses assumptions and the estimated amount of returns and warranties are reassessed at each reporting date. |
Cash and cash equivalents |
Cash represents cash in hand and deposits held on demand with financial institutions. Cash equivalents are short-term, highly-liquid investments with original maturities of three months or less (as at their date of acquisition). Cash equivalents are readily convertible to known amounts of cash and subject to an insignificant risk of change in that cash value. |
In the presentation of the Statement of Cash Flows, cash and cash equivalents also include bank overdrafts. Any such overdrafts are shown within borrowings under ‘current liabilities’ on the Statement of Financial Position. |
OMRON HEALTHCARE UK LIMITED (REGISTERED NUMBER: 02498080) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Property, plant and equipment |
Motor vehicles | - |
(i) Recognition and measurement |
Items of property, plant and equipment are measured at cost, which includes capitalised borrowing costs, less accumulated depreciation and any accumulated impairment losses. |
(ii) Depreciation |
Depreciation is calculated to write off the cost of items of property, plant and equipment less their estimated residual values using the following annual rates over their estimated useful lives, and is generally recognised in profit or loss. |
Impairment of assets |
Property, plant and equipment are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs of disposal and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period. |
OMRON HEALTHCARE UK LIMITED (REGISTERED NUMBER: 02498080) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
(i) Recognition and initial measurement |
Trade receivables and debt securities issued are initially recognised when they are originated. All other financial assets and financial liabilities are initially recognised when the company becomes a party to the contractual provisions of the instrument. |
A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at Fair Value Through Profit and Loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price. |
(ii) Classification and subsequent measurement |
Financial assets |
On initial recognition, a financial asset is classified as measured at: amortised cost; Fair Value Through Other Comprehensive Income (FVOCI) - debt investment; FVOCI - equity investment; or FVTPL. |
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL: |
- it is held within a business model whose objective is to hold assets to collect contractual cash flows; and |
- its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. |
A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL: |
- it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and |
- its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. |
All financial assets not classified as measured at amortised cost or FVOCI as described above are measured at FVTPL. |
Financial liabilities - Classification, subsequent measurement and gains and losses |
Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss. |
(iii) Derecognition |
Financial assets |
The company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset. |
The company enters into transactions whereby it transfers assets recognised in its statement of financial position, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognised. |
Financial liabilities |
OMRON HEALTHCARE UK LIMITED (REGISTERED NUMBER: 02498080) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
The company derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire. The company also derecognises a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognised at fair value. |
On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognised in profit or loss. |
Cash and cash equivalents |
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet. |
Trade receivables |
Trade receivables are recognised initially at the amount of consideration that is unconditional, unless they contain significant financing components when they are recognised at fair value. They are subsequently measured at amortised cost using the effective interest method, less loss allowance. |
Trade and other payables |
These amounts represent liabilities for goods and services provided to the company prior to the end of the financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method. |
Provisions |
Provisions for service warranties are recognised when the company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation, and the amount can be reliably estimated. Provisions are not recognised for future operating losses. |
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small. |
Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense. |
Inventories |
Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Inventories are valued on a first in first out basis. |
Taxation |
Current taxes are based on the results shown in the financial statements and are calculated according to local tax rules, using tax rates enacted or substantially enacted by the statement of financial position date. |
OMRON HEALTHCARE UK LIMITED (REGISTERED NUMBER: 02498080) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Foreign currencies |
Transactions and balances |
Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions, and from the translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates, are generally recognised in profit or loss. They are deferred in equity if they relate to qualifying cash flow hedges and qualifying net investment hedges or are attributable to part of the net investment in a foreign operation. |
Foreign exchange gains and losses that relate to borrowings are presented in the statement of profit or loss, within finance costs. All other foreign exchange gains and losses are presented in the statement of profit or loss on a net basis within other gains/(losses). |
Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss. For example, translation differences on non-monetary assets and liabilities such as equities held at fair value through profit or loss are recognised in profit or loss as part of the fair value gain or loss, and translation differences on non-monetary assets such as equities classified as at fair value through other comprehensive income are recognised in other comprehensive income. |
Leases |
Leases are recognised as finance leases. The lease liability is initially recognised at the present value of the lease payments which have not yet been made and subsequently measured under the amortised cost method. The initial cost of the right-of-use asset comprises the amount of the initial measurement of the lease liability, lease payments made prior to the lease commencement date, initial direct costs and the estimated costs of removing or dismantling the underlying asset per the conditions of the contract. |
Where ownership of the right-of-use asset transfers to the lessee at the end of the lease term, the right-of-use asset is depreciated over the asset’s remaining useful life. If ownership of the right-of-use asset does not transfer to the lessee at the end of the lease term, depreciation is charged over the shorter of the useful life of the right-of-use asset and the lease term. |
Employee benefit costs |
(i) Short-term obligations |
Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick leave that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet. |
(iii) Termination benefits |
Termination benefits are payable when employment is terminated by the company before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The company recognises termination benefits at the earlier of the following dates: (a) when the company can no longer withdraw the offer of those benefits; and (b) when the entity recognises costs for a restructuring that is within the scope of IAS 37 and involves the payment of terminations benefits. In the case of an offer made to encourage voluntary redundancy, the termination benefits are measured based on the number of employees expected to accept the offer. Benefits falling due more than 12 months after the end of the reporting period are discounted to present value. |
Share capital |
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from equity. Income tax relating to transaction costs of an equity transaction is accounted for in accordance with IAS 12. |
OMRON HEALTHCARE UK LIMITED (REGISTERED NUMBER: 02498080) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Use of judgements and estimates |
In preparing these financial statements, management has made judgements and estimates that affect the application of the company's accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. |
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively. |
(i) Judgements |
Information about judgements made in applying accounting policies that have the most significant effects on the amounts recognised in the financial statements is included in the following notes: |
- revenue recognition |
(ii) Assumptions and estimation uncertainties |
Information about assumptions and estimation uncertainties at 31 March 2020 that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities in the next financial year is included in the following notes: |
- revenue recognition: estimate of expected returns; |
- recognition of deferred tax assets: availability of future taxable profit against which deductible temporary differences and tax losses carried forward can be utilised; |
- recognition and measurement of provisions and contingencies: key assumptions about the likelihood and magnitude of an outflow of resources; |
(iii) Measurement of fair values |
A number of the company's accounting policies and disclosures require the measurement of fair values, for both financial and non-financial assets and liabilities. |
When measuring the fair value of an asset or a liability, the company uses observable market data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows. |
- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. |
- Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices). |
- Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs). |
3. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
OMRON HEALTHCARE UK LIMITED (REGISTERED NUMBER: 02498080) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
3. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2023 | 2022 |
Management | 1 | 2 |
Selling and Distribution | 4 | 4 |
Administration | 5 | 6 |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
4. | NET FINANCE INCOME |
2023 | 2022 |
£ | £ |
Finance income: |
Deposit account interest |
Interest received on tax | - | 1,855 |
Finance costs: |
Leasing | 1,867 | 671 |
Net finance income |
5. | (LOSS)/PROFIT BEFORE INCOME TAX |
The loss before income tax (2022 - profit before income tax) is stated after charging: |
2023 | 2022 |
£ | £ |
Cost of inventories recognised as expense |
Depreciation - assets on finance leases |
Auditors' remuneration | 12,830 | 12,092 |
Auditors' remuneration for non audit work |
OMRON HEALTHCARE UK LIMITED (REGISTERED NUMBER: 02498080) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
6. | INCOME TAX |
Analysis of tax (income)/expense |
2023 | 2022 |
£ | £ |
Current tax: |
Tax |
Corporation tax underprovision earlier year | (660 | ) | (1,594 | ) |
Total tax (income)/expense in statement of profit or loss and other comprehensive income |
( |
) |
Factors affecting the tax expense |
The tax assessed for the year is higher (2022 - lower) than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
(Loss)/profit before income tax | ( |
) |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Losses carried forward | 171,786 | - |
(Under)/Overprovision | - | (934 | ) |
Tax (income)/expense | ( |
) |
7. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £1 each |
Final |
OMRON HEALTHCARE UK LIMITED (REGISTERED NUMBER: 02498080) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
8. | PROPERTY, PLANT AND EQUIPMENT |
Motor |
vehicles |
£ |
COST |
At 1 April 2022 |
and 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
Motor vehicles are comprised wholly of Right of Use assets. |
9. | INVENTORIES |
2023 | 2022 |
£ | £ |
Stocks |
10. | TRADE AND OTHER RECEIVABLES |
2023 | 2022 |
£ | £ |
Current: |
Trade debtors |
Prepayments and accrued income | 25,098 | 312,929 |
11. | CASH AND CASH EQUIVALENTS |
2023 | 2022 |
£ | £ |
Bank deposit account | 1,971,066 | 1,628,545 |
12. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 1,000 | 1,000 |
OMRON HEALTHCARE UK LIMITED (REGISTERED NUMBER: 02498080) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
13. | RESERVES |
Retained |
earnings |
£ |
At 1 April 2022 |
Deficit for the year | ( |
) |
Dividends | ( |
) |
At 31 March 2023 |
Reserves represent accumulated profits not yet distributed. |
14. | TRADE AND OTHER PAYABLES |
2023 | 2022 |
£ | £ |
Current: |
Trade creditors |
Amounts owed to group undertakings |
Accrued expenses | 289,690 | 603,099 |
VAT | 170,270 | 534,633 |
15. | FINANCIAL LIABILITIES - BORROWINGS |
2023 | 2022 |
£ | £ |
Current: |
Leases (see note 16) | 15,550 | 23,384 |
Non-current: |
Leases (see note 16) | 7,095 | 22,645 |
Terms and debt repayment schedule |
1 year or |
less | 1-2 years | Totals |
£ | £ | £ |
Leases | 15,550 | 7,095 | 22,645 |
16. | LEASING |
Right-of-use assets |
Right of Use Assets capitalised under IFRS 16 are Motor Vehicles as disclosed in Note 8. |
OMRON HEALTHCARE UK LIMITED (REGISTERED NUMBER: 02498080) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
16. | LEASING - continued |
Lease liabilities |
Lease liabilities represent amounts recognised under IFRS 16 and relate to the leased motor vehicles. Payments are due each month in accordance with the individual lease agreements. |
17. | ULTIMATE PARENT COMPANY |
The company's immediate parent undertaking is Omron Healthcare Europe BV. It has included the company in its group accounts, copies of which are available from its registered office, 2132 NA, Hoofddorp, Netherlands. |
In the directors' opinion, the company's ultimate parent company and controlling party is Omron Corporation, a publicly quoted company, which is incorporated in Japan. |
18. | CONTINGENT LIABILITIES |
The company has a potential liability in respect of warranties provided on goods sold. The directors consider that the possibility of any outflow of economic benefits is remote and so do not consider that it is necessary to disclose the amounts involved. |
19. | RELATED PARTY DISCLOSURES |
At 31st March 2023 the amount owing to the holding company was £2,548,334 (2022: £1,605,635) repayable on demand. |
Purchases of stock in the year by the company from Omron Healthcare Europe BV amounted to £11,120,517 (2022: £11,477,430). |
Recharges of expenses in the year by the company to Omron Healthcare Europe BV amounted to £112,202 (2022: £223,705). |