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REGISTERED NUMBER: 00987160 (England and Wales)














Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 30th June 2023

for

Cirrus Research plc

Cirrus Research plc (Registered number: 00987160)






Contents of the Financial Statements
for the year ended 30th June 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 6

Report of the Independent Auditors 8

Statement of Comprehensive Income 12

Balance Sheet 13

Statement of Changes in Equity 14

Cash Flow Statement 15

Notes to the Cash Flow Statement 16

Notes to the Financial Statements 17


Cirrus Research plc

Company Information
for the year ended 30th June 2023







DIRECTORS: K D Frankish
D S Wallis
L M Wallis
G B Quaglia





SECRETARY: M Teasdale





REGISTERED OFFICE: Acoustic House
Bridlington Road
Hunmanby
North Yorkshire
YO14 0PH





REGISTERED NUMBER: 00987160 (England and Wales)





AUDITORS: Sadofskys
Statutory Auditors
Princes House
Wright Street
Hull
East Yorkshire
HU2 8HX

Cirrus Research plc (Registered number: 00987160)

Strategic Report
for the year ended 30th June 2023

The directors present their strategic report for the year ended 30th June 2023.

REVIEW OF BUSINESS
The key financial highlights are as follows:

30/6/23 30/06/22 30/06/21 30/06/20
£ £ £ £
Revenue 4,774,327 4,324,271 4,296,975 4,770,722
Revenue - Growth/(decline) 10.43% 0.64% (9.0% ) 6.45%
Profit before tax 209,753 157,971 92,560 248,595
Profit before tax margin 4.39% 3.65% 2.15% 5.21%

The financial results for the period were positive despite the continued, albeit reduced, instability caused by the Covid pandemic, Brexit and subsequent rising costs and supply chain issues.

The sales growth in excess of 10% was better than expected and was achieved whilst maintaining our prices. UK sales increased by almost 11%, partly as we were once again able to visit potential customers face to face freely and our focus on the EU was positive with sales growth of over 20%.

Supply chain issues restricted our sales, which should have been higher,and we ended the financial period with a larger order book than we would like. We continue to work closely with all our suppliers to maintain adequate lead times and reviewed our own internal methods and measures. The outstanding order book will be cleared within two months of the new financial period.

Many costs rose sharply throughout the year, for example; energy costs have increased significantly, which we have attempted to off-set by investing in more efficient lighting throughout the main factory in Hunmanby.

Overall, the total number of employees increased yet, unfortunately, there were some unexpected senior manager departures and the cost of recruitment and replacement proved to be significant. All the departed senior managers have been replaced and expectations for 2023/2024 are both high and positive. The relative cost per employee also increased as we addressed challenges with the 'cost of living crisis' in the UK.

The decision to maintain prices in 2022/2023 was the correct strategy and a global price increase was implemented in July 2023.

PRINCIPAL RISKS AND UNCERTAINTIES
As an exporter we are constantly aware that any impact on the global economy could negatively affect our business. Our strategy has always been to reduce business risk by avoiding reliance on single products or markets. We are also conscious that changes in regulation across the world can significantly impact on trade and we ensure our products are fully compliant with the regulatory environment in each country we do business with.

The company is aware of the various financial risks faced in day to day business. The company has formulated an effective risk management policy to mitigate the adverse impact on its financial performance on account of various risks such as credit, foreign exchange, technology, fraud etc.

The small size of the operations and lean structure of the company does not necessitate the requirement to have a separate sub-committee of the Board of Directors for management of the risk policy. The Board of Directors however has laid down various policy initiatives for the operating personnel to manage risks.

Credit Risk
The company's exposure to credit risk is moderate and is managed through a mix of initiatives such as obtaining post dated cheques, entering into legally sound and enforceable agreements, monitoring of credit exposure within the limits fixed for various customers. The doubtful debts arising out of factors like dealer closure are immediately recognised and provided for in the accounts.

Fraud Risk
The company has low exposure to fraud risk with strong internal control systems.


Cirrus Research plc (Registered number: 00987160)

Strategic Report
for the year ended 30th June 2023

SECTION 172(1) STATEMENT
The Board of Directors, in line with their duties under s172 of the Companies Act 2006, act in a way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its members as a whole, and in doing so have regard to a range of matters when making decisions for the long term. Key decisions and matters that are of strategic importance to the Company are appropriately informed by s172 factors.

At Cirrus Research plc, our Board of Directors, management and employees are committed to upholding high standards of corporate governance and business ethics. We firmly believe that timely disclosures, transparent accounting policies, rigorous internal control systems and a strong and independent Board go a long way in preserving shareholder trust while maximising long-term shareholder value.

This s172 statement explains how the Cirrus Directors:
- Have engaged with employees, suppliers, customers and others; and
- Have had regards to employee interests, the need to foster the company's business relationships with suppliers, customers and others, and the effect of that regards, including on the principal decisions taken by the company during the financial year.

The s172 statement focuses on matters of strategic importance to Cirrus, and the level of information disclosed is consistent with the size and the complexity of the business.

General confirmation of Directors' duties
Cirrus have a number of management teams appointed by the Board at group level to focus on specific areas and take informed decisions within the framework of delegated authority, and make specific recommendations to the Board. All decisions and recommendations of the committees are placed before the Board for information or for approval.

When making decisions, each Director ensures that they act in the way they consider, in good faith, would most likely promote the Company' success for the benefit of its members as a whole, and in doing so have regard (among matters) to:

The likely consequences of any decision in the long term
The Directors understand the business and the demand to innovate the latest products in order to find the most effective treatments in the company's core markets. Cirrus' vision and goal of customer satisfaction is what the business drives and strives for. The strategy set by the Board as a leader in the noise measurement industry is to ensure good health can be delivered to those who need it, and to promote wellness among them.

Whilst investing for the future, the Board also recognises that we must focus on meeting the current supply and demand of its products.

The Directors are guided by our core principles which provide both guidance for our current behaviour and inspiration for our future actions.

The interests of the company's employees
At Cirrus its employees are at the heart of our business. The Management team invites a fair and open two way relationship with all employees. We believe in respecting every individual, regardless of position. At Cirrus all employees are heard and have the opportunity to express their opinion. Organisation believes in equality and discourage any discrimination based on any caste, creed, race, religion age and gender etc. We are committed to employee's safety and well-being. Our HR policies are well documented and available to each employee. Management assumes responsibility that such policies are adhered to.

The talented and capable people have played a major role in powering and defining the growth of Cirrus. We believe that when people with diverse skills are bound together by a common purpose and value system, they can allow the company to achieve its aims.





The need to foster the company's business relationships with suppliers, customers and others

Cirrus Research plc (Registered number: 00987160)

Strategic Report
for the year ended 30th June 2023

Customers and suppliers are the key stakeholders in our business. In a competitive price driven environment, stock is the vital component at the keenest price. We engage in regular communication with our suppliers as well as customers. We recognise the fact that the stronger the relationships with suppliers the more we are able to serve our customers better. We remain committed to all our stakeholder for ethical business practices. The Company has put in practice a code of business conduct and ethics (CoBE) and every employee at Cirrus is required to comply with its principles.

The impact of the company's operations on the community and environment
At Cirrus, we are committed to lowering our impact on the environment. We have a strong commitment to providing sustainable supplies and, wherever possible, will procure locally both to benefit the environment and local businesses.

The desirability of the company maintaining a reputation for high standards of business conduct
Cirrus's Board periodically reviews their Corporate Governance requirements as the commitment to upholding the highest standards are set at board level but is filtered down throughout the whole group organisation.

The need to act fairly as between members of the company
The Directors consider and focus its attention to ensure that the company's performance is in line with their strategic vision for both the short and long term objectives. The impact of this on all of the stakeholders is reviewed. The Directors believe they act fairly.

The Board has created a culture of honesty, integrity and respect of the Cirrus's core values and principles. The company that has set a number guidelines on Code of Business Conduct and Ethics (COBE) through to various Environment and Employment policies.

Principal decisions
We define principal decisions taken by the Board as those decisions in 2022/23 that are of a strategic nature and that are significant to any of our key stakeholder groups.


STREAMLINED ENERGY AND CARBON REPORTING


Total Usage

Total Usage

Conversion
Total
Emissions

Site
Fuel
Type
Floor Area
m2

L

KWH

Factor

T/CO2e
Acoustic House Electric 660.77 60,878 0.21233 12.93
Acoustic House Oil 4,746 2.54014 12.05

Methodology
1. The total electricity usage is based on billed amounts
2. Floor area is based on both ground and first floor space
3. Conversion factors are the current government published values
4. The company has only one operational site as listed above

Comparative



Total Usage

Total Usage

Conversion
Total
Emissions

Site
Fuel
Type
Floor Area
m2

L

KWH

Factor

T/CO2e
Acoustic House Electric 660.77 57,776 0.21233 12.27
Acoustic House Oil 4,496 2.54014 11.42

Actions taken
The company has invested in a more efficient heating system and is looking to make energy usage improvements when replacing equipment and fittings.


Cirrus Research plc (Registered number: 00987160)

Strategic Report
for the year ended 30th June 2023

FUTURE DEVELOPMENTS AND STRATEGY
Focus will continue to be on supporting the growth of our European Union (EU) hub in Frankfurt, Germany with at least two more new roles expected to be filled throughout 2023/24 as well as an office move to much larger premises.

Development of the new product 'engine' will continue throughout the period and with the first and commercial product expected to be released around quarter three of 2024.

ON BEHALF OF THE BOARD:





D S Wallis - Director


14th November 2023

Cirrus Research plc (Registered number: 00987160)

Report of the Directors
for the year ended 30th June 2023

The directors present their report with the financial statements of the company for the year ended 30th June 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of development, manufacture and sale of electro acoustic measuring equipment for professional use.

DIVIDENDS
No dividends will be distributed for the year ended 30th June 2023.

FUTURE DEVELOPMENTS
These details have been provided in the company's strategic report.

DIRECTORS
The directors set out in the table below have held office during the whole of the period from 1st July 2022 to the date of this report unless otherwise stated.

Other changes in directors holding office are as follows:

G B Quaglia - appointed 2/5/23

The directors shown below were in office at 30th June 2023 but did not hold any interest in the Ordinary shares of £1 each at 1st July 2022 (or date of appointment if later) or 30th June 2023.

K D Frankish
D S Wallis
L M Wallis
G B Quaglia

FINANCIAL RISK MANAGEMENT
These details are provided in the company's strategic report.

CREDITORS
The Company's policy is to make payment to suppliers in accordance with the terms of payment agreed at the time the contract of supply is made.

The company's creditors days at the year-end based upon the average daily amount invoiced by suppliers were 47 days.

ENGAGEMENT WITH EMPLOYEES
These details have been provided in the company's Section 172 (1) statement which is included in the strategic report.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS
These details have been provided in the company's Section 172 (1) statement which is included in the strategic report.


Cirrus Research plc (Registered number: 00987160)

Report of the Directors
for the year ended 30th June 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are 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 each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Sadofskys, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





D S Wallis - Director


14th November 2023

Report of the Independent Auditors to the Members of
Cirrus Research plc

Opinion
We have audited the financial statements of Cirrus Research plc (the 'company') for the year ended 30th June 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 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).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 30th June 2023 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 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, 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 Directors 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 Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Cirrus Research plc


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 Directors.

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 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 Statement of Directors' Responsibilities, 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 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.

Report of the Independent Auditors to the Members of
Cirrus Research plc


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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of electro acoustic measuring equipment;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates set out in [note 2] were indicative of potential bias;
- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims;
- reviewing correspondence with HMRC, relevant regulators and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
Cirrus Research plc


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.




Alan Brocklehurst (Senior Statutory Auditor)
for and on behalf of Sadofskys
Statutory Auditors
Princes House
Wright Street
Hull
East Yorkshire
HU2 8HX

14th November 2023

Cirrus Research plc (Registered number: 00987160)

Statement of Comprehensive
Income
for the year ended 30th June 2023

2023 2022
Notes £    £    £    £   

TURNOVER 3 4,774,327 4,324,271

Cost of sales 2,812,105 2,418,791
GROSS PROFIT 1,962,222 1,905,480

Distribution costs 480 1,940
Administrative expenses 1,807,406 1,746,276
1,807,886 1,748,216
154,336 157,264

Other operating income 45,821 5,000
OPERATING PROFIT 5 200,157 162,264

Interest receivable and similar income 10,887 1
211,044 162,265

Interest payable and similar expenses 7 1,291 4,294
PROFIT BEFORE TAXATION 209,753 157,971

Tax on profit 8 (18,145 ) 1,752
PROFIT FOR THE FINANCIAL YEAR 227,898 156,219

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

227,898

156,219

Cirrus Research plc (Registered number: 00987160)

Balance Sheet
30th June 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 1 1
Tangible assets 10 186,789 124,188
Investments 11 45,274 45,274
232,064 169,463

CURRENT ASSETS
Stocks 12 734,929 774,409
Debtors 13 1,305,975 916,301
Cash at bank and in hand 626,627 583,921
2,667,531 2,274,631
CREDITORS
Amounts falling due within one year 14 652,896 425,293
NET CURRENT ASSETS 2,014,635 1,849,338
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,246,699

2,018,801

CAPITAL AND RESERVES
Called up share capital 18 950,000 950,000
Retained earnings 19 1,296,699 1,068,801
SHAREHOLDERS' FUNDS 2,246,699 2,018,801

The financial statements were approved by the Board of Directors and authorised for issue on 14th November 2023 and were signed on its behalf by:





D S Wallis - Director


Cirrus Research plc (Registered number: 00987160)

Statement of Changes in Equity
for the year ended 30th June 2023

Called up
share Retained Total
capital earnings equity
£    £    £   

Balance at 1st July 2021 950,000 912,582 1,862,582

Changes in equity
Total comprehensive income - 156,219 156,219
Balance at 30th June 2022 950,000 1,068,801 2,018,801

Changes in equity
Total comprehensive income - 227,898 227,898
Balance at 30th June 2023 950,000 1,296,699 2,246,699

Cirrus Research plc (Registered number: 00987160)

Cash Flow Statement
for the year ended 30th June 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 65,685 69,012
Interest paid (1,291 ) (4,294 )
Tax paid - (3,504 )
Taxation refund received 20,214 -
Net cash from operating activities 84,608 61,214

Cash flows from investing activities
Purchase of tangible fixed assets (95,958 ) (33,120 )
Loans repaid by group companies 58,137 15,264
Interest received 10,887 1
Net cash from investing activities (26,934 ) (17,855 )

Cash flows from financing activities
Loan repayments in year (32,274 ) (37,532 )
Loans written off 17,306 168,366
Net cash from financing activities (14,968 ) 130,834

Increase in cash and cash equivalents 42,706 174,193
Cash and cash equivalents at beginning of
year

2

583,921

409,728

Cash and cash equivalents at end of year 2 626,627 583,921

Cirrus Research plc (Registered number: 00987160)

Notes to the Cash Flow Statement
for the year ended 30th June 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit before taxation 209,753 157,971
Depreciation charges 33,355 38,519
Loss on disposal of fixed assets - 157
Finance costs 1,291 4,294
Finance income (10,887 ) (1 )
233,512 200,940
Decrease/(increase) in stocks 39,480 (105,042 )
(Increase)/decrease in trade and other debtors (448,978 ) 79,301
Increase/(decrease) in trade and other creditors 241,671 (106,187 )
Cash generated from operations 65,685 69,012

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30th June 2023
30/6/23 1/7/22
£    £   
Cash and cash equivalents 626,627 583,921
Year ended 30th June 2022
30/6/22 1/7/21
£    £   
Cash and cash equivalents 583,921 409,728


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/7/22 Cash flow At 30/6/23
£    £    £   
Net cash
Cash at bank and in hand 583,921 42,706 626,627
583,921 42,706 626,627
Debt
Debts falling due within 1 year (16,137 ) 16,137 -
(16,137 ) 16,137 -
Total 567,784 58,843 626,627

Cirrus Research plc (Registered number: 00987160)

Notes to the Financial Statements
for the year ended 30th June 2023

1. STATUTORY INFORMATION

Cirrus Research plc is a private company , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Preparation of consolidated financial statements
The financial statements contain information about Cirrus Research plc as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 401 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Scientific Measurements Pte. Ltd., 100 Beach Road £ 25-06 Shaw Towers, Singapore, 189702.

Related party exemption
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.

Turnover
Turnover represents net invoiced sales of goods and services, excluding value added tax.

Sale of goods are recognised when the goods are delivered.

Service sales are recognised when the product has been repaired or serviced and returned to the customer.

Intangible assets
Intangible assets are measured at cost.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Long leasehold - 5% on cost
Plant and machinery - 15% on cost
Fixtures and fittings - 15% on cost
Motor vehicles - 25% on cost
Computer equipment - 33% on cost

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Stock is on a first in first out basis.


Cirrus Research plc (Registered number: 00987160)

Notes to the Financial Statements - continued
for the year ended 30th June 2023

2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions payable for the year are charged in the profit and loss account.

Going concern
The directors are fully committed to ensuring that the company is adequately funded to enable it to achieve its objectives and be well placed to manage its business risks successfully despite the current heightened uncertain economic outlook.

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis in preparing the annual financial statements.

Further information regarding the company's business activities, together with the factors likely to affect its future development, performance and position is set out in the Strategic Report.

Government grants
Government grants are recognised using the accruals model. Grants of a revenue nature are credited to income so as to match them with the expenditure to which they relate.

Grants in respect of capital expenditure are credited to a deferred income account and are released to profit over the expected useful lives of the assets to which they relate.

A grant that becomes receivable as compensation for expenses or losses already incurred, or for the purpose of giving immediate financial support to the company with no future related costs, is credited to income in the period in which it becomes receivable.

Cirrus Research plc (Registered number: 00987160)

Notes to the Financial Statements - continued
for the year ended 30th June 2023

3. TURNOVER

An analysis of turnover by geographical market is given below :

20232022

Sales - United Kingdom2,562,6382,312,069
Sales - Europe732,826607,839
Sales - Rest of World1,478,8631,404,363
4,774,3274,324,271

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 1,544,999 1,414,576
Social security costs 160,159 140,954
Other pension costs 177,488 122,635
1,882,646 1,678,165

The average number of employees during the year was as follows:
2023 2022

Office and Administration 24 20
Test and Production 12 13
Research and Development 9 9
45 42

2023 2022
£    £   
Directors' remuneration 192,577 295,661

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 3

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Depreciation - owned assets 33,357 38,519
Loss on disposal of fixed assets - 157
Auditors' remuneration 8,550 7,500
Foreign exchange differences (45,821 ) 6,085

Cirrus Research plc (Registered number: 00987160)

Notes to the Financial Statements - continued
for the year ended 30th June 2023

6. EXCEPTIONAL ITEMS
2023 2022
£    £   
Exceptional items (17,306 ) (168,366 )

Exceptional items relate to a loan within the group which will not be recovered by the company.

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Loan interest 1,291 4,294

8. TAXATION

Analysis of the tax (credit)/charge
The tax (credit)/charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 2,069 -
Prior year taxation (20,214 ) 1,752

Tax on profit (18,145 ) 1,752

9. INTANGIBLE FIXED ASSETS
Patents
and
licences
£   
COST
At 1st July 2022
and 30th June 2023 1
NET BOOK VALUE
At 30th June 2023 1
At 30th June 2022 1

Cirrus Research plc (Registered number: 00987160)

Notes to the Financial Statements - continued
for the year ended 30th June 2023

10. TANGIBLE FIXED ASSETS
Fixtures
Long Plant and and
leasehold machinery fittings
£    £    £   
COST
At 1st July 2022 136,637 259,058 83,640
Additions 17,030 8,073 1,254
At 30th June 2023 153,667 267,131 84,894
DEPRECIATION
At 1st July 2022 61,825 235,050 71,471
Charge for year 7,281 9,623 3,093
At 30th June 2023 69,106 244,673 74,564
NET BOOK VALUE
At 30th June 2023 84,561 22,458 10,330
At 30th June 2022 74,812 24,008 12,169

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1st July 2022 - 248,152 727,487
Additions 35,834 33,767 95,958
At 30th June 2023 35,834 281,919 823,445
DEPRECIATION
At 1st July 2022 - 234,953 603,299
Charge for year 1,493 11,867 33,357
At 30th June 2023 1,493 246,820 636,656
NET BOOK VALUE
At 30th June 2023 34,341 35,099 186,789
At 30th June 2022 - 13,199 124,188

11. FIXED ASSET INVESTMENTS
Shares in
group
undertaking
£   
COST
At 1st July 2022
and 30th June 2023 45,274
NET BOOK VALUE
At 30th June 2023 45,274
At 30th June 2022 45,274

Cirrus Research plc (Registered number: 00987160)

Notes to the Financial Statements - continued
for the year ended 30th June 2023

11. FIXED ASSET INVESTMENTS - continued

The company's investments at the Balance Sheet date in the share capital of companies include the following:


Cirrus Research France SAS
Registered office: 679 avenue de la Republique, 59800 Lille, France
Nature of business: Engineering and technical studies
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves (144,811 ) (89,191 )
Loss for the year (55,620 ) (21,821 )

Cirrus Research GmbH
Registered office: Lyoner Str. 44-48 60528 Frankfurt am Main, Germany
Nature of business: Sales and distribution company
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves 291,200 94,336
Profit for the year 196,864 81,083

All companies above are not consolidated within these accounts as the company has taken advantage of the exemption shown within the accounting policies.

12. STOCKS
2023 2022
£    £   
Raw materials 217,464 291,526
Finished goods 517,465 482,883
734,929 774,409

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 909,210 758,082
Amounts owed by group undertakings 39,561 98,865
Other debtors 284,604 24,329
Prepayments and accrued income 72,600 35,025
1,305,975 916,301

Cirrus Research plc (Registered number: 00987160)

Notes to the Financial Statements - continued
for the year ended 30th June 2023

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Other loans (see note 15) - 16,137
Trade creditors 484,978 157,099
Taxation 2,069 -
Social security and other taxes 86,656 95,204
Other creditors 15,402 128,113
Accrued expenses 63,791 28,740
652,896 425,293

15. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Other loans under 1 year - 16,137

16. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 48,046 30,000
Between one and five years 144,453 120,000
In more than five years 87,500 117,500
279,999 267,500

17. SECURED DEBTS

All bank and mortgage borrowing is secured by a fixed charge over the company's fixed assets and book debts and a floating charge over all assets of the company.

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
950,000 Ordinary £1 950,000 950,000

19. RESERVES
Retained
earnings
£   

At 1st July 2022 1,068,801
Profit for the year 227,898
At 30th June 2023 1,296,699

Cirrus Research plc (Registered number: 00987160)

Notes to the Financial Statements - continued
for the year ended 30th June 2023

20. ULTIMATE PARENT COMPANY

The company is a wholly owned subsidiary of Scientific Measurements Pte Ltd. a company incorporated in Singapore.

Scientific Measurements PTE prepares consolidated accounts incorporating the results of the company. Copies of the consolidated accounts can be obtained from www.acra.gov.sg.