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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: Dr M J Boyce MD FRCP FPM HonFBPhS
Dr S J Warrington MA MD FRCP FFPM





SECRETARY: Mr C K O'Brien BComm FCMA CGMA





REGISTERED OFFICE: 44 Cumberland Avenue
London
NW10 7EW





REGISTERED NUMBER: 02779946 (England and Wales)





AUDITORS: Hartley Fowler LLP
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:





Dr M J Boyce MD FRCP FPM HonFBPhS - Director


19 April 2024

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.

Dr M J Boyce MD FRCP FPM HonFBPhS
Dr S J Warrington MA MD FRCP FFPM


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:





Dr M J Boyce MD FRCP FPM HonFBPhS - Director


19 April 2024

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.




Guy Rolliston (Senior Statutory Auditor)
for and on behalf of Hartley Fowler LLP
Statutory Auditors
Chartered Accountants
Pavilion View
19 New Road
Brighton
East Sussex
BN1 1EY

23 April 2024

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

(1,396,931

)

530,282

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 11,645,573 11,829,878
Investments 10 100 67,898
Investment property 11 - -
11,645,673 11,897,776

CURRENT ASSETS
Debtors: amounts falling due within one year 12 12,924,984 11,045,661
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 1,867,325 4,804,980
17,210,990 18,080,281
CREDITORS
Amounts falling due within one year 14 2,421,953 1,767,819
NET CURRENT ASSETS 14,789,037 16,312,462
TOTAL ASSETS LESS CURRENT
LIABILITIES

26,434,710

28,210,238

PROVISIONS FOR LIABILITIES 16 2,039,910 2,484,000
NET ASSETS 24,394,800 25,726,238

CAPITAL AND RESERVES
Called up share capital 17 100 100
Retained earnings 18 24,394,700 25,726,138
SHAREHOLDERS' FUNDS 24,394,800 25,726,238

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 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)

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 100 25,141,967 25,142,067

Changes in equity
Total comprehensive income - 584,171 584,171
Balance at 31 January 2022 100 25,726,138 25,726,238

Changes in equity
Total comprehensive income - (1,331,438 ) (1,331,438 )
Balance at 31 January 2023 100 24,394,700 24,394,800

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
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 2% on cost
Medical and computer equipment - 20% on cost
Furniture, fixtures and fittings - 20% on cost
Computer and office equipment - 25% on cost

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
308 291

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 14,157,677 3,431,956 536,866 1,200,152 19,326,651
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 3,531,033 633,874 1,299,657 19,627,554
DEPRECIATION
At 1 February 2022 3,248,991 2,785,029 476,762 985,991 7,496,773
Charge for year 268,159 234,812 30,252 144,680 677,903
Eliminated on disposal - (178,691 ) - (13,954 ) (192,645 )
Reclassification/transfer - - (50 ) - (50 )
At 31 January 2023 3,517,150 2,841,150 506,964 1,116,717 7,981,981
NET BOOK VALUE
At 31 January 2023 10,645,840 689,883 126,910 182,940 11,645,573
At 31 January 2022 10,908,686 646,927 60,104 214,161 11,829,878

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 14,750,100
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 100
At 31 January 2022 67,898

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

Trio Medicines Limited
Registered office: Pavilion View, 19 New Road Brighton, East Sussex, BN1 1EY
Nature of business: R&D of pharmaceutical products
%
Class of shares: holding
Ordinary 100.00

Hammersmith Medicines Research (Properties) Limited
Registered office: Pavilion View, 19 New Road, Brighton, East Sussex, BN1 1EY
Nature of business: Property investment
%
Class of shares: holding
Ordinary 100.00


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 3,762,256 4,020,043
Amounts owed by group undertakings - - 1,095,306 1,076,802
Other debtors - 119,382 - -
Directors' current accounts 22,576 47,404 22,576 47,404
Corporation tax 2,151,483 1,886,466 1,982,955 1,725,523
VAT - 23,018 - 23,018
Prepayments and accrued income 6,071,573 4,169,439 6,061,891 4,152,871
12,007,888 10,265,752 12,924,984 11,045,661

Amounts falling due after more than one year:
Tax 1,943,113 1,709,769 1,943,113 1,709,769

Aggregate amounts 13,951,001 11,975,521 14,868,097 12,755,430

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 1,177,144 825,220
Social security and other taxes 289,248 259,959 289,248 259,959
VAT 6,769 - 6,769 -
Other creditors 782 728 84 -
Accrued expenses 1,149,579 798,021 948,708 682,640
2,626,519 1,884,096 2,421,953 1,767,819

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 80,894 69,990
Between one and five years 249,271 73,122
330,165 143,112

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: £    £   
100 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.