Company Registration No. 04733494 (England and Wales)
DIATEC DIAGNOSTICS LTD
FORMERLY KNOWN AS ACOUSTIC METROLOGY LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
DIATEC DIAGNOSTICS LTD
CONTENTS
Page
Company information
1
Balance sheet
2
Notes to the financial statements
3 - 9
DIATEC DIAGNOSTICS LTD
COMPANY INFORMATION
- 1 -
Directors
S Nielsen
R Schneider
B Coleman
(Appointed 2 May 2023)
Secretary
L Graham
(Appointed 2 May 2023)
Company number
04733494
Registered office
3800 Parkside Solihull Parkway
Birmingham Business Park
Birmingham
West Midlands
England
B37 7YG
Auditor
Consilium Audit Limited
169 West George Street
Glasgow
Scotland
G2 2LB
Business address
C/O Oticon Limited
Cadzow Industrial Estate
Low Waters Road
Hamilton
Lanarkshire
Scotland
ML3 7QE
DIATEC DIAGNOSTICS LTD
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 2 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
4
116,987
52,894
Current assets
Stocks
564,124
19,949
Debtors
5
933,808
184,285
Cash at bank and in hand
787,937
806,543
2,285,869
1,010,777
Creditors: amounts falling due within one year
6
(1,198,567)
(150,122)
Net current assets
1,087,302
860,655
Total assets less current liabilities
1,204,289
913,549
Provisions for liabilities
(78,826)
(1,899)
Net assets
1,125,463
911,650
Capital and reserves
Called up share capital
30,200
30,200
Profit and loss reserves
1,095,263
881,450
Total equity
1,125,463
911,650
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 5 October 2023 and are signed on its behalf by:
The notes of pages 3 to 9 form part of these financial statements.
S Nielsen
Director
Company Registration No. 04733494
DIATEC DIAGNOSTICS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
1
Accounting policies
Company information
Diatec Diagnostics Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 3800 Parkside Solihull Parkway, Birmingham Business Park, Birmingham, West Midlands, England, B37 7YG. The company's registration number is 04733494.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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.
1.2
Turnover
Turnover represents the amounts receivable for goods and services supplied to customers in the normal course of business net of VAT and trade discounts. Turnover is recognised upon shipment of goods to customers.
1.3
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:
Plant and equipment
between 10% and 33% on cost
No depreciation is provided on assets under construction.
1.4
Stocks
Stocks are held at standard cost and stated at the lower of cost and net realisable value after making allowance for obsolete and slow-moving items. Net realisable value is based on estimated selling price. In the case of work in progress, cost is represented by materials, direct labour and appropriate production overheads.
1.5
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.
DIATEC DIAGNOSTICS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 4 -
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.
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.
1.6
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.
1.7
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.
DIATEC DIAGNOSTICS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 5 -
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.
1.8
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in the profit and loss account in the period in which it arises.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
Leases
Rentals paid under operating leases are charged to the Income Statement on a straight line basis over the period of the lease.
1.11
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.
1.12
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 the profit and loss account.
DIATEC DIAGNOSTICS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 6 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Total
20
18
3
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
59,670
53,267
Deferred tax
Origination and reversal of timing differences
(1,913)
(4,676)
Total tax charge
57,757
48,591
4
Tangible fixed assets
Plant and equipment
£
Cost
At 1 January 2022
265,725
Additions
107,387
Disposals
(107,575)
At 31 December 2022
265,537
Depreciation and impairment
At 1 January 2022
212,831
Depreciation charged in the year
40,891
Eliminated in respect of disposals
(105,172)
At 31 December 2022
148,550
Carrying amount
At 31 December 2022
116,987
At 31 December 2021
52,894
DIATEC DIAGNOSTICS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 7 -
5
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
678,367
148,523
Amounts owed by group undertakings and associates
21,335
14,212
Other debtors
232,193
21,550
931,895
184,285
Deferred tax asset
1,913
933,808
184,285
6
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
1,919
Amounts owed to group undertakings
932,272
49,711
Taxation and social security
91,131
78,884
Other creditors
173,245
21,527
1,198,567
150,122
7
Provisions for liabilities
2022
2021
£
£
Warranty Provision
28,826
-
Inventory
50,000
-
78,826
Deferred tax liabilities
8
1,899
78,826
1,899
Movements on provisions apart from deferred tax liabilities:
Warranty Provision
Inventory
Total
£
£
£
Additional provisions in the year
41,324
50,000
91,324
Utilisation of provision
(37,225)
-
(37,225)
Other movements
24,727
-
24,727
At 31 December 2022
28,826
50,000
78,826
DIATEC DIAGNOSTICS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
7
Provisions for liabilities
(Continued)
- 8 -
The provision for product warranties relates to expected warranty claims on products sold in the last two to four years. It is expected that the majority of this expenditure will be incurred in the next financial year and that all will be incurred within four years of the balance sheet date.
In 2022, the Company received the stock transfer from Oticon Limited composed of audiological and diagnostics equipment, together with this was the warranty provision amounting to £24,727.
8
Deferred taxation
The following are the major deferred tax liabilities recognised by the company and movements thereon:
Liabilities
Liabilities
Assets
Assets
2022
2021
2022
2021
Balances:
£
£
£
£
Accelerated capital allowances
-
1,899
1,913
-
2022
Movements in the year:
£
Liability at 1 January 2022
1,899
Credit to profit or loss
(3,812)
Asset at 31 December 2022
(1,913)
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Brian Thomson BA(Hons) CA
Statutory Auditor:
Consilium Audit Limited
10
Related party transactions
Transactions with related parties
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
During the year the company entered into the following transactions with related parties:
DIATEC DIAGNOSTICS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
10
Related party transactions
(Continued)
- 9 -
Amounts due from associates
Sales made to associates
2022
2021
2022
2021
£
£
£
£
Other related parties
3,946
598
19,046
3,512
No further transactions with related parties were undertaken such as are required to be disclosed under the provision of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
11
Ultimate controlling party
The company is a subsidiary undertaking of William Demant Foundation incorporated in Denmark.
The largest and smallest group in which the results of the company are consolidated is that headed by Demant A/S, incorporated in Denmark. The consolidated financial statements of these groups are available to the public and may be obtained from Kongebakken 9, 2765 Smørum, Denmark or https://www.demant.com.