Company registration number 05098235 (England and Wales)
MEDACTA UK LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
MEDACTA UK LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 12
MEDACTA UK LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
7
62,470
22,218
Current assets
Debtors
9
1,197,187
1,029,083
Cash at bank and in hand
499,211
141,401
1,696,398
1,170,484
Creditors: amounts falling due within one year
10
(2,156,981)
(1,712,265)
Net current liabilities
(460,583)
(541,781)
Net liabilities
(398,113)
(519,563)
Capital and reserves
Called up share capital
12
29,994
29,994
Profit and loss reserves
13
(428,107)
(549,557)
Total equity
(398,113)
(519,563)

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 29 August 2024 and are signed on its behalf by:
C Farsetta
Director
Company Registration No. 05098235
MEDACTA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information

Medacta UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 16, Greenfields Business Park, Wheatfield Way, Hinckley, Leicestershire, United Kingdom, LE10 1BB.

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 as applicable to companies subject to the small companies regime. 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.

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.

1.2
Going concern

In assessing the appropriateness of the going concern assumption, the Director has reviewed detailed profit and loss forecasts, considering all reasonably foreseeable potential scenarios and uncertainties, including the cash position of the business, for a period of at least 12true months from the date these financial statements have been signed.

 

The company is reliant on financial support from its ultimate parent, Medacta Group SA. The directors of Medacta Group SA have confirmed that such support will continue to be available for a period of no less than twelve months from the date of signing of the financial statements.

 

Based on these forecasts and with the support from its ultimate parent, the Director has a reasonable expectation that the company will continue in operational existence for a period of at least 12 months from the signing of these financial statements and have therefore prepared the financial statement on a going concern basis and that no material uncertainty exists.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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.

MEDACTA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Transit equipment
20% straight line
Fixtures, fittings & equipment
25% straight line
Instruments
20% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7
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.

MEDACTA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
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.

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

 

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

1.8
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.

1.9
Taxation

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

Current tax

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

MEDACTA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.10
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.

1.11
Retirement benefits

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

1.12
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.13
Foreign exchange
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to profit and loss account.
1.14

Group contribution

Included in other operating income is a group contribution which is recognised in the profit and loss account in relation to the period in which it is due.

MEDACTA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
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.

There are no judgments or key sources of estimation uncertainty.

3
Turnover and other revenue

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

2023
2022
£
£
Turnover analysed by class of business
Sales
4,176,642
2,733,664
2023
2022
£
£
Other significant revenue
Interest income
2,926
363
Income from group companies
1,005,110
701,733
2023
2022
£
£
Turnover analysed by geographical market
UK & Ireland
4,176,642
2,733,664
4
Employees

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

2023
2022
Number
Number
Total
18
15
2023
2022
£
£
Wages and salaries
1,455,029
863,925
Social security costs
178,021
111,968
Pension costs
73,772
59,045
MEDACTA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
4
Employees
(Continued)
- 7 -
1,706,822
1,034,938
5
Investment income
2023
2022
£
£
Interest income
Interest on bank deposits
2,926
363
Investment income includes the following:
2023
2022
£
£
Interest on financial assets not measured at fair value through profit or loss
2,926
363
6
Taxation
2023
2022
£
£
Deferred tax
Origination and reversal of timing differences
47,347
(4,511)

The company has estimated losses of £241,531 (2022: £392,094) available for carry forward against future trading profits.

MEDACTA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
7
Tangible fixed assets
Transit equipment
Fixtures, fittings & equipment
Instruments
Total
£
£
£
£
Cost
At 1 January 2023
47,347
68,453
37,716
153,516
Additions
49,997
15,260
-
0
65,257
Disposals
(497)
-
0
-
0
(497)
At 31 December 2023
96,847
83,713
37,716
218,276
Depreciation and impairment
At 1 January 2023
41,830
58,959
30,509
131,298
Depreciation charged in the year
11,924
8,965
3,619
24,508
At 31 December 2023
53,754
67,924
34,128
155,806
Carrying amount
At 31 December 2023
43,093
15,789
3,588
62,470
At 31 December 2022
5,517
9,494
7,207
22,218
MEDACTA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
8
Stocks

The company holds consignment stock which is not recorded on the balance sheet. This is held on behalf of Medacta International SA in order to keep sufficient levels of stock within the UK to service orders in a timely manner.

9
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,128,879
916,124
Amounts owed by group undertakings
1,637
-
0
Prepayments and accrued income
21,136
20,077
1,151,652
936,201
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset
45,535
92,882
Total debtors
1,197,187
1,029,083

Trade debtors disclosed above are measured at amortised cost.

10
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
25,008
44,862
Amounts owed to group undertakings
1,575,995
1,504,545
Taxation and social security
63,318
52,343
Other creditors
32,051
17,813
Accruals and deferred income
460,609
92,702
2,156,981
1,712,265
11
Retirement benefit schemes
Defined contribution schemes

The charge to profit or loss in respect of defined contribution schemes was £73,772 (2022 - £59,045).

12
Called up share capital
2023
2022
Ordinary share capital
£
£
Issued and fully paid
29,994 Ordinary of £1 each
29,994
29,994
MEDACTA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
13
Profit and loss reserves
2023
2022
£
£
At the beginning of the year
(549,557)
(689,305)
Profit for the year
121,450
139,748
At the end of the year
(428,107)
(549,557)
MEDACTA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
14
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

The senior statutory auditor was Lee Meredith BFP ACA.
The auditor was Azets Audit Services.
MEDACTA UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
15
Operating lease commitments
Lessee

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

2023
2022
£
£
110,419
42,560
16
Related party transactions

At the year end the company owed Medacta International SA £1,575,995 (2022: £1,504,545). Purchases from Medacta International SA made during the year totalled £3,315,680 (2022: £2,205,502) whilst credit notes raised and payments made totalled £3,244,278 (2022: £1,891,379), there is also an exchange variance in the year amounting to £48 (2022: £82).

 

Medacta UK Limited also issued sales invoices totalling £957,473 (2022: £1,342,926) to Medacta International SA in respect of a contribution by Medacta International SA towards marketing campaigns and fixed costs for 2023 incurred by Medacta UK Limited. The sales invoices have been disclosed in other income within the profit and loss account. Medacta International SA is a fellow member of the Medacta Group.

 

At the year end the company was owed £1,637 (2022: £105) from Medacta Australia PTY Limited. During the year, the company made sales totalling £1,637 (2022: £105) to Medacta Australia PTY Limited. Medacta Australia PTY Limited is a fellow member of the Medacta Group.

 

During the year, the company made sales totalling £nil (2022: £228) to Medacta Japan Co.Ltd, additionally the company made purchases totalling £245 (2022: £1,432) from Medacta Belgium S.r.l. and £nil (2022: £761) from Medacta Italia S.r.l. All of which are fellow members of the Medacta Group.

17
Parent company

The ultimate parent company is Medacta Group SA which is a company registered in Switzerland, and whose registered office is Strada Regina, 6874 Castel San Pietro, Switzerland. Group accounts can be obtained from the registered office.

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