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REGISTERED NUMBER: 03235601 (England and Wales)



















Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 May 2023

for

Surescreen Diagnostics Limited

Surescreen Diagnostics Limited (Registered number: 03235601)






Contents of the Financial Statements
for the Year Ended 31 May 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 5

Profit and Loss Account 8

Balance Sheet 9

Notes to the Financial Statements 10


Surescreen Diagnostics Limited

Company Information
for the Year Ended 31 May 2023







DIRECTORS: D S Campbell
A R Campbell
A J Campbell





REGISTERED OFFICE: 17 Eagle Park
Alfreton Road
Derby
Derbyshire
DE21 4BF





REGISTERED NUMBER: 03235601 (England and Wales)





AUDITORS: Bates Weston Audit Ltd
Statutory Auditors
Chartered Accountants
The Mills
Canal Street
Derby
DE1 2RJ

Surescreen Diagnostics Limited (Registered number: 03235601)

Strategic Report
for the Year Ended 31 May 2023

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

REVIEW OF BUSINESS
The period has seen a significant decrease in demand within the market for Covid-19 related products. As a result, turnover has decreased by £192.3m and profit/(loss) on ordinary activities before taxation was £(19.9)m for the period (2022: £55.1m).

The company had high operating costs for part of the year to maintain capacity in manufacture due to sales expectations from customers, however when these didn't materialise the business started a restructuring process to control costs. The company has systematically been through the business to reduce costs to the correct level required for the business to thrive and grow into the future which will be seen in subsequent periods.

PRINCIPAL RISKS AND UNCERTAINTIES
Significant market shifts have made conditions challenging which has generated losses in 2023 due to the high cost base from building up unprecedented manufacturing capacity, and this has continued into 2024 whilst the business adapted and restructured.

This process has been completed during subsequent periods and sales, budgets and cashflow predictions for 2025 show that the company is back into profitability and can continue to meet any debts as they fall due moving forward. In addition to this, the sale of business assets including properties across the group in line with the restructure, help reduce running costs further across all companies whilst also generating additional funds which can be allocated as required.

Post year end, the company has also undertaken an exercise to write off intercompany balances following this exceptional period, which will reduce debts significantly in Surescreen Diagnostics as well as across the whole group.

SECTION 172(1) STATEMENT
The directors consider, both individually and together, that they have acted in a way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole(having regard to the stakeholders and matters set out in s172(1)(a-f) of the Companies Act 2006) in the decisions taken during the year ended 31 May 2023.

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS
The directors have had regard to the need to foster the company's business relationships with suppliers, customers and others.

KEY PERFORMANCE INDICATORS
Performance is measured on an ongoing basis by KPIs such as turnover, gross margins, overheads, and cash levels.


Surescreen Diagnostics Limited (Registered number: 03235601)

Strategic Report
for the Year Ended 31 May 2023

ENGAGEMENT WITH EMPLOYEES
Within the bounds of confidentiality, staff at all levels are kept fully informed of matters that affect the progress of the company and are of interest to them as employees.

Disabled persons are given full and fair consideration for all types of vacancy. If an existing employee becomes disabled, such steps as are practical and reasonable are taken to retain him/her in employment. Where appropriate, assistance with rehabilitation and suitable training are given. Disabled persons have equal opportunities for training, career development and promotion, except insofar as such opportunities are constrained by the practical limitations of their disability.

ON BEHALF OF THE BOARD:




D S Campbell - Director


18 October 2024

Surescreen Diagnostics Limited (Registered number: 03235601)

Report of the Directors
for the Year Ended 31 May 2023

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

DIVIDENDS
No dividends will be distributed for the year ended 31 May 2023.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 June 2022 to the date of this report.

D S Campbell
A R Campbell
A J Campbell

DISCLOSURE IN THE STRATEGIC REPORT
The matters required to be disclosed under SI (2008) 410 Sch 7 relating to suppliers, customers and others are contained within the Strategic Report as applicable in accordance with s414C(11) of the Companies Act 2006.

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). 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.

ON BEHALF OF THE BOARD:





D S Campbell - Director


18 October 2024

Report of the Independent Auditors to the Members of
Surescreen Diagnostics Limited

Qualified opinion
We have audited the financial statements of Surescreen Diagnostics Limited (the 'company') for the year ended 31 May 2023 which comprise the Profit and Loss Account, Balance Sheet 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, except for the effects of the matter described in the Basis for Qualified Opinion section of our report, the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 May 2023 and of its profits
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 qualified opinion
Tangible fixed assets are carried at a net book value of £9,635,288 on the Balance Sheet. We were unable to obtain sufficient appropriate audit evidence regarding the carrying value of these assets at 31 May 2023 as the directors were unable to provide satisfactory evidence regarding the valuation of some of these assets. Consequently, we were unable to determine whether any adjustments to this amount was necessary.

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 qualified opinion.

Material uncertainty related to going concern
We draw attention to Note 2 in the financial statements, which indicates that the company incurred a net loss of £18,900,904 during the year ended 31 May 2023 and, as of that date, the company's current liabilities exceeded its total assets by £5,671,905. As stated in Note 2, these events or conditions, along with other matters as set forth in Note 2 but specifically the reliance on cash injections from Directors, indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The 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.

Report of the Independent Auditors to the Members of
Surescreen Diagnostics Limited


Opinions on other matters prescribed by the Companies Act 2006
Except for the matter described in the basis for qualified 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 regal requirements.

Matters on which we are required to report by exception
Except for the matter described in the basis for qualified opinion section of our report, 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 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.

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.

Based on our understanding of the company and industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the healthcare industry and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. Audit procedures performed by the engagement team included:

- Enquiry of management around actual and potential litigation and claims;
- Reviewing financial statement disclosures and testing to supporting documentation to assess
compliance with applicable laws and regulations;
- Performing audit work over the risk of management override of controls, including testing of


journal entries and other adjustments for appropriateness, evaluating the business rationale of
significant transactions outside the normal course of business and reviewing accounting estimates for
bias.

Report of the Independent Auditors to the Members of
Surescreen Diagnostics Limited


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

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.




Ian Neal FCA CTA (Senior Statutory Auditor)
for and on behalf of Bates Weston Audit Ltd
Statutory Auditors
Chartered Accountants
The Mills
Canal Street
Derby
DE1 2RJ

18 October 2024

Surescreen Diagnostics Limited (Registered number: 03235601)

Profit and Loss Account
for the Year Ended 31 May 2023

2023 2022
as restated
Notes £    £   

TURNOVER 3,434,579 195,709,083

Cost of sales 4,120,486 114,758,160
GROSS (LOSS)/PROFIT (685,907 ) 80,950,923

Administrative expenses 23,772,447 31,256,356
(24,458,354 ) 49,694,567

Other operating income 4,672,329 5,575,289
OPERATING (LOSS)/PROFIT 4 (19,786,025 ) 55,269,856


Interest payable and similar expenses 6 100,944 136,826
(LOSS)/PROFIT BEFORE TAXATION (19,886,969 ) 55,133,030

Tax on (loss)/profit 7 (986,065 ) 8,463,444
(LOSS)/PROFIT FOR THE FINANCIAL
YEAR

(18,900,904

)

46,669,586

Retained earnings at beginning of year
as previously reported

987,792

962,821

Dividends 8 - (36,000,000 )
Prior year adjustment - corrections of
material errors

9

10,644,615

-

RETAINED EARNINGS AT END OF
YEAR

(7,268,497

)

11,632,407

Surescreen Diagnostics Limited (Registered number: 03235601)

Balance Sheet
31 May 2023

2023 2022
as restated
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 20,946 20,969
Tangible assets 11 9,635,288 22,225,783
Investments 12 2 102
9,656,236 22,246,854

CURRENT ASSETS
Stocks 13 705,503 539,937
Debtors 14 5,679,319 71,809,339
Cash at bank and in hand 1,143,390 10,244,915
7,528,212 82,594,191
CREDITORS
Amounts falling due within one year 15 22,856,353 90,275,467
NET CURRENT LIABILITIES (15,328,141 ) (7,681,276 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

(5,671,905

)

14,565,578

CREDITORS
Amounts falling due after more than one
year

16

(29,628

)

(503,039

)

PROVISIONS FOR LIABILITIES 20 (1,566,864 ) (2,430,032 )
NET (LIABILITIES)/ASSETS (7,268,397 ) 11,632,507

CAPITAL AND RESERVES
Called up share capital 21 100 100
Retained earnings 22 (7,268,497 ) 11,632,407
SHAREHOLDERS' FUNDS (7,268,397 ) 11,632,507

The financial statements were approved by the Board of Directors and authorised for issue on 18 October 2024 and were signed on its behalf by:





D S Campbell - Director


Surescreen Diagnostics Limited (Registered number: 03235601)

Notes to the Financial Statements
for the Year Ended 31 May 2023

1. STATUTORY INFORMATION

Surescreen Diagnostics Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption 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.

Preparation of consolidated financial statements
The financial statements contain information about Surescreen Diagnostics Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Turnover
Turnover represents the value of goods and services, excluding value added tax. Turnover is recognised in the period in which the goods and services were provided.

Intangible assets
Intangible fixed assets are stated at historical cost less accumulated amortisation and impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Amortisation is provided at the following annual rate in order to write off each asset over its estimated useful life :-

Patents- 10% on cost

The assets' residual values, useful lives and amortisation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within 'administrative expenses' in the profit and loss account.

Surescreen Diagnostics Limited (Registered number: 03235601)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2023

2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated impairment loss. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life:

Freehold property-2% straight line on cost
Leasehold-10% on cost
Plant and machinery-Straight line over 2 years and 25% on reducing balance
Fixtures and fittings-25% on reducing balance
Motor vehicles-25% on reducing balance
Computer equipment-25% on reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within 'administrative expenses' in the profit and loss account.

The depreciation policy for some plant and machinery has been changed from 50% straight line to match the assets revised useful life. This has resulted in an increase in assets and liabilities, and decrease in income and expenses for the period of £2,652,694.

Related party exemption
The company is a wholly owned subsidiary undertaking of Surescreen Holdings Limited and therefore Surescreen Holdings (2022) Limited. The company has taken advantage of the exemption contained within Financial Reporting Standard 102 and has therefore not disclosed transactions with entities which form part of the group, other than as normally disclosed in the notes to the financial statements.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. Cost is based on purchase price on a first in first out basis.

Net realisable value is based on the estimated selling price less further costs expected to be incurred to completion and disposal.

At each reporting date, stock is assessed for impairment. If impaired, the carrying amount is reduced and the impairment loss is recognised immediately in the profit and loss account.

Deferred tax
Deferred tax arises from timing differences between taxable total profits 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 different from those in which they are recognised in the financial statements.

A deferred tax asset is recognised only when it is more likely than not that there will be suitable taxable profits from which the future reversal of underlying timing differences and losses can be deducted.

Provision is made at current rates for taxation deferred in respect of all material timing differences.

Surescreen Diagnostics Limited (Registered number: 03235601)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2023

2. ACCOUNTING POLICIES - continued

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates defined contribution plans 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 payments obligations. The contributions are recognised as an expense when they fall 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.

Fixed asset investments
Fixed asset investments are stated at cost less provisions for permanent diminution in valuations. Cost includes attributable expenses associated with the purchase of the investment.

Grants
Revenue grants are recognised in the profit and loss account so as to match them with the expenditure which they are intended to contribute towards. Capital grants are recognised systematically in the profit and loss account over the useful economic life of the asset to which the grant relates.

Judgements in applying accounting policies and key sources of estimation uncertainty
In the application of the company's accounting policies the directors are required to make judgement estimates and assumptions about the carrying amounts of the company's assets and liabilities. These are based on historical experience and other factors that are considered relevant and are reviewed on a regular basis and recognised in the period in which the estimate is revised. Actual results may differ from these estimates.

The following are the critical judgements and where relevant the key sources of estimation uncertainty:

Tangible fixed assets are depreciated over their useful economic lives taking into account their residual values where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing the asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual values consider such things as future market conditions, the remaining life of the asset and projected disposal values.

The intangible fixed assets relate to patents and are amortised over their useful economic life. It is probable that future economic benefits attributable to the asset will flow to the company and this is based on management's assessment of future cost savings.

The carrying value of fixed asset investments is assessed annually and reviewed for any indications of impairment.

The recoverability of debtors is assessed on the likelihood and circumstances of the particular cost.

The value of stock is assessed for impairment. In re-assessing the stock value, factors such as slow movement and obsolescence are taken into account.

Surescreen Diagnostics Limited (Registered number: 03235601)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2023

2. ACCOUNTING POLICIES - continued
Going concern
The financial statements for the year ended 31 May 2023 have been prepared on the going concern basis.

For the year ended 31 May 2023, the company generated a loss of £18,900,904 and as at the balance sheet date, the company's current liabilities exceeded its total assets by £5,671,905. The largest liability is an intercompany loan from the intermediate parent company. The group is seeking legal and tax advice on writing off this intercompany loan of circa £17m to completely rectify the insolvent position of Surescreen Diagnostics Limited.

Short-term funding has been met through generated profits and a tax repayment from previous overpayments, whilst the restructure process has been taking place.

The directors have prepared a cashflow forecast which demonstrates that the group will have sufficient funds to meet its liabilities as they fall due for the twelve months following the date of these financial statements. Sale of assets, including properties, throughout the group will generate additional cash and further reduce running costs throughout the group.

Profits are expected for the 2025 financial year with results to date in line with the budget and forecast. It is acknowledged that it is possible that the sales and expenses assumptions that underpin the budget may not be achieved and the directors have reviewed a downside scenario that assumes a significant reduction in sales volumes and increase in expenditure from budget. In this scenario, the directors would inject funds from the sale of properties as required to fund short-term cash flow issues.

The Directors believe that the company will have adequate resources to continue to operate for the next twelve months and as such, the directors continue to adopt the going concern basis in preparing the financial statements.

3. EMPLOYEES AND DIRECTORS
2023 2022
as restated
£    £   
Wages and salaries 3,573,680 13,009,295
Social security costs 364,912 264,134
Other pension costs 77,332 39,723
4,015,924 13,313,152

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

Directors 3 3
Production staff 70 62
Admin staff 27 25
100 90

2023 2022
as restated
£    £   
Directors' remuneration 81,396 38,641

Surescreen Diagnostics Limited (Registered number: 03235601)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2023

3. EMPLOYEES AND DIRECTORS - continued

Included within wages are agency costs of £128,415 (£10,140,124).

4. OPERATING (LOSS)/PROFIT

The operating loss (2022 - operating profit) is stated after charging/(crediting):

2023 2022
as restated
£    £   
Hire of plant and machinery 155,555 318,503
Depreciation - owned assets 7,960,991 8,173,518
Loss on disposal of fixed assets 99,050 1,589
Patents and licences amortisation 3,322 3,120
Auditors' remuneration 167,120 92,900
Foreign exchange differences (108,839 ) (458,471 )
Auditors remuneration - non audit work 35,977 30,171
Research and development 907,164 6,066,210

5. EXCEPTIONAL ITEMS
2023 2022
as restated
£    £   
Irrecoverable intercompany loan (4,400,731 ) -
Impairment of investment in subsidiary (100 ) -
(4,400,831 ) -

Irrecoverable intercompany loan represents amounts irrecoverable from fellow group companies.

The investment in subsidiary is impaired due to the net liabilities position of the most up to date financial information.

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
as restated
£    £   
Bank interest 7,000 10,317
Interest on taxation 92,561 125,126
Hire purchase 1,383 1,383
100,944 136,826

Surescreen Diagnostics Limited (Registered number: 03235601)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2023

7. TAXATION

Analysis of the tax (credit)/charge
The tax (credit)/charge on the loss for the year was as follows:
2023 2022
as restated
£    £   
Current tax:
UK corporation tax (100,310 ) 6,439,941
Prior year adjustment (22,587 ) -
Total current tax (122,897 ) 6,439,941

Deferred tax (863,168 ) 2,023,503
Tax on (loss)/profit (986,065 ) 8,463,444

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

2023 2022
as restated
£    £   
(Loss)/profit before tax (19,886,969 ) 55,133,030
(Loss)/profit multiplied by the standard rate of corporation tax in the
UK of 20.003% (2022 - 19%)

(3,977,990

)

10,475,276

Effects of:
Income not taxable for tax purposes (929,898 ) (1,057,989 )
Utilisation of tax losses 1,505,484 (1,430,014 )
Other timing differences 2,491,544 1,287,156
R&D (75,205 ) (638,772 )
Group relief - (172,213 )
Total tax (credit)/charge (986,065 ) 8,463,444

8. DIVIDENDS

20232022
as
restated
££
Ordinary shares of £1 each
Interim-36,000,000

Surescreen Diagnostics Limited (Registered number: 03235601)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2023

9. PRIOR YEAR ADJUSTMENT

A prior year material error has been identified in relation to the depreciation charged on certain items of plant and machinery. These assets were provided in the way of capital based grants and therefore the depreciation charged should be matched with the grant income in the profit and loss account. The depreciation charged on these assets was not in line with the grant income recognised.

The additional depreciation has been applied retrospectively and comparative information has been restated accordingly. The effect of the change in 2022 is to decrease reported profits by £1,537,609 and to increase plant and machinery depreciation by £1,537,609.

A further prior year material error has been identified in relation to sales included in the year ended 31 May 2023 whereby the stock was delivered in the year ended 31 May 2022. This has further led to a stock provision at 31 May 2022. This has been adjusted retrospectively and comparative information restated accordingly. The effect of the change in 2022 is to increase reported profits by £12,182,224, increase prepayments and accrued income by £22,327,889, decrease stocks by £9,528,126, decrease deferred tax provisions by £384,402 and increase the tax creditor by £1,001,941.

10. INTANGIBLE FIXED ASSETS
Patents
and
licences
£   
COST
At 1 June 2022 141,642
Additions 3,299
At 31 May 2023 144,941
AMORTISATION
At 1 June 2022 120,673
Amortisation for year 3,322
At 31 May 2023 123,995
NET BOOK VALUE
At 31 May 2023 20,946
At 31 May 2022 20,969

Surescreen Diagnostics Limited (Registered number: 03235601)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2023

11. TANGIBLE FIXED ASSETS
Freehold Plant and
property Leasehold machinery
£    £    £   
COST
At 1 June 2022 709,158 4,548,960 23,151,284
Additions - - 365,929
Disposals - (263,352 ) (127,615 )
Impairments (159,654 ) (3,306,614 ) (425,184 )
At 31 May 2023 549,504 978,994 22,964,414
DEPRECIATION
At 1 June 2022 - 737,691 7,568,364
Charge for year - 504,220 6,810,943
Eliminated on disposal - (262,917 ) (115,028 )
At 31 May 2023 - 978,994 14,264,279
NET BOOK VALUE
At 31 May 2023 549,504 - 8,700,135
At 31 May 2022 709,158 3,811,269 15,582,920

Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 June 2022 3,034,290 257,016 336,491 32,037,199
Additions 952,011 19,299 40,273 1,377,512
Disposals (271,170 ) (59,274 ) (123,904 ) (845,315 )
Impairments (1,954,164 ) (24,850 ) - (5,870,466 )
At 31 May 2023 1,760,967 192,191 252,860 26,698,930
DEPRECIATION
At 1 June 2022 1,240,272 83,001 182,088 9,811,416
Charge for year 565,772 37,206 42,850 7,960,991
Eliminated on disposal (215,358 ) (14,818 ) (100,644 ) (708,765 )
At 31 May 2023 1,590,686 105,389 124,294 17,063,642
NET BOOK VALUE
At 31 May 2023 170,281 86,802 128,566 9,635,288
At 31 May 2022 1,794,018 174,015 154,403 22,225,783

Surescreen Diagnostics Limited (Registered number: 03235601)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2023

12. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
At 1 June 2022 102
Impairments (100 )
At 31 May 2023 2
NET BOOK VALUE
At 31 May 2023 2
At 31 May 2022 102

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Nutrivitality Limited
Registered office: 17 Eagle Park, Alfreton Road, Derby, DE21 4BF
Nature of business: Manufacture of dietic food
%
Class of shares: holding
Ordinary 100.00

Surescreen Life Sciences Limited
Registered office: 17 Eagle Park, Alfreton Road, Derby, DE21 4BF
Nature of business: Dormant company
%
Class of shares: holding
Ordinary 100.00

13. STOCKS
2023 2022
as restated
£    £   
Stocks 705,503 539,937

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
as restated
£    £   
Trade debtors 666,882 46,665,906
Amounts owed by group undertakings - 2,309,963
Other debtors 180,720 102,469
Tax 4,486,275 -
Prepayments and accrued income 345,442 22,731,001
5,679,319 71,809,339

Surescreen Diagnostics Limited (Registered number: 03235601)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2023

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
as restated
£    £   
Bank loans and overdrafts (see note 17) - 173,621
Hire purchase contracts (see note 18) 5,658 24,143
Trade creditors 1,236,056 2,054,792
Amounts owed to group undertakings 17,844,116 56,318,976
Tax - 18,847,324
Social security and other taxes 103,170 5,136,812
Other creditors 34,605 17,801
Owed to related parties 690,000 -
Accrued expenses 284,128 394,523
Deferred government grants 2,658,620 7,307,475
22,856,353 90,275,467

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
as restated
£    £   
Bank loans (see note 17) - 462,500
Hire purchase contracts (see note 18) - 4,985
Deferred government grants 29,628 35,554
29,628 503,039

17. LOANS

An analysis of the maturity of loans is given below:

2023 2022
as restated
£    £   
Amounts falling due within one year or on demand:
Bank loans - 173,621

Amounts falling due between one and two years:
Bank loans - 1-2 years - 150,000

Amounts falling due between two and five years:
Bank loans - 2-5 years - 312,500

Surescreen Diagnostics Limited (Registered number: 03235601)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2023

18. LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

2023 2022
as restated
£    £   
Net obligations repayable:
Within one year 5,658 24,143
Between one and five years - 4,985
5,658 29,128

19. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
as restated
£    £   
Hire purchase contracts 5,658 29,128

Hire purchase balances are secured on the assets to which they relate.

20. PROVISIONS FOR LIABILITIES
2023 2022
as restated
£    £   
Deferred tax 1,566,864 2,430,032

Deferred
tax
£   
Balance at 1 June 2022 2,430,032
Utilised during year (863,168 )
Balance at 31 May 2023 1,566,864

21. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: as
restated
£    £   
100 Ordinary 1 100 100

Surescreen Diagnostics Limited (Registered number: 03235601)

Notes to the Financial Statements - continued
for the Year Ended 31 May 2023

22. RESERVES
Retained
earnings
£   

At 1 June 2022 987,792
Prior year adjustment 10,644,615
11,632,407
Deficit for the year (18,900,904 )
At 31 May 2023 (7,268,497 )

23. RELATED PARTY DISCLOSURES

During the year, the company traded with another company which is an associate of the parent company. At the year end, £29 (2022: £29) is included within trade debtors.

The company also traded with companies which share a common director. At the year end, the amounts owed to these companies is included within the creditors note.

24. ULTIMATE CONTROLLING PARTY

The company's immediate parent undertaking is Surescreen Holdings Limited, and ultimate parent undertaking is Surescreen Holdings (2022) Limited, which prepares group financial statements. The registered office of both Surescreen Holdings Limited and Surescreen Holdings (2022) Limited is 17 Eagle Park, Alfreton Road, Derby, DE21 4BF. Copies of the consolidated financial statements of Surescreen Holdings (2022) Limited are available from the Registrar of Companies, Companies House, Crown Way, Cardiff, CF14 3UZ.