Company registration number 14488389 (England and Wales)
ALS DENTAL LABORATORIES GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
ALS DENTAL LABORATORIES GROUP LIMITED
COMPANY INFORMATION
Directors
Mr K J Burns
Mr P M Marson
Mr T R Lavery
Mr P J Strafford
Company number
14488389
Registered office
First Floor
85  Great Portland Street
London
United Kingdom
W1W 7LT
Auditor
Azets Audit Services
Titanium 1
Kings Inch Place
Renfrew
United Kingdom
PA4 8WF
ALS DENTAL LABORATORIES GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 44
ALS DENTAL LABORATORIES GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business and future outlook

The profit after tax for the period is £1,785,443 (2022: £65,604), underlying EBITDA for the group totalled £9,843,071 (2022: £3,515,787). Included within these results are a number non-recurring costs including re-structuring, recruitment and re-branding fees. The underlying EBITDA excluding these non-recurring costs totalled £11,184,157.

 

ALS Dental Laboratories Group Limited ("ALS") has continued to grow positively in 2023 both organically and through acquisition. ALS acquired 10 laboratories in 2023 widening its coverage throughout the UK. If all of these acquisitions were accounted for the full year (e.g. on a last twelve month basis) the revenue would be £59,275k and the underlying EBITDA excluding non-recurring costs would total £13,760k.

 

Throughout 2023 ALS has successfully built its central resources with a number of key roles recruited which deepen the commercial and technological capabilities of the group. ALS has also created a training academy hosting a wide range of education events in support of people development. The group has also continued to promote digital manufacturing technologies within its laboratories making capital investments in a number of areas including digital denture manufacturing. Overall the group has recorded strong year on year revenue and profit improvement.

 

Following a share for share exchange in March 2023, ALS Dental Laboratories Group Limited became the ultimate parent company of the group previously headed by Amalgamated Laboratory Solutions Limited. The company has chosen to apply the principles of merger accounting to this business combination as the ultimate controlling party and relative rights of equity holders remained the same both before and after the combination, no non-controlling interests were altered by the combination, and the adoption of merger method accords with generally accepted accounting principles.

 

Under merger accounting, the results and cash flows of the combining entities are brought into the accounts from the beginning of the financial year in which the combination occurred. Comparatives are restated to combine the results of the entities for the previous period. As such, the comparative period presented in the primary financial statements and notes now includes the results of the combined group as if it had always been together with consolidated results presented for the year to 31 December 2023 and year to 31 December 2022.

 

ALS Continues to recognise its responsibilities for ESG (Environmental, Social, Governance) and has introduced fully recyclable packaging for its own brand orthodontic products as well as the use of more biodegradable plastics. ALS has promoted employee welfare though a group wide staff engagement survey the results of which were used to drive improvements in overall staff employment satisfaction.

 

The group are excited about future opportunity and 2024 financial results to date are ahead of budget. The group continues to invest digitally and expand through acquisition in 2024 courtesy of the continued support of its investors via both equity and debt funding as needed.

Principal risks and uncertainties

The group takes a responsible approach to risk management whether those be financial and or operational risks.

 

The group has a limited value of contracted custom as is commonplace within the industry. This risk is mitigated by the thin spread of customer concentration with a high volume of non contracted customers leaving the group resilient to individual customer loses.

 

The group has an exposure to interest rate risk relating to the group's financing activities. The group does not consider this however to be a significant risk.

 

The group trades primarily within the UK and as such exchange rate risk is minimal.

Key performance indicators

The Directors of the group manage performance by reference to a number of key performance indicators. All areas of financial performance are measured against an annual budget which is reviewed monthly at a Board and lab level. Liquidity measures are also monitored at least quarterly to ensure sufficient cashflow to debt service cover. The headline KPI for the group is EBITDA as a % of sales being 20% for the year ended Dec 2023 (2022 - 14%).

ALS DENTAL LABORATORIES GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Financial instruments

Our financial risk management objective are to ensure there is sufficient working capital and cashflow to meet the operating needs of the group and to ensure there is sufficient support for its growth strategy. This is achieved through careful management of our cash resources and by obtaining loan facilities where necessary. No treasury transactions of derivatives are entered into.

Promoting the success of the company

The Directors of the Group believe that they have acted in the way they consider to be both in good faith and would be most likely to promote the success of the group for the benefit of its members as a whole. The Directors duties are fully detailed in section 172 of the UK Companies Act 2006. This is summarised as follows:

 

•    The likely consequences of any decisions in the long-term;

•    The interests of the company’s employees;

•    The need to foster the company’s business relationships with suppliers, customers and others;

•    The impact of the company’s operations on the community and environment;

•    The desirability of the company maintaining a reputation for high standards of business conduct; and

•    The need to act fairly as between shareholders of the company.

 

Business conduct and relationships

We understand the importance of engaging with all our stakeholders and the directors regularly discuss issues concerning employees, clients, suppliers, community and environment, health and safety and shareholders which inform our decision making processes. The directors are aware that their strategic decisions can have long term implications for the business and its stakeholders, and these implications are carefully assessed.

 

Employees

We believe the core strength of the group is its people and we are committed to being a responsible business and employer. The group aims to recruit, develop, motivate and retain the best talent. For the business to succeed we need to engage and enable our people to perform at their best, develop their skills and capabilities, while ensuring we operate as efficiently and productively as possible.

Community and environment

The group's environmental commitment is to adopt and promote industry standards and best practices, enhancing awareness of environmental responsibilities and a reduction in harmful emissions. The group remains committed to exploring methods to enhance the sustainability of our business and its supply chain. This includes evaluating energy consumption within our production facilities, optimising waste management practices, making eco-friendly choices in packaging materials, and reducing our carbon footprint during product distribution.

 

Stakeholders

The directors are committed to openly engaging with our stakeholders, as we recognise the importance of transparency and a continuing effective dialogue. It is important to us that all stakeholders understand our strategy and objectives, and the group is committed to considering properly their questions, issues or feedback received

On behalf of the board

Mr K J Burns
Director
13 September 2024
ALS DENTAL LABORATORIES GROUP LIMITED
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 and group continued to be that of manufacture of dental appliances.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid.

Directors

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

Mr K J Burns
Mr P M Marson
Mr T R Lavery
Mr P J Strafford
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The group's policy is to consult and discuss with employees matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

Auditor

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

Information in respect of the Energy and Carbon Reporting is presented below for ALS Dental Laboratories Group Limited and its subsidiaries. As this is the first year of reporting, no comparatives have been presented.

2023
Energy consumption
kWh
Aggregate of energy consumption in the year
- Gas combustion
415,093
- Electricity purchased
992,592
- Fuel consumed for transport
1,617,390
3,025,075
ALS DENTAL LABORATORIES GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
2023
Emissions of CO2 equivalent
metric tonnes
Scope 1 - direct emissions
- Gas combustion
78,000.00
- Fuel consumed for owned transport
268,000.00
346,000.00
Scope 2 - indirect emissions
- Electricity purchased
334,000.00
Total gross emissions
680,000.00
Intensity ratio
Tonnes CO2e per £1,000 of revenue
13.5
Quantification and reporting methodology

The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per employee, the recommended ratio for the sector.

Measures taken to improve energy efficiency

Key measures taken by the Group for the purpose of increasing our energy efficiency;

 

i.) Evaluation of packaging for branded products.

ii.) Evaluation of impression materials which give substantial recycling benefits.

 

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial instruments and associated risks.

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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
Mr K J Burns
Director
13 September 2024
ALS DENTAL LABORATORIES GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ALS DENTAL LABORATORIES GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ALS DENTAL LABORATORIES GROUP LIMITED
- 6 -
Opinion

We have audited the financial statements of ALS Dental Laboratories Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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 group and parent 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 group's and 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.

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:

ALS DENTAL LABORATORIES GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ALS DENTAL LABORATORIES GROUP LIMITED
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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 parent 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 parent 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.

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.

ALS DENTAL LABORATORIES GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ALS DENTAL LABORATORIES GROUP LIMITED
- 8 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Other matters which we are required to address

In the previous accounting period, the directors took advantage of audit exemption under s480 of the Companies Act 2006 as the company was dormant. Therefore the prior period financial statements were not subject to audit.

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.

Michael Walker (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
13 September 2024
Chartered Accountants
Statutory Auditor
Titanium 1
Kings Inch Place
Renfrew
United Kingdom
PA4 8WF
ALS DENTAL LABORATORIES GROUP LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
50,372,244
24,990,186
Cost of sales
(21,762,119)
(11,125,092)
Gross profit
28,610,125
13,865,094
Distribution costs
(436,646)
(421,557)
Administrative expenses
(23,205,396)
(12,739,938)
Other operating income
154,582
74,897
Operating profit
4
5,122,665
778,496
Interest receivable and similar income
8
27,907
11,942
Interest payable and similar expenses
9
(1,692,747)
(326,553)
Profit before taxation
3,457,825
463,885
Tax on profit
10
(1,672,382)
(398,281)
Profit for the financial year
28
1,785,443
65,604
Profit for the financial year is all attributable to the owners of the parent company.
ALS DENTAL LABORATORIES GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
£
£
Profit for the year
1,785,443
65,604
Other comprehensive income
-
-
Total comprehensive income for the year
1,785,443
65,604
Total comprehensive income for the year is all attributable to the owners of the parent company.
ALS DENTAL LABORATORIES GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
42,690,296
29,110,804
Other intangible assets
12
197,868
-
0
Total intangible assets
42,888,164
29,110,804
Tangible assets
13
5,213,519
5,084,558
48,101,683
34,195,362
Current assets
Stocks
16
2,335,424
2,020,230
Debtors
17
9,152,338
13,363,469
Cash at bank and in hand
8,537,302
6,800,251
20,025,064
22,183,950
Creditors: amounts falling due within one year
18
(24,880,186)
(29,646,847)
Net current liabilities
(4,855,122)
(7,462,897)
Total assets less current liabilities
43,246,561
26,732,465
Creditors: amounts falling due after more than one year
19
(16,456,068)
(9,195,759)
Provisions for liabilities
Deferred tax liability
22
962,528
886,017
(962,528)
(886,017)
Net assets
25,827,965
16,650,689
Capital and reserves
Called up share capital
25
1,949
1,541
Share premium account
26
24,067,008
11,299,913
Other reserves
-
0
5,375,670
Profit and loss reserves
28
1,759,008
(26,435)
Total equity
25,827,965
16,650,689
The financial statements were approved by the board of directors and authorised for issue on 13 September 2024 and are signed on its behalf by:
13 September 2024
Mr K J Burns
Director
Company registration number 14488389 (England and Wales)
ALS DENTAL LABORATORIES GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
14
11,301,453
-
0
Current assets
Debtors
17
12,767,504
1
Net current assets
12,767,504
1
Net assets
24,068,957
1
Capital and reserves
Called up share capital
25
1,949
1
Share premium account
26
24,067,008
-
0
Total equity
24,068,957
1

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £0 (2022 - £0 profit).

The financial statements were approved by the board of directors and authorised for issue on 13 September 2024 and are signed on its behalf by:
13 September 2024
Mr K J Burns
Director
Company registration number 14488389 (England and Wales)
ALS DENTAL LABORATORIES GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Share premium account
Merger reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
1,541
11,299,913
4,897,407
(92,039)
16,106,822
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
-
65,604
65,604
Other movements
-
-
478,263
-
478,263
Balance at 31 December 2022
1,541
11,299,913
5,375,670
(26,435)
16,650,689
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
1,785,443
1,785,443
Issue of share capital
25
408
12,767,095
-
-
12,767,503
Other movements
-
-
(5,375,670)
-
(5,375,670)
Balance at 31 December 2023
1,949
24,067,008
-
1,759,008
25,827,965
ALS DENTAL LABORATORIES GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Share premium account
Total
Notes
£
£
£
Balance at 1 January 2022
-
0
-
0
-
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
0
Issue of share capital
25
1
-
0
1
Balance at 31 December 2022
1
-
0
1
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
0
Shares issued on group reconstruction
25
1,540
11,299,913
11,301,453
Issue of share capital
25
408
12,767,095
12,767,503
Balance at 31 December 2023
1,949
24,067,008
24,068,957
ALS DENTAL LABORATORIES GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
34
10,518,684
2,883,338
Interest paid
(1,692,747)
(326,553)
Income taxes paid
(1,924,068)
(325,451)
Net cash inflow from operating activities
6,901,869
2,231,334
Investing activities
Purchase of business
(16,218,707)
(14,787,241)
Purchase of tangible fixed assets
(703,350)
(1,203,203)
Proceeds from disposal of tangible fixed assets
-
167,133
Interest received
27,907
11,942
Net cash used in investing activities
(16,894,150)
(15,811,369)
Financing activities
Proceeds from issue of shares
12,767,502
1,203,263
Proceeds from borrowings
-
9,550,000
Repayment of borrowings
(10,477,188)
(542,710)
Proceeds from new bank loans
9,681,471
8,904,000
Payment of finance leases obligations
(237,070)
(324,932)
Net cash generated from financing activities
11,734,715
18,789,621
Net increase in cash and cash equivalents
1,742,434
5,209,586
Cash and cash equivalents at beginning of year
6,794,868
1,585,282
Cash and cash equivalents at end of year
8,537,302
6,794,868
Relating to:
Cash at bank and in hand
8,537,302
6,800,251
Bank overdrafts included in creditors payable within one year
-
(5,383)
ALS DENTAL LABORATORIES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information

ALS Dental Laboratories Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 85 Great Portland Street, London, United Kingdom, W1W 7LT.

 

The group consists of ALS Dental Laboratories Group Limited and all of its subsidiaries.

 

Following a share for share exchange in March 2023, ALS Dental Laboratories Group Limited became the ultimate parent company of the group previously headed by Amalgamated Laboratory Solutions Limited. This group reconstruction has been accounted for under merger accounting and as a result, the comparative group financial statements have been prepared on the basis this group structure has been in existence with consolidated results presented for the year to 31 December 2023 and year to 31 December 2022.

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.

Subsidiaries exempt from audit

The following subsidiaries are exempt from the requirements of the UK Companies Act 2006 relating to the audit of individual accounts by virtue of s479A of the Act;

 

Dental Technique Laboratory Limited (Company number - SC235237)

Casterbridge Solutions Limited (Company number - 04185393)

Apple G.B. Limited (Company number - 06203764)

Cardiff Orthodontic Services Limited (Company number - 04312911)

Passion Dental Design Studio (Laboratory) Limited (Company number - 09920681)

Woodlands Dental Laboratory Limited (Company number - 06489798)

CB Ceramics Dental Lab Ltd (Company number - 06855958)

Norwich Orthodontics Limited (Company number - 08935604)

ALS Dental Direct Limited (Company number - SC665245)

The Denture Centre (Wales) Limited (Company number - 05547801)

Veus Limited (Company number - 06701553)

Ken Poland Dental Studios Limited (Company number - 06053144)

Ken Poland Milling Limited (Company number - 06402407)

Precedental Limited (Company number - 02793485)

The Bristol Crown Company Limited (Company number - 04160229)

I.W. Dental Laboratory Limited (Company number - 07030717)

Halo Dental Laboratory Limited (Company number - 06153046)

Waterside Dental Laboratory Limited (Company number - 09494257)

Reiner Implants Limited (Company number - 10725321)

IP Dental Milling Limited (Company number - 10769135)

Dental Excellence Laboratory Services Limited (Company number - 13589208)

Dent8 Dental Laboratory Limited (Company number - 06711908)

ALS DENTAL LABORATORIES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -

A Plus Management Limited (Company number - 04746731)

Aesthetic World Laboratory Limited (Company number - 04140648)

Aesthetic World Holdings Limited (Company number - 06695954)

Prodent Laboratories Limited (Company number - 02573112)

S D C Laboratory Limited (Company number - 02945293)

Oak View Restorations Limited (Company number - 04878720)

Central Dental Laboratory (Kempston) Limited (Company number - 04325220)

AMDECC Limited (Company number - 02892597)

Lodge Dental Laboratory Limited (Company number - 04186110)

Ceroplast Limited (Company number - 00863416)

European Dental Laboratory Limited (Company number - 02726779)

Innovate Dental Laboratory Limited (Company number - 09277800)

Fident Implant Laboratory Limited (Company number - 07810857)

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company ALS Dental Laboratories Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

 

Merger method

Following a share for share exchange in March 2023, ALS Dental Laboratories Group Limited became the ultimate parent company of the group previously headed by Amalgamated Laboratory Solutions Limited. The company has chosen to apply the principles of merger accounting to this business combination as the ultimate controlling party and relative rights of equity holders remained the same both before and after the combination, no non-controlling interests were altered by the combination, and the adoption of merger method accords with generally accepted accounting principles.

 

Under merger accounting, the assets and liabilities of the business combination are not adjusted to fair value on consolidation. Instead, the results and cash flows of the combining entities are brought into the accounts from the beginning of the financial year in which the combination occurred. Comparatives are restated to combine the results of the entities for the previous period. The difference between the value of the share for share exchange and the nominal value, and share premium on the shares received in exchange is shown as a movement to the merger reserve within equity. The merger reserve is further adjusted to remove the pre acquisition trading from before the companies were under the control of the ultimate parent entity.

ALS DENTAL LABORATORIES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -

Purchase method

In respect of all other business combinations, subsidiaries are consolidated using the purchase method and their results are incorporated from the date that control passes.

 

The cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Going concern

At the balance sheet date the group has net current liabilities of £4,855,122.

 

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.4
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.

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.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

ALS DENTAL LABORATORIES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Software
20% on cost
1.7
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:

Freehold land and buildings
25% on cost
Leasehold land and buildings
25% on cost
Leasehold improvements
25% on cost
Plant and equipment
25% reducing balance
Fixtures and fittings
25% reducing balance
Computers
25% reducing balance
Motor vehicles
25% reducing balance
Lab equipment
25% reducing balance

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 recognised in the profit and loss account.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

ALS DENTAL LABORATORIES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
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.

ALS DENTAL LABORATORIES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
1.12
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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 group 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.

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 group after deducting all of its liabilities.

ALS DENTAL LABORATORIES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group 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 group.

1.14
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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 if, and only if, there is 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.

ALS DENTAL LABORATORIES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 23 -
1.15
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.

1.16
Retirement benefits

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

1.17
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.18
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

1.19
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.20

Research and Development credit

Research and development tax credits are recognised on a systematic basis as the business recognises the costs for which the research & development tax credits are intended to incentivise, but only to the extent amounts have been claimed by the company and accepted by HMRC.

ALS DENTAL LABORATORIES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

 

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

 

- Use of merger accounting

 

On 24 March 2023, ALS Dental Laboratories Group Limited acquired 100% of the share capital of Amalgamated Laboratory Solutions Limited in a share for share exchange. The directors consider that the substance of these transactions is one group reorganisation which meets the requirements of FRS 102 in order for it to be accounted for using the merger method.

 

The key sources of estimation uncertainty in applying accounting policies in the financial statements arise during business combinations. These are considered to be:

 

- Assessing the fair value of assets & liabilities acquired

 

Fair values of assets & liabilities acquired in business combinations are assessed by management based on their knowledge of the industry and physical conditions of the assets acquired.

 

- Consideration payable

 

Business combinations typically involve an initial payment on acquisition with further amounts payable based on future trading results. This deferred consideration requires management estimates on future profitability based on their knowledge of the industry and financial forecasts for the entity being acquired.

 

- Useful life of goodwill

 

Management assess the useful life of goodwill arising on a business combination and amortise the goodwill over this period. Based on knowledge of the industry and experience of previous acquisitions, management typically assess this as being 10 years.

ALS DENTAL LABORATORIES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sale of dental appliances
50,372,244
24,990,186
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
49,051,671
24,741,810
Republic of Ireland
1,320,573
248,376
50,372,244
24,990,186
2023
2022
£
£
Other revenue
Interest income
27,907
11,942
Grants received
30,493
19,261
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(30,493)
(19,261)
Depreciation of owned tangible fixed assets
1,192,670
648,580
Depreciation of tangible fixed assets held under finance leases
82,014
173,392
Loss/(profit) on disposal of tangible fixed assets
180,052
(6,078)
Amortisation of intangible assets
3,365,670
1,629,314
Impairment of intangible assets
(100,000)
334,693
Release of negative goodwill
-
(42,610)
Operating lease charges
657,948
457,774
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 group and company
117,000
86,000
Audit of the financial statements of the company's subsidiaries
45,750
19,000
162,750
105,000
ALS DENTAL LABORATORIES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Auditor's remuneration
(Continued)
- 26 -
For other services
Taxation compliance services
46,000
32,800
Other taxation services
21,780
14,465
Services relating to corporate finance transactions
167,000
198,030
234,780
245,295
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
613
377
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
18,337,150
9,686,991
-
0
-
0
Social security costs
1,739,256
660,257
-
-
Pension costs
487,257
213,516
-
0
-
0
20,563,663
10,560,764
-
0
-
0
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
452,000
376,583
Company pension contributions to defined contribution schemes
1,321
1,321
453,321
377,904
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
307,000
256,583
ALS DENTAL LABORATORIES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
27,907
11,942
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
27,907
11,942
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
1,669,047
301,145
Other finance costs:
Interest on finance leases and hire purchase contracts
20,602
17,141
Other interest
3,098
8,267
Total finance costs
1,692,747
326,553
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
1,835,018
347,768
Adjustments in respect of prior periods
(103,864)
(602)
Total current tax
1,731,154
347,166
Deferred tax
Origination and reversal of timing differences
(60,286)
(59,752)
Adjustment in respect of prior periods
1,514
110,867
Total deferred tax
(58,772)
51,115
Total tax charge
1,672,382
398,281

Current tax is calculated at 23.5% of the estimated taxable profit / (loss) for the year (2022 - 19%). Finance Act 2021 was 'substantively enacted' on 24 May 2021. The increase in the main rate of corporation tax applicable to 25% from 1 April 2023, replacing the 20% previously effective from that date. The closing deferred tax assets and liabilities have been calculated in accordance with the rates substantively enacted at the Balance Sheet date.

ALS DENTAL LABORATORIES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 28 -

The actual charge 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
3,457,825
463,885
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
813,280
88,138
Tax effect of expenses that are not deductible in determining taxable profit
687,403
219,309
Tax effect of income not taxable in determining taxable profit
(26,404)
-
0
Adjustments in respect of prior years
129,603
(602)
Deferred tax adjustments in respect of prior years
45,308
110,867
Fixed asset differences
(10,225)
(41,143)
Tax effect of R&D credits
(5,961)
6,378
Remeasurement of deferred tax for changes in rate
(8,862)
10,203
Movement in deferred tax not recognised
48,240
5,131
Taxation charge
1,672,382
398,281
11
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£
£
In respect of:
Goodwill
12
(100,000)
334,693
Recognised in:
Administrative expenses
(100,000)
334,693

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

ALS DENTAL LABORATORIES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
12
Intangible fixed assets
Group
Goodwill
Software
Total
£
£
£
Cost
At 1 January 2023
32,249,221
-
0
32,249,221
Additions - separately acquired
-
0
205,609
205,609
Additions - business combinations
15,930,388
-
0
15,930,388
Other changes
907,033
-
0
907,033
At 31 December 2023
49,086,642
205,609
49,292,251
Amortisation and impairment
At 1 January 2023
3,138,417
-
0
3,138,417
Amortisation charged for the year
3,357,929
7,741
3,365,670
Impairment losses
(100,000)
-
0
(100,000)
At 31 December 2023
6,396,346
7,741
6,404,087
Carrying amount
At 31 December 2023
42,690,296
197,868
42,888,164
At 31 December 2022
29,110,804
-
0
29,110,804
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.

More information on impairment movements in the year is given in note 11.

ALS DENTAL LABORATORIES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
13
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Lab equipment
Total
£
£
£
£
£
£
£
£
£
Cost
At 1 January 2023
40,622
151,603
542,082
4,488,341
1,359,254
128,463
151,507
44,907
6,906,779
Additions
1,344
6,980
5,040
382,115
71,505
27,016
17,299
7,192
518,491
Business combinations
164,690
5,896
89,620
564,005
85,645
6,434
148,916
-
0
1,065,206
Disposals
-
0
-
0
(26,690)
(354,027)
(53,725)
(7,953)
(28,013)
(7,397)
(477,805)
At 31 December 2023
206,656
164,479
610,052
5,080,434
1,462,679
153,960
289,709
44,702
8,012,671
Depreciation and impairment
At 1 January 2023
27,250
24,622
143,810
1,183,208
375,159
34,010
28,746
5,416
1,822,221
Depreciation charged in the year
15,475
55,524
134,770
827,944
155,357
34,771
43,055
7,788
1,274,684
Eliminated in respect of disposals
-
0
-
0
(12,798)
(208,159)
(42,957)
(6,255)
(23,936)
(3,648)
(297,753)
At 31 December 2023
42,725
80,146
265,782
1,802,993
487,559
62,526
47,865
9,556
2,799,152
Carrying amount
At 31 December 2023
163,931
84,333
344,270
3,277,441
975,120
91,434
241,844
35,146
5,213,519
At 31 December 2022
13,372
126,981
398,272
3,305,133
984,095
94,453
122,761
39,491
5,084,558
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
ALS DENTAL LABORATORIES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Tangible fixed assets
(Continued)
- 31 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and equipment
260,436
89,975
-
0
-
0
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
11,301,453
-
0
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023
-
Additions
11,301,453
At 31 December 2023
11,301,453
Carrying amount
At 31 December 2023
11,301,453
At 31 December 2022
-

On 24 March 2023, ALS Dental Laboratories Group Limited entered into a share for share exchange to acquire 100% of the share capital of Amalgamated Laboratory Solutions Limited.

ALS DENTAL LABORATORIES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
15
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Address
Class of
% Held
shares held
Direct
Indirect
Amalgamated Laboratory Solutions Limited
1
Ordinary
100.00
-
Leca Dental Laboratory Limited
2
Ordinary
-
100.00
Ashford Orthodontics Limited
1
Ordinary
-
100.00
Casterbridge Solutions Limited
1
Ordinary
-
100.00
Dental Technique Laboratory Limited
2
Ordinary
-
100.00
ALS Dental Direct Limited
2
Ordinary
-
100.00
Apple G.B. Ltd
1
Ordinary
-
100.00
Cardiff Orthodonic Services Limited
1
Ordinary
-
100.00
G M Holdings (Stourbridge) Limited
1
Ordinary
-
100.00
Passion Dental Design Studio (Laboratory) Limited
1
Ordinary
-
100.00
Woodlands Dental Laboratory Limited
1
Ordinary
-
100.00
Dental Excellence Laboratory Services Ltd
1
Ordinary
-
100.00
CB Ceramics Dental Lab Ltd
1
Ordinary
-
100.00
Norwich Orthodontics Limited
1
Ordinary
-
100.00
The Denture Centre (Wales) Limited
1
Ordinary
-
100.00
Veus Limited
1
Ordinary
-
100.00
Ken Poland Dental Studios Limited
1
Ordinary
-
100.00
Ken Poland Milling Limited
1
Ordinary
-
100.00
Precedental Limited
1
Ordinary
-
100.00
MD Trading Limited
1
Ordinary
-
100.00
The Bristol CADCAM Company Limited
1
Ordinary
-
100.00
The Bristol Crown Company Limited
1
Ordinary
-
100.00
I.W. Dental Laboratory Limited
1
Ordinary
-
100.00
Halo Dental Laboratory Limited
1
Ordinary
-
100.00
Burke Ortho Lab Limited
3
Ordinary
-
100.00
Waterside Dental Laboratory Limited
1
Ordinary
-
100.00
Reiner Implants Limited
1
Ordinary
-
100.00
IP Dental Milling Limited
1
Ordinary
-
100.00
Dent8 Dental Laboratory Limited
1
Ordinary
-
100.00
A Plus Management Limited
1
Ordinary
-
100.00
Aesthetic World Holdings Limited
1
Ordinary
-
100.00
Aesthetic World Laboratory Limited
1
Ordinary
-
100.00
Prodent Laboratories Limited
1
Ordinary
-
100.00
S D C Laboratory Limited
1
Ordinary
-
100.00
Oak View Restorations Limited
1
Ordinary
-
100.00
Central Dental Laboratory (Kempston) Limited
1
Ordinary
-
100.00
Ceroplast Limited
1
Ordinary
-
100.00
AMDECC Limited
1
Ordinary
-
100.00
Lodge Dental Laboratory Limited
1
Ordinary
-
100.00
European Dental Laboratory Limited
1
Ordinary
-
100.00
Innovate Dental Laboratory Limited
1
Ordinary
-
100.00
Fident Implant Laboratory Limited
1
Ordinary
-
100.00
ALS DENTAL LABORATORIES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
15
Subsidiaries
(Continued)
- 33 -

Registered office addresses (all UK unless otherwise indicated):

1
85 Great Portland Street, London, England, W1W 7LT
2
5 Watt Road, Hillington Industrial Estate, Glasgow, G52 4RY
3
4 Ormond Quay Upper, Dublin, D07 PF53
16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
2,335,424
2,020,230
-
-
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
7,272,913
5,462,218
-
0
-
0
Amounts owed by group undertakings
-
-
12,767,503
-
Other debtors
1,495,734
7,653,489
1
1
Prepayments and accrued income
383,691
247,762
-
0
-
0
9,152,338
13,363,469
12,767,504
1
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
2,465,031
1,031,551
-
0
-
0
Obligations under finance leases
21
201,437
216,486
-
0
-
0
Other borrowings
20
-
0
9,550,000
-
0
-
0
Trade creditors
1,431,804
1,492,025
-
0
-
0
Corporation tax payable
1,832,848
1,276,997
-
0
-
0
Other taxation and social security
865,939
520,842
-
-
Government grants
23
123,988
154,482
-
0
-
0
Other creditors
17,252,586
14,839,272
-
0
-
0
Accruals and deferred income
706,553
565,192
-
0
-
0
24,880,186
29,646,847
-
0
-
0
ALS DENTAL LABORATORIES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
16,224,508
8,742,178
-
0
-
0
Obligations under finance leases
21
231,560
453,581
-
0
-
0
16,456,068
9,195,759
-
-
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
18,689,539
9,768,346
-
0
-
0
Bank overdrafts
-
0
5,383
-
0
-
0
Other loans
-
0
9,550,000
-
0
-
0
18,689,539
19,323,729
-
-
Payable within one year
2,465,031
10,581,551
-
0
-
0
Payable after one year
16,224,508
8,742,178
-
0
-
0

£18,585,478 of the bank loans relate to a loan facility from Investec Bank plc as part of an £36m acquisition facility available. 60% of this loan is repayable over the next 3 years with a final bullet repayment due in Dec-28. Interest accrues at 5.75% above SONIA.

 

In the prior year, £9,550,000 of the other loans represented convertible loan notes issued to Ansor IB LP which were repaid in full in March 2023 as part of a corporate restructuring exercise.

21
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
201,437
216,486
-
0
-
0
In two to five years
231,560
453,581
-
0
-
0
432,997
670,067
-
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The lease terms range from 18 to 60 months. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

ALS DENTAL LABORATORIES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 35 -
22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
962,528
893,381
Tax losses
-
(7,364)
962,528
886,017
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
886,017
-
Credit to profit or loss
(17,463)
-
Other
93,974
-
Liability at 31 December 2023
962,528
-

The deferred tax liability set out above relates to accelerated capital allowances that are expected to mature over the useful life of the underlying assets.

23
Government grants
Group
Company
2023
2022
2023
2022
£
£
£
£
Arising from government grants
123,988
154,482
-
-

Deferred grant income relates to amounts received from The Northern Powerhouse Investment Fund in relation to capital spend in one of the subsidiary companies. All conditions have been met by the group and the income is being released over the estimated useful life of the related assets.

24
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
487,257
213,516

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

ALS DENTAL LABORATORIES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 36 -
25
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
-
1
-
1
A Ordinary of 0.01p each
17,986,112
-
1,799
-
B Ordinary of 0.01p each
1,051,930
-
150
-
C Ordinary of 0.01p each
790
-
-
-
19,038,832
1
1,949
1

Ordinary A and B shares carry one vote each, rank equally for dividends, rank equally on distributions and are non-redeemable.

 

Preferences shares do not confer any rights to dividends and have no voting rights. They have attached to them full capital distribution rights on a return of capital or liquidation on and IPO, the preference shares entitle the holders to be issued share as following the completion of all such issues. These shares were redeemed during the year.

 

During the year 1 Ordinary share was subdivided into 10,000 Ordinary A shares.

 

During the year under review, the company entered into a share for share exchange with the shareholders of Amalgamated Laboratory Solutions Limited and issued 13,953,024 Ordinary A shares, 1,435,850 Ordinary B shares and 665 Ordinary C shares as part of this exchange creating a share premium of £11,299,913.

 

During the year the company allotted a further 4,023,088 Ordinary A shares, 66,080 Ordinary B shares and 125 Ordinary C shares. Ordinary A and Ordinary B shares were issued at management's assessment of fair value at the time creating a share premium of £12,767,095. This ranged from £3.03 to £4.97 per share. Ordinary C shares were issued at a price of £95 per share which was management's assessment of fair value.

26
Share premium account
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
11,299,913
11,299,913
-
0
-
0
Issue of new shares
12,767,095
-
12,767,095
-
Shares issued on group reconstruction
-
0
-
0
11,299,913
-
0
At the end of the year
24,067,008
11,299,913
24,067,008
-
0
27
Merger reserve
2023
2022
Group
£
£
At the beginning of the year
5,375,670
4,897,407
Other movements
(5,375,670)
478,263
At the end of the year
-
5,375,670
ALS DENTAL LABORATORIES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
27
Merger reserve
(Continued)
- 37 -
2023
2022
Company
£
£
At the beginning and end of the year
-
-

The merger reserve was created upon the acquisition of the Amalgamated Laboratory Solutions Limited Group and represents the difference between the value of the share for share exchange and the nominal value, and share premium on the shares received in exchange, adjusted to remove pre acquisition trading from before the companies were under the control of the ultimate parent entity.

 

Upon issue of the shares for the acquisition in the current year, the relative amount has been released from the merger reserve.

28
Profit and loss reserves
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
(26,435)
(92,039)
-
-
Profit for the year
1,785,443
65,604
-
0
-
0
At the end of the year
1,759,008
(26,435)
-
0
-
ALS DENTAL LABORATORIES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 38 -
29
Acquisition of a business

Management have reviewed the net assets acquired as part of each business combination and confirmed that there are no material fair value adjustments required.

 

The goodwill arising on the acquisitions of these subsidiaries is all attributable to the anticipated profitability of the distribution of the company's products in new markets and the future operating synergies from the combinations.

A Plus Management Limited
Aesthetic World Holdings Limited
Oak View Restorations Limited
Central Dental Laboratory (Kempston) Limited
AMDECC Limited
Lodge Dental Laboratory Limited
Ceroplast Limited
European Dental Laboratory Limited
Net assets acquired
£
£
£
£
£
£
£
£
Intangible assets
-
-
-
-
750
-
20,000
-
Property, plant and equipment
233,235
150,352
73,514
51,716
70,959
93,257
208,241
137,330
Inventories
16,000
13,000
40,794
9,000
8,000
34,000
30,000
9,000
Trade and other receiables
189,661
2,393,287
188,763
254,533
157,775
532,989
1,793,322
522,100
Cash and cash equivalents
54,487
1,687,031
183,730
208,809
253,561
240,149
492,725
521,631
Bank loans
(51,479)
-
-
(68,181)
(29,167)
-
-
(18,083)
Trade and other payables
(178,215)
(1,878,157)
(74,168)
(112,527)
(190,050)
(145,220)
(514,198)
(173,372)
Tax liabilities
(24,076)
(258,584)
(93,744)
(72,354)
-
(103,327)
-
(66,856)
Deferred tax
(11,472)
(19,906)
-
(8,125)
(13,482)
(20,216)
-
(9,586)
Total identifiable net assets
228,141
2,087,023
318,889
262,871
258,346
631,632
2,030,090
922,164
ALS DENTAL LABORATORIES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
29
Acquisition of a business
(Continued)
- 39 -
Contributions by the acquired businesses for the reporting period included in the group statement of comprehensive income since acquisition:
A Plus Management Limited
Aesthetic World Holdings Limited
Oak View Restroations Limited
Central Dental Laboratory (Kempston) Limited
AMDECC Limited
Lodge Dental Laboratory Limited
Ceroplast Limited
European Dental Laboratory Limited
£
£
£
£
£
£
£
£
Turnover
1,390,607
2,043,321
1,320,263
937,888
540,178
198,963
584,601
411,337
Profit after tax
254,391
621,337
546,015
212,211
205,026
62,078
278,866
90,776
ALS DENTAL LABORATORIES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
29
Acquisition of a business
(Continued)
- 40 -

Management have reviewed the net assets acquired as part of each business combination and confirmed that there are no material fair value adjustments required.

 

The goodwill arising on the acquisitions of these subsidiaries is all attributable to the anticipated profitability of the distribution of the company's products in new markets and the future operating synergies from the combinations.

Innovate Dental Laboratory Limited
Fident Implant Laboratory Limited
TOTAL
Net assets acquired
£
£
£
Intangible assets
-
-
20,750
Property, plant and equipment
45,677
925
1,065,206
Inventories
11,500
2,600
173,894
Trade and other receiables
144,889
1,195,000
7,372,319
Cash and cash equivalents
112,091
810,604
4,564,818
Bank loans
-
-
(166,910)
Trade and other payables
(94,685)
(40,066)
(3,400,658)
Tax liabilities
-
(171,133)
(790,074)
Deferred tax
(11,187)
-
(93,974)
Total identifiable net assets
208,285
1,797,930
8,745,371
ALS DENTAL LABORATORIES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
29
Acquisition of a business
(Continued)
- 41 -
Contributions by the acquired businesses for the reporting period included in the group statement of comprehensive income since acquisition:
Innovate Dental Laboratory Limited
Fident Implant Laboratory Limited
TOTAL
£
£
£
Turnover
181,861
-
7,609,019
Profit after tax
69,080
-
2,339,780
ALS DENTAL LABORATORIES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
29
Acquisition of a business
(Continued)
- 42 -
Total identifiable net assets of above acquisitions in aggregate
8,745,371
Goodwill
15,930,388
Total consideration
24,675,759
The consideration was satisfied by:
£
Cash
18,129,100
Deferred consideration
6,000,203
Direct costs
546,456
24,675,759

Management have reviewed the net assets acquired as part of each business combination and confirmed that there are no material fair value adjustments required.

 

The goodwill arising on the acquisitions of these subsidiaries is all attributable to the anticipated profitability of the distribution of the company's products in new markets and the future operating synergies from the combinations.

ALS DENTAL LABORATORIES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 43 -
30
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
654,237
475,927
-
-
Between two and five years
1,399,870
1,133,530
-
-
In over five years
55,315
106,193
-
-
2,109,422
1,715,650
-
-
31
Events after the reporting date

Subsequent to the year end the Group has completed the acquisition of 3 futher subsidiaries. The directors estimate the total consideration payable in relation to these acquisitions will be £2.9m.

32
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties outside of the group:

Purchases
Purchases
2023
2022
£
£
Group
Entities with control, joint control or significant influence over the group
132,000
120,000
During the year the company issued the following shares to related parties:
Ordinary A & Ordinary B
2023
2022
£
£
No. of shares
No. of shares
Entities with control, joint control or significant influence over the company
7,540,057
725,000
Key management personnel
2,193
43,417
33
Controlling party

The ultimate controlling party is Ansor Fund I GP LLP.

ALS DENTAL LABORATORIES GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 44 -
34
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
1,785,443
65,604
Adjustments for:
Taxation charged
1,672,382
398,281
Finance costs
1,692,747
326,553
Investment income
(27,907)
(11,942)
Loss/(gain) on disposal of tangible fixed assets
180,052
(14,671)
Amortisation and impairment of intangible assets
3,265,670
1,921,397
Depreciation and impairment of tangible fixed assets
1,274,684
821,972
Movements in working capital:
Increase in stocks
(141,300)
(259,858)
Decrease in debtors
4,053,781
13,250
Decrease in creditors
(3,236,868)
(377,248)
Cash generated from operations
10,518,684
2,883,338
35
Analysis of changes in net debt - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
6,800,251
1,737,051
8,537,302
Bank overdrafts
(5,383)
5,383
-
0
6,794,868
1,742,434
8,537,302
Borrowings excluding overdrafts
(19,318,346)
628,807
(18,689,539)
Obligations under finance leases
(670,067)
237,070
(432,997)
(13,193,545)
2,608,311
(10,585,234)
2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.210Mr K J BurnsMr P M MarsonMr T R LaveryMr P J 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