Company registration number 13753644 (England and Wales)
RHYTHM PHARMACEUTICALS UK LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
RHYTHM PHARMACEUTICALS UK LTD
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

 

 

The director is 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. He is 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.

RHYTHM PHARMACEUTICALS UK LTD
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 2 -
2023
2022
Notes
£
£
£
£
Current assets
Stocks
163,968
-
Debtors
3
817,036
1
Cash at bank and in hand
217,521
-
0
1,198,525
1
Creditors: amounts falling due within one year
4
(1,124,385)
-
0
Net current assets
74,140
1
Capital and reserves
Called up share capital
5
1
1
Profit and loss reserves
74,139
-
0
Total equity
74,140
1

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

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

The financial statements were approved and signed by the director and authorised for issue on 27 August 2024
James Flaherty Jr.
Director
Company registration number 13753644 (England and Wales)
RHYTHM PHARMACEUTICALS UK LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 19 November 2021
-
0
-
0
-
Period ended 31 December 2022:
Profit and total comprehensive income
-
-
0
-
0
Issue of share capital
5
1
-
1
Balance at 31 December 2022
1
-
0
1
Year ended 31 December 2023:
Profit and total comprehensive income
-
74,139
74,139
Balance at 31 December 2023
1
74,139
74,140
RHYTHM PHARMACEUTICALS UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
1
Accounting policies
Company information

Rhythm Pharmaceuticals UK Ltd is a private company limited by shares incorporated in England and Wales. The registered office is North West House, 119-127 Marylebone Road, London, NW1 5PU.

Reporting period

The prior period represents a 13-month period from the date of incorporation on 19 November 2021 to 31 December 2022. The company did not trade during the prior period. The current reporting period is for the year ended 31 December 2023, therefore the financial statements are not entirely comparable.

Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

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

Going concern

At the time of approving the financial statements, the company is in the process of further rolling outtrue its operations in the United Kingdom, following recent developments in the approval process of IMCIVREE. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

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.

 

Turnover in respect of the services provided to the group undertaking is calculated as attributable costs plus a mark up in accordance with the Intra-group Service Agreement between Rhythm Pharmaceuticals UK Limited and Rhythm Pharmaceuticals Netherlands B.V.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

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.

Cash and cash equivalents

Cash and cash equivalents are basic financial instruments and include cash in hand.

RHYTHM PHARMACEUTICALS UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
Financial instruments

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

 

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

 

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

Basic financial assets

Basic financial assets, which include cash at bank, trade and other debtors and amounts owed by group undertakings, 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 financial asset is measured at the present value of the future receipts discounted at a market rate of interest.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, other 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 payments discounted at a market rate of interest.

Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.

Taxation

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

The tax expense represents the current tax expense. Current tax assets are recognised when tax paid exceeds the tax payable.

 

Current tax is charged or credited to profit or loss, except when it relates to items charged or credited to other comprehensive income or equity, when the tax follows the transaction or event it relates to and is also charged or credited to other comprehensive income, or equity.

 

Current tax assets and current tax liabilities are offset, if and only if, there is a legally enforceable right to set off the amounts and the entity intends either to settle on the net basis or to realise the asset and settle the liability simultaneously.

 

Current tax is based on taxable profit for the year. Current tax assets and liabilities are measured using tax rates that have been enacted or substantively enacted by the reporting date.

RHYTHM PHARMACEUTICALS UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled based on tax rates that have been enacted or substantively enacted by the reporting date.

 

Deferred tax liabilities are recognised in respect of all timing differences that exist at the reporting date. Timing differences are differences between taxable profits and total comprehensive income that arise from the inclusion of income and expenses in tax assessments in different periods from their recognition in the financial statements. Deferred tax assets are recognised only to the extent that it is probable that they will be recovered

by the reversal of deferred tax liabilities or other future taxable profits.

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

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.

Retirement benefits

For defined contribution schemes the amount charged to profit or loss is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as accruals.

Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted. The fair value determined at the grant date is expensed on a straightline basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

 

The company participates in a share-based payment arrangement operated by its parent company. The company has elected to recognise and measure its share-based payment expense on the basis of a reasonable allocation of the expense for the group recognised in its consolidated financial statements. The director considers the number of unvested options granted to the company’s employees compared to the total unvested options granted under the group plan to be a reasonable basis for allocating the expense.

 

The amount recognised in the financial statements was £nil (2022: £nil).

Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease.

Foreign exchange

Transactions in currencies other than the functional currency (foreign currency) are initially recorded at the exchange rate prevailing on the date of the transaction.

 

Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies are translated at the rate ruling at the date of the transaction, or, if the asset or liability is measured at fair value, the rate when that fair value was determined.

 

All translation differences are taken to profit or loss.

RHYTHM PHARMACEUTICALS UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2
Employees

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

2023
2022
Number
Number
Total
5
1
3
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
34,386
-
0
Amounts owed by group undertakings
723,702
1
Other debtors
56,696
-
0
814,784
1
Deferred tax asset
2,252
-
0
817,036
1
4
Creditors: amounts falling due within one year
2023
2022
£
£
Amounts owed to group undertakings
763,249
-
0
Corporation tax
10,711
-
0
Other taxation and social security
113,862
-
0
Other creditors
236,563
-
0
1,124,385
-
0
5
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share of £1 each
1
1
1
1
6
Audit report information

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

The auditor's report was unqualified.

RHYTHM PHARMACEUTICALS UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Audit report information
(Continued)
- 8 -
Senior Statutory Auditor:
Mr Gary John McHale FCCA
Statutory Auditor:
DSA Prospect Audit Limited
Date of audit report:
12 September 2024
7
Operating lease commitments
Lessee

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

2023
2022
£
£
34,560
-
0
8
Parent company

The smallest and largest group of companies within which the company belongs and for which consolidated financial statements are available is that headed by Rhythm Pharmaceuticals Inc. and a copy of the consolidated financial statements may be obtained from its registered office address at 222 Berkeley St Fl 12, Boston, MA 02116.

2023-12-312023-01-01false12 September 2024CCH SoftwareCCH Accounts Production 2024.200No description of principal activityThis audit opinion is unqualifiedJames Flaherty Jr.falsefalse137536442023-01-012023-12-31137536442023-12-31137536442022-12-3113753644core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3113753644core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3113753644core:CurrentFinancialInstruments2023-12-3113753644core:CurrentFinancialInstruments2022-12-3113753644core:ShareCapital2023-12-3113753644core:ShareCapital2022-12-3113753644core:RetainedEarningsAccumulatedLosses2023-12-3113753644core:RetainedEarningsAccumulatedLosses2022-12-3113753644core:ShareCapital2021-11-1813753644core:RetainedEarningsAccumulatedLosses2021-11-1813753644bus:Director12023-01-012023-12-3113753644core:RetainedEarningsAccumulatedLosses2021-11-192022-12-31137536442021-11-192022-12-3113753644core:RetainedEarningsAccumulatedLosses2023-01-012023-12-3113753644core:ShareCapital2021-11-192022-12-3113753644core:WithinOneYear2023-12-3113753644core:WithinOneYear2022-12-3113753644bus:PrivateLimitedCompanyLtd2023-01-012023-12-3113753644bus:SmallCompaniesRegimeForAccounts2023-01-012023-12-3113753644bus:FRS1022023-01-012023-12-3113753644bus:Audited2023-01-012023-12-3113753644bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP