Company Registration No. 02624214 (England and Wales)
ESSEX X-RAY AND MEDICAL EQUIPMENT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
ESSEX X-RAY AND MEDICAL EQUIPMENT LIMITED
COMPANY INFORMATION
Director
CL Macau Jr
Secretary
Mrs L Coppard
Company number
02624214
Registered office
Unit 18
Flitch Industrial Estate
Chelmsford Road
Dunmow
Essex
CM6 1XJ
Auditor
Rickard Luckin Limited
1st Floor
County House
100 New London Road
Chelmsford
Essex
CM2 0RG
Bankers
JP Morgan Chase and Co
19th Floor
25 Bank Street
London
E14 5JP
ESSEX X-RAY AND MEDICAL EQUIPMENT LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 23
ESSEX X-RAY AND MEDICAL EQUIPMENT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 1 -

The director presents the strategic report for the year ended 31 October 2023.

Principal activities

The Company's principal activities during the year were the development, manufacture of and testing of high voltage interconnect systems. HV interconnection is found across a broad cross section of industrial, medical, commercial & scientific applications.

Review of the business

The Company's key financial performance indicators during the year were as follows:

 

                    2023     2022     Change

                    £'000     £'000     %

Revenue             8,269 7,355 12.4%

Operating Profit                2,784     2,480     12.3%

Earnings Before Interest & Taxes (EBIT)    2,784     2,480     12.3%

EBITDA                    2,821     2,527     11.6%    

 

Average number of employees         56     55

 

This statement reflects a resilient performance in the face of significant and dynamic global events. Stability in our revenue has been achieved by remaining adaptable and agile in our operational decisions considering external pressures.

 

Our capacity has been well utilised throughout the year. To support our strategic growth plans we continue to invest in construction of a new purpose designed 60,000 sq ft unit at the Horizon 120 Business and Innovation Park close to the A120 in Braintree, Essex. Project completion is scheduled for December 2024.

Recruitment continued throughout 2023 to support our activity levels and succession planning.

Principal risks and uncertainties
RISK & POTENTIAL EFFECT
MITIGATING ACTIONS
Global markets
Essex X-Ray's is subject to UK and global political and macro-economic conditions. A number of the Company's products are supplied for use into industries which are dependent upon, and subject to, government policies and national and international political considerations and budgetary constraints. Reduction in military spending or prolonged downturn due to recession or economic instability would adversely affect our sales.
• Increasing diversity of products through ongoing development of strategic growth application areas.
• Expanding geographical spread.
• Maintaining flexibility within the cost base to enable prompt response to significant changes in market conditions and demand.
• Strengthening sales management processes.
Advancement in technology
Essex X-Ray operates in competitive global markets characterised by continuous technological development which is integral to the Company's business of design and manufacture of specialist technology for high performance systems and equipment. Failure to innovate could result in our product offering becoming obsolete. The development of new technologies carries risks including failure to develop a commercially viable offering, taking longer to reach the market than planned and the risk that market size will be smaller than originally envisaged.
• Focusing research and development programmes on innovations consistent with the Company's strategic aims.
• Working closely with customers and to ensure the Company develops solutions tailored to their needs and involving them extensively during product development.
• Working closely with other companies in the Group to share technologies.
ESSEX X-RAY AND MEDICAL EQUIPMENT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -

On behalf of the board

CL Macau Jr
Director
11 September 2024
ESSEX X-RAY AND MEDICAL EQUIPMENT LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 OCTOBER 2023
- 3 -

The director presents his annual report and financial statements for the year ended 31 October 2023.

Results and dividends

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

Ordinary dividends were paid amounting to £1,631,667. The director does not recommend payment of a final dividend.

Director

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

CL Macau Jr
Statement of director's responsibilities

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.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company'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 risk disclosures, future developments and subsequent events.

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 company’s auditor 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 company’s auditor is aware of that information.

Auditor

In accordance with the company's articles, a resolution proposing that Rickard Luckin Limited be reappointed as auditor of the company will be put at a General Meeting.

ESSEX X-RAY AND MEDICAL EQUIPMENT LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 4 -
On behalf of the board
CL Macau Jr
Director
11 September 2024
ESSEX X-RAY AND MEDICAL EQUIPMENT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ESSEX X-RAY AND MEDICAL EQUIPMENT LIMITED
- 5 -
Opinion

We have audited the financial statements of Essex X-Ray and Medical Equipment Limited (the 'company') for the year ended 31 October 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 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 director's 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 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 director 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 director is 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:

ESSEX X-RAY AND MEDICAL EQUIPMENT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ESSEX X-RAY AND MEDICAL EQUIPMENT LIMITED
- 6 -
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 and the Director's Report.

 

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:

 

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.

Capability of the audit in detecting irregularity, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our: general commercial and sector experience; through verbal and written communications with those charged with governance and other management; and via inspection of the company’s regulatory and legal correspondence.

We discussed with those charged with governance and other management the policies and procedures regarding compliance with laws and regulations.

We communicated identified laws and regulations to our team and remained alert to any indicators of non-compliance throughout the audit, we also specifically considered where and how fraud may occur within the company.

The potential effect of these laws and regulations on the financial statements varies considerably.

Firstly, the company is subject to laws and regulations that directly affect the financial statements, including: the company’s constitution, relevant financial reporting standards; company law; tax legislation and distributable profits legislation and we assess the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

ESSEX X-RAY AND MEDICAL EQUIPMENT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ESSEX X-RAY AND MEDICAL EQUIPMENT LIMITED
- 7 -

Secondly the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on the amounts or disclosures in the financial statements, for instance through the imposition of fines and penalties, or through losses arising from litigations. We identified the following areas as those most likely to have such an affect: employment legislation; health and safety legislation; data protection legislation; OFAC trading compliance; anti-bribery and anti-corruption legislation.

ISAs (UK) limit the required procedures to identify non-compliance with these laws and regulations, and no procedures over and above those already noted are required. These limited procedures did not identify any actual or suspected non-compliance with laws and regulations that could have a material impact on the financial statements.

In relation to fraud, we performed the following specific procedures in addition to those already noted:

These procedures did not identify any actual or suspected fraudulent irregularity that could have a material impact on the financial statements.

Throughout our audit work we have considered the entities internal control procedures, and the potential for fraudulent activity going undetected. We have concluded that the company's internal control procedures are adequate to mitigate the risk of material misstatement.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with ISAs (UK). For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the procedures that we are required to undertake would identify it. In addition, as with any audit, there remains a high risk of non-detection of irregularities, as these might involve collusion, forgery, intentional omissions, misrepresentation, or the override of internal controls. We are not responsible for preventing non-compliance with laws and regulations or fraud, and cannot be expected to detect non-compliance with all laws and regulations or every incidence of fraud.

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.

ESSEX X-RAY AND MEDICAL EQUIPMENT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ESSEX X-RAY AND MEDICAL EQUIPMENT LIMITED
- 8 -

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.

Paul Forster (Senior Statutory Auditor)
For and on behalf of Rickard Luckin Limited
19 September 2024
Chartered Accountants
Statutory Auditor
1st Floor
County House
100 New London Road
Chelmsford
Essex
CM2 0RG
ESSEX X-RAY AND MEDICAL EQUIPMENT LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
8,268,784
7,354,780
Cost of sales
(4,683,359)
(4,134,624)
Gross profit
3,585,425
3,220,156
Administrative expenses
(801,684)
(740,200)
Operating profit
4
2,783,741
2,479,956
Interest payable and similar expenses
6
(51,653)
(44,577)
Profit before taxation
2,732,088
2,435,379
Tax on profit
7
(472,801)
(477,342)
Profit and total comprehensive income for the financial year
17
2,259,287
1,958,037

The profit and loss account has been prepared on the basis that all operations are continuing operations.

ESSEX X-RAY AND MEDICAL EQUIPMENT LIMITED
BALANCE SHEET
AS AT 31 OCTOBER 2023
31 October 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
4,925,757
2,517,894
Current assets
Stocks
10
1,184,110
1,038,861
Debtors
11
1,318,155
943,288
Cash at bank and in hand
705,330
976,527
3,207,595
2,958,676
Creditors: amounts falling due within one year
12
(3,347,925)
(1,113,135)
Net current (liabilities)/assets
(140,330)
1,845,541
Total assets less current liabilities
4,785,427
4,363,435
Creditors: amounts falling due after more than one year
13
(1,308,596)
(1,514,224)
Net assets
3,476,831
2,849,211
Capital and reserves
Called up share capital
15
100
100
Profit and loss reserves
17
3,476,731
2,849,111
Total equity
3,476,831
2,849,211

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved and signed by the director and authorised for issue on 11 September 2024
CL Macau Jr
Director
Company registration number 02624214 (England and Wales)
ESSEX X-RAY AND MEDICAL EQUIPMENT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 November 2021
100
2,253,264
2,253,364
Year ended 31 October 2022:
Profit and total comprehensive income
-
1,958,037
1,958,037
Dividends
8
-
(1,362,190)
(1,362,190)
Balance at 31 October 2022
100
2,849,111
2,849,211
Year ended 31 October 2023:
Profit and total comprehensive income
-
2,259,287
2,259,287
Dividends
8
-
(1,631,667)
(1,631,667)
Balance at 31 October 2023
100
3,476,731
3,476,831
ESSEX X-RAY AND MEDICAL EQUIPMENT LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
3,301,060
2,323,171
Interest paid
(39,686)
(44,577)
Income taxes paid
(654,638)
(364,597)
Net cash inflow from operating activities
2,606,736
1,913,997
Investing activities
Purchase of tangible fixed assets
(2,445,619)
(148,032)
Net cash used in investing activities
(2,445,619)
(148,032)
Financing activities
Proceeds from borrowings
1,400,000
-
0
Repayment of borrowings
(200,647)
(195,757)
Dividends paid
(1,631,667)
(1,362,190)
Net cash used in financing activities
(432,314)
(1,557,947)
Net (decrease)/increase in cash and cash equivalents
(271,197)
208,018
Cash and cash equivalents at beginning of year
976,527
768,509
Cash and cash equivalents at end of year
705,330
976,527
ESSEX X-RAY AND MEDICAL EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 13 -
1
Accounting policies
Company information

Essex X-Ray and Medical Equipment Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 18, Flitch Industrial Estate, Chelmsford Road, Dunmow, Essex, CM6 1XJ.

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, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

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

Revenue from the sale of goods and services are recognised when the significant risks and rewards of ownership have passed to the buyer (usually on dispatch of the goods or provision of services), 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.

1.4
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.5
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:

Land and buildings Freehold
Nil on land and 5% on buildings cost
Plant and machinery
20% on net book value
Fixtures, fittings & equipment
20% on net book value and 33.33% on computer cost
Motor vehicles
25% on net book value

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

ESSEX X-RAY AND MEDICAL EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 14 -

No depreciation is charged against assets under construction until they are brought into use. At this point the asset will be transferred into a fixed assets category.

1.6
Impairment of fixed assets

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

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

 

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

1.7
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.

1.8
Cash at bank and in hand

Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.

1.9
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 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.

ESSEX X-RAY AND MEDICAL EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 15 -
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 company 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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and loans from fellow group companies, 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.

ESSEX X-RAY AND MEDICAL EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 16 -
Other financial liabilities

Derivatives are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.11
Taxation

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

Current tax

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

Deferred tax

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

 

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

ESSEX X-RAY AND MEDICAL EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 17 -
1.12
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.

1.13
Leases

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

1.14
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.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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.

 

It is the opinion of the Director that there are no significant judgements or estimates within these financial statements.

 

 

 

3
Turnover
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
3,744,520
3,419,707
Rest of the World
1,230,822
972,406
Europe
3,293,442
2,962,667
8,268,784
7,354,780
ESSEX X-RAY AND MEDICAL EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 18 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
33,597
(113,622)
Research and development costs
4,186
2,873
Fees payable to the company's auditor for the audit of the company's financial statements
15,600
16,058
Depreciation of owned tangible fixed assets
37,741
47,341
Loss on disposal of tangible fixed assets
15
192
5
Employees

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

2023
2022
Number
Number
Production
39
38
Directors
1
1
Administration
16
16
Total
56
55

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,996,195
1,858,482
Social security costs
204,792
195,029
2,200,987
2,053,511
6
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest payable to group undertakings
51,653
44,577
7
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
558,212
477,342
Adjustments in respect of prior periods
(85,411)
-
0
Total current tax
472,801
477,342
ESSEX X-RAY AND MEDICAL EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
7
Taxation
(Continued)
- 19 -

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
2,732,088
2,435,379
Expected tax charge based on the standard rate of corporation tax in the UK of 22.50% (2022: 19.00%)
614,720
462,722
Tax effect of expenses that are not deductible in determining taxable profit
17,266
9,743
Change in unrecognised deferred tax assets
(1,479)
(3,602)
Adjustments in respect of prior years
(85,411)
-
0
Effect of change in corporation tax rate
1,005
7,686
Depreciation on assets not qualifying for tax allowances
939
793
R&D Expenditure Credit
(74,239)
-
0
Taxation charge for the year
472,801
477,342
8
Dividends
2023
2022
£
£
Total dividends
Interim paid
1,631,667
1,362,190
ESSEX X-RAY AND MEDICAL EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 20 -
9
Tangible fixed assets
Land and buildings Freehold
Assets under construction
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 November 2022
2,868,170
-
0
422,218
162,516
12,439
3,465,343
Additions
-
0
2,409,629
30,868
5,122
-
0
2,445,619
Disposals
-
0
-
0
(1,505)
-
0
-
0
(1,505)
Transfers
(274,419)
274,419
-
0
-
0
-
0
-
0
At 31 October 2023
2,593,751
2,684,048
451,581
167,638
12,439
5,909,457
Depreciation and impairment
At 1 November 2022
460,893
-
0
323,703
151,663
11,190
947,449
Depreciation charged in the year
6,497
-
0
25,974
4,959
311
37,741
Eliminated in respect of disposals
-
0
-
0
(1,490)
-
0
-
0
(1,490)
At 31 October 2023
467,390
-
0
348,187
156,622
11,501
983,700
Carrying amount
At 31 October 2023
2,126,361
2,684,048
103,394
11,016
938
4,925,757
At 31 October 2022
2,407,277
-
0
98,515
10,853
1,249
2,517,894
10
Stocks
2023
2022
£
£
Raw materials and consumables
1,072,689
908,076
Work in progress
17,880
24,466
Finished goods and goods for resale
93,541
106,319
1,184,110
1,038,861
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,042,045
905,232
Amounts owed by group undertakings
2,561
3,823
Other debtors
232,388
-
0
Prepayments and accrued income
41,161
34,233
1,318,155
943,288
ESSEX X-RAY AND MEDICAL EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 21 -
12
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Other borrowings
14
1,613,717
196,769
Trade creditors
1,032,596
88,186
Amounts owed to group undertakings
160,055
34,478
Corporation tax
138,212
320,049
Other taxation and social security
36,429
99,290
Accruals and deferred income
366,916
374,363
3,347,925
1,113,135
13
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Other borrowings
14
1,308,596
1,514,224
Amounts included above which fall due after five years are as follows:
Payable by instalments
449,212
721,000
14
Loans and overdrafts
2023
2022
£
£
Loans from group undertakings
2,922,313
1,710,993
Payable within one year
1,613,717
196,769
Payable after one year
1,308,596
1,514,224
15
Share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
100 ordinary shares of £1 each
100
100
16
Financial commitments, guarantees and contingent liabilities

The company's bankers have provided a financial guarantee of €80,000 to HM Revenue and Customs. The company has not provided any specific security with respect to this guarantee.

ESSEX X-RAY AND MEDICAL EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 22 -
17
Profit and loss reserves

All profit and loss reserves are distributable.

18
Operating lease commitments

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

2023
2022
£
£
Within one year
16,500
16,500
Between two and five years
33,000
49,500
49,500
66,000
19
Ultimate controlling party

The immediate parent company is HVT Group Inc. and the ultimate undertaking and controlling party is Heico Corporation, both of which are registered in the USA. The only company in which the results of Essex X-Ray and Medical Equipment Limited are consolidated is Heico Corporation. Copies of the consolidated financial statements of Heico Corporation can be obtained from the company secretary at 3000 Taft Street, Hollywood, FL33021.

20
Related party transactions

At the balance sheet date the company owed £160,055 (2022: £34,478) to a fellow subsidiary. At this date the company was also owed £13,611 by this fellow subsidiary and owed £2,561 (2022: £3,839) by the ultimate parent company.

 

In addition, during 2021 the company was loaned £2,100,000 by the ultimate parent company for the purchase of land. This loan is repayable over 10 years and interest is charged at a commercial rate. As at 31 October 2023 £1,510,346 (2022: £1,710,993) was the balance outstanding.

 

During 2023 the company was provided a second loan by the ultimate parent company for the construction of the new building. Up to £10,000,000 can be taken under this loan. This loan is repayable over 15 years and interest is charged at a commercial rate. As at 31 October 2023 £1,411,967 was the balance outstanding.

ESSEX X-RAY AND MEDICAL EQUIPMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 23 -
21
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
2,259,287
1,958,037
Adjustments for:
Taxation charged
472,801
477,342
Finance costs
51,653
44,577
Loss on disposal of tangible fixed assets
15
192
Depreciation and impairment of tangible fixed assets
37,741
47,341
Movements in working capital:
Increase in stocks
(145,249)
(133,934)
Increase in debtors
(374,867)
(86,402)
Increase in creditors
999,679
16,018
Cash generated from operations
3,301,060
2,323,171
22
Analysis of changes in net debt
1 November 2022
Cash flows
Market value movements
31 October 2023
£
£
£
£
Cash at bank and in hand
976,527
(271,197)
-
705,330
Borrowings excluding overdrafts
(1,710,993)
(1,223,287)
11,967
(2,922,313)
(734,466)
(1,494,484)
11,967
(2,216,983)
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