Registered number: 06810585
OVAL MEDICAL TECHNOLOGIES LIMITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 DECEMBER 2023
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OVAL MEDICAL TECHNOLOGIES LIMITED
REGISTERED NUMBER: 06810585
BALANCE SHEET
AS AT 31 DECEMBER 2023
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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Capital contribution reserve
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The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 29 August 2024.
The notes on pages 2 to 11 form part of these financial statements.
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OVAL MEDICAL TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Oval Medical Technologies Limited is a private company limited by shares incorporated in England and Wales within the United Kingdom. The address of the registered office is 50-60 Station Road, Cambridge, CB1 2JH.
The principal activity of the Company, continued to be that of, the design and development of novel syringe and autoinjector technologies.
2.ACCOUNTING POLICIES
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BASIS OF PREPARATION OF FINANCIAL STATEMENTS
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
These financial statements are rounded to the nearest pound.
The Company has one subsidiary company. The Company owns 100% of the issued share capital of Oval Medical Limited. Oval Medical Limited is a company limited by shares incorporated in England and Wales within the United Kingdom. The principal activity of Oval Medical Limited was the provision of freelance medical consultancy services. The company is now dormant, and as such made £nil profit for the year. As at 31 August 2023, the financial statements of Oval Medical Limited showed £nil shareholders’ funds.
The following principal accounting policies have been applied:
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FINANCIAL REPORTING STANDARD 102 - REDUCED DISCLOSURE EXEMPTIONS
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The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of SMC Pharma Services Ltd. (formerly Cambridge Pharma Limited) as at 31 December 2023 and these financial statements may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.
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EXEMPTION FROM PREPARING CONSOLIDATED FINANCIAL STATEMENTS
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The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.
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OVAL MEDICAL TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.ACCOUNTING POLICIES (CONTINUED)
The Company’s ability to continue trading relies on the continued financial support from its parent company, SMC Pharma Services Ltd (formerly Cambridge Pharma Services Ltd). At the balance sheet date, as highlighted in Note 9, the company had borrowed £2,980,642 via loan notes with SMC Pharma Services Ltd, over a 10 year term expiring 1st December 2031. Financial support is expected to continue for the foreseeable future and on this basis, the directors consider it appropriate to prepare the financial statements on a going concern basis.
In reaching this decision, the directors have considered projections of the cash flows of the parent company for the next twelve months. The cash flows indicate that the parent company may need additional finance during 2024 and 2025, which will be provided via a related Company, Scientific Molding Corporation Ltd. The parent company has obtained confirmations from Scientific Molding Corporation Ltd that they have sufficient funds and resources in place to provide such further funding and their willingness to provide their continued financial support for a period of 12 months from the date of approval of these financial statements.
It is on this assumption that these financial statements are prepared on a going concern basis.
The directors have considered a period of not less than 12 months from the date of approval of these financial statements.
Accordingly the financial statements have been prepared on a going concern basis and do not contain any adjustments that would result if the Company was not able to continue as a going concern.
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FOREIGN CURRENCY TRANSLATION
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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.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Income and Retained Earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
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OVAL MEDICAL TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.ACCOUNTING POLICIES (CONTINUED)
Turnover represents the amounts billed, excluding VAT, for work performed during the financial year. Revenue recognised under contractual agreements is recognised in the following ways:
Feasibility studies: Both revenue and costs of sales are recognised using the percentage of completion method. The amount by which revenue exceeds payments on account is included in accrued income; to the extent that payments on account exceed the respective revenue, the excess is included in deferred income.
Upfront payments: From time to time, customers pay up-front payments in return for certain exclusive rights as contractually agreed. These up-front payments are recognised upon invoice provided that there are no further performance obligations to be provided by the Company and provided that payment is considered to be recoverable with reasonable certainty within a reasonable time frame. In such circumstances, the risks and rewards of these exclusive rights are considered to have been transferred.
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OPERATING LEASES: THE COMPANY AS LESSEE
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Expenditure on all research and development is charged to the Statement of Income and Retained Earnings in the period in which it is incurred.
Interest income is recognised in profit or loss using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
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.
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OVAL MEDICAL TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.ACCOUNTING POLICIES (CONTINUED)
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 corporation 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.
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.
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:
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Costs written off over the term of the lease remaining at the point of asset capitalisation, the initial term being 15 years
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Assets under construction
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Assets under construction are not depreciated until in use
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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.
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OVAL MEDICAL TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.ACCOUNTING POLICIES (CONTINUED)
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IMPAIRMENT OF FIXED ASSETS AND GOODWILL
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Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.
Investments in subsidiaries are measured at cost less accumulated impairment.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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CASH AND CASH EQUIVALENTS
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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PROVISIONS FOR LIABILITIES
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Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefit, and a reliable estimate can be made of the amount of obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the balance sheet.
Increases in provisions are generally charged as an expense to profit or loss.
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OVAL MEDICAL TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.ACCOUNTING POLICIES (CONTINUED)
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. 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. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
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.
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.
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The average monthly number of employees, including the directors, during the year was as follows
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Non-remunerated directors
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OVAL MEDICAL TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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Assets under construction
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Transfers between classes
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Charge for the year on owned assets
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The net book value of Leasehold Improvements may be further analysed as follows:
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OVAL MEDICAL TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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Prepayments and accrued income
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Research and development tax credit
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CASH AND CASH EQUIVALENTS
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CREDITORS: Amounts falling due within one year
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Amounts owed to parent company
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Other taxation and social security
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Accruals and deferred income
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Transactions with parent company
At 31 December 2023, the balance of interest owed by Oval Medical Technologies Limited under a promissory note amounted to £96,090 (2022 - £159,049) and was included in Creditors: Amounts falling due within one year.
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OVAL MEDICAL TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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CREDITORS: Amounts falling due after more than one year
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Amounts owed to group undertakings
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Transactions with parent company
The Company entered a related party transaction with its parent company, SMC Pharma Services Ltd. (formerly Cambridge Pharma Limited), whereby the Company signed a 10 year promissory note effective 1 December 2021 with SMC Pharma Services Ltd. (formerly Cambridge Pharma Limited). This note was for a fluctuating sum which amalgamated the previous loan amounts between the Company and SMC Pharma Services Ltd. (formerly Cambridge Pharma Limited).
Interest is calculated on the loan at 3.2% interest per annum, being deemed by the Directors to be market rate. Interest is compounded monthly and is payable annually. The Company has the option to repay the capital element of the loan any time prior to the end of the term.
The aggregate amount of the loan notes drawn down at the year end was £2,980,642 (2022 - £300,494).
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Financial assets measured at fair value through profit or loss
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Financial assets that are debt instruments measured at amortised cost
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Financial liabilities measured at amortised cost
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Financial assets measured at fair value through profit and loss account comprise cash at bank and in hand.
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Financial assets that are debt instruments measured at amortised cost comprise trade debtors, amounts owed by parent company and other debtors.
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Financial liabilities measured at amortised cost comprise trade creditors, amounts owned to group undertakings and other creditors.
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OVAL MEDICAL TECHNOLOGIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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In November 2018, the Company signed a 15 year lease on a new facility. The Company commenced a fit out programme of leasehold improvements. A dilapidations provision has been included within the financial statements in respect of remedial work required to reinstate the facility to its original state when vacated. At 31 December 2023, the provision amounted to £250,000 (2022 - £250,000).
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The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £66,151 (2022 - £89,064). Contributions totalling £3,800 (2022 - £11,878) were payable to the fund at the balance sheet date and are included in creditors.
The immediate controlling party is SMC Pharma Services Ltd. (formerly Cambridge Pharma Limited).
Copies of SMC Pharma Services Ltd's group financial statements are available from Companies House, Crown Way, Cardiff, CF14 3UZ.
The auditors' report on the financial statements for the year ended 31 December 2023 was unqualified.
The audit report was signed on 29 August 2024 by Andrew Booth (Senior Statutory Auditor) on behalf of Price Bailey LLP.
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