Company registration number 03841792 (England and Wales)
CYNOSURE UK LTD
FINANCIAL STATEMENTS
FOR THE PERIOD 1 OCTOBER 2021 TO 31 DECEMBER 2022
PAGES FOR FILING WITH REGISTRAR
CYNOSURE UK LTD
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
CYNOSURE UK LTD
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 1 -
31 December 2022
30 September 2021
Notes
£
£
£
£
Fixed assets
Tangible assets
3
571,506
943,476
Current assets
Stocks
1,592,069
1,516,673
Debtors
4
7,889,915
5,273,867
Cash at bank and in hand
711,803
725,847
10,193,787
7,516,387
Creditors: amounts falling due within one year
5
(6,432,587)
(4,579,873)
Net current assets
3,761,200
2,936,514
Total assets less current liabilities
4,332,706
3,879,990
Provisions for liabilities
(20,505)
(20,505)
Net assets
4,312,201
3,859,485
Capital and reserves
Called up share capital
6
1
1
Profit and loss reserves
4,312,200
3,859,484
Total equity
4,312,201
3,859,485
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 30 July 2024 and are signed on its behalf by:
E Khan
Director
Company registration number 03841792 (England and Wales)
CYNOSURE UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2022
- 2 -
1
Accounting policies
Company information
Cynosure UK Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 17th Floor, Chiswick Tower, 389 High Road, London, W4 4AJ.
1.1
Reporting period
The financial statements are presented for a longer period, this is to align the year end with the parent company. The comparative amounts presented in these financial statements (including the related notes) are therefore not entirely comparable.
1.2
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 pound 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. The principal accounting policies adopted are set out below.
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. Turnover comprises of services rendered during the year for laser system sales, rental fees, time and material based contracts and warranty contracts.
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 despatch 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.
Services are provided on a time and materials basis are recognised as they are provided.
Invoices for warranty contracts are issued in advance and revenue is recognised as income in the period to which they relate.
1.4
Tangible fixed assets
Tangible fixed assets are measured at cost, 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 the term of the lease
Plant, machinery and equipment
33% on cost
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.
1.5
Stocks
Stocks are stated at the lower of cost and estimated selling price.
CYNOSURE UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 3 -
1.6
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.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are measured at transaction price including transaction costs. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and loans from fellow group companies, are 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.
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.
1.7
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
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.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences. Such liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
1.8
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.9
Leases
Rentals payable under operating leases are charged to profit and 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 lease asset are consumed.
Amounts due from lessees under finance leases are recognised as receivables at the amount of the company’s net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a constant periodic rate of return on the company’s net investment outstanding in respect of leases.
CYNOSURE UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 4 -
1.10
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.
1.11
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 period was:
2022
2021
Number
Number
Total
34
38
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 October 2021
696,557
1,218,900
1,915,457
Additions
47,191
112,008
159,199
Disposals
(275,844)
(275,844)
At 31 December 2022
743,748
1,055,064
1,798,812
Depreciation and impairment
At 1 October 2021
96,744
875,237
971,981
Depreciation charged in the period
185,937
281,934
467,871
Eliminated in respect of disposals
(212,546)
(212,546)
At 31 December 2022
282,681
944,625
1,227,306
Carrying amount
At 31 December 2022
461,067
110,439
571,506
At 30 September 2021
599,813
343,663
943,476
CYNOSURE UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2022
- 5 -
4
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
3,136,210
2,854,735
Amounts owed by group undertakings
1,169,870
2,323,050
Other debtors
1,983,521
96,082
6,289,601
5,273,867
2022
2021
Amounts falling due after more than one year:
£
£
Other debtors
1,600,314
Total debtors
7,889,915
5,273,867
5
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
499,674
303,616
Amounts owed to group undertakings
2,855,704
1,760,107
Corporation tax
290,794
173,212
Other taxation and social security
183,881
491,291
Other creditors
2,602,534
1,851,647
6,432,587
4,579,873
6
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share of £1 each
1
1
1
1
7
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was qualified and the auditors reported as follows:
CYNOSURE UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2022
7
Audit report information
(Continued)
- 6 -
Qualified opinion on financial statements
We have audited the financial statements of Cynosure UK Ltd (the 'company') for the period ended 31 December 2022 which comprise the balance sheet and notes to the financial statements, including 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, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2022 and of its profit for the period 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 qualified opinion
Our report is qualified only in respect of the comparative figures. As reported in the previous year's basis for qualified opinion, we did not observe the counting of physical stock as at 30 September 2021 and were unable to satisfy ourselves by alternative means concerning the stock quantities as at 30 September 2021. Consequently we were unable to determine whether any adjustment to this area was necessary.
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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Senior Statutory Auditor:
Cemal Soydaner
Statutory Auditor:
Charterhouse (Audit) Limited
Date of audit report:
30 July 2024
8
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases as follows:
2022
2021
£
£
769,929
897,537
9
Parent company
The immediate parent company is Cynosure, LLC, a company incorporated in the United States of America.
At the balance sheet date, the directors considered the ultimate parent company and controlling party to be Clayton, Dubilier & Rice Lotus Holdings, L.P., based in the Cayman Islands and controlled by the private equity group Clayton, Dubilier & Rice.
CYNOSURE UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2022
- 7 -
10
Events after the reporting date
From 29 February 2024 Hahn & Co, a company registered in Korea, became ultimate parent company and controlling party.