Company registration number 11180581 (England and Wales)
SCP MEDICAL HOLDINGS (UK) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
SCP MEDICAL HOLDINGS (UK) LIMITED
COMPANY INFORMATION
Director
Mr T L Meredith
(Appointed 16 May 2023)
Company number
11180581
Registered office
Coronet House
Kearsley Road
Ripon
HG4 2SG
Auditor
Azets Audit Services Limited
Triune Court
Monks Cross Drive
York
YO32 9GZ
SCP MEDICAL HOLDINGS (UK) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 31
SCP MEDICAL HOLDINGS (UK) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The director presents the strategic report for the year ended 31 December 2023.
Business model
The group concentrates predominantly with single use surgical equipment and is an award winning manufacturer.
We concentrate on innovation and quality by producing dynamic and superior equipment within the key fields of Ophthalmology, Dermatology, Orthopaedic, Gynaecology, ENT, Neurosurgical and General surgery.
We strive to deliver service excellence to our customers through the Network Medical Products and DTR Medical branding. We work with our customers, suppliers and new product development team to provide innovative and exceptional industry based technical expertise which is applied to understanding the medical processes and improvements that can be made to products. This enables our customers to improve their service and ensures that we are a market leader with meeting the customer needs.
We operate in the UK, Europe and Worldwide supplying medical equipment to Hospitals, distributors and health professionals in over 80 countries worldwide.
Relationships with our suppliers and customers are vital to ensure our mutual businesses prosper, strengthen and continue to work together in the future.
Business review and results
The group’s turnover of £16.3m during the 12 month period to 31 December 2023 represented a 15% increase over the prior 12 months.
The gross profit of the group was 35% and has therefore remained in line with the prior year.
Net current assets has increased to £5.8m compared to £5.2m of the previous year and current ratio has remained consistent at 2.2.
Overall the group made a loss of £742k (2022- 736k). However this is due to the amortisation of intangible assets. The group's obtained an EBITDA of £927k (2022 - £1.07m) and therefore the core operations of the group are profitable.
Key performance indicators
The group adopts a variety of key performance indicators (KPI’s) in which the senior management monitor performance. The principal KPI’s are Quality and Regulatory, sales and margin reports, cash flow and accounts receivable and accounts payable reports, monthly management accounts, Inventory control, customer feedback and new product wins.
To ensure customer excellence, any customer concerns are monitored and followed up promptly to ensure customer satisfaction and expectation as part of the groups’ branding.
The use of the KPI’s assists management in ensuring that service levels are established and profitability is scrutinized, with any variances analysed with action taken where appropriate.
Principal risks and uncertainties
Detailed monthly management accounts are prepared and reviewed to monitor actual financial performance against budget which is agreed annually by the senior management team.
The cashflow is monitored weekly to ensure enough liquidity throughout the business.
The group is subject to exchange rate fluctuations for which they endeavour to ensure the best value for money at the time.
SCP MEDICAL HOLDINGS (UK) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Future developments
The group operates in a very competitive market and concentrates on innovation and introduction of new and exciting medical items. This provides the group with an advantage over its competitors. The groups’ aim is to continue to grow and become a market leader for all of its products.
Financial instruments
The group is exposed to the usual credit risk and cash flow risk associated with selling on credit and manages this through strict credit control procedures. In some instances, the group does use hedging to reduce the risk that it may face with foreign exchange.
Mr T L Meredith
Director
13 August 2024
SCP MEDICAL HOLDINGS (UK) LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The director presents his annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the group continues to be that of the manufacturing and sale of medical equipment, primarily single use surgical equipment and cleanroom contract manufacturing services for a wide range of pharmaceutical and medical device manufacturers.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The director does not recommend payment of a further dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr T L Meredith
(Appointed 16 May 2023)
Mr D Pierce
(Resigned 16 May 2023)
Auditor
The auditor, Azets Audit Services Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
On behalf of the board
Mr T L Meredith
Director
13 August 2024
SCP MEDICAL HOLDINGS (UK) LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
SCP MEDICAL HOLDINGS (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SCP MEDICAL HOLDINGS (UK) LIMITED
- 5 -
Opinion
We have audited the financial statements of SCP Medical Holdings (UK) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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 the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 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.
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 group and parent 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.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's 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 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 director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
SCP MEDICAL HOLDINGS (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SCP MEDICAL HOLDINGS (UK) LIMITED
- 6 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept 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 director
As explained more fully in the director's responsibilities statement, the director is 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 director determines is 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 director is responsible for assessing 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 director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.
Auditor's 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 an auditor's report 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.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
SCP MEDICAL HOLDINGS (UK) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SCP MEDICAL HOLDINGS (UK) LIMITED
- 7 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
reviewing minutes of meetings of those charged with governance;
assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias and
Performing audit work over the timing and recognition of revenue and in particular whether it has been recorded in the correct accounting period.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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 an auditor's report 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.
Martin Davey (Senior Statutory Auditor)
For and on behalf of Azets Audit Services Limited
14 August 2024
Chartered Accountants
Statutory Auditor
Triune Court
Monks Cross Drive
York
YO32 9GZ
SCP MEDICAL HOLDINGS (UK) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
16,297,907
14,133,059
Cost of sales
(10,472,602)
(9,129,184)
Gross profit
5,825,305
5,003,875
Administrative expenses
(6,429,528)
(5,644,052)
Other operating income
150
48
Operating loss
4
(604,073)
(640,129)
Interest receivable and similar income
7
1,378
235
Interest payable and similar expenses
8
(72,031)
(15,895)
Loss before taxation
(674,726)
(655,789)
Tax on loss
9
(66,936)
(80,468)
Loss for the financial year
(741,662)
(736,257)
Total comprehensive income for the year is all attributable to the owner of the parent company.
The group statement of comprehensive income has been prepared on the basis that all operations are continuing operations.
SCP MEDICAL HOLDINGS (UK) LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
10
5,742,729
6,746,938
Other intangible assets
10
1,324,698
1,660,130
Total intangible assets
7,067,427
8,407,068
Tangible assets
11
618,272
649,558
7,685,699
9,056,626
Current assets
Stocks
13
3,820,974
3,536,247
Debtors
14
5,361,258
5,286,940
Cash at bank and in hand
794,538
652,644
9,976,770
9,475,831
Creditors: amounts falling due within one year
15
(4,209,711)
(4,242,735)
Net current assets
5,767,059
5,233,096
Total assets less current liabilities
13,452,758
14,289,722
Creditors: amounts falling due after more than one year
16
(10,370)
-
Provisions for liabilities
Deferred tax liability
18
457,607
563,279
(457,607)
(563,279)
Net assets
12,984,781
13,726,443
Capital and reserves
Called up share capital
20
1
1
Other reserves
16,405,462
16,405,462
Profit and loss reserves
(3,420,682)
(2,679,020)
Total equity
12,984,781
13,726,443
The financial statements were approved by the board of directors and authorised for issue on 13 August 2024 and are signed on its behalf by:
13 August 2024
Mr T L Meredith
Director
Company registration number 11180581 (England and Wales)
SCP MEDICAL HOLDINGS (UK) LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
12
18,008,276
18,008,276
Current assets
Debtors
14
40,367
40,367
Creditors: amounts falling due within one year
15
(1,643,180)
(1,643,180)
Net current liabilities
(1,602,813)
(1,602,813)
Net assets
16,405,463
16,405,463
Capital and reserves
Called up share capital
20
1
1
Other reserves
16,405,462
16,405,462
Total equity
16,405,463
16,405,463
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £0 (2022 - £0 profit).
The financial statements were approved by the board of directors and authorised for issue on 13 August 2024 and are signed on its behalf by:
13 August 2024
Mr T L Meredith
Director
Company registration number 11180581 (England and Wales)
SCP MEDICAL HOLDINGS (UK) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Other reserves
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
1
16,405,462
(1,942,763)
14,462,700
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
(736,257)
(736,257)
Balance at 31 December 2022
1
16,405,462
(2,679,020)
13,726,443
Year ended 31 December 2023:
Loss and total comprehensive income for the year
-
-
(741,662)
(741,662)
Balance at 31 December 2023
1
16,405,462
(3,420,682)
12,984,781
SCP MEDICAL HOLDINGS (UK) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Capital contribution reserve
Total
£
£
£
Balance at 1 January 2022
1
16,405,462
16,405,463
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
Balance at 31 December 2022
1
16,405,462
16,405,463
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
Balance at 31 December 2023
1
16,405,462
16,405,463
SCP MEDICAL HOLDINGS (UK) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
25
1,153,288
851,375
Interest paid
(72,031)
(15,895)
Income taxes paid
(685,164)
(1,106,180)
Net cash inflow/(outflow) from operating activities
396,093
(270,700)
Investing activities
Purchase of intangible assets
(19,205)
(10,979)
Purchase of tangible fixed assets
(232,399)
(210,316)
Interest received
1,378
235
Net cash used in investing activities
(250,226)
(221,060)
Financing activities
Payment of finance leases obligations
(3,973)
-
Net cash used in financing activities
(3,973)
-
Net increase/(decrease) in cash and cash equivalents
141,894
(491,760)
Cash and cash equivalents at beginning of year
652,644
1,144,404
Cash and cash equivalents at end of year
794,538
652,644
SCP MEDICAL HOLDINGS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information
SCP Medical Holdings (UK) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Coronet House, Kearsley Road, Ripon, HG4 2SG.
The group consists of SCP Medical Holdings (UK) Limited and all of its subsidiaries.
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.
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 £1.
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.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues
Section 26 ‘Share based Payment’ Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’ Compensation for key management personnel.
The company has applied section 33.1A of FRS 102 permitting it to not disclose related party transactions with wholly owned group companies.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
SCP MEDICAL HOLDINGS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company SCP Medical Holdings (UK) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
1.4
Going concern
The directors have considered all factors, including in the wider economy, as part of their assessment of going concern. Although the current economic climate creates both cashflow and profitability risks for the group, the directors believe on balance that they have sufficient resources to enable trading to continue for a period of at least one year from the date of approval of the financial statements, on the basis of information currently available to them as at the point of approval. Accordingly, these financial statements have been prepared on the going concern basis.
1.5
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.
1.6
Research and development expenditure
Research and development expenditure is written off against profits in the year in which it is incurred.
1.7
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.8
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 acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
SCP MEDICAL HOLDINGS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
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:
Software
25% reducing balance
Brand
10% straight line
Knowhow
20% straight line
Other intangibles
33% straight line
1.9
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:
Plant and equipment
25% straight line and reducing balance
Fixtures and fittings
25% straight line
Computers
33% straight line
Motor vehicles
25% reducing balance
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 recognised in the profit and loss account.
1.10
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.11
Impairment of fixed assets
At each reporting period end date, the group 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
SCP MEDICAL HOLDINGS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.12
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.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.13
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.
1.14
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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 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.
SCP MEDICAL HOLDINGS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 a 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.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 group 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.
SCP MEDICAL HOLDINGS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.15
Equity instruments
Equity instruments issued by the group 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 group.
1.16
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 group’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 and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and 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.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. 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. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
SCP MEDICAL HOLDINGS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.17
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.18
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.19
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 leased asset are consumed.
1.20
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
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
SCP MEDICAL HOLDINGS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 21 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Stock valuations
The Group converts raw materials to finished goods. Stock values include costs such as labour and overheads attributable to generating finished goods, as management believe this is the most suitable costing method to take into account the matching concept of accounting.
Impairment of intangible assets
The group holds intangible assets in relation to the goodwill following the acqusition of subsidiary companies and brands it holds as part of the trade which have a carrying value at the year end of £6,991,479 (2022 - £8,295,388). The company reviews its intangible assets at each reporting date for impairment whether events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of medical products
16,297,907
14,133,059
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
8,718,842
7,611,897
Rest of Europe
4,147,642
3,950,890
Rest of the World
3,431,423
2,570,272
16,297,907
14,133,059
2023
2022
£
£
Other revenue
Interest income
1,378
235
4
Operating loss
2023
2022
£
£
Operating loss for the year is stated after charging/(crediting):
Exchange (gains)/losses
(56,258)
63,781
Research and development costs
144,494
184,700
Depreciation of owned tangible fixed assets
170,148
144,506
Depreciation of tangible fixed assets held under finance leases
2,531
-
Loss on disposal of tangible fixed assets
123,567
-
Amortisation of intangible assets
1,358,846
1,569,129
Operating lease charges
316,305
238,484
SCP MEDICAL HOLDINGS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
3,675
3,500
Audit of the financial statements of the company's subsidiaries
27,725
17,036
31,400
20,536
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Directors
1
1
1
1
Administrative
28
34
-
-
Production
74
61
-
-
Total
103
96
1
1
Their aggregate remuneration comprised:
Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
4,146,967
3,588,053
Social security costs
378,774
316,407
-
-
Pension costs
93,372
99,410
4,619,113
4,003,870
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
1,378
235
SCP MEDICAL HOLDINGS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
8
Interest payable and similar expenses
2023
2022
£
£
Interest on finance leases and hire purchase contracts
2,632
-
Other interest
69,399
15,895
Total finance costs
72,031
15,895
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
173,000
121,000
Adjustments in respect of prior periods
(392)
10,180
Total current tax
172,608
131,180
Deferred tax
Origination and reversal of timing differences
(105,672)
(50,712)
Total tax charge
66,936
80,468
The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Loss before taxation
(674,726)
(655,789)
Expected tax credit based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
(158,696)
(124,600)
Tax effect of expenses that are not deductible in determining taxable profit
4,304
Amortisation on assets not qualifying for tax allowances
231,091
158,972
Under/(over) provided in prior years
(392)
10,180
Other
(9,371)
35,916
Taxation charge
66,936
80,468
SCP MEDICAL HOLDINGS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
10
Intangible fixed assets
Group
Goodwill
Software
Brand
Knowhow
Other intangibles
Total
£
£
£
£
£
£
Cost
At 1 January 2023
10,042,085
137,564
2,997,000
1,160,000
98,559
14,435,208
Additions
19,205
-
19,205
At 31 December 2023
10,042,085
156,769
2,997,000
1,160,000
98,559
14,454,413
Amortisation and impairment
At 1 January 2023
3,295,147
68,001
1,448,550
1,121,333
95,109
6,028,140
Amortisation charged for the year
1,004,209
12,820
299,700
38,667
3,450
1,358,846
At 31 December 2023
4,299,356
80,821
1,748,250
1,160,000
98,559
7,386,986
Carrying amount
At 31 December 2023
5,742,729
75,948
1,248,750
-
7,067,427
At 31 December 2022
6,746,938
69,563
1,548,450
38,667
3,450
8,407,068
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
Goodwill has arisen following the acquisition of subsidiary companies. As the net book value of the goodwill is not greater than the expected future economic benefit that will be earned from these acquired entities, no impairment has been made.
SCP MEDICAL HOLDINGS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
11
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
1,907,684
33,078
215,075
7,152
2,162,989
Additions
261,465
1,225
2,270
264,960
Disposals
(296,574)
(7,152)
(303,726)
At 31 December 2023
1,872,575
34,303
217,345
2,124,223
Depreciation and impairment
At 1 January 2023
1,294,777
26,991
184,511
7,152
1,513,431
Depreciation charged in the year
151,375
1,521
19,783
172,679
Eliminated in respect of disposals
(173,007)
(7,152)
(180,159)
At 31 December 2023
1,273,145
28,512
204,294
1,505,951
Carrying amount
At 31 December 2023
599,430
5,791
13,051
618,272
At 31 December 2022
612,907
6,087
30,564
649,558
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and equipment
37,964
12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
24
18,008,276
18,008,276
SCP MEDICAL HOLDINGS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Fixed asset investments
(Continued)
- 26 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
18,008,276
Carrying amount
At 31 December 2023
18,008,276
At 31 December 2022
18,008,276
13
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
2,334,855
2,393,946
-
-
Work in progress
61,454
192,485
-
-
Finished goods and goods for resale
1,424,665
949,816
3,820,974
3,536,247
-
-
14
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,844,341
2,779,235
Unpaid share capital
1
1
1
1
Amounts owed by group undertakings
2,234,701
2,182,528
40,366
40,366
Other debtors
105,460
78,409
Prepayments and accrued income
176,755
246,767
5,361,258
5,286,940
40,367
40,367
The amounts owed to fellow group undertakings is in relation to balances held with the ultimate parent company however outside this consoldation. The amounts are interest free and repayable on demand.
SCP MEDICAL HOLDINGS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
15
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
17
18,218
Trade creditors
3,131,596
3,054,045
Amounts owed to group undertakings
1,643,180
1,643,180
Corporation tax payable
223,444
736,000
Other taxation and social security
396,208
211,912
-
-
Other creditors
268,015
149,060
Accruals and deferred income
172,230
91,718
4,209,711
4,242,735
1,643,180
1,643,180
In the Company, the amounts owed to group undertakings are interest free and are repayable on demand.
16
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
17
10,370
17
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
20,580
In two to five years
10,641
31,221
-
-
-
Less: future finance charges
(2,633)
28,588
-
Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
SCP MEDICAL HOLDINGS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
138,920
160,000
Intangibles
318,687
403,279
457,607
563,279
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
563,279
-
Credit to profit or loss
(105,672)
-
Liability at 31 December 2023
457,607
-
The deferred tax liability set out above is expected to reverse over a several years and relates to accelerated capital allowances and intangibles arising upon consolidation.
The deferred tax rate used to calculate the year end deferred tax position is 25% (2022 - 25%).
19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
93,372
99,410
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
At the year end £16,044 (2022 - £7,433) of pension contributions were accrued but unpaid.
20
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and not fully paid
Ordinary shares of 1p each
100
100
1
1
SCP MEDICAL HOLDINGS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
21
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
121,747
124,247
-
-
Between two and five years
278,923
335,670
-
-
In over five years
590,417
655,417
-
-
991,087
1,115,334
-
-
22
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2023
2022
£
£
Aggregate compensation
271,174
313,393
No directors are remunerated throughout the group companies which these accounts are consolidated.
Transactions with related parties
During the year the group entered into the following transactions with related parties:
Sales
Sales
Purchases
Purchases
2023
2022
2023
2022
£
£
£
£
Group
Entities controlled by the same controlling party
558,633
209,601
3,593,963
1,940,265
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Entities controlled by the same controlling party
1,102,044
1,046,128
SCP MEDICAL HOLDINGS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
23
Controlling party
During the financial year the immediate controlling party was SCP Medical Holdings (UK) Limited and the ultimate controlling party was Inverness Graham Investments, Inc.
The financial statements of the company are consolidated in the financial statements of SCP Medical Holdings (UK) Limited. The registered office of SCP Medical Holdings (UK) Limited is Coronet House, Kearsley Road, Ripon, HG4 2SG.
24
Subsidiaries
Details of the company's subsidiaries at 31 December 2023 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Coronet Medical Technologies Limited
England and Wales
Dormant (dissolved on 11 January 2022)
Ordinary
100
Network Medical Products Limited
England and Wales
Manufacturer of medical instruments and supplies
Ordinary
100
DTR Medical Limited
England and Wales
Manufacturer of medical instruments and supplies
Ordinary
100
The registered offices of the above are as follows;
Coronet Medical Technologies Limited - Coronet House, Kearsley Road, Ripon, HG4 2RN
Network Medical Products Limited - Coronet House, Kearsley Road, Ripon, HG4 2SG
DTR Medical Limited - 17 Clarion Court, Clarion Court Enterprise Park, Swansea, SA6 8RF
25
Cash generated from group operations
2023
2022
£
£
Loss for the year after tax
(741,662)
(736,257)
Adjustments for:
Taxation charged
66,936
80,468
Finance costs
72,031
15,895
Investment income
(1,378)
(235)
Loss on disposal of tangible fixed assets
123,567
-
Amortisation and impairment of intangible assets
1,358,846
1,569,129
Depreciation and impairment of tangible fixed assets
172,679
144,506
Movements in working capital:
Increase in stocks
(284,727)
(888,876)
Increase in debtors
(74,318)
(903,572)
Increase in creditors
461,314
1,570,317
Cash generated from operations
1,153,288
851,375
SCP MEDICAL HOLDINGS (UK) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
26
Analysis of changes in net funds - group
1 January 2023
Cash flows
New finance leases
31 December 2023
£
£
£
£
Cash at bank and in hand
652,644
141,894
-
794,538
Obligations under finance leases
-
3,973
(32,561)
(28,588)
652,644
145,867
(32,561)
765,950
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.100Mr T L MeredithMr D Piercefalsefalse11180581bus:Consolidated2023-01-012023-12-31111805812023-01-012023-12-3111180581bus:Director12023-01-012023-12-3111180581bus:Director22023-01-012023-12-3111180581bus:RegisteredOffice2023-01-012023-12-3111180581bus:Consolidated2023-12-31111805812023-12-3111180581bus:Consolidated2022-01-012022-12-31111805812022-01-012022-12-3111180581core:Goodwillbus:Consolidated2023-12-3111180581core:Goodwillbus:Consolidated2022-12-3111180581core:OtherResidualIntangibleAssetsbus:Consolidated2023-12-3111180581core:OtherResidualIntangibleAssetsbus:Consolidated2022-12-3111180581core:ComputerSoftwarebus:Consolidated2023-12-3111180581core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2023-12-3111180581core:Non-standardIntangibleAssetClass2ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2023-12-3111180581core:ComputerSoftwarebus:Consolidated2022-12-3111180581core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2022-12-3111180581core:Non-standardIntangibleAssetClass2ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2022-12-3111180581bus:Consolidated2022-12-3111180581core:PlantMachinerybus:Consolidated2023-12-3111180581core:FurnitureFittingsbus:Consolidated2023-12-3111180581core:ComputerEquipmentbus:Consolidated2023-12-3111180581core:MotorVehiclesbus:Consolidated2023-12-3111180581core:PlantMachinerybus:Consolidated2022-12-3111180581core:FurnitureFittingsbus:Consolidated2022-12-3111180581core:ComputerEquipmentbus:Consolidated2022-12-3111180581core:MotorVehiclesbus:Consolidated2022-12-31111805812022-12-3111180581bus:Consolidated2021-12-31111805812022-12-3111180581core:ShareCapitalbus:Consolidated2023-12-3111180581core:ShareCapitalbus:Consolidated2022-12-3111180581core:OtherMiscellaneousReservebus:Consolidated2023-12-3111180581core:OtherMiscellaneousReservebus:Consolidated2022-12-3111180581core:ShareCapital2023-12-3111180581core:ShareCapital2022-12-3111180581core:OtherMiscellaneousReserve2023-12-3111180581core:OtherMiscellaneousReserve2022-12-3111180581core:RetainedEarningsAccumulatedLossesbus:Consolidated2021-12-3111180581core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-12-3111180581core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-12-3111180581core:ShareCapital2021-12-3111180581core:ForeignCurrencyTranslationReserve2023-12-3111180581core:ForeignCurrencyTranslationReserve2022-12-3111180581core:ShareCapitalOrdinarySharesbus:Consolidated2023-12-3111180581core:ShareCapitalOrdinarySharesbus:Consolidated2022-12-3111180581core:ShareCapitalOrdinaryShares2023-12-3111180581core:ShareCapitalOrdinaryShares2022-12-3111180581core:Goodwill2023-01-012023-12-3111180581core:IntangibleAssetsOtherThanGoodwill2023-01-012023-12-3111180581core:ComputerSoftware2023-01-012023-12-3111180581core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-01-012023-12-3111180581core:Non-standardIntangibleAssetClass2ComponentIntangibleAssetsOtherThanGoodwill2023-01-012023-12-3111180581core:Non-standardIntangibleAssetClass3ComponentIntangibleAssetsOtherThanGoodwill2023-01-012023-12-3111180581core:PlantMachinery2023-01-012023-12-3111180581core:FurnitureFittings2023-01-012023-12-3111180581core:ComputerEquipment2023-01-012023-12-3111180581core:MotorVehicles2023-01-012023-12-3111180581core:UKTaxbus:Consolidated2023-01-012023-12-3111180581core:UKTaxbus:Consolidated2022-01-012022-12-3111180581bus:Consolidated12023-01-012023-12-3111180581bus:Consolidated12022-01-012022-12-3111180581bus:Consolidated22023-01-012023-12-3111180581bus:Consolidated22022-01-012022-12-3111180581bus:Consolidated32023-01-012023-12-3111180581bus:Consolidated32022-01-012022-12-3111180581core:Goodwillbus:Consolidated2022-12-3111180581core:ComputerSoftwarebus:Consolidated2022-12-3111180581core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2022-12-3111180581core:Non-standardIntangibleAssetClass2ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2022-12-3111180581bus:Consolidated2022-12-3111180581core:Goodwillcore:ExternallyAcquiredIntangibleAssetsbus:Consolidated2023-01-012023-12-3111180581core:ComputerSoftwarecore:ExternallyAcquiredIntangibleAssetsbus:Consolidated2023-01-012023-12-3111180581core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillcore:ExternallyAcquiredIntangibleAssetsbus:Consolidated2023-01-012023-12-3111180581core:Non-standardIntangibleAssetClass2ComponentIntangibleAssetsOtherThanGoodwillcore:ExternallyAcquiredIntangibleAssetsbus:Consolidated2023-01-012023-12-3111180581core:ExternallyAcquiredIntangibleAssetsbus:Consolidated2023-01-012023-12-3111180581core:Goodwillbus:Consolidated2023-01-012023-12-3111180581core:ComputerSoftwarebus:Consolidated2023-01-012023-12-3111180581core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2023-01-012023-12-3111180581core:Non-standardIntangibleAssetClass2ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2023-01-012023-12-3111180581core:PlantMachinerybus:Consolidated2022-12-3111180581core:FurnitureFittingsbus:Consolidated2022-12-3111180581core:ComputerEquipmentbus:Consolidated2022-12-3111180581core:MotorVehiclesbus:Consolidated2022-12-3111180581core:PlantMachinerybus:Consolidated2023-01-012023-12-3111180581core:FurnitureFittingsbus:Consolidated2023-01-012023-12-3111180581core:ComputerEquipmentbus:Consolidated2023-01-012023-12-3111180581core:MotorVehiclesbus:Consolidated2023-01-012023-12-3111180581core:PlantMachinery2023-12-3111180581core:PlantMachinery2022-12-3111180581core:CurrentFinancialInstrumentsbus:Consolidated2023-12-3111180581core:CurrentFinancialInstrumentsbus:Consolidated2022-12-3111180581core:CurrentFinancialInstruments2023-12-3111180581core:CurrentFinancialInstruments2022-12-3111180581core:Non-currentFinancialInstrumentsbus:Consolidated2023-12-3111180581core:Non-currentFinancialInstrumentsbus:Consolidated2022-12-3111180581core:Non-currentFinancialInstruments2023-12-3111180581core:Non-currentFinancialInstruments2022-12-3111180581core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-12-3111180581core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2022-12-3111180581core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3111180581core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3111180581core:WithinOneYearbus:Consolidated2023-12-3111180581core:WithinOneYearbus:Consolidated2022-12-3111180581core:WithinOneYear2023-12-3111180581core:WithinOneYear2022-12-3111180581core:BetweenTwoFiveYearsbus:Consolidated2023-12-3111180581core:BetweenTwoFiveYearsbus:Consolidated2022-12-3111180581core:BetweenTwoFiveYears2023-12-3111180581core:BetweenTwoFiveYears2022-12-3111180581core:Subsidiary12023-01-012023-12-3111180581core:Subsidiary22023-01-012023-12-3111180581core:Subsidiary32023-01-012023-12-3111180581core:Subsidiary112023-01-012023-12-3111180581core:Subsidiary212023-01-012023-12-3111180581core:Subsidiary312023-01-012023-12-3111180581bus:PrivateLimitedCompanyLtd2023-01-012023-12-3111180581bus:FRS1022023-01-012023-12-3111180581bus:Audited2023-01-012023-12-3111180581bus:ConsolidatedGroupCompanyAccounts2023-01-012023-12-3111180581bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP