REGISTERED NUMBER: 02779946 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
AUDITED |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2023 |
FOR |
HAMMERSMITH MEDICINES RESEARCH LIMITED |
REGISTERED NUMBER: 02779946 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
AUDITED |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2023 |
FOR |
HAMMERSMITH MEDICINES RESEARCH LIMITED |
HAMMERSMITH MEDICINES RESEARCH LIMITED (REGISTERED NUMBER: 02779946) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 7 |
Consolidated Statement of Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Financial Statements | 18 |
HAMMERSMITH MEDICINES RESEARCH LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 JANUARY 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
Chartered Accountants |
Pavilion View |
19 New Road |
Brighton |
East Sussex |
BN1 1EY |
HAMMERSMITH MEDICINES RESEARCH LIMITED (REGISTERED NUMBER: 02779946) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 JANUARY 2023 |
The directors present their strategic report of the company and the group for the year ended 31 January 2023. |
REVIEW OF BUSINESS |
The results for the year and financial position of the group are as shown in the annexed financial statements. |
Turnover is down 5.9% on the previous year (2022: up 29.9%), in large part because of significantly increased turnaround times by the Medicines and Healthcare products Regulatory Agency (MHRA) for new study approvals, resulting in long delays to trial start times, and cancellations by sponsors who decided to move their work outside of the UK. The group earned income from a broad range of customers, as in the previous year. |
Staff salaries and pension costs are up 10.2% on the previous year (2022: up 21.1%), due to wage inflation to meet the cost of living crisis during the year, and a competitive labour market. |
Although income for the year to 31 January 2023 was down on the previous year, the number of pharmaceutical and biotechnology companies with active R&D projects and the number of new molecules in development continues to increase. The MHRA has reduced its turnaround time from an average of 82 days in January 2023 (peaking at 160 days in July 2023), to a current average of 46 days. Those factors are reflected in the value of the enquiries that we are receiving from companies wishing to sponsor studies. |
Liquidity is good. The group is free of debt. The group has not declared any dividends to shareholders. Net assets have decreased by 5.4% (2022: up by 2.1%), however the group's ability to meet its financial commitments has not been impacted by this. |
The group faces global competition for its services. Cost is a major determinant of where study sponsors place their trials. The company aims to maintain its strong reputation for the timely completion of difficult phase 1 trials, to an excellent standard, to keep winning new business. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The group's income depends on the research and development expenditure of the international pharmaceutical industry. There is a risk to business from price inflation, particularly when costings for medium and long-term projects become quickly out-dated. However, the UK has a strong reputation for high-quality, early-phase clinical research, and benefits from having a forward-thinking, pragmatic, and supportive regulator. International sponsors further benefit from the weakness of the pound. Thus, the UK remains an attractive place for early-phase clinical trials. Furthermore, Hammersmith Medicines Research (HMR) has a proven track record of adapting quickly and proactively to regulatory change. We will devote all the necessary resources to ensure the continued success of our clinical trials. |
The group must comply with the EU Clinical Trials Directive to obtain approval for clinical trials from the MHRA and a Research Ethics Committee. In addition, the sponsors of our trials have their own exacting standards with which we must comply. The MHRA and our sponsors audit the company frequently for compliance with the regulations for Good Clinical Practice and Good Manufacturing Practice. |
Failure to comply could have a detrimental impact on the financial performance of the group. Serious injury or death of a subject could have a marked impact. We handle sensitive personal and medical data of subjects, so the UK General Data Protection Regulation also poses a financial risk to the group. However, the directors are satisfied that the group has robust systems and procedures in place to mitigate risks. We have suitably qualified and trained staff, a Quality Management System, a Quality Assurance group, a Data Protection Officer, a Data Privacy Committee, and procedures for dealing with acute medical emergencies. We have 24-hour cyber security monitoring contracts in place with trusted providers. We have certification for the ISO 27001 Information Security Management standard. |
HAMMERSMITH MEDICINES RESEARCH LIMITED (REGISTERED NUMBER: 02779946) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 JANUARY 2023 |
SECTION 172(1) STATEMENT |
The directors have regarded the following considerations of section 172 (1) of the Companies Act, when fulfilling their duty to promote the success of the group: |
The long-term consequences of any decision by consultation with internal management and external advisers, for instance: |
-Internal senior manager and manager meetings, and access to external advice on employment law; |
-Internal Data Privacy Committee, Information Management Security Officer, external specialist legal advisers, and a Data Protection Officer; |
-Internal Health and Safety Committee, including Health and Safety Manager, Fire Wardens, Radiation Protection Officers and Biological Safety Officer, and external legal advisers. |
The interests of the group's employees by promoting robust HR and training policies: |
-Company policies on training and on all aspects of discrimination and grievance; |
-Dedicated training team raising awareness of the above during induction and beyond. |
The need to foster the group's business relationships with suppliers, customers and others by ensuring that our contracts with customers and subcontractors require all parties to comply with applicable regulations and law. |
The impact of the group's operations on the community and the environment by minimising waste and recycling whenever possible. |
The desirability of the group maintaining a reputation for high standards of business conduct though training of staff and the maintenance of an anti-bribery policy. |
KEY PERFORMANCE INDICATORS |
2023 | 2022 |
Turnover growth | (5.9% | ) | 29.9% |
GP margins | 28% | 32.4% |
Daily average subjects resident | 13 | 19 |
Daily average outpatients | 8 | 9 |
ON BEHALF OF THE BOARD: |
HAMMERSMITH MEDICINES RESEARCH LIMITED (REGISTERED NUMBER: 02779946) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 JANUARY 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 January 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of testing products developed by the pharmaceutical industry. |
Hammersmith Medicines Research (HMR) is a contract clinical research organisation (CRO) that does studies of new and existing medicines in healthy human volunteers (Phase 1) and in patients (Phase 2), on behalf of the international pharmaceutical industry. HMR has two subsidiaries, Trio Medicines Limited (Trio) which is developing its own medicines and Hammersmith Medicines Research (Properties) Limited which is a property investment company. The group intends to continue and grow this work in the future. |
The group's financial strategy is to spread its financial investments among high street banks and in property, with the twin aims of maintaining liquidity to fund its business and minimizing risks of investment loss. |
POLICY REGARDING DISABLED PERSONS |
HMR has a disabled workers policy to give equal opportunities for disabled people to enter and progress within the group. All staff must follow this policy, encourage others to follow it, and report any incident of discrimination. New staff are told about the policy during induction training and are asked to reread the policy each time it is reviewed and reissued. Applications for employment by disabled persons are always fully considered, bearing in mind the respective aptitudes and abilities of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment with the Group continues and the appropriate training is arranged. It is the policy of the Group that the training, career development and promotion of a disabled person should, as far as possible, be identical to that of a person who does not suffer from a disability. |
EMPLOYEE CONSULTATION |
HMR places considerable value on the involvement of its employees and has continued to keep them informed on matters affecting them as employees and on the various factors affecting the performance of the company. The group achieves this through regular directors' meetings, managers' meetings, team meetings and through consultation with employee representatives. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 January 2023. |
RESEARCH AND DEVELOPMENT |
The group's research and development expenditure for the year totalled £14,430,494 (2022: £12,391,955). |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 February 2022 to the date of this report. |
HAMMERSMITH MEDICINES RESEARCH LIMITED (REGISTERED NUMBER: 02779946) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 JANUARY 2023 |
FINANCIAL INSTRUMENTS |
The group has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities. |
Price risk |
The group carefully monitors costs incurred from suppliers and constantly reviews the pricing of its services to ensure that margins remain favourable. |
Credit risk |
The risk of financial loss due to third parties failing to honour their obligations arises where the group provides services to customers. The group has implemented policies to minimize such losses and require that terms are only granted to customers who meet the internal requirements for having suitable payment history and adequate creditworthiness. |
Liquidity risk |
The group manages daily the cost requirements and is not reliant on external borrowing. |
Cash flow risk |
The group maintains strong cash reserves to meet all of its costs. |
STREAMLINED ENERGY AND CARBON REPORTING |
The group is required to disclose information on annual Greenhouse Gas emissions and annual energy consumption within the Report of the Directors where it is practical for management to obtain information. |
The annual quantity of emissions in tonnes of carbon dioxide equivalent resulting from the use of electricity by the group was 216 tonnes during the year (2022: 228). That figure was calculated multiplying the energy usage disclosed on our electricity bills by the fuel mix disclosures published on their website.The annual quantity of emissions in tonnes of carbon dioxide equivalent resulting from the use of gas by the group was 202 tonnes during the year. |
The emission intensity ratio of turnover to emissions was £49,274 per tonne (2022: £96,718 per tonne). |
The annual quantity of energy consumed in the UK was 1,117,176 kWh as disclosed on our electricity bills (2022: 1,400,986 kWh). The annual quantity of gas consumed in the UK was 1,104,702 kWh. |
The management have been unable to calculate similar figures from the combustion of gas for the prior year because the energy provider is unable to provide the specific gas composition used in our area and they do not publish fuel mix disclosures for gas. |
We replaced our old gas boilers with newer energy efficient gas boilers in October 2022. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
HAMMERSMITH MEDICINES RESEARCH LIMITED (REGISTERED NUMBER: 02779946) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 JANUARY 2023 |
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 group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HAMMERSMITH MEDICINES RESEARCH LIMITED |
Opinion |
We have audited the financial statements of Hammersmith Medicines Research Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 January 2023 and of the group's 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 group 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 group's and the parent 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 Group 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 Group 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 Group 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 |
HAMMERSMITH MEDICINES RESEARCH LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 set out on page five, 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HAMMERSMITH MEDICINES RESEARCH 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: |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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. |
Audit approach to identifying and assessing potential risks related to irregularities |
Our procedures for identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, included the following: |
- Enquiring of management, including obtaining and reviewing supporting documentation, concerning the group's policies and procedures relating to: |
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; |
- 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 related to fraud or non-compliance with laws and regulations. |
- Discussing among the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
- Obtaining an understanding of the legal and regulatory frameworks that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the group. |
The key laws and regulations we considered to have a direct effect on the financial statements included the Financial Reporting Standard FRS 102 "The Financial Reporting applicable in the UK and Republic of Ireland" and the Companies Act 2006, distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. Key laws and regulations relating to the company's industry include the Human Medicines Regulations 2012 and the Medicines For Human Use (Clinical Trials) regulations 2004, with compliance under the Medicines and Healthcare products Regulatory Agency guidelines a legal requirement to conduct medical trials in the UK. |
Audit approach in response to identified risks |
Our procedures to respond to risks identified included the following: |
- Enquiring of management and, where appropriate, those charged with governance, as to whether the entity is in compliance with such laws and regulations. |
- Inspecting correspondence, if any, with the relevant licensing or regulatory authorities. |
- Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with reporting requirements. |
- Reviewing meeting minutes where available for any indication of non-compliance. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HAMMERSMITH MEDICINES RESEARCH 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. |
- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. |
Through these procedures, we have not become aware of any actual or suspected non-compliance. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements. This is particularly true for those laws and regulations far removed from transactions reflected in the financial statements. As with any audit, there remained a higher risk of non-detection of irregularities that result from fraud, due to an implied intent behind this, than from those that result from error. As stated in the audit standards, we are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. |
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. |
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 |
Statutory Auditors |
Chartered Accountants |
Pavilion View |
19 New Road |
Brighton |
East Sussex |
BN1 1EY |
HAMMERSMITH MEDICINES RESEARCH LIMITED (REGISTERED NUMBER: 02779946) |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 JANUARY 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 | 20,614,693 | 21,920,424 |
Cost of sales | 14,841,073 | 14,808,307 |
GROSS PROFIT | 5,773,620 | 7,112,117 |
Administrative expenses | 9,053,502 | 7,016,460 |
(3,279,882 | ) | 95,657 |
Other operating income | 1,230,974 | 1,232,136 |
OPERATING (LOSS)/PROFIT | 5 | (2,048,908 | ) | 1,327,793 |
Interest receivable and similar income | 4,689 | 830 |
(2,044,219 | ) | 1,328,623 |
Gain/loss on revaluation of assets | (45,708 | ) | 22,608 |
(LOSS)/PROFIT BEFORE TAXATION | (2,089,927 | ) | 1,351,231 |
Tax on (loss)/profit | 7 | (692,996 | ) | 820,949 |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(1,396,931 |
) |
530,282 |
(Loss)/profit attributable to: |
Owners of the parent | (1,396,931 | ) | 530,282 |
Total comprehensive income attributable to: |
Owners of the parent | (1,396,931 | ) | 530,282 |
HAMMERSMITH MEDICINES RESEARCH LIMITED (REGISTERED NUMBER: 02779946) |
CONSOLIDATED BALANCE SHEET |
31 JANUARY 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 | 11,645,971 | 11,830,845 |
Investments | 10 | - | - |
Investment property | 11 | 1,003,000 | 1,004,405 |
12,648,971 | 12,835,250 |
CURRENT ASSETS |
Debtors: amounts falling due within one year | 12 | 12,007,888 | 10,265,752 |
Debtors: amounts falling due after more than one year |
12 |
1,943,113 |
1,709,769 |
Investments | 13 | 475,568 | 519,871 |
Cash at bank and in hand | 1,985,589 | 4,829,085 |
16,412,158 | 17,324,477 |
CREDITORS |
Amounts falling due within one year | 14 | 2,626,519 | 1,884,096 |
NET CURRENT ASSETS | 13,785,639 | 15,440,381 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
26,434,610 |
28,275,631 |
PROVISIONS FOR LIABILITIES | 16 | 2,039,910 | 2,484,000 |
NET ASSETS | 24,394,700 | 25,791,631 |
CAPITAL AND RESERVES |
Called up share capital | 17 | 100 | 100 |
Investment property fair value |
reserve | 18 | 28 | 1,433 |
Retained earnings | 18 | 24,394,572 | 25,790,098 |
SHAREHOLDERS' FUNDS | 24,394,700 | 25,791,631 |
The financial statements were approved by the Board of Directors and authorised for issue on 19 April 2024 and were signed on its behalf by: |
Dr M J Boyce MD FRCP FPM HonFBPhS - Director |
HAMMERSMITH MEDICINES RESEARCH LIMITED (REGISTERED NUMBER: 02779946) |
COMPANY BALANCE SHEET |
31 JANUARY 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investments | 10 |
Investment property | 11 |
CURRENT ASSETS |
Debtors: amounts falling due within one year | 12 |
Debtors: amounts falling due after more than one year |
12 |
Investments | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 16 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Retained earnings | 18 |
SHAREHOLDERS' FUNDS |
Company's (loss)/profit for the financial year | (1,331,438 | ) | 584,171 |
The financial statements were approved by the Board of Directors and authorised for issue on |
HAMMERSMITH MEDICINES RESEARCH LIMITED (REGISTERED NUMBER: 02779946) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 JANUARY 2023 |
Investment |
property |
Called up | fair |
share | Retained | value | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 February 2021 | 100 | 25,259,816 | 1,433 | 25,261,349 |
Changes in equity |
Total comprehensive income | - | 530,282 | - | 530,282 |
Balance at 31 January 2022 | 100 | 25,790,098 | 1,433 | 25,791,631 |
Changes in equity |
Total comprehensive income | - | (1,395,526 | ) | (1,405 | ) | (1,396,931 | ) |
Balance at 31 January 2023 | 100 | 24,394,572 | 28 | 24,394,700 |
HAMMERSMITH MEDICINES RESEARCH LIMITED (REGISTERED NUMBER: 02779946) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 JANUARY 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 February 2021 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 January 2022 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 January 2023 |
HAMMERSMITH MEDICINES RESEARCH LIMITED (REGISTERED NUMBER: 02779946) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 JANUARY 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (3,210,000 | ) | (3,366,202 | ) |
Tax paid | 831,759 | 1,319,583 |
Net cash from operating activities | (2,378,241 | ) | (2,046,619 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (494,558 | ) | (505,867 | ) |
Sale of tangible fixed assets | (214 | ) | 268 |
Interest received | 4,689 | 830 |
Net cash from investing activities | (490,083 | ) | (504,769 | ) |
Cash flows from financing activities |
Capital repayments in year | - | (14,475 | ) |
Amount introduced by directors | 24,828 | - |
Amount withdrawn by directors | - | (53,390 | ) |
Net cash from financing activities | 24,828 | (67,865 | ) |
Decrease in cash and cash equivalents | (2,843,496 | ) | (2,619,253 | ) |
Cash and cash equivalents at beginning of year |
2 |
4,829,085 |
7,448,338 |
Cash and cash equivalents at end of year |
2 |
1,985,589 |
4,829,085 |
HAMMERSMITH MEDICINES RESEARCH LIMITED (REGISTERED NUMBER: 02779946) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 JANUARY 2023 |
1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
(Loss)/profit before taxation | (2,089,927 | ) | 1,351,231 |
Depreciation charges | 678,422 | 637,300 |
Loss on disposal of fixed assets | 1,224 | 2,472 |
Loss/(gain) on revaluation of fixed assets | 45,708 | (22,608 | ) |
Movement in provisions | 146,910 | (546,320 | ) |
Corporation Tax debtor provision | (1,228,124 | ) | (1,219,968 | ) |
Finance income | (4,689 | ) | (830 | ) |
(2,450,476 | ) | 201,277 |
Increase in trade and other debtors | (1,501,947 | ) | (1,863,276 | ) |
Increase/(decrease) in trade and other creditors | 742,423 | (1,704,203 | ) |
Cash generated from operations | (3,210,000 | ) | (3,366,202 | ) |
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 January 2023 |
31/1/23 | 1/2/22 |
£ | £ |
Cash and cash equivalents | 1,985,589 | 4,829,085 |
Year ended 31 January 2022 |
31/1/22 | 1/2/21 |
£ | £ |
Cash and cash equivalents | 4,829,085 | 7,448,338 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/2/22 | Cash flow | At 31/1/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 4,829,085 | (2,843,496 | ) | 1,985,589 |
4,829,085 | (2,843,496 | ) | 1,985,589 |
Liquid resources |
Current asset investments | 519,871 | (44,303 | ) | 475,568 |
519,871 | (44,303 | ) | 475,568 |
Total | 5,348,956 | (2,887,799 | ) | 2,461,157 |
HAMMERSMITH MEDICINES RESEARCH LIMITED (REGISTERED NUMBER: 02779946) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2023 |
1. | STATUTORY INFORMATION |
Hammersmith Medicines Research Limited is a private company, limited by shares, incorporated 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 |
Statement of compliance and summary of significant accounting policies |
These financial statements have been prepared in accordance with Financial Reporting Standard FRS 102 "The Financial Reporting applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention, as modified by the recognition of certain financial assets and liabilities measured at fair value. |
The significant accounting policies applied in the preparation of these financial statement are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
Basis of consolidation |
The group financial statements are the result of the consolidation of the financial statements of the company and its subsidiaries, namely Trio Medicines Limited and Hammersmith Medicines Research (Properties) Limited, drawn up to 31 January 2023. Intra-group transactions are eliminated on consolidation and all figures relate to external transactions only. |
Significant judgements and estimates |
In the application of the group's accounting policies, which are described below, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based in historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both the current and future periods. |
The areas for which estimation has been applied are considered to be in calculating depreciation and the useful economic lives of assets, deferred tax and other provisions, accrued and deferred income and accrued and prepaid expenditure and determining the fair values of investment property. Although these areas are subject to judgement, they are not considered to be subject to significant estimation. |
Revenue recognition |
Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the group's activities. Turnover is shown net of value added tax, returns and rebates. |
Revenue is attributable to testing products developed by the pharmaceutical industry. Revenue is recognised at staged intervals when certain conditions are met during a particular study, as determined by the contract with the sponsor. At the completion of the particular study, a final reconciliation is undertaken to ensure that revenue is complete, including all pass-through costs. |
Specifically, revenue from the provision of pharmaceutical studies is recognised at certain trigger points throughout the process. |
Since the group undertakes all phases of medical research as and when required by customers they are included together as continuing operations in the statement of comprehensive income. |
Where stage payments are received from sponsors in advance of services provided, the amounts are recorded as deferred income and included as part of creditors: amounts falling due within one year. Furthermore, where stage payments are due at the balance sheet date but not received, the amounts are recorded as accrued income within debtors: amounts falling due within one year. |
Interest receivable is recognised using the effective interest method. |
HAMMERSMITH MEDICINES RESEARCH LIMITED (REGISTERED NUMBER: 02779946) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold property | - |
Medical and computer equipment | - |
Furniture, fixtures and fittings | - |
Computer and office equipment | - |
Depreciation is not provided on the cost of freehold land. |
Tangible fixed assets are stated at cost less accumulated depreciation less accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended by management. |
At each balance sheet date, the group reviews the carrying amount of its tangible fixed assets to determine whether there is any indication that at items have suffered and impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. |
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately. |
Government grants |
Government grants received in respect of the Coronavirus Job Retention Scheme are recognised in the statement of comprehensive income over the period in which the related costs are incurred in accordance with the accruals model under Financial Reporting Standard 102. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
HAMMERSMITH MEDICINES RESEARCH LIMITED (REGISTERED NUMBER: 02779946) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
(i) Financial assets |
Basic financial assets, including trade and other debtors, cash and bank balances and investments in commercial paper, are initially recognised at transaction price. |
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. |
If there is decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss. |
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
(ii) Financial liabilities |
Basic financial liabilities, including trade and other creditors and bank loans are initially recognised at transaction price. |
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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, unless the effect of discounting would be immaterial, in which case they are stated at cost. |
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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. |
HAMMERSMITH MEDICINES RESEARCH LIMITED (REGISTERED NUMBER: 02779946) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
2. | ACCOUNTING POLICIES - continued |
Research and development |
Research expenditure is written off to the statement of comprehensive income in the year in which it is incurred. Development expenditure is written off in the same way unless the directors are satisfied as to the technical, commercial and financial viability of individual projects. In this situation, the expenditure is deferred and amortised over the period during which the company is expected to benefit. |
Foreign currencies |
The financial statements are presented in Sterling, the presentational and functional currency of the company. Transactions in currencies, other than Sterling, are recorded at the exchange rate on the date the transaction occurred. Monetary items denominated in other currencies are translated at the rates of exchange prevailing at the balance sheet date. All differences are taken to the statement of comprehensive income. Non-monetary items that are measured at historic cost in a foreign currency are not retranslated. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Short-term employee benefits are recognised as an expense in the period in which they are incurred. |
Impairment |
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in the statement of comprehensive income unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease. |
Current asset investments |
Current asset investments are held at fair value with any movement being charged to profit and loss. |
3. | TURNOVER |
The turnover and loss (2022 - profit) before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom | 10,082,568 | 10,203,985 |
Europe | 5,967,139 | 7,760,757 |
USA and Canada | 4,548,928 | 3,230,839 |
Asia and the Far East | 16,058 | 724,843 |
20,614,693 | 21,920,424 |
The turnover figures for the United Kingdom include exports invoiced via UK agents. A further geographical analysis of turnover by exports shows that our exports as a percentage of turnover was 60% in the year ended 31 January 2023 (2022: 61%). |
HAMMERSMITH MEDICINES RESEARCH LIMITED (REGISTERED NUMBER: 02779946) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 11,479,669 | 10,421,989 |
Other pension costs | 879,690 | 820,636 |
12,359,359 | 11,242,625 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Medical Research | 273 | 250 |
Administration | 35 | 41 |
The average number of Full Time Equivalent employees for the year were 273 (2022: 235). |
2023 | 2022 |
£ | £ |
Directors' remuneration | 70,912 | 65,473 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 1 |
5. | OPERATING (LOSS)/PROFIT |
The operating loss (2022 - operating profit) is stated after charging: |
2023 | 2022 |
£ | £ |
Hire of equipment | 11,512 | 57,387 |
Other operating leases | - | 20,841 |
Depreciation - owned assets | 678,472 | 626,771 |
Depreciation - assets on hire purchase contracts or finance leases | - | 10,529 |
Loss on disposal of fixed assets | 1,224 | 2,472 |
Auditors' remuneration | 25,620 | 31,270 |
Auditors' remuneration for non audit work | 11,237 | 12,238 |
Research and development expenditure | 14,430,494 | 12,430,116 |
6. | EXCEPTIONAL ITEMS |
2023 | 2022 |
£ | £ |
Exceptional items | (146,910 | ) | - |
Exceptional items in the year were comprised of settlement fees for legal claims against the company in relation to the data breach that occurred in March 2020. |
HAMMERSMITH MEDICINES RESEARCH LIMITED (REGISTERED NUMBER: 02779946) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
7. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | (101,996 | ) | (66,426 | ) |
Adjustment in respect of earlier years | - | (164 | ) |
Total current tax | (101,996 | ) | (66,590 | ) |
Deferred tax | (591,000 | ) | 887,539 |
Tax on (loss)/profit | (692,996 | ) | 820,949 |
UK corporation tax has been charged at 19 % (2022 - 19 %). |
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: |
2023 | 2022 |
£ | £ |
(Loss)/profit before tax | (2,089,927 | ) | 1,351,231 |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
(397,086 |
) |
256,734 |
Effects of: |
Expenses not deductible for tax purposes | 17,154 | 7,124 |
Income not taxable for tax purposes | (4,121 | ) | (5,121 | ) |
Capital allowances in excess of depreciation | - | (4,682 | ) |
Depreciation in excess of capital allowances | 5,167 | - |
Utilisation of tax losses | - | (315,381 | ) |
Adjustments to tax charge in respect of previous periods | - | (58 | ) |
Unfranked investment income | - | 738 |
Research and development enhanced expenditure | (158,959 | ) | (49,275 | ) |
Tax losses incurred | 404,195 | - |
R&D tax credit at 14.5% | 31,654 | 20,648 |
investments |
Prior year adjustment | - | 22,683 |
Deferred tax movement | (591,000 | ) | 887,539 |
movement |
Total tax (credit)/charge | (692,996 | ) | 820,949 |
Deferred tax at the year end is measured using the enacted tax rate of 25% (2022: 25%). |
The main rate of corporation tax for 2023 is 19%. The main rate is 25% from 1st April 2023, as enacted in the Finance Act 2021 on 10th June 2021. The company is not aware of any factors that would materially affect the future tax charge other than the proposed change in corporation tax rates. |
The unused tax losses carried forward for the year are £4,016,218 for the group and £638,212 for the company. |
HAMMERSMITH MEDICINES RESEARCH LIMITED (REGISTERED NUMBER: 02779946) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
8. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
9. | TANGIBLE FIXED ASSETS |
Group |
Medical | Furniture, | Computer |
and | fixtures | and |
Freehold | computer | and | office |
property | equipment | fittings | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 February 2022 | 14,157,677 | 3,431,956 | 545,635 | 1,200,152 | 19,335,420 |
Additions | 5,313 | 277,768 | 98,018 | 113,459 | 494,558 |
Disposals | - | (178,691 | ) | - | (13,954 | ) | (192,645 | ) |
Reclassification/transfer | - | - | (1,010 | ) | - | (1,010 | ) |
At 31 January 2023 | 14,162,990 | 3,531,033 | 642,643 | 1,299,657 | 19,636,323 |
DEPRECIATION |
At 1 February 2022 | 3,248,991 | 2,785,029 | 484,564 | 985,991 | 7,504,575 |
Charge for year | 268,159 | 234,812 | 30,821 | 144,680 | 678,472 |
Eliminated on disposal | - | (178,691 | ) | - | (13,954 | ) | (192,645 | ) |
Reclassification/transfer | - | - | (50 | ) | - | (50 | ) |
At 31 January 2023 | 3,517,150 | 2,841,150 | 515,335 | 1,116,717 | 7,990,352 |
NET BOOK VALUE |
At 31 January 2023 | 10,645,840 | 689,883 | 127,308 | 182,940 | 11,645,971 |
At 31 January 2022 | 10,908,686 | 646,927 | 61,071 | 214,161 | 11,830,845 |
HAMMERSMITH MEDICINES RESEARCH LIMITED (REGISTERED NUMBER: 02779946) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
9. | TANGIBLE FIXED ASSETS - continued |
Company |
Medical | Furniture, | Computer |
and | fixtures | and |
Freehold | computer | and | office |
property | equipment | fittings | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 February 2022 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
Reclassification/transfer | ( |
) | ( |
) |
At 31 January 2023 |
DEPRECIATION |
At 1 February 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
Reclassification/transfer | ( |
) | ( |
) |
At 31 January 2023 |
NET BOOK VALUE |
At 31 January 2023 |
At 31 January 2022 |
Included in cost of land and buildings is freehold land of £ 752,500 (2022 - £ 752,500 ) which is not depreciated. |
10. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 February 2022 |
and 31 January 2023 |
PROVISIONS |
At 1 February 2022 | 14,682,202 |
Provision for year | 67,798 |
At 31 January 2023 | 14,750,000 |
NET BOOK VALUE |
At 31 January 2023 |
At 31 January 2022 |
HAMMERSMITH MEDICINES RESEARCH LIMITED (REGISTERED NUMBER: 02779946) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
10. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Pavilion View, 19 New Road Brighton, East Sussex, BN1 1EY |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Pavilion View, 19 New Road, Brighton, East Sussex, BN1 1EY |
Nature of business: |
% |
Class of shares: | holding |
11. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 February 2022 | 1,004,405 |
Revaluations | (1,405 | ) |
At 31 January 2023 | 1,003,000 |
NET BOOK VALUE |
At 31 January 2023 | 1,003,000 |
At 31 January 2022 | 1,004,405 |
Fair value at 31 January 2023 is represented by: |
£ |
Valuation in 2017 | (2,617 | ) |
Valuation in 2018 | 26,576 |
Valuation in 2019 | (64,302 | ) |
Valuation in 2020 | 41,776 |
Valuation in 2023 | (1,405 | ) |
Cost | 1,002,972 |
1,003,000 |
Investment property was valued on an open market basis on 31 January 2023 by the directors . |
HAMMERSMITH MEDICINES RESEARCH LIMITED (REGISTERED NUMBER: 02779946) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
12. | DEBTORS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 3,762,256 | 4,020,043 |
Amounts owed by group undertakings | - | - |
Other debtors | - | 119,382 |
Directors' current accounts | 22,576 | 47,404 | 22,576 | 47,404 |
Corporation tax | 2,151,483 | 1,886,466 |
VAT | - | 23,018 |
Prepayments and accrued income | 6,071,573 | 4,169,439 |
12,007,888 | 10,265,752 |
Amounts falling due after more than one | year: |
Tax | 1,943,113 | 1,709,769 |
Aggregate amounts | 13,951,001 | 11,975,521 |
Tax due after more than one year represents the Research & Development Above The Line tax credit carried forward against future corporation tax liabilities arising. |
13. | CURRENT ASSET INVESTMENTS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Listed investments | 475,568 | 519,871 | 475,568 | 519,871 |
Market value of listed investments at 31 January 2023 held by the group and the company - £ (475,568) (2022 - £ (519,871) ). |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade creditors | 1,180,141 | 825,388 |
Social security and other taxes | 289,248 | 259,959 |
VAT | 6,769 | - | 6,769 | - |
Other creditors | 782 | 728 |
Accrued expenses | 1,149,579 | 798,021 |
2,626,519 | 1,884,096 |
15. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
HAMMERSMITH MEDICINES RESEARCH LIMITED (REGISTERED NUMBER: 02779946) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year | 80,894 | 69,990 |
Between one and five years | 249,271 | 73,122 |
330,165 | 143,112 |
Company |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
Total operating lease expenditure of £115,452 is included within the P&L. |
16. | PROVISIONS FOR LIABILITIES |
Group and Company |
2023 | 2022 |
£ | £ |
Deferred tax | 1,893,000 | 2,484,000 |
Other provisions | 146,910 | - |
Aggregate amounts | 2,039,910 | 2,484,000 |
Group and Company |
Deferred tax |
Other provisions |
£ | £ |
Balance brought forward | 2,484,000 | - |
Charge (credit) to Profit and loss account during year | (591,000 | ) | 146,910 |
Balance carried forward | 1,893,000 | 146.910 |
Deferred tax liability carried forward |
Accelerated capital allowances | 1,893,000 |
Balance carried forward | 1,893,000 |
Other provisions of £146,910 (2022: £Nil) are in respect of settlement fees for legal claims made against the company in relation to the data breach that occurred in March 2020. |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary shares | £1 | 100 | 100 |
HAMMERSMITH MEDICINES RESEARCH LIMITED (REGISTERED NUMBER: 02779946) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
17. | CALLED UP SHARE CAPITAL - continued |
Each share is entitled to one vote in any circumstances, pari passu to dividend payments or any other distribution, pari passu to participate in a distribution arising from a winding up of the company and no rights of redemption. |
18. | RESERVES |
Reserves include all current and prior period profits and losses included within Retained Earnings and all movements in investment property revaluations included within the Investment Property Fair Value Reserve. |
19. | CONTINGENT LIABILITIES |
Data breach |
The company, having sought legal advice, has determined that a contingent liability of £230,000 (2022: £500,000) is necessary in respect of potential future settlement fees for legal claims made against the company in relation to the data breach that occurred in March 2020. There is considerable uncertainty regarding the timing or amount of any future payments. |
Cladding |
In November 2021, the director received notification from the management company responsible for managing the development in which the group's investment properties (flats) are located that full approval of works and costs had been agreed in respect of remedial works required for the non- Aluminium Composite Material cladding of the buildings. The costs for the remedial works were estimated at £40,000 (inclusive of VAT) for each of the group's two properties. The notification disclosed only the total costs for the entire building, therefore the estimate has been derived from the total cost and the number of flats in the building. |
It is the expectation of the director, based on information received from the development's management company, that the Government's Building Safety Fund will cover the full costs of the remediation works, however as at the date of the approval of the financial statements, this had not been formally confirmed by the Government. |
20. | RELATED PARTY DISCLOSURES |
At the balance sheet date £22,576 was owed by Dr M J Boyce MD FRCP FFPM HonFBPh to the company (2022 - £47,404). This balance is repayable on demand and not subject to interest. |
During the year, a total of key management personnel compensation of £ 421,450 (2022 - £ 543,786 ) was paid. |
21. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is Dr M J Boyce MD FRCP FPM HonFBPhS. |