IRIS Accounts Production v24.2.0.383 02971383 Board of Directors 1.1.23 31.12.23 31.12.23 true false true true false false false true true true false Ordinary 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh029713832022-12-31029713832023-12-31029713832023-01-012023-12-31029713832021-12-31029713832022-01-012022-12-31029713832022-12-3102971383ns14:PoundSterling2023-01-012023-12-3102971383ns10:Director12023-01-012023-12-3102971383ns10:PrivateLimitedCompanyLtd2023-01-012023-12-3102971383ns10:FRS1022023-01-012023-12-3102971383ns10:Audited2023-01-012023-12-3102971383ns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2023-01-012023-12-3102971383ns10:LargeMedium-sizedCompaniesRegimeForAccounts2023-01-012023-12-3102971383ns10:FullAccounts2023-01-012023-12-310297138312023-01-012023-12-3102971383ns10:OrdinaryShareClass12023-01-012023-12-3102971383ns10:Director22023-01-012023-12-3102971383ns10:Director32023-01-012023-12-3102971383ns10:CompanySecretary12023-01-012023-12-3102971383ns10:RegisteredOffice2023-01-012023-12-3102971383ns5:CurrentFinancialInstruments2023-12-3102971383ns5:CurrentFinancialInstruments2022-12-3102971383ns5:ShareCapital2023-12-3102971383ns5:ShareCapital2022-12-3102971383ns5:SharePremium2023-12-3102971383ns5:SharePremium2022-12-3102971383ns5:CapitalRedemptionReserve2023-12-3102971383ns5:CapitalRedemptionReserve2022-12-3102971383ns5:RetainedEarningsAccumulatedLosses2023-12-3102971383ns5:RetainedEarningsAccumulatedLosses2022-12-3102971383ns5:ShareCapital2021-12-3102971383ns5:RetainedEarningsAccumulatedLosses2021-12-3102971383ns5:SharePremium2021-12-3102971383ns5:CapitalRedemptionReserve2021-12-3102971383ns5:RetainedEarningsAccumulatedLosses2022-01-012022-12-3102971383ns5:CapitalRedemptionReserve2022-01-012022-12-3102971383ns5:RetainedEarningsAccumulatedLosses2023-01-012023-12-3102971383ns5:CapitalRedemptionReserve2023-01-012023-12-3102971383ns5:IntangibleAssetsOtherThanGoodwill2023-01-012023-12-3102971383ns5:OwnedOrFreeholdAssetsns5:LandBuildings2023-01-012023-12-3102971383ns5:ShortLeaseholdAssetsns5:LandBuildings2023-01-012023-12-3102971383ns5:PlantMachinery2023-01-012023-12-3102971383ns5:FurnitureFittings2023-01-012023-12-3102971383ns5:ComputerEquipment2023-01-012023-12-3102971383ns15:UnitedKingdom2023-01-012023-12-3102971383ns15:UnitedKingdom2022-01-012022-12-3102971383ns5:TotalGeographicSegmentsIncludingAnyUnallocatedAmount2023-01-012023-12-3102971383ns5:TotalGeographicSegmentsIncludingAnyUnallocatedAmount2022-01-012022-12-3102971383ns10:HighestPaidDirector2023-01-012023-12-3102971383ns10:HighestPaidDirector2022-01-012022-12-3102971383ns5:OwnedAssets2023-01-012023-12-3102971383ns5:OwnedAssets2022-01-012022-12-3102971383ns5:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-01-012023-12-3102971383ns5:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-01-012022-12-3102971383112023-01-012023-12-3102971383112022-01-012022-12-3102971383122023-01-012023-12-3102971383122022-01-012022-12-3102971383132023-01-012023-12-3102971383132022-01-012022-12-3102971383142023-01-012023-12-3102971383142022-01-012022-12-3102971383152023-01-012023-12-3102971383152022-01-012022-12-3102971383ns10:OrdinaryShareClass12022-01-012022-12-3102971383ns5:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-12-3102971383ns5:DevelopmentCostsCapitalisedDevelopmentExpenditure2023-12-3102971383ns5:DevelopmentCostsCapitalisedDevelopmentExpenditure2022-12-3102971383ns5:LandBuildings2022-12-3102971383ns5:ShortLeaseholdAssetsns5:LandBuildings2022-12-3102971383ns5:PlantMachinery2022-12-3102971383ns5:LandBuildings2023-01-012023-12-3102971383ns5:LandBuildings2023-12-3102971383ns5:ShortLeaseholdAssetsns5:LandBuildings2023-12-3102971383ns5:PlantMachinery2023-12-3102971383ns5:LandBuildings2022-12-3102971383ns5:ShortLeaseholdAssetsns5:LandBuildings2022-12-3102971383ns5:PlantMachinery2022-12-3102971383ns5:FurnitureFittings2022-12-3102971383ns5:ComputerEquipment2022-12-3102971383ns5:FurnitureFittings2023-12-3102971383ns5:ComputerEquipment2023-12-3102971383ns5:FurnitureFittings2022-12-3102971383ns5:ComputerEquipment2022-12-3102971383ns5:CostValuation2022-12-3102971383ns5:ProvidedReleasedInPeriodProvisionsForImpairmentInvestments2023-12-3102971383ns5:CostValuation2023-12-3102971383ns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-12-3102971383ns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-12-3102971383ns5:WithinOneYear2023-12-3102971383ns5:WithinOneYear2022-12-3102971383ns5:BetweenOneFiveYears2023-12-3102971383ns5:BetweenOneFiveYears2022-12-3102971383ns5:AllPeriods2023-12-3102971383ns5:AllPeriods2022-12-3102971383ns5:AcceleratedTaxDepreciationDeferredTax2023-12-3102971383ns5:AcceleratedTaxDepreciationDeferredTax2022-12-3102971383ns5:DeferredTaxation2022-12-3102971383ns5:OtherProvisionsContingentLiabilities2022-12-3102971383ns5:DeferredTaxation2023-01-012023-12-3102971383ns5:OtherProvisionsContingentLiabilities2023-01-012023-12-3102971383ns5:DeferredTaxation2023-12-3102971383ns5:OtherProvisionsContingentLiabilities2023-12-3102971383ns10:OrdinaryShareClass12023-12-3102971383ns5:RetainedEarningsAccumulatedLosses2022-12-3102971383ns5:SharePremium2022-12-3102971383ns5:CapitalRedemptionReserve2022-12-310297138312023-01-012023-12-31
REGISTERED NUMBER: 02971383















LASER QUANTUM LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023






LASER QUANTUM LIMITED (REGISTERED NUMBER: 02971383)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Statement of Comprehensive Income 9

Statement of Financial Position 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12


LASER QUANTUM LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: L Gloster
S H Lane
R J Buckley





SECRETARY: S H Lane





REGISTERED OFFICE: Unit 1 Orion Business Park
Bird Hall Lane
Cheadle Heath
Stockport
SK3 0XG





REGISTERED NUMBER: 02971383





AUDITORS: Clarke Nicklin LLP
Chartered Accountants and
Statutory Auditors
Clarke Nicklin House
Brooks Drive
Cheadle Royal Business Park
Cheadle
Cheshire
SK8 3TD

LASER QUANTUM LIMITED (REGISTERED NUMBER: 02971383)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023


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

REVIEW OF BUSINESS AND FUTURE DEVELOPMENTS
2023 saw continued post-pandemic growth at Laser Quantum, building on the success of 2022. The turnover and profit for the financial year increased to £54.3m (2022: £48.0) and £21.3m (2022: £19.7m) respectively.

In order to simplify the Novanta UK reporting structure from Jan 1st 2024 an asset transfer took place with Laser Quantum undertaking a 'hive up' to its parent company, Novanta Technologies UK Limited. All operating activities now occur in the name of Novanta Technologies UK Limited with the existing Laser Quantum Limited entity being wound down and ultimately will be made dormant.

With the operations of the company being transferred, the financial statements are prepared on an ‘other than going concern’ basis.

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties of the company relate to competition and the general global trading market however no downturn in the markets in which Laser Quantum trades has yet materialised. Laser Quantum has not been materially impacted by the Ukraine war nor directly adversely affected by the recent increases in interest rates due to the business not carrying debt.

Further details are included in note 22 to the financial statements.

FINANCIAL RISK MANAGEMENT
Information on financial risk management is scheduled in note 23 to the financial statements.

ON BEHALF OF THE BOARD:





S H Lane - Director


11 September 2024

LASER QUANTUM LIMITED (REGISTERED NUMBER: 02971383)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


The directors present their report with the financial statements of the company for the year ended 31 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the design, manufacture and sale of innovative, high-quality, laser products.

With the operations of the company being transferred on 1 January 2024 to its holding company, Novanta Technologies UK Limited, the financial statements are prepared on an "other than going concern" basis.

DIVIDENDS
The total distribution of dividends for the year ended 31 December 2023 will be £11,350,000.

RESEARCH AND DEVELOPMENT
The company continues to invest in research and development to further its product range, which amounted to £4.1m in 2023 (2022: £3.7m). The directors regard R&D investment as key for success in the medium to long term future.

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

L Gloster
S H Lane
R J Buckley

DIRECTORS' LIABILITIES
Novanta Inc., the ultimate parent company, indemnified one or more directors of the company against liability in respect of proceedings brought by third parties, subject to the conditions set out in the Companies Act 2006. Such qualifying third party indemnity provision was in force during the year and remains in place to the date of this report.

CREDITOR PAYMENT POLICY AND PRACTICE
It is the company's policy that payments to suppliers are made in accordance with those terms and conditions agreed between the company and its suppliers, provided that all trading terms and conditions have been complied with.

As at 31 December 2023, the company had an average of 45 (2022: 45) days purchases outstanding in trade creditors.

GOING CONCERN
Information on going concern is included in note 2 to the financial statements.

ENVIRONMENT, HEALTH & SAFETY
The company recognises the importance of its environmental responsibilities and designs and implements policies to reduce any damage that might be caused by the company's activities. There are various initiatives designed to minimise the company's impact on the environment.

The company recognises the importance and implications of the Health & Safety at Work Act 1974, the Environmental Protection Legislation, and all new Health & Safety legislation especially that being promulgated through EU Directives.


LASER QUANTUM LIMITED (REGISTERED NUMBER: 02971383)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

DISABLED EMPLOYEES
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 being disabled every effort is made to ensure that their employment with the company continues and that the appropriate training is arranged. It is the policy of the company 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 company operates policies to keep employees informed on matters relevant to them as employees through regular meetings and newsletters. These meetings include updates on the financial position of the company and the group to ensure awareness of the achievement of financial goals. Employee representatives are consulted regularly on a wide range of matters affecting their interest.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-state whether applicable accounting standards have been followed, subject to any material departures
disclosed and explained in the financial statements;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Clarke Nicklin LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





S H Lane - Director


11 September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LASER QUANTUM LIMITED


Opinion
We have audited the financial statements of Laser Quantum Limited (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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

Conclusions relating to going concern - Emphasis of matter
In forming our opinion on the financial statements, which is not modified, we draw attention to note 2 to the financial statements which describes the directors' reasons why the financial statements have been prepared on a basis other than going concern.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LASER QUANTUM LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LASER QUANTUM LIMITED


Auditors' 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Procedures to identify risks:
- enquiring of management concerning the company's procedures relating to: identifying, evaluating and
complying with laws and regulations and whether they were aware of any instances of noncompliance;
detecting and responding to the risks of fraud and whether they have knowledge of any actual,
suspected or alleged fraud;
- discussing among the engagement team regarding how and where fraud might occur in the financial
statements and any potential indicators of fraud. As part of this discussion, we identified potential for
fraud in the following areas: timing of recognition of sales and purchases and their related stock
movements, posting of unusual journals; and
- obtaining an understanding of the legal and regulatory frameworks that the company operates in,
focusing on those laws and regulations that had a direct effect on the financial statements or that had a
fundamental effect on the operations of the company. The key laws and regulations we considered in
this context included UK Companies Act, employment law, health and safety, pensions legislation and
tax legislation.

The procedures to respond to risks identified included:
- reviewing the financial statement disclosures and testing to supporting documentation to assess
compliance with relevant laws and regulations discussed above;
- enquiring of management, concerning actual and potential litigation and claims;
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate
risks of material misstatement due to fraud;
- reviewing correspondence with HMRC;
- testing the timing and matching of income and expense transactions relating to stock movements
either side of the year end; and
- in addressing the risk of fraud through management override of controls, testing the appropriateness of
journal entries and other adjustments; assessing whether the judgements made in making accounting
estimates are indicative of a potential bias; and evaluating the business rationale of any significant
transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulation that are not closely related to events and transactions reflected in the financial statements. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detection one resulting from an error, as fraud may involve deliberate concealment, by for example, forgery or intentional misrepresentation, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
LASER QUANTUM LIMITED


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 a Report of the Auditors 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.




Graham Travis FCA (Senior Statutory Auditor)
for and on behalf of Clarke Nicklin LLP
Chartered Accountants and
Statutory Auditors
Clarke Nicklin House
Brooks Drive
Cheadle Royal Business Park
Cheadle
Cheshire
SK8 3TD

11 September 2024

LASER QUANTUM LIMITED (REGISTERED NUMBER: 02971383)

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £'000 £'000 £'000 £'000

TURNOVER 3 54,308 47,970

Cost of sales 20,022 16,847
GROSS PROFIT 34,286 31,123

Administrative expenses 10,523 9,330
OPERATING PROFIT 5 23,763 21,793

Income from shares in group
undertakings

1,137

-
Interest receivable and similar income 700 324
1,837 324
25,600 22,117
Amounts written off investments 6 1,124 (34 )
PROFIT BEFORE TAXATION 24,476 22,151

Tax on profit 7 3,172 2,496
PROFIT FOR THE FINANCIAL YEAR 21,304 19,655

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

21,304

19,655

LASER QUANTUM LIMITED (REGISTERED NUMBER: 02971383)

STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2023

2023 2022
Notes £'000 £'000 £'000 £'000
FIXED ASSETS
Intangible assets 9 855 978
Tangible assets 10 9,930 1,289
Investments 11 - 1,124
10,785 3,391

CURRENT ASSETS
Stocks 12 6,721 6,440
Debtors 13 8,940 7,039
Cash at bank 5,619 6,029
21,280 19,508
CREDITORS
Amounts falling due within one year 14 5,408 7,493
NET CURRENT ASSETS 15,872 12,015
TOTAL ASSETS LESS CURRENT
LIABILITIES

26,657

15,406

PROVISIONS FOR LIABILITIES 16 2,239 942
NET ASSETS 24,418 14,464

CAPITAL AND RESERVES
Called up share capital 17 1 1
Share premium 18 511 511
Capital redemption reserve 18 1 1
Retained earnings 18 23,905 13,951
SHAREHOLDERS' FUNDS 24,418 14,464

The financial statements were approved by the Board of Directors and authorised for issue on 11 September 2024 and were signed on its behalf by:





S H Lane - Director


LASER QUANTUM LIMITED (REGISTERED NUMBER: 02971383)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023

Called up Capital
share Retained Share redemption Total
capital earnings premium reserve equity
£'000 £'000 £'000 £'000 £'000
Balance at 1 January 2022 1 9,131 511 1 9,644

Changes in equity
Dividends - (14,835 ) - - (14,835 )
Total comprehensive income - 19,655 - - 19,655
Balance at 31 December 2022 1 13,951 511 1 14,464

Changes in equity
Dividends - (11,350 ) - - (11,350 )
Total comprehensive income - 21,304 - - 21,304
Balance at 31 December 2023 1 23,905 511 1 24,418

LASER QUANTUM LIMITED (REGISTERED NUMBER: 02971383)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023


1. STATUTORY INFORMATION

Laser Quantum Limited ("the Company") is a limited company incorporated in the United Kingdom. The address of its registered office and principal place of business is Emery Court, Vale Road, Stockport, Cheshire, SK4 3GL.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The presentation currency of the financial statements is Sterling (£).

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 3.17(d);
the requirement of paragraph 33.7.

Preparation of consolidated financial statements
The financial statements contain information about Laser Quantum Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 401 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, Novanta Inc, 125 Middlesex Turnpike, Bedford, MA 01730, USA.

Going concern
The financial statements have been prepared on an "other than going concern" basis as the operations of the company were transferred on 1 January 2024 to its holding company, Novanta Technologies UK Limited.

LASER QUANTUM LIMITED (REGISTERED NUMBER: 02971383)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

Significant judgements and estimates
Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include:

Amortisation and depreciation of assets
The company amortises and depreciates its intangible and tangible assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by the directors. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes.

Warranty provisions
A warranty provision is made based on the directors' estimate of the future cost of rectifying problems on products sold by the company.

Dilapidations provision
A dilapidations provision is made, based on the directors' estimate of the obligation to return a property to its original condition upon expiry of a lease.

Investments in and amounts due from group undertakings
The company reviews the carrying value of its investments in group undertakings and the recoverability of intragroup debtors. In assessing whether there is any impairment, the directors make estimates and assumptions over the future performance of the respective group undertakings.

LASER QUANTUM LIMITED (REGISTERED NUMBER: 02971383)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

Turnover
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added tax.

The majority of the company's products are sold on an ex works basis and the revenue is recognised on dispatch. The remaining revenue is recognised when title to the goods is transferred to customers and is normally upon delivery of the product to the customer.

The company recognises turnover when (a) the significant risks and rewards of ownership have been transferred to the buyer, (b) the company retains no continuing involvement or control over the goods, (c) the amount of turnover can be measured reliably, (d) it is probable that future economic benefits will flow to the entity.

Share based payments
Full details of the share schemes in which employees of the company can participate are contained in the financial statements of the ultimate parent company Novanta Inc. Details on how to obtain copies of these financial statements are set out in note 19. These schemes relate to shares in the ultimate parent company Novanta Inc.

The company records the expense associated with share-based compensation awards to employees based on the fair value of awards as of the grant date. For stock-based compensation awards that vest over time, such expenses are recognised in the income statement rateably over the vesting period of the award, net of estimated forfeitures. The stock-based compensation charge is recorded within administrative expenses and invoiced by Novanta Inc.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Development costs that are capitalised are being amortised evenly over their estimated useful lives of ten years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - Straight line over 25 years
Leasehold improvements - Straight line basis over lease term
Plant and machinery - 20% on cost
Fixtures and fittings - 33% on cost
Computer equipment - 33% on cost

Impairment of assets
At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in the income statement.

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in the prior years. A reversal of an impairment loss is recognised immediately in the income statement.

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost less impairment.

LASER QUANTUM LIMITED (REGISTERED NUMBER: 02971383)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

Stocks
Stocks are valued at the lower of cost and net realisable value, as follows:

Raw materials - purchase cost
Work in progress and - cost of direct materials and labour
Finished goods - cost of direct materials and labour, plus a reasonable proportion of
manufacturing overheads based on normal levels of activity.

Net realisable value is based on estimated normal selling price less further costs expected to be incurred to completion and disposal. Provision is made for obsolete, slow moving or defective items where appropriate.

Financial instruments
The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments. The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities, including amounts owed by and to group undertakings.

Financial assets
Basic financial assets, including trade debtors, cash and bank balances and amounts owed by group undertakings, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at the market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period, financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 the income statement.

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 the income statement.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party, or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial liabilities
Basic financial liabilities, including trade creditors and amounts owed to group undertakings, 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 receipts discounted at a market rate of interest.


LASER QUANTUM LIMITED (REGISTERED NUMBER: 02971383)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued
Taxation
Taxation expense for the period comprises current and deferred tax recognised in the reporting period. Tax is recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case tax is also recognised in other comprehensive income or directly in equity respectively.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is the amount of income tax payable in respect of the taxable profit for the year or prior years. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the period end.

Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.

Deferred tax
Deferred tax arises from timing differences that are differences between taxable profits reported in the tax return and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods difference from those in which they are recognised in the financial statements.

Deferred tax is recognised on all timing differences at the reporting date except for certain exceptions. Unrelieved tax losses and other deferred tax assets are only recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of timing differences.

Research and development
Development costs that are directly attributable to the design and testing of identifiable and unique products controlled by the company are recognised as intangible assets when the following criteria are met :

It is technically feasible to complete the product so that it will be available for use;

Management intends to complete the product and use or sell it;

There is an ability to use or sell the product;

It can be demonstrated how the product will generate probable future economic benefits;

Adequate technical, financial and other resources to complete the development and to use or sell the product are available; and

The expenditure attribute to the product during its development can be reliably measured.

Other research and development expenditure that does not meet these criteria is recognised as an expense as incurred. Research and development costs previously recognised as an expense are not recognised as an asset in a subsequent period.

LASER QUANTUM LIMITED (REGISTERED NUMBER: 02971383)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

Foreign currencies
The company's functional and presentation currency is Sterling (£).

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end, foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement except when deferred in other comprehensive income as qualifying cash flow hedges.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

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

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

The company recognises provisions for the expected costs of maintenance under warranties, which are charged against profits when products have been invoiced.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2023 2022
£'000 £'000
United Kingdom 501 910
Overseas 53,807 47,060
54,308 47,970

LASER QUANTUM LIMITED (REGISTERED NUMBER: 02971383)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


4. EMPLOYEES AND DIRECTORS
2023 2022
£'000 £'000
Wages and salaries 8,668 8,097
Social security costs 777 772
Other pension costs 348 321
9,793 9,190

The average number of employees during the year was as follows:
2023 2022

Management 3 3
Operations 127 110
Research and development 41 37
Administration 19 19
190 169

2023 2022
£    £   
Directors' remuneration 431,610 557,757
Directors' pension contributions to money purchase schemes - 20,000

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes - 2

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 232,723 316,288
Pension contributions to money purchase schemes - 10,000

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£'000 £'000
Depreciation - owned assets 640 319
Development costs amortisation 123 122
Auditors' remuneration: Audit services 34 33
Research and development 897 717
Operating lease rentals 221 215
Foreign exchange 45 (196 )
Stock provision movement 58 15
Debtors provision movement (38 ) 38

LASER QUANTUM LIMITED (REGISTERED NUMBER: 02971383)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


6. AMOUNTS WRITTEN OFF INVESTMENTS
2023 2022
£'000 £'000
Impairment/(Reversal of
impairment) of investments 1,124 (34 )

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£'000 £'000
Current tax:
UK corporation tax 1,950 2,393
Prior year adjustments (7 ) (7 )
Total current tax 1,943 2,386

Deferred tax 1,229 110
Tax on profit 3,172 2,496

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£'000 £'000
Profit before tax 24,476 22,151
Profit multiplied by the standard rate of corporation tax in the UK of
23.520% (2022 - 19%)

5,757

4,209

Effects of:
Expenses not deductible for tax purposes 316 43
Income not taxable for tax purposes (267 ) -
Adjustments to tax charge in respect of previous periods 69 (34 )
Patent Box (2,193 ) (1,701 )
Change in tax rate 72 29
Other permanent differences (115 ) (50 )
Group relief claimed (484 ) -
Foreign tax credits 17 -

Total tax charge 3,172 2,496

8. DIVIDENDS
2023 2022
£'000 £'000
Ordinary shares of £1 each
Interim 11,350 14,835

LASER QUANTUM LIMITED (REGISTERED NUMBER: 02971383)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


9. INTANGIBLE FIXED ASSETS
Developme
costs
£'000
COST
At 1 January 2023
and 31 December 2023 1,222
AMORTISATION
At 1 January 2023 244
Amortisation for year 123
At 31 December 2023 367
NET BOOK VALUE
At 31 December 2023 855
At 31 December 2022 978

10. TANGIBLE FIXED ASSETS
Freehold Leasehold Plant and
property improvements machinery
£'000 £'000 £'000
COST
At 1 January 2023 504 2,111 1,928
Additions - 7,014 2,005
Disposals - (1,321 ) (701 )
At 31 December 2023 504 7,804 3,232
DEPRECIATION
At 1 January 2023 382 1,794 1,220
Charge for year 18 34 458
Eliminated on disposal - (1,321 ) (701 )
At 31 December 2023 400 507 977
NET BOOK VALUE
At 31 December 2023 104 7,297 2,255
At 31 December 2022 122 317 708

LASER QUANTUM LIMITED (REGISTERED NUMBER: 02971383)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


10. TANGIBLE FIXED ASSETS - continued

Fixtures
and Computer
fittings equipment Totals
£'000 £'000 £'000
COST
At 1 January 2023 45 815 5,403
Additions - 262 9,281
Disposals (41 ) (406 ) (2,469 )
At 31 December 2023 4 671 12,215
DEPRECIATION
At 1 January 2023 45 673 4,114
Charge for year - 130 640
Eliminated on disposal (41 ) (406 ) (2,469 )
At 31 December 2023 4 397 2,285
NET BOOK VALUE
At 31 December 2023 - 274 9,930
At 31 December 2022 - 142 1,289

Included in the cost of Freehold Property is land of £55,000 (2022: £55,000) which is not depreciated.

11. FIXED ASSET INVESTMENTS
Shares in
group
undertaking
£'000
COST
At 1 January 2023 1,124
Impairments (1,124 )
At 31 December 2023 -
NET BOOK VALUE
At 31 December 2023 -
At 31 December 2022 1,124

LASER QUANTUM LIMITED (REGISTERED NUMBER: 02971383)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


12. STOCKS

20232022
£'000£'000
Raw materials and consumables4,4234,187
Demo stock4156
Work in progress1,8761,723
Finished goods and goods for resale381474
6,7216,440

The directors of the company believe there is no material difference between the balance sheet value and replacement cost of stock. For these purposes, replacement cost is based on latest invoice price at the balance sheet date.

Stock is stated after provisions for impairment of £0.6m (2022: £0.5m).

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£'000 £'000
Trade debtors 6,428 6,064
Amounts owed by group undertakings 155 373
Other debtors 285 62
Corporation tax 814 -
VAT 975 319
Prepayments and accrued income 283 221
8,940 7,039

Trade debtors are stated after provisions for returns of £15,000 (2022: £52,230).

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£'000 £'000
Trade creditors 2,708 2,550
Amounts owed to group undertakings 741 1,392
Corporation tax - 1,234
Other creditors 123 295
Accruals and deferred income 1,836 2,022
5,408 7,493

15. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£'000 £'000
Within one year 96 104
Between one and five years - 22
96 126

LASER QUANTUM LIMITED (REGISTERED NUMBER: 02971383)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


16. PROVISIONS FOR LIABILITIES
2023 2022
£'000 £'000
Deferred tax
Accelerated capital allowances 1,360 130

Other provisions
Warranty provision 693 626
Dilapidations provision 186 186
879 812

Aggregate amounts 2,239 942

Deferred Other
tax provisions
£'000 £'000
Balance at 1 January 2023 130 812
Charge to Statement of Comprehensive Income during year 1,229 67
Balance at 31 December 2023 1,359 879

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
572 Ordinary £1 572 572

Called up share capital - represents the nominal value of shares that have been issued.

18. RESERVES
Capital
Retained Share redemption
earnings premium reserve Totals
£'000 £'000 £'000 £'000

At 1 January 2023 13,951 511 1 14,463
Profit for the year 21,304 21,304
Dividends (11,350 ) (11,350 )
At 31 December 2023 23,905 511 1 24,417

Retained earnings - includes all current and prior period retained profit and losses.

Share premium - includes any premiums received on issues of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium.

Capital redemption reserve - represents the nominal value of shares repurchased by the company

LASER QUANTUM LIMITED (REGISTERED NUMBER: 02971383)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


19. ULTIMATE PARENT COMPANY

Novanta Inc (incorporated in Canada ) is regarded by the directors as being the company's ultimate parent company.

The largest and smallest group in which the results of the company are consolidated is Novanta Inc. The consolidated financial statements of Novanta Inc can be found at www.sec.gov or by writing to Novanta Inc, 125 Middlesex Turnpike, Bedford, MA 01730, USA.

20. RELATED PARTY DISCLOSURES

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

21. POST BALANCE SHEET EVENTS

On 1 January 2024, the balances and trade of the company were transferred into its immediate parent company Novanta Technologies UK Limited.

On 3 April 2024, a special resolution was passed to cancel the share premium and share redemption reserves of the company and to reduce the ordinary share capital to 1 ordinary share of GBP £1.

22. PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties of the company relate to competition and the global supply chain.

Competition
The company manages competitive trading risk by continually investing in research and development
to provide industry leading products to customers, and by maintaining relationships with those
customers.

Supply Chain
The Supply Chain challenges resulting immediately from the Covid pandemic have eased and the period H2 '23 and into 2024 has seen a return to a pre pandemic Supply Chain environment.

Other
Whilst the increase in energy prices has impacted, the business energy spend is not a material component of the cost base and continues to be proactively managed.

Similarly, as Laser Quantum is not debt financed the increase in the underlying interest rates are not directly impacting the business.

23. FINANCIAL MANAGEMENT RISK

The company operations expose it to a variety of financial risks that include credit risk and foreign exchange risk.

Credit risk
Credit risk is managed by agreeing payment terms in advance. Appropriate credit control procedures are followed at all operations where credit risk is perceived.

Foreign exchange rate risk
The company's transactions are in sterling and other currencies, and therefore the company is exposed to the movement in foreign exchange rates. This is mitigated within the company by both buying and selling in various currencies.