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Registered number: 02856632









Apollo Scientific Limited









Annual Report and Financial Statements

For the year ended 31 December 2023

 
Apollo Scientific Limited
 
 
Company Information


Directors
T Kawano 
H Honjo (appointed 29 June 2023)




Company secretary
J A Holland



Registered number
02856632



Registered office
Whitefield Road
Bredbury

Stockport

Cheshire

SK6 2QR




Independent auditors
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors

Lancashire Gate

21 Tiviot Dale

Stockport

Cheshire

SK1 1TD





 
Apollo Scientific Limited
 

Contents



Page
Strategic report
 
1 - 2
Directors' report
 
3 - 4
Independent auditors' report
 
5 - 8
Statement of comprehensive income
 
9
Balance sheet
 
10
Statement of changes in equity
 
11
Statement of cash flows
 
12
Analysis of net debt
 
13
Notes to the financial statements
 
14 - 25


 
Apollo Scientific Limited
 
 
Strategic report
For the year ended 31 December 2023

Introduction
 
The directors present the strategic report for the year ended 31 December 2023.

Business review
 
Turnover decreased by £2.4m to £11.3m (-18%) when compared to the prior year. This was attributable to a downturn in demand within the pharmaceutical sector, which is where a large proportion of the bulk business is centered. Whilst the company have offset any losses within the EU since Brexit through expanding distribution agreements within this region, no growth has been seen in this area due to a reduction in customer base
Gross profit % has reduced by 3% to 33%, due partly to increase in raw materials and transportation costs. Demand for product has increased however the value of the product has reduced with increasing competition.
Overheads increased by £550k (13%) compared to the previous year, largely due to unfavourable exchange rate movements.
An operating loss of £968k was realised. The company is in an excellent financial position with large cash reserves of £5.2m.
Executive management have responded by restructuring the company to be better equipped in adapting to these changes through streamlining processes to ensure more efficiency within the catalogue side of the business and reducing the labour demands of this area.

Principal risks and uncertainties
 
The company trades in overseas markets. Both sales and purchases are made in foreign currencies therefore a natural hedge exists to an extent. Prices are constantly monitored and where unfavourable exchange rate movements are expected, are altered accordingly where possible.
The contribution from bulk sales is significant to cover the fixed cost base of the company. Bulk sales have primarily moved more towards the pharmaceutical sector in recent years, whose unpredictability has been noted above, and work is ongoing to develop bulk business in application areas, which are expected to have sustainable long-term demand and growth. The company is working to further expand and increase its market share in the catalogue business, to provide a more stable foundation on which to support the company’s costs by driving a higher proportion of sales to this higher margin area of the business.
Credit risk is managed by standard procedures including the use of credit rating agencies when deciding upon credit terms and the ongoing monitoring of accounts. Liquidity risk is managed by keeping sufficient cash deposits in order to meet liabilities as they fall due.

Page 1

 
Apollo Scientific Limited
 

Strategic report (continued)
For the year ended 31 December 2023

Financial key performance indicators
 
A summary of the financial key performance indicators for the past five years is as follows:


2023
2022
2021
2020
2019






Turnover £'000
11,277
13,704
13,939
15,307
18,163
Gross profit £'000
3,722
4,980
5,449
5,714
6,967
Gross profit %
33.0%
36.3%
39.1%
37.3%
38.4%
Profit before tax £'000
(915)
873
1,172
1,873
2,919
Profit before tax %
(8%)
6%
8%
12%
16%
No. of employees
72
76
76
71
71
Turnover/ employee £'000
157
180
183
216
256
Gross profit/ employee £'000
52
66
72
80
98
Profit before tax/ employee £'000
(13)
11
15
26
41



This report was approved by the board and signed on its behalf.




T Kawano
Director

Date: 1 March 2024

Page 2

 
Apollo Scientific Limited
 
 
 
Directors' report
For the year ended 31 December 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the company's financial statements 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 financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The loss for the year, after taxation, amounted to £788,601 (2022 -profit £721,742).

Dividends declared in the year amount to £Nil (2022- £102,396).

Directors

The directors who served during the year were:

T Kawano 
Y Wada (resigned 29 June 2023)
H Honjo (appointed 29 June 2023)

Future developments

The company is currently reviewing trading operations post-Brexit and is looking into international expansion to provide a local presence for further expanding market share. Increasing costs are expected because of conducting business post-Brexit as well as staff increases, supporting the business development side of the business amongst others, and software upgrades to facilitate future growth and aid the introduction of smarter processes. This, along with increases in marketing investment and improving accessibility to goods within foreign markets are expected to be key drivers in achieving substantial growth within the catalogue business in the coming years.

Page 3

 
Apollo Scientific Limited
 
 
 
Directors' report (continued)
For the year ended 31 December 2023

Research and development activities

The company continues to invest in research and development to increase in-house production capabilities in order to enable fulfilment of more client custom projects and increase the number of novel higher value products being brought to market.
Accreditations 
The company continues to invest and support its existing accreditations through the processes and procedures in place. The company maintained ISO9001:2015 and ISO14001:2015 status during the year. As well as retaining its EcoVadis sustainability rating therefore being awarded the highest possible ranking of Platinum for the third consecutive year, positioning the company within the top 1% of companies assessed within it’s sector. 
The company continues to reinforce it’s commitment to social responsibility having continued its stance as  asignatory to the United Nations Global Compact. An internal ESG and Future Focus team are in place to ensure that the company maintains it’s commitment to both environmental, social and ethical matters and is focused on delivering long term targets.

Matters covered in the Strategic report

The principal risks and uncertainties including reference to financial instruments are included in the strategic report.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the company since the year end.

Auditors

The auditorsHurst Accountants Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 




T Kawano
Director

Date: 1 March 2024

Page 4

 
Apollo Scientific Limited
 
 
 
Independent Auditors' Report to the Members of Apollo Scientific Limited
 

Opinion


We have audited the financial statements of Apollo Scientific Limited (the 'company') for the year ended 31 December 2023, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 company's affairs as at 31 December 2023 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Other information


The other information comprises the information included in the annual report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the annual reportOur 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.


Page 5

 
Apollo Scientific Limited
 
 
 
Independent Auditors' Report to the Members of Apollo Scientific Limited (continued)


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' 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, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine 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 directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
Apollo Scientific Limited
 
 
 
Independent Auditors' Report to the Members of Apollo Scientific Limited (continued)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
Identifying and assessing potential risks related to irregularities
In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
The nature of the industry and sector, control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets.
Enquiring of local management and parent company management, including obtaining and reviewing supporting documentation, concerning the company's policies and procedures relating to:
 
°Identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
°Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected of alleged fraud;
°The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
 
Discussing among the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud;
Obtaining an understanding of the legal and regulatory frameworks that the Company operates in, focusing on those laws and regulations that had a direct effect on the financial statements,  such as the Companies Act 2006, pensions and tax legislation, or that had a fundamental effect on the operations of the Company, including General Data Protection requirements, Anti-bribery and Health & Safety. 

Audit response to risks identified
Our procedures to respond to risk identified included the following:
Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;
Evaluation of management’s controls designed to prevent and detect irregularities;
Enquiring of management concerning actual and potential litigation and claims;
Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
Reading minutes of meetings of those charged with governance and correspondence with regulators. 

 
Page 7

 
Apollo Scientific Limited
 
 
 
Independent Auditors' Report to the Members of Apollo Scientific Limited (continued)


We have also considered the risks noted above in addressing the risk of fraud through management override of controls:
 
Testing the appropriateness of journal entries and other adjustments; we have used data analytics software to runs tests designed to identify accounting transactions which may pose a heightened risk of material misstatement, whether due to fraud or error.
Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
 
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.  Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.


Use of our report
 

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our 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 Auditors' 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.





Chris Stewardson (senior statutory auditor)
for and on behalf of
Hurst Accountants Limited
Chartered Accountants
Statutory Auditors
Lancashire Gate
21 Tiviot Dale
Stockport
Cheshire
SK1 1TD

4 March 2024
Page 8

 
Apollo Scientific Limited
 
 
Statement of comprehensive income
For the year ended 31 December 2023

2023
2022
Note
£
£

  

Turnover
 4 
11,277,094
13,703,713

Cost of sales
  
(7,555,506)
(8,723,612)

Gross profit
  
3,721,588
4,980,101

Administrative expenses
  
(4,689,213)
(4,138,976)

Other operating income/ (expense)
 5 
-
25,980

Operating (loss)/profit
 6 
(967,625)
867,105

Interest receivable and similar income
 9 
52,698
6,187

(Loss)/profit before tax
  
(914,927)
873,292

Tax on (loss)/profit
 10 
126,326
(151,550)

(Loss)/profit for the financial year
  
(788,601)
721,742

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 14 to 25 form part of these financial statements.

Page 9

 
Apollo Scientific Limited
Registered number: 02856632

Balance sheet
As at 31 December 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 13 
140,358
117,933

Tangible assets
 12 
398,164
606,882

  
538,522
724,815

Current assets
  

Stocks
 14 
5,770,416
5,895,261

Debtors: amounts falling due within one year
 15 
2,492,363
2,230,768

Cash at bank and in hand
 16 
5,190,074
5,803,157

  
13,452,853
13,929,186

Creditors: amounts falling due within one year
 17 
(1,648,402)
(1,474,336)

Net current assets
  
 
 
11,804,451
 
 
12,454,850

Total assets less current liabilities
  
12,342,973
13,179,665

Provisions for liabilities
  

Deferred tax
 18 
(77,714)
(125,805)

Net assets
  
12,265,259
13,053,860


Capital and reserves
  

Called up share capital 
 19 
99
99

Profit and loss account
 20 
12,265,160
13,053,761

  
12,265,259
13,053,860


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




T Kawano
Director

Date: 1 March 2024

The notes on pages 14 to 25 form part of these financial statements.

Page 10

 
Apollo Scientific Limited
 

Statement of changes in equity
For the year ended 31 December 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
99
12,434,415
12,434,514


Comprehensive income for the year

Profit for the year
-
721,742
721,742
Total comprehensive income for the year
-
721,742
721,742


Contributions by and distributions to owners

Dividends: Equity capital
-
(102,396)
(102,396)



At 1 January 2023
99
13,053,761
13,053,860


Comprehensive income for the year

Loss for the year
-
(788,601)
(788,601)


At 31 December 2023
99
12,265,160
12,265,259


Page 11

 
Apollo Scientific Limited
 

Statement of cash flows
For the year ended 31 December 2023

2023
2022
£
£

Cash flows from operating activities

(Loss)/profit for the financial year
(788,601)
721,742

Adjustments for:

Amortisation of intangible assets
49,599
52,277

Depreciation of tangible assets
258,650
250,206

(Profit) / Loss on disposal of intangible assets
(15,066)
31,095

Interest received
(52,698)
(6,187)

Taxation charge
(126,326)
151,550

Decrease in stocks
124,845
176,458

(Increase)/decrease in debtors
(152,706)
914,614

Decrease/(increase) in amounts owed by groups
1,596
(503)

Increase in creditors
169,168
167,450

Increase/(decrease)) in amounts owed to groups
107,294
(428,718)

Corporation tax (paid)
(32,250)
(193,945)

Net cash generated from operating activities

(456,495)
1,836,039


Cash flows from investing activities

Purchase of intangible fixed assets
(72,024)
(61,757)

Sale of intangible assets
15,066
20,154

Purchase of tangible fixed assets
(49,932)
(106,992)

Interest received
52,698
6,187

Net cash from investing activities

(54,192)
(142,408)

Cash flows from financing activities

Dividends paid
(102,396)
(230,005)

Net cash used in financing activities
(102,396)
(230,005)

Net (decrease)/increase in cash and cash equivalents
(613,083)
1,463,626

Cash and cash equivalents at beginning of year
5,803,157
4,339,531

Cash and cash equivalents at the end of year
5,190,074
5,803,157


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
5,190,074
5,803,157


Page 12

 
Apollo Scientific Limited
 

Analysis of Net Debt
For the year ended 31 December 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

5,803,157

(613,083)

5,190,074


5,803,157
(613,083)
5,190,074

The notes on pages 14 to 25 form part of these financial statements.

Page 13

 
Apollo Scientific Limited
 
 
 
Notes to the financial statements
For the year ended 31 December 2023

1.


General information

Apollo Scientific Limited is a private company limited by share capital incorporated in England, registered number 02856632. The address of the registered office and principal place of business is Whitefield Road, Bredbury, Stockport, Cheshire, SK6 2QR.
The nature of the company's operation and its principal activity is that of the supply of chemicals and other related products. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the company has transferred the significant risks and rewards of ownership to the buyer;
the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.3

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Page 14

 
Apollo Scientific Limited
 
 
 
Notes to the financial statements
For the year ended 31 December 2023

2.Accounting policies (continued)


2.3
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Long-term leasehold property
-
5 - 12.5% straight line over the life of the lease
Plant and machinery
-
12.5% straight line
Motor vehicles
-
20% straight line
Fixtures, fittings and equipment
-
10 - 33% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.4

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Computer Software
-
5
years

 
2.5

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Page 15

 
Apollo Scientific Limited
 
 
 
Notes to the financial statements
For the year ended 31 December 2023

2.Accounting policies (continued)

 
2.6

Foreign currency translation

Functional and presentation currency

The company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

 
2.7

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable.
Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. 
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an 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.

 
2.8

Operating leases: the company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.9

Pensions

Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Page 16

 
Apollo Scientific Limited
 
 
 
Notes to the financial statements
For the year ended 31 December 2023

2.Accounting policies (continued)

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

  
2.11

Research and development

Research and development costs are written off in the period they are incurred.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Management discussed with the directors the development, selection and disclosure of the company's critical accounting policies and estimates and the application of these policies and estimates. The key sources of estimation, uncertainty and critical accounting judgements in applying the company's policies are discussed below.
Provision for impairment loss on trade receivables
The management of the company exercises significant judgement in providing for impairment loss on trade receivables. Should these estimates vary, the profit or loss and balance sheet of the following years could be significantly impacted. The carrying value of trade receivables was £1,734,104 (2022 - £1,531,676). 
Provision for obsolete and slow moving stocks
The company reviews its stocks to assess loss on account of obsolescence on a regular basis. In determining whether provision for obsolescence should be recorded in profit or loss, the company makes judgements as to whether there is any observable data indicating that there is any future saleability of the product and the estimated net realisable value for such product. Accordingly, provision for impairment is made where the net realisable value is less than the cost based on best estimates by the management. The provision for obsolescence of stock is based on the ageing and historical sales pattern. The carrying value of stocks was £5,770,416 (2022 - £5,895,261).

Page 17

 
Apollo Scientific Limited
 
 
 
Notes to the financial statements
For the year ended 31 December 2023

4.


Turnover

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
2,773,794
3,794,449

Rest of Europe
4,172,460
5,445,473

Rest of the world
4,330,840
4,463,791

11,277,094
13,703,713



5.


Other operating income

2023
2022
£
£

Sundry income
-
25,980



6.


Operating (loss)/profit


The operating (loss)/profit is stated after charging:

2023
2022
£
£

Research & development charged as an expense
-
575,872

Exchange differences
113,033
(470,934)

Other operating lease rentals
282,440
286,377

During the year, no director received any emoluments (2022 - £nil).


7.


Auditors' remuneration

During the year, the company obtained the following services from the company's auditors and their associates:


2023
2022
£
£

Fees payable to the company's auditors and their associates for the audit of the company's financial statements
13,150
11,970

Fees payable to the company's auditors and their associates in respect of:

Other services relating to taxation
2,225
2,225

All other services
3,000
3,000

Page 18

 
Apollo Scientific Limited
 
 
 
Notes to the financial statements
For the year ended 31 December 2023

8.


Employees

Staff costs were as follows:


2023
2022
£
£

Wages and salaries
2,351,326
2,402,437

Social security costs
209,026
234,186

Cost of defined contribution scheme
172,606
167,384

2,732,958
2,804,007


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Sales
25
25



Administration
21
22



Laboratory/Production
26
29

72
76


9.


Interest receivable

2023
2022
£
£


Other interest receivable
52,698
6,187

Page 19

 
Apollo Scientific Limited
 
 
 
Notes to the financial statements
For the year ended 31 December 2023

10.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
(230,931)
200,504

Adjustments in respect of previous periods
148,213
(69,970)


(82,718)
130,534

Foreign tax


Foreign tax on income for the year
4,483
13,878

Total current tax
(78,235)
144,412

Deferred tax


Origination and reversal of timing differences
(48,091)
7,138

Total deferred tax
(48,091)
7,138


Taxation on (loss)/profit on ordinary activities
(126,326)
151,550

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 -lower than) the standard rate of corporation tax in the UK of 25% (2022 -19%). The differences are explained below:

2023
2022
£
£


(Loss)/profit on ordinary activities before tax
(914,927)
873,292


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 -19%)
(228,732)
165,825

Effects of:


Expenses not deductible for tax purposes
793
558

Adjustments to tax charge in respect of prior periods
(37,053)
-

Short term timing difference leading to an increase (decrease) in taxation
(47,534)
-

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
8,467
14,224

Unrelieved tax losses carried forward
177,733
-

Other differences leading to a change in the tax charge
-
(29,057)

Total tax charge for the year
(126,326)
151,550

Page 20

 
Apollo Scientific Limited
 
 
 
Notes to the financial statements
For the year ended 31 December 2023
 
10.Taxation (continued)


Factors that may affect future tax charges

Corporation tax main rates have increased to 25% in the tax year from 1st April 2023 for companies
whose profits exceed £250k. A tapered rate will be introduced for profits above £50k up to the £250k limit.


11.


Dividends

2023
2022
£
£


Dividends paid in the year on equity capital
-
102,396


12.


Tangible fixed assets





Long-term leasehold property
Plant and machinery
Fixtures, fittings and equipment
Motor vehicles
Total

£
£
£
£
£



Cost or valuation


At 1 January 2023
729,123
232,923
1,192,628
15,486
2,170,160


Additions
638
15,540
33,754
-
49,932



At 31 December 2023

729,761
248,463
1,226,382
15,486
2,220,092



Depreciation


At 1 January 2023
485,841
190,212
877,934
9,291
1,563,278


Charge for the year
51,186
17,417
186,949
3,098
258,650



At 31 December 2023

537,027
207,629
1,064,883
12,389
1,821,928



Net book value



At 31 December 2023
192,734
40,834
161,499
3,097
398,164



At 31 December 2022
243,282
42,711
314,694
6,195
606,882

Page 21

 
Apollo Scientific Limited
 
 
 
Notes to the financial statements
For the year ended 31 December 2023

13.


Intangible assets




Computer software

£



Cost


At 1 January 2023
175,969


Additions - internal
72,024



At 31 December 2023

247,993



Amortisation


At 1 January 2023
58,036


Charge for the year 
49,599



At 31 December 2023

107,635



Net book value



At 31 December 2023
140,358



At 31 December 2022
117,933




14.


Stocks

2023
2022
£
£

Raw materials and consumables
5,770,416
5,895,261


An impairment loss of £273,203 (2022 - £190,160) was recognised in cost of sales against stock during the year due to slow-moving and obsolete stock.

Page 22

 
Apollo Scientific Limited
 
 
 
Notes to the financial statements
For the year ended 31 December 2023

15.


Debtors

2023
2022
£
£


Trade debtors
1,734,104
1,531,676

Amounts owed by group undertakings
452
2,048

Other debtors
539,448
433,391

Prepayments and accrued income
218,359
263,653

2,492,363
2,230,768



16.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
5,190,074
5,803,157



17.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
1,066,791
983,547

Amounts owed to group undertakings
179,545
174,647

Other taxation and social security
49,933
131,748

Other creditors
38,447
36,057

Accruals and deferred income
313,686
148,337

1,648,402
1,474,336



18.


Deferred taxation




2023
2022


£

£






At beginning of year
(125,805)
(118,667)


Charged to profit or loss
48,091
(7,138)



At end of year
(77,714)
(125,805)

Page 23

 
Apollo Scientific Limited
 
 
 
Notes to the financial statements
For the year ended 31 December 2023
 
18.Deferred taxation (continued)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
77,714
125,805


19.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



99 (2022 - 99 ) Ordinary shares of £1 each
99
99



20.


Reserves

Profit and loss account

The profit and loss account includes all current and prior period retained profits and losses.


21.


Pension commitments

The company operates a defined contribution pension scheme. The scheme and its assets are held by independent managers. The pension charge represents contributions due from the company and amounted to £172,606 (2022 - £167,384). Contributions totalling £1,110 (2022 - £132) were payable to the fund at the balance sheet date and are included in creditors.


22.


Commitments under operating leases

At 31 December 2023 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
288,660
281,160

Later than 1 year and not later than 5 years
72,125
251,250

360,785
532,410

Page 24

 
Apollo Scientific Limited
 
 
 
Notes to the financial statements
For the year ended 31 December 2023

23.


Related party transactions

Transactions entered into with companies wholly owned within the group have not been disclosed as permitted under FRS 102 paragraph 33.1A.
Key management personnel remuneration totalled £400,242 (
2022 - £392,937).


24.


Controlling party

During the year, Central Glass Europe Limited entered voluntary liquidation and subsequently transferred 100% of the share capital in Apollo Scientific Limited to its parent company Central Glass Co. Ltd, a company incorporated in Japan and is listed on the Tokyo Stock Exchange (First Section).
 
Page 25