Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2023
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SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED)
COMPANY INFORMATION
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SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED)
CONTENTS
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SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED)
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The Directors present their strategic report and financial statements of SMC Pharma Services Ltd. (formerly Cambridge Pharma Limited) and its subsidiary Oval Medical Technologies Limited (together “the Group”) for the year ended 31 December 2023.
The principal activity of the Group is the investment in research and development (“R&D”) of novel syringe and autoinjector technologies and pharmaceutical process development to support fill-finish activities. The Group will continue with this activity in the foreseeable future. During the year, the Group continued the fit out of its leasehold facility that will deliver a pharmaceutical development and contract manufacturing service for small batch fill finish for investigational medicinal products. The Group’s turnover in the financial year was £138,972 falling from £2,281,130 in the 2022 comparative period. Administrative costs increased to £12,827,161 for the financial year compared to £8,823,549 in 2022 given the Group was in the process of setting up the leasehold facility which will house pharmaceutical development and contract manufacturing services. Included in this value was an impairment charge of £5,051,624 (2022 - £nil) relating to certain assets where the Directors assessed the carrying value exceeded the recoverable amount. Research and development costs increased in the year to £3,528,969 from £2,107,960 in the comparative 2022 period. The loss after tax for the financial year was £17,181,896 compared to a loss of £9,650,025 in 2022. The Group’s employee numbers decreased during the year to an average of 65 in 2023, down from an average of 78 in the 2022 period following a restructure of the Group's operations. The Group had net liabilities of £26,011,490 as at 31 December 2023 compared to a net liability position of £8,829,594 as at 31 December 2022.
The directors are satisfied with the results for the year and the financial position as at the date hereof. PRINCIPAL RISKS AND UNCERTAINTIES The Group is committed to reviewing risks to its business on an on-going basis. The directors are responsible for this review and have implemented a number of controls to mitigate potential risk to the Group. The principal risk and uncertainties facing the Group are identified as follows: Operational risk: The Group aims to minimise operational risk by ensuring that it has adequate internal processes and procedures to manage the activities of the business such as a robust R&D stage-gate process, a project planning system, a Pharmaceutical Quality System that currently supports ISO13485 certification and financial processes. It also ensures that each functional area of the business is resourced with appropriately skilled employees. The Pharmaceutical Quality System is being expanded to ensure it will support a licence application for Investigational Medicinal Products with the Medicines and Healthcare products Regulatory Agency. Competitive risk: The Group ensures that it undertakes innovative R&D such that it can add value to the needs of its customers when compared to the offerings of its competitors. Liquidity risk: The Group ensures that it prepares adequate short and mid-term cash forecasts to minimise any liquidity risk. It carefully manages the receipts of trade debtors and payments to trade creditors. Reputational risk: The Group aims to manage reputational risk to include safety and quality issues regarding its products through stringent design and process risk assessments and HAZOP evaluations, testing procedures, management of information technology security issues, and ensuring all product innovation is ethical.
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SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED)
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Compliance risk:
The Group has in place a series of measures to manage compliance risk which include but are not limited to abiding by laws, regulations and Health and Safety practices, following internal Quality procedures to include addressing deviations and ensuring environmental impacts are considered and managed.
The Group measures its success on the stage of development of its technology platforms for novel syringe and autoinjectors. During 2023 the Group reviewed each of its platform technologies and effected certain changes to their development. In addition the Group initiated sales of process manufacturing activities in the year.
The Group operates within a group of associated medical companies which includes SMC Ltd. The vision is to build a design, development and manufacturing global presence in the pharmaceutical, biologics, diagnostics, and medical device industry. Our team are dedicated to enabling a better and faster customer journey from product development to patient with economies of scale and synergy advantages. Operating as a single integrated partner we are building an advanced range of technologies and capabilities offering precise quality combined with flexibility, security, and low risk.
Oval Medical Technologies Limited, the Group's wholly owned subsidiary, will continue to perform R&D to develop its technology platforms for novel syringe and autoinjector technologies. Everything Oval does, is driven by patients for simpler, smarter, and better solutions. Oval’s patient-centric approach means intuitive to use, user friendly and safe autoinjectors. Patient preference matters, users have an increasing influence on device choice. Our modular platform technology can be tailored for challenging formulations. This modular approach means the power pack, primary drug container and patient interface can be substituted with minimal impact making it a truly flexible customisable design. Commercially, sustainable competitive advantage is crucial for long term return, by truly putting the patient first, Oval are helping partners deliver their business goals. SMC Pharma Services Ltd. will deliver a pharmaceutical development and contract manufacturing service for small batch fill finish for investigational medicinal products. The company will operate with a high level of appropriate sterility assurance through the use of leading technology, robust Quality systems and dedicated staff to meet customer changing requirements and critical deadlines.
This report was approved by the board on 29 August 2024 and signed on its behalf.
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SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA 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.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The loss for the year, after taxation, amounted to £17,181,896 (2022 - loss £9,650,025).
GOING CONCERN
The financial statements have been prepared on the basis that the Company is a going concern. In reaching this decision, the directors have considered projections of the cash flows of the Company for the next twelve months covering the existing commitments of the Company together with additional investment required to develop autoinjector technologies. The cash flows indicate that the Company may need additional finance during 2024 and 2025, which will be provided via a related Company, SMC Ltd. It is on this assumption that these financial statements are prepared on a going concern basis. Further disclosure is included in note 2.3 to the financial statements.
The directors who served during the year were:
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SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED)
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
On 23 April 2024, the Company, following the passing of a Special Resolution, changed its name from Cambridge Pharma Limited to SMC Pharma Services Ltd.
Under section 487(2) of the Companies Act 2006, Price Bailey LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board on
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SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED)
We have audited the financial statements of SMC Pharma Services Ltd (formerly Cambridge Pharma Limited) (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of 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).
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 Group 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.
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 Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED) (CONTINUED)
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 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED) (CONTINUED)
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 Group 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 gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations. This included those regulations directly related to the financial statements, including financial reporting, tax legislation and distributable profits and industry regulations including GDPR, employment law and health and safety. We communicated the identified laws and regulations with the audit team and remained alert to any indications of non-compliance throughout the audit. We carried out specific procedures to address the risks identified. These included the following: - agreeing the financial statement disclosures to underlying supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; - enquiries of management including those responsible for key regulations; and - performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. In addressing the risk of management override of controls, we carried out testing of journal entries and other adjustments for appropriateness, assessing whether the judgements made in making accounting estimates are indicative of a potential bias and evaluating the business rationale of significant transactions outside the normal course of business. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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.
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SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED) (CONTINUED)
This report is made solely to the Company's members 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 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 for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditors
Tennyson House
Cambridge Business Park
CB4 0WZ
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SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED)
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
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SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED)
REGISTERED NUMBER: 10446752
CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023
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 16 to 35 form part of these financial statements.
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SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED)
REGISTERED NUMBER: 10446752
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 16 to 35 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED)
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
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SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED)
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023
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SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
SMC Pharma Services Ltd. (formerly Cambridge Pharma Limited) is a 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, is investment in research and development of novel syringe and autoinjector technologies to include pharmaceutical process development to support small aseptic batch filling for clinical trials.
2.ACCOUNTING POLICIES
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 Group management to exercise judgment in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases. In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 10 December 2016.
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SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.ACCOUNTING POLICIES (CONTINUED)
The financial statements have been prepared on the basis that the Group is a going concern. In reaching this decision, the directors have considered projections of the cash flows of the Group for the next twelve months covering the existing commitments of the Group together with additional investment required to develop autoinjector technologies and that required to ensure the business completes the fit-out of its leasehold facility that will deliver pharmaceutical development and contract manufacturing services for small batch fill finish for investigational medicinal products. The cash flows indicate that the Group may need additional finance during 2024 and 2025, which will be provided via a related Company, Scientific Molding Corporation Ltd. At the balance sheet date, as highlighted in Note 19, the Group had borrowed £38,792,247 via loan notes with Scientific Molding Corporation Ltd, over a 10 year term expiring 1st December 2031. Since the year end, in the first half of 2024, Scientific Molding Corporation Ltd have provided additional funding of £3.33m ($4.25m). Scientific Molding Corporation Ltd have confirmed they have sufficient funds 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.
Functional and presentation currency
Transactions and balances
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SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.ACCOUNTING POLICIES (CONTINUED)
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 Group 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.
Expenditure on all research and development is charged to the Consolidated Statement of Income in the same period in which it is incurred.
Defined contribution pension plan
The Group contributes into defined contribution plans for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group 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 Group in independently administered funds.
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SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.ACCOUNTING POLICIES (CONTINUED)
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 and the Group operate and generate 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; - Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and - Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future. 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.
Goodwill
Other intangible assets
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:
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SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.ACCOUNTING POLICIES (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:
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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SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.ACCOUNTING POLICIES (CONTINUED)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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 Consolidated 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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SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Percentage completion of contracts 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. Management review the percentage completion of contracts monthly based on actual versus budgeted future costs to completion. Management's estimate of future costs to completion is based on their judgement of future costs and their experience of the specific nature of the contract in question. Tangible fixed assets Each year the Group reviews the estimated useful lives and residual values of tangible fixed assets and these are adjusted if appropriate. The depreciation rates are calculated according to the useful economic life that management believe to be appropriate based on the nature of the asset in operation.
Analysis of turnover by country of destination:
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SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 24
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SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 25
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SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
12.TAXATION (CONTINUED)
The group has estimated losses of £34,462,149 (2022 - £23,915,739) available to carry forward against future trading profits.
The group has a potential deferred tax asset of £8,615,537 (2022 - £5,978,935) on the above losses. This has not been recognised in the financial statements due to the uncertainty when such losses will be utilised.
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SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
14.TANGIBLE FIXED ASSETS (CONTINUED)
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SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Page 30
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SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
16.DEBTORS (CONTINUED)
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SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Transactions with associated company
The Company signed a promissory note, effective 1 December 2021 with Scientific Molding Corporation Ltd. This note was for a fluctuating sum which amalgamated previous loan amounts between the Company and Scientific Molding Corporation Ltd. Interest is calculated on the loan at 3.2% interest per annum, being deemed by the Directors to be market rate. Interest is compounded on a monthly basis and is payable each year. 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 £38,792,247 (2022 - £28,314,777).
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SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Share premium account
Capital contribution reserve
Profit and loss account
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SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The Group contributes into defined contribution pension schemes. The assets of the schemes are held separately from those of the Group in an independently administered funds. The pension cost charge represents contributions payable by the Group to the fund and amounted to £277,139 (2022 - £332,422). Contributions totalling £20,425 (2022 - £51,989) were payable to the fund at the balance sheet date and are included in Creditors: Amounts due within one year.
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SMC PHARMA SERVICES LTD (FORMERLY CAMBRIDGE PHARMA LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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