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Registered number: 02833761










NEW ENGLAND BIOLABS (UK) LIMITED










FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2023



 
NEW ENGLAND BIOLABS (UK) LIMITED
 
 
 
COMPANY INFORMATION


 
Directors
B T Tinger 
C J Keating 
S V Russello (appointed 21 October 2022)
J Ellard (resigned 21 October 2022)




Registered number
02833761



Registered office
75-77 Knowl Piece
Wilbury Way

Hitchin

Hertfordshire

SG4 0TY




Independent auditors
Ashleys (Hitchin) Limited
Chartered Certified Accountants & Statutory Auditors

Invision House

Wilbury Way

Hitchin

Herts

SG4 0TY





 
NEW ENGLAND BIOLABS (UK) LIMITED
 
 
 
CONTENTS



Page
Strategic report
 
1 - 4
Directors' report
 
5 - 7
Independent auditors' report
 
8 - 11
Statement of profit or loss and other comprehensive income
 
12
Statement of financial position
 
13 - 14
Statement of changes in equity
 
15
Statement of cash flows
 
16
Notes to the financial statements
 
17 - 37
 
 

 
NEW ENGLAND BIOLABS (UK) LIMITED
 
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023

Introduction
 
New England Biolabs UK Ltd (the Company) Directors present their strategic report for the financial year 2022/23
The Company is a wholly owned subsidiary of New England Biolabs Inc.
Details of the financial standing of the Company can be found on pages 12-13 of the annual report financial statement
The principal activities of the Company are the supply of molecular biology reagents to the academic, pharmaceutical and biotech research market, as well as supplying customised products for the molecular diagnostic and biological therapeutic manufacturing markets.

Business review
 
The profit and loss account for the financial year 2022/23 is shown on page 12 of this Annual Report and Financial Statement. As of September 30th, 2023, the Company turnover decreased from £52m in 2021/22 to £35m driven by sales of customised solutions products reducing by 54% as a result of more reserved demand relative to the surge in sales experienced due to the COVID-19 pandemic.  Catalogue products fell by 12% due to similar market conditions post COVID. During the financial year, foreign exchange movements alongside a strategic increase in inventory investment resulted in reduced profits. The Company continues to present a resilient balance sheet with £17m cash on hand and net assets of £16m. The Company is committed to investing in training and upskilling of existing and new staff members to increase team capabilities, strengthen business resilience and cross skilling. 

Key performance indicators
 
Staff Numbers 2023 = 40 (37 in 2022)
Sales revenue per staff members = £875,311 (2022 £1,403,461)
Carbon emissions value of 2.9 tCO2e per employee (not measured in 2022)
Revenue sources (£M) for 12 months ending 30 September 2023:
Revenue Source           2022 2023 % Change
Catalogue Sales           25.9 22.8 -12%
Customised Solutions 26.0 12.2 -53%
Revenue Source           2022 2023 % Change
Domestic Sales           37.8 24.7 -35%
Export Sales                    14.1 10.3 -27%
Despite the drop in sales revenue in the financial year highlighted in the table above, the underlying position of the Company within the life science market is strong when compared to the pre-COVID 2019 sales.  The decline in COVID-19 related sales, while expected, was not as severe as potentially forecast and the Company remains a key supplier in the research and development market at an academic and industrial level.  The Company’s customised solutions team now have access to a larger number of molecular diagnostic development organisations than pre-COVID-19, allowing confidence in strong sales growth in this sector.

Page 1

 
NEW ENGLAND BIOLABS (UK) LIMITED
 
 
 
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023

Principal risks and uncertainties
 
The Company, in line with others in the UK, is subject to several risks and uncertainties and the board continuously monitors and evaluates these and looks to mitigate the effects of any risks.  These risks include the general financial health of the UK economy which could adversely affect government funded research and development in the academic sector.  These same risks to the health of the UK and European economies could also affect the amount of venture capital money invested in the biotech and diagnostic sector. There are also risks associated with the general life science market consolidation of competitors and the setting up of new competitor companies.  Operational risks also exist including Cybercrime and retention of staff and recruitment of new staff.
Currency fluctuations remain the largest financial risk with sterling performing poorly against the US Dollar along with current volatility in this market.  Cash flow and cash reserves remain strong, and the Company does not have borrowings, so interest rate risks do not feature.  The Company maintains an organized approach to aged debt, and we do not expect exposure to large-scale bad debt or difficulties in maintaining cashflow
Despite the risks facing the Company, management believes they have procedures in place to mitigate these risks and are well placed for future challenges.

Page 2

 
NEW ENGLAND BIOLABS (UK) LIMITED
 
 
 
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023

Directors' statement of compliance with duty to promote the success of the Company  - Companies Act 2006 s172
 
Stakeholder Groups:
Employees
Our employees remain a vital stakeholder group for the Company, as an organization we value the longevity and commitment of our staff.  Even with the substantial additional recruitment the Company has made of the past couple of years our average staff tenure remains over 9 years.  This is a testament to the recruitment and retention policies we have in place for staff along with an indication that staff value the culture within the organization. Over the past year the Company has increased training opportunities for all staff as well as offering staff the opportunity to take paid leave to volunteer within our communities.  The Company has also launched a number of additional employment benefits and set up charity, DEI and sustainability working parties to further engage and empower staff in these important areas.  The Company is in the process of achieving Hertfordshire Healthy Workplace accreditation.  This accreditation will confirm our focus on staff well-being and provide us with additional tools to support our workforce’s physical and mental wellbeing.  The Company operates a hybrid working policy for many of its office-based staff that allow many staff to work three days in the office and two from home, reducing commuting and its traffic and environmental impact along with giving some staff a more family friendly work life balance.  
Suppliers
The Company maintains a commitment to long-term relationships with our trusted supplier partners.  We will further enhance these relationships with new supplier engagement and evaluation schemes over the coming year.  Partnership with suppliers is important to the Company as we produce our carbon Netzero plans and commitments.  We also value the drive and innovation of our long-term supplier base.
Customers
Our customers remain at the core of everything that we do as an organization.  Our aim is to develop and nurture a long-term partnership with our customers.  The deepening of this relationship extends beyond the provision of products to an overall alignment to our customer community and sustainability goals, and becoming a trusted partner in their scientific and commercial journey.
Corporate Social Responsibility and Sustainability
New England Biolabs as a global organisation will be 50 years old in 2024.  The company is still motivated by a set of core, foundational values that are as true today as they were when the company was founded by Don Comb back in 1974:
-  Science should be used to expand our understanding of the world around us
-  Scientists can also act as humanitarians
-  All species, great and small, benefit when we care for the environment
- Great science is fundamentally creative and artistic, and changes the way we see and experience the               world
While passion for science helps us to drive discovery, we continue to be guided by our responsibility to each other and our community, both locally and globally, to work towards a more just world. As such, our offices in the US and around the world are committed to the same core values and sustainability practices.  The UK subsidiary office mirrors this corporate ethos both locally and nationally.
Environment
The Company has operated for 30 years with sustainability and the environment at the heart of all that we do.  We aim for product and operational excellence while minimizing the effect of our business on our environment.  This year the Company has continued the process of comprehensive carbon accounting which will allow us to understand where we can work to minimize our carbon spend.  The company has published a detailed report on our carbon audit which will be available via our website.  This report will allow our NetZero plan and commitment to be based around a sound understanding of how we can affect our carbon usage, allowing us to develop science-based targets for carbon reduction.  We have also expanded our NEBees™ programme in partnership
Page 3

 
NEW ENGLAND BIOLABS (UK) LIMITED
 
 
 
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023

with The Honeybee Man Ltd and sponsored the setting up of three new honeybee colonies in an apiary in Weston, Hertfordshire. Along with this sustainable beekeeping company, we will help to drive an increase in the UK honeybee population.  The Company has continued to maintain an active polystyrene packaging reuse and recycle programme to ensure any polystyrene packaging used can be reused or recycled.  We also invest in continued packaging development with the aim of reducing the impact of our business on the environment.  We have also set up a staff salary sacrifice scheme to encourage the leasing of electric vehicles or bikes to reduce the impact of staff commuting.
Community
We as a company value the community we operate in, both locally and nationally. Charitable contributions are now directed by a very active and dedicated staff working group guided by our overall company values.  Staff are now encouraged to take a day’s voluntary work as paid leave from the company.
Human Rights, Modern Slavery, Anti-corruption and Anti-bribery policies
The Company is committed to ensuring that there is no modern slavery or human trafficking in it's supply chain or in any part of it's business. This statement reflects our commitment to acting ethically and with integrity in all our business relationships and implementing and enforcing effective systems and controls to ensure slavery and human trafficking is not taking place anywhere in the Company's supply chain. The Company has various relevant policies, including it's Corporate and Social Responsibility Policy, Anti-bribery and Anti-corruption Policy and Equal Opportunities Policy, which set forth the Company's expectations regarding ethical and responsible business conduct including standards relating to fair treatment and diversity, protections for ensuring a humane workplace and prohibitions against the use of child and trafficked labour. In accordance with the Company's Whistleblowing Policy, employees are required to promptly report  any known or suspected violation of any of these policies or other illegal or unethical behaviour or business practice.


This report was approved by the board on 17 October 2024 and signed on its behalf.



S V Russello
Director

Page 4

 
NEW ENGLAND BIOLABS (UK) LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023

The directors present their report and the financial statements for the year ended 30 September 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, Directors' report and the financial statements, in accordance with applicable law.

Company law requires the directors to prepare financial statements for each financial year. Under that law they have elected to prepare the financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the UK.

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 the financial statements, the directors are required to:

select suitable accounting policies and then apply them consistently;

make judgments and estimates that are reasonable and prudent;

state whether they have been prepared in accordance with IFRS as adopted by the UK, subject to any material departures disclosed and explained in the financial statements;

assess the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and

use the going concern basis of accounting unless they either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

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 responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Company and to prevent and detect fraud and other irregularities.

Principal activity

The principal activity of the Company during the year under review was that of selling and marketing biotechnological products.

Results and dividends

The profit for the year, after taxation, amounted to £986,546 (2022 - £1,959,554).

The directors do not recommend the payment of a dividend.

Directors

The directors who served during the year were:

B T Tinger 
C J Keating 
S V Russello (appointed 21 October 2022)
J Ellard (resigned 21 October 2022)

Page 5

 
NEW ENGLAND BIOLABS (UK) LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
Charitable contributions

The Company made charitable donations of £1,105 during the year ended September 2023.  Donations were made in line with company ethos.

Future developments

The Directors aim is to continue to drive growth in the UK Life Sciences market in line with global group policies.  The Company has robust forecast calculations in place and confidently expect to meet those forecast targets.  The Company will continue to train and develop its staff and has an opportunity to hire additional staff members where required.  We expect to increase headcount in customer facing sales and marketing roles in the next financial year.  Following the successful implementation of our new ERP system and subsequent improvements to our CRM and web presence we will focus on utilization of these new systems to deliver an even more efficient and customer focused business model.

Financial instruments

In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through use of overdrafts at floating rates of interest.  Trade debtors are managed in respect of credit and cashflow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.  Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. 

Greenhouse gas emissions, energy consumption and energy efficiency action

The Company's greenhouse gas emissions and energy consumption for the year are:
      kWh  Tonnes 
CO2e
Scope 1 Gas and other fuels                          0           0           
Scope 2 Grid supplied electricity           165,587  0                                   
Total      165.587   0                                                                                
CO
2e/£M Turnover                                                            0                                                    
All electricity consumed by the Company is from a 100% green carbon free tariff. Transmission costs included in Scope 3 emissions are not reported here. Our full carbon accounting report is available on our website.

Reporting methodology
CO
2e was calculated using reporting tools developed by NetZero International Standards

Energy efficiency action
The Company is committed to measure and improve it's energy usage efficiencies in line with reducing carbon usage by 50% by 2030 and be carbon net zero by 2050.  To this end a comprehensive monitoring programme and carbon reduction action plan has been set in place with an engaged employee committee dedicated to driving best practice.  

Statement of corporate governance arrangements

The Board is clear that good corporate governance and effective communication are essential on a day-to-day basis to deliver the Company’s purpose and to protect the Company’s brand, reputation and relationships with all stakeholders, including the Company’s shareholder, clients, employees, suppliers, the environment and the local communities within which the Company conducts business. The Board ensures there are channels to receive appropriate feedback from discussions with all stakeholders and has clearly outlined in its terms of reference that its purpose is to generate value for its shareholder and to ensure the sound and prudent management of the firm, with due regard for the interests of the Company´s other stakeholders.

Page 6

 
NEW ENGLAND BIOLABS (UK) LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post year end events

There have been no significant events affecting the Company since the year end.

Auditors

The directors have chosen not to reappoint Ashleys (Hitchin) Limited as auditors for the next financial period.  

This report was approved by the board on 17 October 2024 and signed on its behalf.
 



S V Russello
Director
Page 7

 
NEW ENGLAND BIOLABS (UK) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEW ENGLAND BIOLABS (UK) LIMITED
 

Opinion


We have audited the financial statements of New England Biolabs (UK) Limited for the year ended 30 September 2023 which comprise the Statement of profit or loss and other comprehensive incomethe Statement of financial position, the Statement of cash flows, the Statement of cash flowsthe Statement of changes in equity and the related notes, including a summary of significant accounting policies set out on pages 17 - 19. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom.

In our opinion the financial statements:

give a true and fair view of the state of the Company's affairs as at 30 September 2023 and of its profit for the year then ended;

have been properly prepared in accordance with IFRSs as adopted by the United Kingdom; and

have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our evaluation of the directors' assessment of the Company's ability to continue to adopt the going concern basis of accounting included:
 - understanding the relevant controls relating to the assessment of the appropriateness of the going concern assumptions;
 - analysing the current financing facilities including the nature of the facilities, maturity of credit facilities and covenants;
 - considering the linkage of management's forecasts to business model and medium term risks
 - challenging the appropriateness of the assumptions used in the forecasts (including the related risks where relevant);
 - assessing the level of headroom in the forecasts
 - evaluating the integrity of the model used to prepare the forecasts, which includes testing the clerical accuracy of those forecasts and our assessment of the historical accuracy of forecasts prepared by management.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
However, as we cannot predict all future events or conditions and as subsequent events may result in outcomes that are inconsistent with judgements that were reasonable at the time they were made, the above conclusions are not a guarantee that the Company will continue in operation.

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

Page 8

 
NEW ENGLAND BIOLABS (UK) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEW ENGLAND BIOLABS (UK) LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual report, other than the financial statements and our auditors' report thereon.  The directors are responsible for the other information contained within the Annual reportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 

We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006


In our opinion, based on the work undertaken in the course of the audit: 

the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.

We have nothing to report in respect of the following matters in relation to which 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 directors' responsibilities statement on page 5, 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 is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the 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.
 

Page 9

 
NEW ENGLAND BIOLABS (UK) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEW ENGLAND BIOLABS (UK) LIMITED (CONTINUED)


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 an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
 - Enquiries with management and those charged with governance, including consideration of known or       suspected instances of non compliance with laws and regulation and fraud;
 - Enquiries with management and those charged with governance around actual and potential litigation and claims;
 - Evaluation of management controls designed to prevent and detect irregularities;
 - Performing audit work over the risk of management override of controls, completeness of related party transactions, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias:
 - Identifying and testing journal entries, in particular journal entries posted with unusual account combinations which result in an impact to revenue;
 - Reviewing minutes of meetings of those charged with governance;
 - Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

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 auditors' report.

Use of our report

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.

Page 10

 
NEW ENGLAND BIOLABS (UK) LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEW ENGLAND BIOLABS (UK) LIMITED (CONTINUED)





 
 
Martin Van Beek (Senior statutory auditor)
  
for and on behalf of
Ashleys (Hitchin) Limited
 
Chartered Certified Accountants
Statutory Auditors
  
Invision House
Wilbury Way
Hitchin
Herts
SG4 0TY

18 October 2024
Page 11

 
NEW ENGLAND BIOLABS (UK) LIMITED
 
 
 
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023


2023
2022
Note
£
£

  

Revenue
 6 
35,012,434
51,928,257

Cost of sales
  
(28,749,834)
(44,736,259)

Gross profit
  
6,262,600
7,191,998

  

Other operating income
 7 
10,802
42,644

Administrative expenses
  
(5,481,175)
(5,113,479)

Profit from operations
  
792,227
2,121,163

  

Finance income
 11 
525,141
80,840

Finance expense
 11 
-
(243)

Profit before tax
  
1,317,368
2,201,760

  

Tax expense
 12 
(330,822)
(242,205)

Profit for the year
  
986,546
1,959,555


Total comprehensive income
  
986,546
1,959,555

The notes on pages 17 to 37 form part of these financial statements.

Page 12

 
NEW ENGLAND BIOLABS (UK) LIMITED
REGISTERED NUMBER: 02833761
 
 
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 30 SEPTEMBER 2023



2023
2022
Note
£
£

Assets

Non-current assets
  

Property, plant and equipment
 13 
1,753,607
1,833,191

  
1,753,607
1,833,191

Current assets
  

Inventories
 14 
2,448,750
1,582,683

Trade and other receivables
 15 
3,751,031
3,261,416

Cash and cash equivalents
 23 
17,049,702
12,392,538

  
23,249,483
17,236,637

  

Total assets

  

25,003,090
19,069,828

Liabilities

Non-current liabilities
  

Deferred tax liability
 12 
76,394
67,872

  
76,394
67,872

Current liabilities
  

Bank overdraft
 23 
93,950
-

Trade and other liabilities
 16 
8,619,255
3,775,012

  
8,713,205
3,775,012

  

Total liabilities
  
8,789,599
3,842,884

  

Net assets
  
16,213,491
15,226,944


Issued capital and reserves
  

Share capital
 18 
500,000
500,000

Retained earnings
  
15,713,491
14,726,944

TOTAL EQUITY
  
16,213,491
15,226,944



 
Page 13

 
NEW ENGLAND BIOLABS (UK) LIMITED
REGISTERED NUMBER: 02833761
 
 
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 30 SEPTEMBER 2023


The financial statements on page 37 were approved and authorised for issue by the board of directors on 17 October 2024 and were signed on its behalf by:






S V Russello
Director

The notes on pages 17 to 37 form part of these financial statements.

Page 14

 
NEW ENGLAND BIOLABS (UK) LIMITED

 
 
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023



Share capital
Retained earnings
Total equity


£
£
£

At 1 October 2021
500,000
12,767,390
13,267,390

Comprehensive income for the year


Profit for the year
-
1,959,555
1,959,555

Total comprehensive income for the year
-
1,959,555
1,959,555

Contributions by and distributions to owners




At 30 September 2022
500,000
14,726,945
15,226,945

At 1 October 2022
500,000
14,726,945
15,226,945

Comprehensive income for the year


Profit for the year
-
986,546
986,546

Total comprehensive income for the year
-
986,546
986,546

Contributions by and distributions to owners




At 30 September 2023
500,000
15,713,491
16,213,491

The notes on pages 17 to 37 form part of these financial statements.

Page 15

 
NEW ENGLAND BIOLABS (UK) LIMITED

 
 
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2023


2023
2022
Note
£
£

Cash flows from operating activities
  

Profit from operations
  
792,227
2,121,163

Depreciation
  
170,918
152,676

Loss on sale of tangible fixed assets
  
15,654
21,736

(Increase)/ decrease in inventories
  
(866,067)
828,384

(Increase)/ decrease in trade and other receivables
  
(646,473)
4,109,432

(Increase) in prepayments
  
(47,604)
(14,806)

Increase/ (decrease) in trade and other payables
  
4,514,089
(519,638)

Increase/ (decrease) in accruals
  
118,734
(499,513)

(Decrease) in tax payable
  
93,585
(417,138)

Cash generated from operations
  
4,145,063
5,782,296

  

Interest paid
  
-
(243)

Net cash from operating activities
  
4,145,063
5,782,053

Cash flows from investing activities
  

Interest received
  
525,141
80,840

Payments for property, plant and equipment
  
(106,990)
(483,270)

Net cash from/(used in) investing activities
  
418,151
(402,430)

Cash flows from financing activities
  

Net cash from financing activities
  
-
-

Net increase in cash and cash equivalents
  
4,563,214
5,379,623

Cash and cash equivalents at the beginning of the year
  
12,392,538
7,012,915

Cash and cash equivalents at the end of the year
 23 
16,955,752
12,392,538

The notes on pages 17 to 37 form part of these financial statements.

Page 16

 
NEW ENGLAND BIOLABS (UK) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

1.Accounting policies

 
1.1

Revenue

Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The Company recognises revenue when it transfers control over a product or service to a customer.

The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Company does not adjust any of the transaction prices for the time value of money.


Sale of goods

Revenue from the sale of goods is recognised on the satisfaction of performance obligations, such as the transfer of a promised good, identified in the contract between the Company and the customer.

A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.


1.2

Leases

The Company has applied IFRS 16 short-term lease recognition exemption to those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option.  It also applies the low-value assets recognition exemption.  Lease payments on short term leases and low value assets are recognised as an expenses on a straight line basis over the lease term.  


1.3

Employee benefits


(i)

Retirement benefit costs

Payments to defined contribution retirement benefit plans are recognised as an expense when employees have rendered service entitling them to the contributions.


(ii)

Short-term employee benefits

A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave and sick leave in the period the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that service.

 
1.4

Taxation

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


(i) Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax’ as reported in the Statement of profit or loss and other comprehensive income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company's current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Page 17

 
NEW ENGLAND BIOLABS (UK) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

1.Accounting policies (continued)


1.4
Taxation (continued)


(ii) Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.



The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

 
1.5

Property, plant and equipment

Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss. Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.

Land is not depreciated. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Company will obtain ownership by the end of the lease term. Depreciation is provided on all other items of property, plant and equipment so as to write off their carrying value over their expected useful economic lives. It is provided at the following rates:

Freehold property
2% straight line
Building improvements
10% straight line
Machinery and equipment
15% straight line
Office equipment
15% straight line
IT hardware
33% straight line
Right of use assets - motor vehicles
over the lease term, 36 months



Page 18

 
NEW ENGLAND BIOLABS (UK) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

1.Accounting policies (continued)

 
1.6

Inventories

Inventories are stated at the lower of cost and net realisable value. Costs of inventories are determined on a weighted average basis. Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale.
Historically inventory has been valued on a first in first out basis.  During the year the Company migrated the accounts function to SAP  and changed to a moving average valuation method to be consistent with the method of inventory valuation applied by it's parent company, NEB Inc.  The impact of the change in systems and valuation method was to increase  the value of inventory by £72,739 at the date of transfer.


1.7

Cash and cash equivalents

Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. 


1.8

Foreign currency

Foreign currency transactions are translated at rates of exchange in effect at the dates of the transaction.  Resulting foreign currency denominated monetary assets and liabilities are translated at the rates of exchange in effect at the balance sheet date.  Gains and losses on foreign exchange are recognised in the income statement.

 
1.9

Financial instruments

Financial assets and financial liabilities are recognised when an entity becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.
Impairment provisions for current and non-current trade receivables are recognised based on the simplified approach within IFRS 9 using a provision matrix in the determination of the lifetime expected credit losses. During this process the probability of the non-payment of the trade receivables is assessed. This probability is then multiplied by the amount of the expected loss arising from default to determine the lifetime expected credit loss for the trade receivables. For trade receivables, which are reported net, such provisions are recorded in a separate provision account with the loss being recognised in profit or loss. On confirmation that the trade receivable will not be collectable, the gross carrying value of the asset is written off against the associated provision.


2.


Reporting entity

New England Biolabs (UK) Limited (the 'Company') is a private company, limited by shares and  incorporated in England. The Company's Registered office is at 75-77 Knowl Piece, Wilbury Way, Hitchin, Hertfordshire SG4 0TY. The Company's principal activity is selling and marketing biotechnological products.

Page 19

 
NEW ENGLAND BIOLABS (UK) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

3.


Basis of preparation

The financial statements have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations as adopted by the UK (collectively IFRSs). They were authorised for issue by the Company's board of directors on 17 October 2024.

Details of the Company's accounting policies, including changes during the year, are included in note 1.

In preparing these financial statements, management has made judgments, estimates and assumptions that affect the application of the Company accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.

The areas where judgments and estimates have been made in preparing the financial statements and their effects are disclosed in note 5.


3.1 Basis of measurement

The financial statements have been prepared on the historical cost basis except for financial instruments which are fair valued through the profit and loss account.

3.2 New standards, interpretations and amendments not yet effective

Certain amendments to accounting standards have been published that are not mandatory for 30 September 2023 reporting periods and have not been early adopted by the Company.  These amendments are not expected to have a material impact on the entity in the current or future reporting periods.


4.


Functional and presentation currency

These financial statements are presented in pound sterling, which is the Company's functional currency. All amounts have been rounded to the nearest pound, unless otherwise indicated.

Page 20

 
NEW ENGLAND BIOLABS (UK) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

5.


Accounting estimates and judgments


5.1 Estimates and assumptions

Provision for impairment of inventories

Inventories are stated at the lower of cost and net realisable value. Costs of inventories are determined on a first in, first out basis. Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale.

Estimation of useful lives of assets

The Company has a policy of capitalising assets over £1,000.
Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses.  If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss. Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.
Depreciation is provided on all capitalised assets excluding land so as to write off their carrying value over their expected useful economic lives.

Trade and other receivables and contract assets

The Company makes use of a simplified approach in accounting for trade and other receivables as well as contract assets and records the loss allowance as lifetime expected credit losses. These are the expected shortfalls in contractual cash flows, considering the potential for default at any point during the life of the financial instrument. In calculating, the Company uses its historical experience, external indicators and forward-looking information to calculate the expected credit losses using a provision matrix.  The Company assesses impairment of trade receivables on a collective basis as they possess shared credit risk characteristics they have been grouped based on the days past due.

Contingent Assets and Liabilities

Provisions for product warranties, legal disputes, onerous contracts or other claims are recognised when the Company has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of economic resources will be required from the Company and amounts can be estimated reliably. The timing or amount of the outflow may still be uncertain.  Restructuring provisions are recognised only if a detailed formal plan for the restructuring exists and management has either communicated the plan’s main features to those affected or started implementation. Provisions are not recognised for future operating losses.  Provisions are measured at the estimated expenditure required to settle the present obligation, based on the most reliable evidence available at the reporting date, including the risks and uncertainties associated with the present obligation. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. Provisions are discounted to their present values, where the time value of money is material.  Any reimbursement that the Company is virtually certain to collect from a third party with respect to the obligation is recognised as a separate asset. However, this asset may not exceed the amount of the related provision.

Page 21

 
NEW ENGLAND BIOLABS (UK) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

6.


Revenue


The following is an analysis of the Company's revenue for the year from continuing operations:


2023
2022
£
£


Sale of goods
35,012,434
51,928,257

35,012,434
51,928,257


Analysis of revenue by country of destination:

2023
2022
£
£


United Kingdom
24,669,476
37,832,898

Rest of Europe
8,761,094
11,058,842

Rest of the world
1,581,864
3,036,517

35,012,434
51,928,257


7.


Other operating income

2023
2022
£
£


Other operating income
10,802
42,644

10,802
42,644


8.


Expenses by nature

2023
2022
£
£


Depreciation of property, plant and equipment
170,918
152,676

Foreign exchange loss/gains
(374,689)
2,132,248

Operation lease expenses - plant and equipment
4,782
5,932

Operation lease expenses - motor vehicles
97
9,478

Page 22

 
NEW ENGLAND BIOLABS (UK) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

9.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors and their associates:


2023
2022
£
£

Fees payable to the 's auditors and their associates for the audit of the Company's financial statements
58,000
17,000

Fees payable to the 's auditors and their associates in respect of:

All non-audit services not included above
71,103
15,360

Page 23

 
NEW ENGLAND BIOLABS (UK) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

10.


Employee benefit expenses

2023
2022
£
£

Employee benefit expenses (including directors) comprise:

Wages and salaries
2,493,590
2,872,870

National insurance
295,742
365,180

Defined contribution pension cost
228,018
207,797

3,017,350
3,445,847

Key management personnel compensation

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company, including the directors of the Company and the UK general manager of the Company.


2023
2022
£
£


Salary
177,154
189,989

Defined contribution scheme costs
17,422
15,986

194,576
205,975

The monthly average number of persons, including the directors, employed by the Company during the year was as follows:


2023
2022
No.
No.

Management
1
1

Administration
39
36

40
37

Page 24

 
NEW ENGLAND BIOLABS (UK) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

11.


Finance income and expense

Recognised in profit or loss


2023
2022
£
£
Finance income

Interest on:
- Bank deposits
518,030
80,840


Other interest receivable
7,111
-

Total finance income
525,141
80,840

Other interest payable
-
243

Total finance expense
-
243


Net finance income recognised in profit or loss
525,141
80,597

Page 25

 
NEW ENGLAND BIOLABS (UK) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

12.


Tax expense

12.1 Income tax recognised in profit or loss



2023
2022
£
£

Current tax

Current tax on profits for the year
322,260
211,194

Adjustments in respect of prior years
40
-

Total current tax
322,300
211,194


Deferred tax expense

Origination and reversal of timing differences
8,522
31,011

Total deferred tax
8,522
31,011


330,822
242,205

The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax in the United Kingdom applied to profits for the year are as follows:


2023
2022
£
£


Profit for the year
986,546
1,959,554

Income tax expense (including income tax on associate, joint venture and discontinued operations)
330,822
242,205

Profit before income taxes
1,317,368
2,201,759


Tax using the Company's domestic tax rate of 22% (2022:19%)
289,821
418,334

Expenses not deductible for tax purposes, other than goodwill, amortisation and impairment
11,426
4,327

Capital allowances for the year in excess of depreciation
21,013
(42,168)

Adjustments to tax charge in respect of prior periods
40
-

Increase or decrease in pension fund prepayment leading to an increase/(decrease) in tax
-
(8,835)

Short-term timing difference leading to an increase/(decrease) in taxation
8,522
31,011

Group relief
-
(160,464)

Total tax expense
330,822
242,205

A hybrid tax rate is applicable as the rate of corporation tax increased from 19% to 25% half way through the financial year.

Page 26

 
NEW ENGLAND BIOLABS (UK) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

12.Tax expense (continued)

12.2 Deferred tax balances

The following is the analysis of deferred tax assets/(liabilities) presented in the statement of financial position:


2023
2022
£
£


Deferred tax liabilities
(76,394)
(67,872)

(76,394)
(67,872)




Opening balance
Recognised in profit or loss
Closing balance
        £
        £
        £
2023
Property, plant and equipment

(67,872)

(8,522)

(76,394)



(67,872)


(8,522)


(76,394)





Opening balance
Recognised in profit or loss
Closing balance
        £
        £
        £
2022
Property, plant and equipment

(36,862)

(31,010)

(67,872)



(36,862)


(31,010)


(67,872)


Page 27

 


 
NEW ENGLAND BIOLABS (UK) LIMITED


 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

13.


Property, plant and equipment





Freehold land
Freehold property
Building improvements
Machinery and equipment
Office equipment
IT hardware
Right of use assets - leased motor vehicles
Total

£
£
£
£
£
£
£
£



Cost or valuation










At 1 October 2021
-
1,756,258
52,620
252,045
77,688
123,588
-
2,262,199


Additions
-
-
225,517
65,954
46,798
32,787
112,214
483,270


Disposals
-
-
-
(10,425)
(43,835)
(20,427)
(8,909)
(83,596)


Transfers between classes
113,406
(214,584)
101,178
-
-
-
-
-



At 30 September 2022
113,406
1,541,674
379,315
307,574
80,651
135,948
103,305
2,661,873


Additions
-
-
33,815
2,662
-
22,445
48,068
106,990


Disposals
-
-
-
(155,849)
(14,736)
(93,511)
(1,580)
(265,676)



At 30 September 2023
113,406
1,541,674
413,130
154,387
65,915
64,882
149,793
2,503,187

Page 28

 


 
NEW ENGLAND BIOLABS (UK) LIMITED


 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

13.Property, plant and equipment (continued)


Freehold land
Freehold property
Building improvements
Machinery and equipment
Office equipment
IT hardware
Right of use assets - leased motor vehicles
Total

£
£
£
£
£
£
£
£



Accumulated depreciation and impairment










At 1 October 2021
-
421,405
17,692
160,159
43,141
95,470
-
737,867


Charge owned for the year
-
30,833
25,993
29,625
15,563
20,712
-
122,726


Charged financed for the year
-
-
-
-
-
-
29,950
29,950


Disposals
-
-
-
(8,291)
(36,179)
(17,390)
-
(61,860)


Transfers between classes
-
(5,784)
5,784
-
-
-
-
-



At 30 September 2022
-
446,454
49,469
181,493
22,525
98,792
29,950
828,683


Charge owned for the year
-
30,833
40,757
24,992
10,440
22,163
-
129,185


Charged financed for the year
-
-
-
-
-
-
41,733
41,733


Disposals
-
-
-
(147,145)
(10,082)
(91,215)
(1,580)
(250,022)



At 30 September 2023
-
477,287
90,226
59,340
22,883
29,740
70,103
749,579



Net book value


At 1 October 2021
-
1,334,853
34,928
91,886
34,547
28,118
-
1,524,332


At 30 September 2022
113,406
1,095,220
329,846
126,081
58,126
37,156
73,355
1,833,190


At 30 September 2023
113,406
1,064,387
322,904
95,047
43,032
35,142
79,690
1,753,608

Page 29

 
NEW ENGLAND BIOLABS (UK) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

13.Property, plant and equipment (continued)



13.1 Assets pledged as security

Barclays Bank plc holds a legal charge over the freehold property known as 75/77 Knowl Piece, Wilbury Way, Hitchin, Herts owned by the company and included within freehold property above dated 29 September 2005.  Barclays Bank plc also holds a charge date February 2020 over the accounts of the Company containing fixed  and floating charges and a negative pledge.  


14.


Inventories

2023
2022
£
£



Goods in transit
236,783
267

Finished goods and goods for resale
2,211,967
1,582,416

2,448,750
1,582,683

Inventories recognised as an expense within cost of sales amount to £29,125,042 (2022: £41,073,810).


15.


Trade and other receivables


2023
2022
£
£


Trade receivables
3,297,451
2,730,402

Receivables from related parties
1,241
45,188

Prepayments and accrued income
404,642
252,767

Other receivables
47,695
233,061

Total trade and other receivables

3,751,029
3,261,418

Page 30

 
NEW ENGLAND BIOLABS (UK) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

16.


Trade and other payables


2023
2022
£
£


Trade payables
78,022
79,108

Payables to related parties
6,713,278
2,112,890

Other payables
22,180
9,293

Accruals
1,028,503
909,769

Other payables - tax and social security payments
651,949
420,607

Payments on account
125,323
243,341

Total trade and other payables

8,619,255
3,775,008

Barclays Bank plc holds fixed and floating charges and a negative pledge over assets of the company in a charge dated February 2020. 


17.


Loans and borrowings

2023
2022
£
£

Non-current

Current

Overdrafts
93,950
-

Total loans and borrowings
93,950
-

18.


Share capital

Authorised

2023
2023
2022
2022
Number
£
Number
£

Shares treated as equity
Ordinary shares of £1.00 each

500,000

500,000

500,000
 
500,000
 
500,000

500,000

500,000
 
500,000
 

Page 31

 
NEW ENGLAND BIOLABS (UK) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

18.Share capital (continued)

Issued and fully paid


2023
2023
2022
2022
Number
£
Number
£

Ordinary shares of £1.00 each

At 1 October and 30 September
500,000

500,000

500,000
 
500,000
 



There is a single class of Ordinary shares which hold full voting rights. There are no restrictions on the distribution of dividends and the repayment of capital.


19.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets measured at fair value through profit or loss
17,049,702
12,392,538

Financial assets that are debt instruments measured at amortised cost
3,297,451
2,730,402

20,347,153
15,122,940

2023
2022
£
£

Financial liabilities


Financial liabilities measured at amortised cost
(7,841,983)
(3,111,060)

(7,841,983)
(3,111,060)

Financial assets measured at fair value through profit or loss comprise cash at bank and in hand.
Financial assets that are debt instruments measured at amortised cost comprise trade debtors.
Financial liabilities at amortised cost comprise trade creditors, amounts owed to group undertakings, other creditors and accruals.



 

Page 32

 
NEW ENGLAND BIOLABS (UK) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023



(i) Leases as a lessee






Lease liabilities are due as follows:

2023
2022
£
£


Not later than one year
5,658
5,896

Between one year and five years
3,170
5,770

Later than five years
635
5,397

9,463
17,063




20.


Defined contribution schemes


(i) Defined contribution scheme characteristics

The company operates a defined contributions pension scheme.  The assets of the scheme are held separately from those of the company in an independently administered fund.  The pension cost charge represents contributions payable by the company to the fund and amounted to £228,018 (2022 - £207,797).


21.


Financial instruments - fair values and risk management


21.1 Financial risk management objectives

The Company's activities expose it to a variety of financial risks: market risk (including foreign currency risk and price risk), credit risk and liquidity risk. The Company's overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the Company. The Company uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate, foreign exchange and ageing analysis for credit risk. 

Page 33

 
NEW ENGLAND BIOLABS (UK) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

21.Financial instruments - fair values and risk management (continued)


21.2 Foreign currency risk management

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters utilising forward foreign exchange contracts.

The carrying amounts of the Company's foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as follows:


Assets
2023
2022
£
£

US Dollar
983,354
189,793

Euro
1,586,169
184,577

2,569,523
374,370


21.3 Other price risks

The Company is not exposed to any significant price risk.

Page 34

 
NEW ENGLAND BIOLABS (UK) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

21.Financial instruments - fair values and risk management (continued)


21.4 Credit risk management

Credit risk analysis
 
Credit risk is the risk that a counterparty fails to discharge an obligation to the Company. The Company is exposed to credit risk from financial assets including cash and cash equivalents held at banks, trade and other receivables. 
Credit risk management 
The credit risk is managed on a group basis based on the Company’s credit risk management policies and procedures. The credit risk in respect of cash balances held with banks and deposits with banks are managed via diversification of bank deposits, and are only with major reputable financial institutions. 
The Company continuously monitors the credit quality of customers based on a credit rating scorecard. Where available, external credit ratings and/or reports on customers are obtained and used. The Company’s policy is to deal only with credit worthy counterparties. The credit terms range between 30 and 90 days. The credit terms for customers as negotiated with customers are subject to an internal approval process which considers the credit rating scorecard. The ongoing credit risk is managed through regular review of ageing analysis, together with credit limits per customer. 
Trade receivables consist of a large number of customers in various industries and geographical areas. The Company does not hold any security on any trade receivables balance at each annual reporting date. In addition, the Company does not hold any collateral relating to other financial assets (e.g. derivative assets, cash and cash equivalents held with banks) at each annual reporting date. 
Trade receivables 
The Company applies the IFRS 9 simplified model of recognising lifetime expected credit losses for all trade receivables as these items do not have a significant financing component. In measuring the expected credit losses, the trade receivables have been assessed on a collective basis as they possess shared credit risk characteristics. They have been grouped based on the days past due.
The expected loss rates are based on the payment profile for sales over the past 24 months before 30 September 2023 and 30 September 2022 respectively as well as the corresponding historical credit losses during that period. The historical rates are adjusted to reflect current and forwarding looking macroeconomic factors affecting the customer’s ability to settle the amount outstanding. Trade receivables are written off (i.e. derecognised) when there is no reasonable expectation of recovery. Failure to make payments within 180 days from the invoice date and failure to engage with the Company on alternative payment arrangement amongst other is considered indicators of no reasonable expectation of recovery
Based on these parameters the expected credit loss at 30 September 2023 was £nil (2022 : £nil).
 

Page 35

 
NEW ENGLAND BIOLABS (UK) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

22.


Related party transactions

Details of transactions between the Company and its related parties are disclosed below.

22.1 Trading transactions


During the year, the Company entered into the following trading transactions with related parties:



Sales of goods
Purchases of goods
2023
2022
2023
2022
£
£
£
£


New England Biolabs Inc - parent undertaking - purchase of stock
-
-
(29,125,042)
(41,073,810)

New England Biolabs Inc - parent undertaking - SAP implementation costs
-
-
(1,071,748)
(549,869)

New England Biolabs GmbH - fellow subsidiary - sale of goods
-
39,134
-
-

New England Biolabs Lyophilization Sciences Ltd - fellow subsidiary - sale of goods
5,663
29,873
-
-

New England Biolabs Lyophilization Sciences Ltd - fellow subsidiary - recharge of expenses
10,874
42,644
-
-

New England Biolabs GmbH - fellow subsidiary - purchase of goods
-
-
(30,910)
(6,404)

16,537
111,651
(30,227,700)
(41,630,083)

The following balances were outstanding at the end of the reporting period:



Amounts owed by related parties
Amounts owed to related parties
2023
2022
2023
2022
£
£
£
£


New England Biolabs Inc
-
-
(6,684,150)
(2,112,890)

New England Biolabs GmbH
-
-
(29,128)
-

New England Biolabs Lyophilization Sciences Ltd
1,241
45,188
-
-

1,241
45,188
(6,713,278)
(2,112,890)

No expense has been recognised in the current or prior years for bad or doubtful debts in respect of the amounts owed by related parties. No guarantees have been given or received.

Page 36

 
NEW ENGLAND BIOLABS (UK) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023

23.

Notes supporting statement of cash flows

2023
2022
£
£


Cash at bank available on demand
2,569,524
378,153

Short-term deposits
14,479,936
12,014,142

Cash on hand
242
243

Cash and cash equivalents in the statement of financial position

17,049,702
12,392,538


Bank overdrafts used for cash management purposes
(93,950)
-

Cash and cash equivalents in the statement of cash flows
16,955,752
12,392,538

Short term deposits include a £100,000 held in a bond account in favour of HM Revenue and Customs.


24.


Capital management

The Company is not subject to any externally imposed capital requirements.


25.

Events after the reporting date

Raw materials and energy prices have been impacted by world events. Whilst supply and operations remain largely unaffected, the directors are closely monitoring developments and their potential impacts.


26.


Ultimate parent company

The immediate and ultimate parent company and controlling party is New England Biolabs Inc. for which Group financial statements are prepared. The Company is incorporated and registered in the United States of America. Copies of the consolidated Group financial statements are available from New England Biolabs Inc, 240 County Road, Ipswich, MA 01938, United States.

Page 37