REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 31 May 2023 |
for |
Surescreen Diagnostics Limited |
REGISTERED NUMBER: |
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: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
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: |
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. |
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: |
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. |
for and on behalf of |
Statutory Auditors |
Chartered Accountants |
The Mills |
Canal Street |
Derby |
DE1 2RJ |
Surescreen Diagnostics Limited (Registered number: 03235601) |
Profit and Loss Account |
for the Year Ended 31 May 2023 |
2023 | 2022 |
as | restated |
Notes | £ | £ |
TURNOVER |
Cost of sales |
GROSS (LOSS)/PROFIT | ( |
) |
Administrative expenses |
(24,458,354 | ) | 49,694,567 |
Other operating income |
OPERATING (LOSS)/PROFIT | 4 | ( |
) |
Interest payable and similar expenses | 6 |
(LOSS)/PROFIT BEFORE TAXATION | ( |
) |
Tax on (loss)/profit | 7 | ( |
) |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
Retained earnings at beginning of year as previously reported |
987,792 |
962,821 |
Dividends | 8 | ( |
) |
Prior year adjustment - corrections of material errors |
9 |
10,644,615 |
- |
RETAINED EARNINGS AT END OF YEAR |
( |
) |
Surescreen Diagnostics Limited (Registered number: 03235601) |
Balance Sheet |
31 May 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
( |
) |
CREDITORS |
Amounts falling due after more than one year |
16 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 20 | ( |
) | ( |
) |
NET (LIABILITIES)/ASSETS | ( |
) |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings | 22 | ( |
) | 11,632,407 |
SHAREHOLDERS' FUNDS | ( |
) |
The financial statements were approved by the Board of Directors and authorised for issue on |
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 |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 |
Social security costs |
Other pension costs |
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 |
2023 | 2022 |
as | restated |
£ | £ |
Directors' remuneration |
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 |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Patents and licences amortisation |
Auditors' remuneration |
Foreign exchange differences | ( |
) | ( |
) |
Auditors remuneration - non audit work |
Research and development |
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 |
Interest on taxation |
Hire purchase |
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 | ( |
) |
Prior year adjustment | (22,587 | ) | - |
Total current tax | ( |
) |
Deferred tax | ( |
) |
Tax on (loss)/profit | ( |
) |
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 | ( |
) |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Income not taxable for tax purposes | ( |
) | ( |
) |
Utilisation of tax losses | ( |
) |
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 |
2023 | 2022 |
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 |
Additions |
At 31 May 2023 |
AMORTISATION |
At 1 June 2022 |
Amortisation for year |
At 31 May 2023 |
NET BOOK VALUE |
At 31 May 2023 |
At 31 May 2022 |
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 |
Additions |
Disposals | ( |
) | ( |
) |
Impairments | (159,654 | ) | (3,306,614 | ) | (425,184 | ) |
At 31 May 2023 |
DEPRECIATION |
At 1 June 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 May 2023 |
NET BOOK VALUE |
At 31 May 2023 |
At 31 May 2022 |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 June 2022 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) | ( |
) |
Impairments | (1,954,164 | ) | (24,850 | ) | - | (5,870,466 | ) |
At 31 May 2023 |
DEPRECIATION |
At 1 June 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) | ( |
) |
At 31 May 2023 |
NET BOOK VALUE |
At 31 May 2023 |
At 31 May 2022 |
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 |
Impairments | ( |
) |
At 31 May 2023 |
NET BOOK VALUE |
At 31 May 2023 |
At 31 May 2022 |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Registered office: 17 Eagle Park, Alfreton Road, Derby, DE21 4BF |
Nature of business: |
% |
Class of shares: | holding |
Registered office: 17 Eagle Park, Alfreton Road, Derby, DE21 4BF |
Nature of business: |
% |
Class of shares: | holding |
13. | STOCKS |
2023 | 2022 |
as | restated |
£ | £ |
Stocks |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
as | restated |
£ | £ |
Trade debtors |
Amounts owed by group undertakings | - | 2,309,963 |
Other debtors |
Tax |
Prepayments and accrued income |
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) |
Hire purchase contracts (see note 18) |
Trade creditors |
Amounts owed to group undertakings | 17,844,116 | 56,318,976 |
Tax |
Social security and other taxes |
Other creditors |
Owed to related parties | 690,000 | - |
Accrued expenses |
Deferred government grants |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
as | restated |
£ | £ |
Bank loans (see note 17) |
Hire purchase contracts (see note 18) |
Deferred government grants |
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 |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
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 |
Between one and five years |
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 |
Utilised during year | ( |
) |
Balance at 31 May 2023 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | as restated |
£ | £ |
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 |
Prior year adjustment |
Deficit for the year | ( |
) |
At 31 May 2023 | ( |
) |
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. |