REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2022 |
FOR |
Health Technologies Limited |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2022 |
FOR |
Health Technologies Limited |
Health Technologies Limited (Registered number: 10408330) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the Year Ended 31 October 2022 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Income Statement | 10 |
Other Comprehensive Income | 11 |
Balance Sheet | 12 |
Statement of Changes in Equity | 13 |
Cash Flow Statement | 14 |
Notes to the Cash Flow Statement | 15 |
Notes to the Financial Statements | 16 |
Health Technologies Limited |
COMPANY INFORMATION |
for the Year Ended 31 October 2022 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
3rd Floor |
5 Temple Square |
Liverpool |
Merseyside |
L2 5RH |
Health Technologies Limited (Registered number: 10408330) |
STRATEGIC REPORT |
for the Year Ended 31 October 2022 |
Business review |
This Financial year was one of transition for the Company. It remained profitable for the year as a whole, with a particularly strong performance in the first half of the year from high Covid testing revenues which were sustained until June, when the US government concluded its testing requirement for inbound travellers. Covid revenues fell thereafter and retained profits were deployed towards developing a new corporate health proposition and bringing it to market. |
The Company has reduced headcount this year, with fewer staff required to deliver testing services and now employs 30 people compared to 60 in the prior year. The Company's successful financial performance has enabled it to recruit a high quality team focused on R&D and distribution for the Company's post-Covid product strategy, including a new VP of Sales and senior product and software engineering hires. |
The Company and its Management continued to be agile and responsive to market shifts as the pandemic receded, in developing a new product to address emerging challenges to the country and the economy, namely reduced access to healthcare and an increasingly ailing workforce which have reduced the number of working people and impacted national competitiveness. |
The Company continues to work to convert its large corporate client base from Covid testing to its new product offering, as well as gaining new key commercial relationships. |
Promoting the success of the company |
The Directors are confident that the new strategic direction of the company is correct, given the rapid pipeline development and the closing of commercial pilots and contracts with large national employers, within months of launch. The new preventive healthcare product can benefit both the business and broader society by improving the health and wellbeing of individuals participating in the programme and reducing the burden of major disease on the existing healthcare system. They also recognise that in promoting the success of Qured, maintaining a high standard of business conduct when dealing with stakeholders is as vital as developing its distribution capabilities through a high quality sales and marketing function. Qured considers the best interests of its employees, suppliers, and clients and the broader community as well as shareholders in making business decisions. |
Fair view of the business |
Qured's principal activity continued to be the provision of Covid testing services, primarily for the purposes of travel. The Company generated a loss of £264,140 (2021: Profit of £5,371,869) and a revenue of £14.8m this year versus £24.9m in the prior year. |
Principal risks and uncertainties |
The principal risks identified are market repositioning risk for the new product, data and clinical security risk, and liquidity risk. |
A significant risk in the business revolves around the ability to pivot the business model from Covid testing to the new strategic plan around preventative health screening quickly and successfully to generate long-term sustainable profitability and/or attract new funding into the Company. This requires restructuring the team and hiring people with different skillsets, most of which has been completed at the time of drafting this report. It also includes building an entirely new tech stack, which required significant investment, and deprecating the old one. Finally, the Company has to identify the ideal target customer profile in order to successfully sell the new product. These activities are under way at the time of drafting but early market demand signals and customer feedback are positive. |
As the business handles individuals' health data, ongoing risks which are always actively managed include ensuring clinical safety and quality, managed by our quality control and assurance processes, and data protection. The business engaged a new external DPO in the period following the close of the accounts, has secured Cyber Essential certification, and is in the process of securing Cyber Essentials Plus. The business has also incorporated regular black-box and white-box penetration testing of its full tech stack. |
The business now has certainty over the repayment of the remainder of its Future Fund loan to the British Business Bank: the principal and accrued interest is to be repaid immediately and the redemption premium is to be repaid in June 2024. The Company is currently fundraising and has received commitments from existing investors, but there is still some uncertainty as to how much additional external investment can be secured. Further analysis of this is provided in the notes on the business as a going concern. On balance, the Directors believe that enough external new investment will be able to be secured to provide the business with sufficient runway to reach commercial viability and sustainability. |
Health Technologies Limited (Registered number: 10408330) |
STRATEGIC REPORT |
for the Year Ended 31 October 2022 |
Key performance indicators |
Annual budgets are agreed in advance with the Board, in accordance with the Company's Articles of Association and Shareholder Agreement and provide considerations to projected revenue, cashflow and working capital. Monthly management accounts are prepared and reviewed with the Board on a quarterly basis. |
Other performance indicators |
Other key performance indicators for Covid testing include cost of acquisition, repeat order rates, and customer satisfaction scores. Operational performance including delivery, lab performance and test completion timelines are tracked and reported on, as is technology platform uptime and bug rates. Clinical quality assurance and audits are completed and reported on in line with Care Quality Commission guidance and our quality management framework, to ensure consistently excellent clinical and client service. Detailed KPIs are not reported here for confidentiality reasons. |
Future developments |
The Company is now firmly focused on executing its new preventative healthcare strategy and scaling the distribution of its new product to corporate partners. The Company looks forward in confidence to executing its strategic roadmap in the UK. The Qured brand name is becoming well established in the UK corporate healthcare market and the Company is well placed to continue with its success in this growing sector. |
ON BEHALF OF THE BOARD: |
Health Technologies Limited (Registered number: 10408330) |
REPORT OF THE DIRECTORS |
for the Year Ended 31 October 2022 |
The directors present their report with the financial statements of the company for the year ended 31 October 2022. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of General medical practice activities |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 November 2021 to the date of this report. |
Other changes in directors holding office are as follows: |
STRATEGIC REPORT |
In accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 is noted in the Strategic Report on pages 1 and 2. |
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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies 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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT 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, Mitchell Charlesworth (Audit) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. |
Health Technologies Limited (Registered number: 10408330) |
REPORT OF THE DIRECTORS |
for the Year Ended 31 October 2022 |
This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HEALTH TECHNOLOGIES LIMITED |
Opinion |
We have audited the financial statements of Health Technologies Limited (the 'company') for the year ended 31 October 2022 which comprise the Income Statement, Other 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 31 October 2022 and of its loss 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. |
Material uncertainty related to going concern |
We draw attention to Note 2 headed going concern in the financial statements, which indicates that the company have relied upon financing and post year end are undertaking a review of their funding requirements and investment strategy. As stated in Note 2, these conditions as set forth, indicate that a material uncertainty exists that may cast doubt on the company's ability to continue as a going concern. Our opinions is not modified in respect of this matter. |
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. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. |
We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of 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 |
HEALTH TECHNOLOGIES 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 directors' report. |
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: |
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- the financial statements are not in agreement with the accounting records and returns; or |
- certain disclosures of directors' remuneration specified by law are not made; or |
- we have not received all the information and explanations we require for our audit. |
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; or |
- | the directors were not entitled to take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 |
HEALTH TECHNOLOGIES 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: |
Extent to which the audit was considered capable of detecting irregularities, including fraud |
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we consider the following: |
- the nature of the industry and sector, control environment and business performance; |
- the company's own assessment of the risks that irregularities may occur either as a result of fraud or error; |
- the results of our enquiries of management and directors of their own identification of and assessment of the risks of irregularities; |
- any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to: |
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; and |
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and |
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and the matters discussed among the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified that greatest potential for fraud in the following areas: (i) the presentation of the profit and loss account, (ii) the company's accounting policy for income recognition, and (iii) the overstatement of salary and other costs in common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. |
We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, FRS 102, the Human Tissue Act, the Care Quality Commission and UKAS Accreditation. |
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. These included Safeguarding and Data Protection Regulations and compliance with ISO 15189. |
Audit response to risks identified |
As a result of performing the above, we identified revenue recognition and the accounting of accrued income and accruals as the key audit matters related to the potential risk of fraud. The key audit matters section of our report explains the matters in more detail and also describes the specific procedures we performed in response to those key audit matters. |
In addition to the above, our procedures to respond to risks identified the following: |
- reviewing the financial statement disclosures and testing of supporting documentation to assess compliance with relevant laws and regulations described above as having a direct effect on the financial statements; |
- enquiring of management and directors concerning actual and potential litigation and claims; |
- reviewing minutes of meetings of those charged with governance; |
- enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations; |
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud; and |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HEALTH TECHNOLOGIES LIMITED |
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are indicative of a potential bias, and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
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. |
Comparative information |
The corresponding figures presented in this report were not audited, and completed by another firm of Chartered Accountants. |
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 |
3rd Floor |
5 Temple Square |
Liverpool |
Merseyside |
L2 5RH |
Health Technologies Limited (Registered number: 10408330) |
INCOME STATEMENT |
for the Year Ended 31 October 2022 |
31.10.22 | 31.10.21 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
(618,497 | ) | 5,453,832 |
Other operating income | 5 | ( |
) |
OPERATING (LOSS)/PROFIT | 7 | ( |
) |
Interest receivable and similar income |
(184,140 | ) | 5,451,869 |
Interest payable and similar expenses | 8 |
(LOSS)/PROFIT BEFORE TAXATION | ( |
) |
Tax on (loss)/profit | 9 | ( |
) |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR | ( |
) |
Health Technologies Limited (Registered number: 10408330) |
OTHER COMPREHENSIVE INCOME |
for the Year Ended 31 October 2022 |
31.10.22 | 31.10.21 |
Notes | £ | £ |
(LOSS)/PROFIT FOR THE YEAR | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | ( |
) |
Health Technologies Limited (Registered number: 10408330) |
BALANCE SHEET |
31 October 2022 |
31.10.22 | 31.10.21 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 16 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Share premium | 20 |
Retained earnings | 20 | 478,271 | 692,140 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Health Technologies Limited (Registered number: 10408330) |
STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 31 October 2022 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 November 2020 | ( |
) |
Changes in equity |
Issue of share capital | - |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 October 2021 | 407 | 692,140 | 3,565,999 | 4,258,546 |
Changes in equity |
Issue of share capital | - | ( |
) | ( |
) |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 31 October 2022 | 407 | 478,272 | 3,483,697 | 3,962,376 |
Health Technologies Limited (Registered number: 10408330) |
CASH FLOW STATEMENT |
for the Year Ended 31 October 2022 |
31.10.22 | 31.10.21 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Interest paid | ( |
) | ( |
) |
Finance costs paid | - | 1,000,000 |
Tax paid | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New loans in year |
Share issue |
Share buyback | ( |
) |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year | 2 | 1,058,778 |
Cash and cash equivalents at end of year | 2 | 6,778,802 | 8,441,148 |
Health Technologies Limited (Registered number: 10408330) |
NOTES TO THE CASH FLOW STATEMENT |
for the Year Ended 31 October 2022 |
1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.10.22 | 31.10.21 |
£ | £ |
(Loss)/profit before taxation | ( |
) |
Depreciation charges |
Loss on disposal of fixed assets |
Finance costs | 80,000 | 80,000 |
Finance income | (1,932 | ) | - |
(151,882 | ) | 5,461,306 |
Decrease/(increase) in stocks | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations | ( |
) |
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 31 October 2022 |
31/10/22 | 1/11/21 |
£ | £ |
Cash and cash equivalents | 6,778,802 | 8,441,148 |
Year ended 31 October 2021 |
31/10/21 | 1/11/20 |
£ | £ |
Cash and cash equivalents | 8,441,148 | 1,058,778 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/11/21 | Cash flow | At 31/10/22 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 8,441,148 | (1,662,346 | ) | 6,778,802 |
8,441,148 | ( |
) | 6,778,802 |
Debt |
Debts falling due after 1 year | (1,109,808 | ) | (389,636 | ) | (1,499,444 | ) |
(1,109,808 | ) | (389,636 | ) | (1,499,444 | ) |
Total | 7,331,340 | (2,051,982 | ) | 5,279,358 |
Health Technologies Limited (Registered number: 10408330) |
NOTES TO THE FINANCIAL STATEMENTS |
for the Year Ended 31 October 2022 |
1. | STATUTORY INFORMATION |
Health Technologies Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Summary of significant accounting policies and key accounting estimates. |
The principal accounting policies applied in the preparation of these financial statements are set out below. |
These policies have been consistently applied to all the years presented, unless otherwise stated. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Tangible fixed assets |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset and is credited or charged to profit or loss. |
Impairment of Fixed Assets |
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exits, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. |
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to is recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. |
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increasing carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase. |
Health Technologies Limited (Registered number: 10408330) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 October 2022 |
2. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Financial instruments |
The Company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments. |
The Company only enters into basic financial instruments transactions that result in asset and liabilities like trade and other debtors and creditors, loans from banks and other third parties,loans to related parties and investments in non puttable ordinary-shares. |
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently,at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out right short term loan not at market rate, the financial asset or liability is measured, initially,at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost. |
Financial assets and liabilities are offset and the net amount reported in the Statement of Financial Position when there is an 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. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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. |
Foreign currency translation |
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. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Going concern |
The financial statements have been prepared on a going concern basis which the directors consider to be appropriate as they have made an assessment of future cash flows for a period of 12 months from the date of approval of these financial statements which indicate that the company will have sufficient funds, through its operations to meet its liabilities as they fall due for that period. |
The Directors note that cash reserves have declined significantly since the end of FY22, though a combination of paying the shareholders a dividend, significant investment in the development of the company's new preventative health platform, which is believed to deliver long-term value for the business for many coming years, and also through the repayment of £1m towards half of the Future Fund loan, which came due for redemption in August 2023. The other half of the loan remains on the balance sheet to be repaid on an agreed payment schedule. The Company currently does not have cash reserves to both pay back this loan and continue operations for the next 12 months, so is in the process of raising funding to do so. While some uncertainty remains around the finalization of this investment, the Directors believe on balance it is likely to be secured and therefore the preparation of the accounts on a going concern basis to be correct. |
Health Technologies Limited (Registered number: 10408330) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 October 2022 |
2. | ACCOUNTING POLICIES - continued |
Cash and cash equivalent |
Cash and cash equivalents comprise cash on hand and demand deposits and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk to changes in value. |
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. |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
The preparation of financial statements in conformity with FRS requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, turnover, costs, expenses, and other comprehensive income that are reported and disclosed in the financial statements and accompanying notes. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period In which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. A VAT provision has been included in the accounts for future liabilities. |
4. | TURNOVER |
The turnover and loss (2021 - profit) before taxation are attributable to the one principal activity of the company. |
5. | OTHER OPERATING INCOME |
31.10.22 | 31.10.21 |
£ | £ |
Other Income |
Exchange gains | 379,060 | (1,963 | ) |
Profit on sale of tangible fixed assets | (20,471 | ) | - |
432,425 | (1,963 | ) |
6. | EMPLOYEES AND DIRECTORS |
31.10.22 | 31.10.21 |
£ | £ |
Wages and salaries |
Other pension costs |
The average number of employees during the year was as follows: |
31.10.22 | 31.10.21 |
Employers NI 226,715 173,228 |
31.10.22 | 31.10.21 |
£ | £ |
Directors' remuneration |
Health Technologies Limited (Registered number: 10408330) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 October 2022 |
7. | OPERATING (LOSS)/PROFIT |
The operating loss (2021 - operating profit) is stated after charging/(crediting): |
31.10.22 | 31.10.21 |
£ | £ |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Foreign exchange differences | ( |
) |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.10.22 | 31.10.21 |
£ | £ |
Accrued interest |
9. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
31.10.22 | 31.10.21 |
£ | £ |
Current tax: |
UK corporation tax | ( |
) |
Tax on (loss)/profit | ( |
) |
Reconciliation of total tax (credit)/charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
31.10.22 | 31.10.21 |
£ | £ |
(Loss)/profit before tax | ( |
) |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of (2021 - |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances | - |
Utilisation of tax losses | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) |
Research & Development enhanced deduction | - | (239,848 | ) |
Adjustment to 2022 Tax charge zero (Due to the Trading Loss) | (6,586 | ) | - |
Under reporting in PY Accounts | - | (84,465 | ) |
Total tax (credit)/charge | (50,272 | ) | 161,206 |
10. | DIVIDENDS |
Proposed Dividend for the previous year was £1,000,000 |
11. | AUDITORS FEES |
The remuneration of the company's auditor, Mitchell Charlesworth (Audit) Limited, for the audit of the company's financial statements for the year ended 31st October 2022 is £20,000, comprising entirely of audit fee. |
Health Technologies Limited (Registered number: 10408330) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 October 2022 |
12. | TANGIBLE FIXED ASSETS |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 November 2021 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) | ( |
) |
At 31 October 2022 |
DEPRECIATION |
At 1 November 2021 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) | ( |
) |
At 31 October 2022 |
NET BOOK VALUE |
At 31 October 2022 |
At 31 October 2021 |
13. | STOCKS |
31.10.22 | 31.10.21 |
£ | £ |
Consumables |
14. | DEBTORS |
31.10.22 | 31.10.21 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Other debtors |
Tax |
Amounts falling due after more than one year: |
Other debtors |
Aggregate amounts |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.10.22 | 31.10.21 |
£ | £ |
Trade creditors |
Corporation Tax |
Social security and other taxes |
Other creditors |
Accrued expenses |
Health Technologies Limited (Registered number: 10408330) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 October 2022 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.10.22 | 31.10.21 |
£ | £ |
Other loans (see note 17) |
17. | LOANS |
An analysis of the maturity of loans is given below: |
31.10.22 | 31.10.21 |
£ | £ |
Amounts falling due between two and five years: |
Convertible Loan | 1,499,444 | 1,109,808 |
18. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
31.10.22 | 31.10.21 |
£ | £ |
Within one year |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.10.22 | 31.10.21 |
value: | £ | £ |
Ordinary | 0.00001 | 407 | 407 |
20. | RESERVES |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 November 2021 | 4,258,138 |
Deficit for the year | ( |
) | ( |
) |
Cash share issue | - | (82,302 | ) | (82,302 | ) |
At 31 October 2022 | 3,961,968 |
21. | PENSION COMMITMENTS |
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. Employer and employee contributions totalling £96,673 (October 2021: |
£81,271) were payable to the fund at the reporting date and are included in Creditors - Other taxation and social security. |
Health Technologies Limited (Registered number: 10408330) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 October 2022 |
22. | POST BALANCE SHEET EVENTS |
Future Fund loan: |
The business has an outstanding £1m convertible loan from the Future Fund and 2 private investors (who are also directors & major shareholders in the business). This loan came due on 17 June 2023, with a request to extend to 17 June 2025 agreed by the British Business Bank. The 2 private investors declined to extend the loan maturity to this date and agreed to extend the loan to 17 August 2023, at which time the principal and redemption premium that was owed to the 2 private investors was paid (total £1m). |
The other half of the loan (£500k principle + redemption premium) is being repaid at the time of submission according to an agreed payment plan with the BBB. The principle and accrued interest has been paid and the redemption premium is agreed to be paid by June 2024. |