Company registration number 03867024 (England and Wales)
VERATHON MEDICAL (UK) LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
VERATHON MEDICAL (UK) LTD
COMPANY INFORMATION
Directors
J Stipancich
J P Conley
B Cross
(Appointed 1 February 2023)
Secretary
Squire Patton Boggs Secretarial Services Limited
Company number
03867024
Registered office
Verathon Medical (UK) Limited
Squire Patton Boggs (uk) Llp (ref: Csu)
Rutland House, 148 Edmund Street
Birmingham
B3 2JR
Auditor
Richardsons
30 Upper High Street
Thame
Oxfordshire
OX9 3EZ
VERATHON MEDICAL (UK) LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of income and retained earnings
8
Balance sheet
9
Notes to the financial statements
10 - 19
VERATHON MEDICAL (UK) LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

 

General

Verathon Medical (UK) Ltd is a private limited liability company. Verathon Medical (UK) Ltd is part of the Verathon group. The head of this group is Verathon Inc., Bothell, United States of America. The ultimate parent company is Roper Technologies Inc., Florida, United States of America.

Verathon Medical (UK) Ltd sells and distributes medical equipment and accessories to the UK and Ireland market. Furthermore service activities are provided for the products sold through Verathon Medical (Europe) B.V. (Registered in The Netherlands).

Review of the business

Turnover continues to be strong in 2023. Revenue is forecast to achieve a growth thereafter and EBITDA is estimated to increase in line with this. Turnover 2023 was £15m vs £10.6m in 2022.

 

The percentage gross margin achieved has decreased by 2.63% compared to 2022 due to a change in product mix and higher sales of consumables to larger customers. The gross margin for 2023 is 32.40% (202235.03%). Profit before tax for the financial year was £1,528k compared to £1,524k in 2022, driven largely by an increase in sales and decrease in administrative expenses of 4.2%, partly pertaining to a lower bad debt reserve.

Principal risks and uncertainties

Sales mainly take place with public hospitals or parties that have been vetted with regard to their credit rating. Verathon Medical hires well qualified sales people and implements strong processes to monitor and control operations which contributes to maintaining high margins.

 

The company has considered further risks covering liquidity, price and cash flow. In order to maintain liquidity and mitigate cash flow risk, the company has access to cash made available within the group. Exposure to price risk is deemed to be low given all stock purchases are from group companies.

 

During COVID-19 restrictions and remote working have made it more difficult to reach customers, with increased outstanding receivables as a consequence of this. As such, there has been an increased risk of credit collection for the business. In 2023 his decreased considerably, and credit collection improved.

Finance and investments

The Net Working Capital for 2023 equates to £2.1m (2022 - £6.7m) and the current ratio for 2023 is 1.30 (2022 - 2.61). The current ratio is defined as the company’s current assets divided by current liabilities. Increase of Net assets pertain to increase of cash of £3.9m. The current working capital position reflects the ability of Verathon Medical (UK) Limited to pay its current liabilities with its current assets.

Organisation and staffing

In Verathon Medical (UK) Limited there were both new hires and leavers. The number of employees in 2023 increased to a headcount of 20 FTE compared to 2021 with 17 FTE.

 

In 2023 the organisation continued to work on developing and implementing the strategy set in the prior year, together with annual plans and priorities for Europe.

 

Business and innovation

Our organic revenue growth is expected to continue. Our enduring principle that simple Ideas and nimble execution produce powerful results will continue to guide our culture. Our commitment to a strong leadership team will ensure the continuity and scalability of our strategy and governance model into the future.

VERATHON MEDICAL (UK) LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Going Concern

The company reported a profit after tax of £1,626,063 (2022 – £1,540,462) and following that, the company has net assets of £5,943,236 (2022 - £4,317,173) inclusive of net cash at bank and in hand, was £6,781,796 (2022 - £2,851,072).

 

The directors have considered the trading outlook for the company and having taken account of reasonably possible changes in trading performance, have forecast that it will continue to be profitable going forward. As such the directors have determined that the company has adequate resources for the foreseeable future and thus continue to adopt the going concern basis in preparing the financial statements.

 

Future developments

We expect revenue and EBITDA to grow compared to 2023. Our investments in new product development remain strong throughout the strategic horizon. Next generation BladderScan i10 and BFlex which we introduced in 2021 in the UK, a single-use bronchoscope designed with exceptional image quality and manoeuvrability for bronchoscopy procedures and difficult airways. As the rest of the world is facing supply chain challenges, so is Verathon. However, the company has managed the situation very well and continue to monitor it closely.

 

Verathon Medical (UK) Limited and the wider Group are in a strong liquidity position, with substantial cash on hand. We believe that our existing liquidity and other sources of funding will be sufficient to satisfy our currently anticipated cash requirements including capital expenditures, working capital requirements and other liquidity requirements through at least the next 12 months from the approval of these financial statements.

On behalf of the board

J Stipancich
Director
15 August 2024
VERATHON MEDICAL (UK) LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities

The principal activity of the company continued to be that of the sale of products.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

J Stipancich
R C Crisci
(Resigned 1 February 2023)
J P Conley
B Cross
(Appointed 1 February 2023)
Auditor

In accordance with the company's articles, a resolution proposing that Richardsons be reappointed as auditor of the company will be put at a General Meeting.

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 company’s auditor 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 company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
J Stipancich
J P Conley
Director
Director
15 August 2024
VERATHON MEDICAL (UK) LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The directors are responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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:

 

 

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 enable them to ensure that the financial statements comply with the Companies Act 2006. They 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.

VERATHON MEDICAL (UK) LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF VERATHON MEDICAL (UK) LTD
- 5 -
Opinion

We have audited the financial statements of Verathon Medical (UK) LTD (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, the balance sheet and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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 auditor's report thereon. The directors are 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:

VERATHON MEDICAL (UK) LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF VERATHON MEDICAL (UK) LTD (CONTINUED)
- 6 -
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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

The auditor’s assessment of the susceptibility of the entity’s financial statements to material misstatement, including how fraud might occur.

Which laws and regulations the auditor identified as being of significance in the context of the entity.

The auditor’s explanation of its audit response will depend on the risks identified but may include:

- Enquiry of management, those charged with governance and the entity’s solicitors (or in-house legal team) around actual and potential litigation and claims.

- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.

- Reviewing minutes of meetings of those charged with governance.

- Reviewing internal audit reports.

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

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.

VERATHON MEDICAL (UK) LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF VERATHON MEDICAL (UK) LTD (CONTINUED)
- 7 -

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 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.

Bernard Hawkes
Senior Statutory Auditor
For and on behalf of Richardsons
15 August 2024
Chartered Accountants
Statutory Auditor
30 Upper High Street
Thame
Oxfordshire
OX9 3EZ
VERATHON MEDICAL (UK) LTD
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
15,025,016
10,663,410
Cost of sales
(10,157,424)
(6,928,178)
Gross profit
4,867,592
3,735,232
Administrative expenses
(3,570,462)
(2,339,136)
Operating profit
4
1,297,130
1,396,096
Interest receivable and similar income
7
231,545
134,822
Interest payable and similar expenses
8
-
0
(6,797)
Profit before taxation
1,528,675
1,524,121
Tax on profit
9
97,388
16,341
Profit for the financial year
1,626,063
1,540,462
Retained earnings brought forward
4,317,073
2,776,611
Retained earnings carried forward
5,943,136
4,317,073

The profit and loss account has been prepared on the basis that all operations are continuing operations.

VERATHON MEDICAL (UK) LTD
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Current assets
Stocks
10
36,967
107,703
Debtors
11
7,661,310
7,937,051
Cash at bank and in hand
6,781,796
2,851,072
14,480,073
10,895,826
Creditors: amounts falling due within one year
12
(5,319,787)
(3,857,854)
Net current assets
9,160,286
7,037,972
Creditors: amounts falling due after more than one year
13
(3,172,477)
(2,676,226)
Provisions for liabilities
Provisions
14
44,573
44,573
(44,573)
(44,573)
Net assets
5,943,236
4,317,173
Capital and reserves
Called up share capital
16
100
100
Profit and loss reserves
5,943,136
4,317,073
Total equity
5,943,236
4,317,173

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 15 August 2024 and are signed on its behalf by:
J Stipancich
J P Conley
Director
Director
Company registration number 03867024 (England and Wales)
VERATHON MEDICAL (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
1
Accounting policies
Company information

Verathon Medical (UK) LTD is a private company limited by shares incorporated in England and Wales. The registered office is Verathon Medical (UK) Limited, Squire Patton Boggs (uk) Llp (ref: Csu), Rutland House, 148 Edmund Street, Birmingham, B3 2JR.

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 £.

The financial statements have been prepared under the historical cost convention, The principal accounting policies adopted are set out below.

This 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:

 

 

The financial statements of the company are consolidated in the financial statements of the ultimate parent company, Roper Technologies Incorporated (incorporated in the United States of America). These consolidated financial statements are available from its registered office, as noted under the controlling party note.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods 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.

 

Turnover from the sale of goods is recognised when the good are delivered to the customer.

 

Income received from the provision of warranties on goods sold are deferred and then released over the length of the warranty period, which ranges from one to seven years.

VERATHON MEDICAL (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 11 -

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.4
Stocks

Stocks are stated at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving stock.

1.5
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are 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.

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 company 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.

VERATHON MEDICAL (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
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.

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 company’s contractual obligations expire or are discharged or cancelled.

1.6
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.7
Taxation

The tax expense represents the sum of the tax currently payable.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

VERATHON MEDICAL (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.8
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.9
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.

1.10
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.11
Foreign exchange

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are 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.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Sales of goods
12,065,776
7,839,787
Sales of services
2,959,240
2,823,623
15,025,016
10,663,410
VERATHON MEDICAL (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 14 -
2023
2022
£
£
Turnover analysed by geographical market
UK and Ireland
15,025,016
10,663,410
2023
2022
£
£
Other revenue
Interest income
231,545
134,822
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Exchange losses
5,945
7,488
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 company
22,000
20,000
For other services
Taxation compliance services
3,800
3,500
All other non-audit services
2,100
1,500
5,900
5,000
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Management
3
2
Sales
17
15
Total
20
17
VERATHON MEDICAL (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 15 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,123,566
1,421,106
Social security costs
292,345
213,052
Pension costs
50,579
39,235
2,466,490
1,673,393
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
92,246
-
0
Interest receivable from group companies
139,299
134,822
Total income
231,545
134,822
8
Interest payable and similar expenses
2023
2022
£
£
Other interest
-
0
6,797
9
Taxation
2023
2022
£
£
Current tax
Adjustments in respect of prior periods
(97,388)
(16,341)
VERATHON MEDICAL (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 16 -

The actual credit for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
1,528,675
1,524,121
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
382,169
289,583
Tax effect of expenses that are not deductible in determining taxable profit
-
0
29,910
Adjustments in respect of prior years
-
0
(16,341)
Group relief
(382,169)
(318,355)
Permanent capital allowances in excess of depreciation
-
0
1,138
Under/(over) provided in prior years
(97,388)
-
0
Deferred tax not recognised
-
0
(2,276)
Taxation credit for the year
(97,388)
(16,341)
10
Stocks
2023
2022
£
£
Finished goods and goods for resale
36,967
107,703
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,172,790
2,123,910
Corporation tax recoverable
-
0
463,932
Amounts owed by group undertakings
276,543
137,244
Other debtors
11,977
11,965
2,461,310
2,737,051
2023
2022
Amounts falling due after more than one year:
£
£
Amounts owed by group undertakings
5,200,000
5,200,000
Total debtors
7,661,310
7,937,051
VERATHON MEDICAL (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Debtors
(Continued)
- 17 -

Amounts from group undertakings within one year are interest free and are repayable on demand.

Amounts owed by group undertakings that are due after one year relate to a borrowing agreement that the company has entered with another group undertaking in the form of Promissory Notes whereby that group undertaking promises to repay the company the principal amount with interest in accordance with the terms of the Promissory Note.

In 2021, a promissory note was issued to another group undertaking for a principal amount of £5,200,000, with interest charged at 2.61% per annum for a term of 10 years. The principal amount, together with the unpaid interest, is receivable by the company by 2031. No part of the principal or the accrued interest has been paid to the company as at the balance sheet date. Interest accrues daily and is payable on the first business day following the year end, and as such interest receivable is recorded as amounts falling due within one year.

12
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
106,531
20,039
Amounts owed to group undertakings
4,003,065
3,046,717
Taxation and social security
699,400
364,347
Other creditors
23,797
15,336
Accruals and deferred income
486,994
411,415
5,319,787
3,857,854

Amounts due to group undertakings are interest free and are repayable on demand.

13
Creditors: amounts falling due after more than one year
2023
2022
£
£
Accruals and deferred income
3,172,477
2,676,226
14
Provisions for liabilities
2023
2022
£
£
44,573
44,573
Movements on provisions:
£
At 1 January 2023 and 31 December 2023
44,573
VERATHON MEDICAL (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
15
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
50,579
39,235

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

16
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
100
100

Each share is entitled to one vote in any circumstance. Any profits which the directors lawfully determine to distribute shall be distributed among the holders pro rata to the number of shares held. On winding up or other return of capital, any capital shall be distributed among the holders of shares pro rata i n relation to the number of shares held. The shares are non-redeemable.

17
Warranties

The amounts recognised as a provision are management's best estimate of the expenditure required to settle future warranty claims. The judgements, estimates and associated assumptions necessary to calculate these provisions are based on historical experience and other reasonable factors.

18
Operating lease commitments

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
-
0
1,020
19
Related party transactions
Remuneration of key management personnel

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

VERATHON MEDICAL (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
20
Ultimate controlling party

Roper Technologies Incorporated (incorporated in the United States of America) is regarded by the directors as being the company's ultimate parent company.

 

The financial statements of the ultimate parent company are available from:

 

Roper Technologies Incorporated
6901 Professional Parkway East
Suite 200
Sarasota
Florida 34240

The ultimate controlling party is Roper Technologies Incorporated.

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