Applied Photophysics Limited
Financial Statements
For the year ended 30 June 2023
Pages for Filing with Registrar
Company Registration No. 1006739 (England and Wales)
Applied Photophysics Limited
Company Information
Directors
D E M Berglund
D Gregson
C O'Bric
G A Ronan
P I Walker
T Flanagan
M Neglia
Ms Charlotte O'Bric
Secretary
I S Wint
Company number
1006739
Registered office
21 Mole Business Park
Leatherhead
Surrey
United Kingdom
KT22 7BA
Auditor
Moore Kingston Smith LLP
6th Floor
9 Appold Street
London
EC2A 2AP
Applied Photophysics Limited
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 14
Applied Photophysics Limited
Balance Sheet
As at 30 June 2023
Page 1
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
64,357
68,238
Investments
4
161
161
64,518
68,399
Current assets
Stock
1,144,150
1,102,075
Debtors
5
2,783,441
6,819,022
Cash at bank and in hand
38,079
95,629
3,965,670
8,016,726
Creditors: amounts falling due within one year
6
(1,716,399)
(1,101,538)
Net current assets
2,249,271
6,915,188
Total assets less current liabilities
2,313,789
6,983,587
Creditors: amounts falling due after more than one year
7
(2,800,711)
(2,843,553)
Provisions for liabilities
8
49,114
(40,886)
Net (liabilities)/assets
(437,808)
4,099,148
Capital and reserves
Called up share capital
10
439,906
439,906
Share premium account
11
267,049
267,049
Capital redemption reserve
12
61,664
61,664
Profit and loss reserves
(1,206,427)
3,330,529
Total equity
(437,808)
4,099,148
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
Applied Photophysics Limited
Balance Sheet (Continued)
As at 30 June 2023
Page 2
The financial statements were approved by the board of directors and authorised for issue on 10 September 2024 and are signed on its behalf by:
C O'Bric
Director
Company Registration No. 1006739
Applied Photophysics Limited
Notes to the Financial Statements
For the year ended 30 June 2023
Page 3
1
Accounting policies
Company information
Applied Photophysics Limited is a private company limited by shares incorporated in England and Wales. The registered office is 21 Mole Business Park, Leatherhead, Surrey, United Kingdom, KT22 7BA.
1.1
Accounting convention
These financial statements have been prepared in accordance with Section 1A of 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 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 the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The directors remain very confident that the business is and will continue to be a going concern. After several difficult years of trading the company saw revenue increase by 31% versus prior year mainly driven by strong sales in China and sales of the new SUPR-DSF product. The company is still experiencing the impact of an extended timeline of the sales process due to limitations on customer site visits. Investrop UK Limited has provided a letter of support confirming that it will support the company in meeting its financial obligations as they become due, if necessary, for a period of at least 12 months from the date the audit report is signed.true
The company expects to build on these improved sales in the new financial year and finished the year with a £1.2M order book. The company has invested in growing sales and marketing activities to support the revenue growth and continues to develop new products to secure its long-term future. The company has continued to benefit from the cash inflow of R&D tax credit claims and has also been supported by its ultimate parent company as and when required.
The global supply chain issues affecting electronic components remains a concern for the company with long lead times from suppliers for some components. The company took the necessary steps to secure supply of critical components both for its own manufacturing and for some suppliers. This helped avoid any significant issues on meeting sales demand during the year although has resulted in higher than normal inventory levels.
The financial year 2024 went well, boosted by the strong brought forward order book and improved sales in several regions. The company also expects increased sales of the new SUPR-DSF product. With the level of funding being made available to the Life Sciences sector and specifically academic and research institutions, we expect an increase in sales during the coming months.
Applied Photophysics Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
1
Accounting policies
(Continued)
Page 4
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
The term of the lease
Plant and equipment
3 - 5 years straight line
Fixtures and fittings
5 years straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Stock
Stock 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 stock to their present location and condition.
Stock 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 stock 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.
1.6
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Applied Photophysics Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
1
Accounting policies
(Continued)
Page 5
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
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.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Applied Photophysics Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
1
Accounting policies
(Continued)
Page 6
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.
1.10
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that 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 reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.11
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.
Applied Photophysics Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
1
Accounting policies
(Continued)
Page 7
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.
The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.
The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.
Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.
The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.
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
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
36
35
Applied Photophysics Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
Page 8
3
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 July 2022
176,402
1,078,275
180,523
1,435,200
Additions
22,585
9,454
143
32,182
At 30 June 2023
198,987
1,087,729
180,666
1,467,382
Depreciation and impairment
At 1 July 2022
169,762
1,019,983
177,217
1,366,962
Depreciation charged in the year
3,395
31,872
796
36,063
At 30 June 2023
173,157
1,051,855
178,013
1,403,025
Carrying amount
At 30 June 2023
25,830
35,874
2,653
64,357
At 30 June 2022
6,640
58,292
3,306
68,238
4
Fixed asset investments
2023
2022
£
£
Investments
161
161
Investments comprise the company's holdings in subsidiaries.
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
197,149
79,398
Amounts owed by group undertakings
2,346,005
6,478,201
Other debtors
70,217
130,414
Prepayments and accrued income
170,070
131,009
2,783,441
6,819,022
Applied Photophysics Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
Page 9
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
329,454
210,231
Amounts owed to group undertakings
629,340
260,977
Other creditors
246,212
155,612
Accruals and deferred income
511,393
474,718
1,716,399
1,101,538
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
2,800,711
2,843,553
Two of the long-term loans are secured by fixed and floating charges over the assets of the company.
Amounts included above which fall due after five years are as follows:
Payable by instalments
-
208,299
8
Provisions for liabilities
2023
2022
£
£
Dilapidation and warranty provision
155,000
155,000
Deferred tax (asset) / liability
10,386
10,386
Retirement benefit obligations
9
(214,500)
(124,500)
(49,114)
40,886
9
Pension commitments
Applied Photophysics Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
9
Pension commitments
(Continued)
Page 10
The Company operates a Defined Benefit Pension Scheme which was established under an irrevocable Deed of Trust. The Deed determines the appointment of trustees to the fund. The trustees of the fund are required to act in the best interest of the beneficiaries. The assets of the fund are held separately from those of the Company in independently administered funds.
The scheme is closed to new members and to future accrual. Pension benefits depend upon age, length of service and salary level at 28 February 2000 when the scheme was paid up.
The full actuarial valuation of the defined benefit scheme was carried out at 30 June 2022 by a qualified independent actuary. The Company is committed to making contributions to the scheme to make good any deficit, based on actuarial advice. Given the current surplus, contributions have been suspended for the current financial year.
There were no changes to the scheme during the period and no amounts owing to the scheme at the period end.
Applied Photophysics Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
9
Pension commitments
(Continued)
Page 11
Reconciliation of present value of plan liabilities:
2023
2022
£
£
At the beginning of the year/period
(2,978,000)
(4,055,000)
Interest cost
(111,000)
(76,000)
Actuarial (losses)/gains
354,000
1,028,000
Benefits paid
112,000
125,000
At the end of the year/period
(2,623,000)
(2,978,000)
Reconciliation of fair value of plan assets:
2023
2022
£
£
At the beginning of the year/period
3,144,000
3,321,000
Interest income on plan assets
117,000
63,000
Actuarial gains
(240,000)
(210,000)
Contributions by company
-
95,000
Benefits paid
(112,000)
(125,000)
At the end of the year/period
2,909,000
3,144,000
Composition of plan assets:
2023
2022
£
£
Equities
275,000
1,160,000
Bonds
1,328,000
840,000
Property
81,000
527,000
Cash/Other
1,225,000
617,000
Total plan assets
2,909,000
3,144,000
Applied Photophysics Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
9
Pension commitments
(Continued)
Page 12
2023
2022
£
£
Fair value of plan assets
2,909,000
3,144,000
Present value of plan liabilities
(2,623,000)
(2,978,000)
Deferred taxation
(71,500)
(41,500)
Net pension scheme (surplus) / liability after deferred taxation
(214,500)
(124,500)
The amounts recognised in profit or loss are as follows:
2023
2022
£
£
Interest on obligation
(111,000)
(76,000)
Interest income on plan assets
117,000
63,000
Total
6,000
13,000
Analysis of actuarial gain/(loss) recognised in other comperhensive income:
2023
2022
£
£
Actuarial gain on scheme assets
(240,000)
(210,000)
Experience (gains)/losses arising on the scheme liabilities
145,000
14,000
Changes in assumptions underlying the present value of the scheme
liabilities
(499,000)
(1,042,000)
Net pension scheme liability after deferred taxation
594,000
1,238,000
Applied Photophysics Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
9
Pension commitments
(Continued)
Page 13
Principal actuarial assumptions used at the balance sheet date:
2023
2022
Discount rate
1.90%
1.45%
Revaluation in deferment
2.60%
2.05%
Pre 88 GMP
3.00%
3.00%
Post 88 GMP
3.00%
3.00%
Pre 97 excess
3.00%
3.00%
Post 97 pension
3.20%
2.95%
Mortality assumption
100% S3PA,
105% S3PA,
CMI_2018
CMI_2018
[1.5% / 1.00%]
[1.00%]
Life expectancy:
- for a male aged 65 now
24.5
22.4
- at 65 for a male aged 45 now
22.8
21.3
- for a female aged 65 now
25.9
24.9
-at 65 for a female member aged 45 now
24.8
23.7
Three employees of the Company were members of the defined benefit scheme.
10
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 10p each
4,399,060
4,399,060
439,906
439,906
11
Share premium account
The share premium account relates to amounts paid for share capital in excess of nominal value.
12
Capital redemption reserve
The capital redemption reserve relates to amounts paid for the buyback of the company's own shares.
13
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.
Applied Photophysics Limited
Notes to the Financial Statements (Continued)
For the year ended 30 June 2023
13
Audit report information
(Continued)
Page 14
Senior Statutory Auditor:
Matthew Meadows
Statutory Auditor:
Moore Kingston Smith LLP
14
Related party transactions
The following amounts were outstanding at the reporting end date: At the balance sheet date, the company was owed £129,673 (2022 - £129,673) by its immediate parent company APL Holdings Limited. This loan is interest free and repayable on demand.
At the balance sheet date the company was owed £393,432 (2022 - £140,357) by Applied Photophysics Inc. a direct subsidiary of the company. This is included in debtors due within one year.
During the year the company made short term loan advances of £15,820 (2022 - £436,677) to Protein Stable Limited. The company holds 80% of the share capital in Protein Stable Limited. At the balance sheet date, the company was owed £1,822,980 (2022 - £1,807,160) by Protein stable Limited. This balance is included with in debtors due within one year.
During the year, the company repaid £92,828 of loans from shareholders (2022 - £nil). During the year, the company received additional loans of £nil (2022 - £nil) from shareholders. At the balance sheet the company owed £1,103,083 (2022 - £1,145,925) to shareholders. Of this balance £978,370 bears interest at 8%. Interest of £64,846 (2022 - £40,969) was incurred during the year. The remaining loans are interest free.
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