Company Registration No. 08799395 (England and Wales)
SURGICAL DYNAMICS LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
SURGICAL DYNAMICS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
SURGICAL DYNAMICS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
773,969
696,187
Tangible assets
4
141,159
129,549
915,128
825,736
Current assets
Stocks
34,200
32,575
Debtors
5
92,997
108,057
Cash at bank and in hand
20,723
147,920
140,632
Creditors: amounts falling due within one year
6
(914,612)
(1,029,534)
Net current liabilities
(766,692)
(888,902)
Total assets less current liabilities
148,436
(63,166)
Creditors: amounts falling due after more than one year
7
(106,172)
(98,770)
Net assets/(liabilities)
42,264
(161,936)
Capital and reserves
Called up share capital
9
125
125
Share premium account
19,975
19,975
Profit and loss reserves
22,164
(182,036)
Total equity
42,264
(161,936)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
SURGICAL DYNAMICS LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 8 February 2024 and are signed on its behalf by:
Mr M B Jessup
Director
Company Registration No. 08799395
SURGICAL DYNAMICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
1
Accounting policies
Company information
Surgical Dynamics Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 35A, Werdohl Way, Number One Industrial Estate, Consett, Co Durham, DH8 6SZ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The company continues to progress product development and complete regulatory and clinical trials required for product launch for an assortment of medical products. Development work has been financed from a variety of loan sources, together with product sales and other contracted for work. Other creditors include a loan from two of the directors which they have agreed not to seek repayment until funds allow, to assist with the working capital available to the company.true
On the basis of this information, the directors consider that the company will continue to be able to meet its liabilities as they fall due. However, there can be no certainty in relation to the income that can be earned or the time before products are available for sale. The directors consider it appropriate to prepare the financial statements on the going concern basis. The financial statements do not include any adjustments that would result if the anticipated cash flows are not achieved.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets comprise primarily patent fees regarding patents registered in various countries for certain products and development costs. Developments cost are released once the product has gone into production.
SURGICAL DYNAMICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Patents
20 years
Development Costs
5 years
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
over 3 years
Plant and machinery
15% reducing balance
Fixtures & fittings
15% reducing balance
Computer equipment
20% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
SURGICAL DYNAMICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
Taxation
The tax expense represents the sum of the tax currently payable.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
SURGICAL DYNAMICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -
1.15
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.16
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.17
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
6
8
SURGICAL DYNAMICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
3
Intangible fixed assets
Patents
Development Costs
Total
£
£
£
Cost
At 1 January 2023
48,021
986,841
1,034,862
Additions - internally developed
129,275
129,275
Additions - separately acquired
6,981
6,981
At 31 December 2023
55,002
1,116,116
1,171,118
Amortisation and impairment
At 1 January 2023
36,718
301,957
338,675
Amortisation charged for the year
1,100
57,374
58,474
At 31 December 2023
37,818
359,331
397,149
Carrying amount
At 31 December 2023
17,184
756,785
773,969
At 31 December 2022
11,303
684,884
696,187
4
Tangible fixed assets
Leasehold improvements
Plant and machinery
Fixtures & fittings
Computer equipment
Total
£
£
£
£
£
Cost
At 1 January 2023
20,032
280,182
3,719
10,208
314,141
Additions
41,449
41,449
Disposals
(12,650)
(12,650)
At 31 December 2023
20,032
308,981
3,719
10,208
342,940
Depreciation and impairment
At 1 January 2023
20,032
152,192
2,763
9,605
184,592
Depreciation charged in the year
17,985
145
166
18,296
Eliminated in respect of disposals
(1,107)
(1,107)
At 31 December 2023
20,032
169,070
2,908
9,771
201,781
Carrying amount
At 31 December 2023
139,911
811
437
141,159
At 31 December 2022
127,990
956
603
129,549
SURGICAL DYNAMICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
54,983
39,086
Corporation tax recoverable
8,399
40,229
Other debtors
29,615
28,742
92,997
108,057
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
12,317
24,177
Obligations under finance leases
13,333
Other borrowings
401,886
396,002
Trade creditors
39,368
67,217
Taxation and social security
12,293
57,177
Other creditors
328,293
446,843
Accruals and deferred income
107,122
38,118
914,612
1,029,534
7
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
19,517
29,408
Obligations under finance leases
26,667
Other borrowings
23,767
33,141
Government grants
8
36,221
36,221
106,172
98,770
8
Government grants
2023
2022
£
£
Arising from government grants
36,221
36,221
Deferred income is included in the financial statements as follows:
2023
2022
£
£
Non-current liabilities
36,221
36,221
SURGICAL DYNAMICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
9
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
A Ordinary shares of £1 each
25
25
25
25
125
125
125
125
All shares have equal voting rights.
A Ordinary shares have the right to a dividend equal to 8% of the net profits for any financial year, payable within 4 months of the year end. Interest will accrue at 4% over the base rate on any late payment of dividend. After payment of this dividend ordinary shares have the right to an equal amount of dividends, providing that there are sufficient reserves. Subsequent to this both class of shares have an equal right to dividends.
On liquidation, capital reduction or otherwise, any outstanding dividends due to A Ordinary shareholders are paid first with A Ordinary shareholders then receiving repayment of their capital and share premium balance before any other shareholders are paid.
10
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
58,925
91,364
11
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
2023
2022
Amounts due to related parties
£
£
M & C Jessop (directors)
104,337
200,016
W Wang (director)
183,095
204,118
The directors have provided personal guarantees and pledged personal security against some of the loans totalling £203,911 (2022: £64,193).
One of the loans to the company requires that a director loan of £432,000 is not payable until the loan has been repaid in full. Through agreement with the loan provider, this clause is currently not being enforced.
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