Company registration number 05094520 (England and Wales)
WREN LABORATORIES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
WREN LABORATORIES LIMITED
COMPANY INFORMATION
Directors
F I I Janmohamed
J Janmohamed
F Janmohamed
S Janmohamed
Secretary
D Matcham
Company number
05094520
Registered office
21-22 Mayfield Avenue Industrial Park
Fyfield Road
Weyhill
ANDOVER
Hampshire
SP11 8HU
Auditor
Old Mill Audit Limited
Unit 2
Greenways Business Park
Bellinger Close
CHIPPENHAM
Wiltshire
England
SN15 1BN
WREN LABORATORIES LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 22
WREN LABORATORIES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report for the year ended 31 March 2024.
Principal Activities
Wren Laboratories Limited is engaged in the innovation and distribution of probiotics. The Group specialises entirely in live cultures (“friendly bacteria”) and aims to offer a specific supplement to suit an individual’s needs.
Business Review
For the year ended 31 March 2024, the group's turnover (Medipharma Limited, Wren Laboratories Limited and Medipharma Group Limited) grew by 8%. Strong performance in our digital channels and National accounts contributed to the UK growing by 28%. Profits were reinvested into increasing resource and marketing investment.
The Company made donations totalling £203,038 during the year to the following charities: Aga Khan University Hospital’s Patient Welfare Programme (registered charity 266518), Womankind Worldwide (registered charity 3282060), Gecko Community (registered charity 1195860), Educational Development Projects Trust (registered charity 1129398), Action around Bethlehem Children with Disability (registered charity 1097623), Kids on Track (registered charity 1167022), and Save the Children Emergency Fund (registered charity 50985920) plus sixteen other registered charities.
The Group has confidence of continued success with high quality products in a growing industry.
Key Performance Indicators
The directors consider that the most important Key Performance Indicators (KPI’s) are those that communicate the financial performance and strength of the Company’s trading results in the market, these being Revenue, Gross Profit and Operating Profit.
The Company reports on the twelve months trading to 31 March 2024, which generated a Turnover of £10,247,186 (2023 - £10,709,023), a Gross Profit of 57% (2023 - 59%) and an Operating Profit of £318,943 (2023- £768,605).
The directors and senior management team monitor the Company’s performance through a number of KPI’s on a continual basis to ensure the Company’s revenue, profit, cash flow and balance sheet strength are in line with the targets set at the beginning of the financial year.
The directors and senior management team continually review its costs of goods and overhead expenses to ensure it maintains and, where possible, improves profitability.
Principal Risks & Uncertainties
Wren Laboratories Limited regularly assesses risk using a framework that encompasses a range of risk factors: operational, financial, strategic, environmental, political, social, economic, and technological. The two principal risks are considered to be the loss of key customers and disruption to the supply chain. These risks are mitigated by not having a high concentration of sales with any one customer and by not relying solely on one key supplier.
This report was approved by the board and signed on its behalf.
J Janmohamed
Director
29 October 2024
WREN LABORATORIES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the company continued to be that of engagement in the innovation and distribution of probiotics. The group specialises in live cultures ("friendly bacteria") and aims to offer a specific supplement to suit an individual's needs.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £2,250,000. There was no requirement for a final dividend to be paid.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
F I I Janmohamed
J Janmohamed
F Janmohamed
S Janmohamed
Future developments
The company will continue to look at ways to continue its growth through its development of product and customer relationships.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report 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;
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 of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
WREN LABORATORIES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
J Janmohamed
Director
29 October 2024
WREN LABORATORIES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WREN LABORATORIES LIMITED
- 4 -
Opinion
We have audited the financial statements of Wren Laboratories Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
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.
WREN LABORATORIES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WREN LABORATORIES LIMITED (CONTINUED)
- 5 -
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 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, 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.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
WREN LABORATORIES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WREN LABORATORIES LIMITED (CONTINUED)
- 6 -
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Tim Lerwill BSc BFP FCA
Senior Statutory Auditor
For and on behalf of Old Mill Audit Limited
29 October 2024
Statutory Auditor
Unit 2
Greenways Business Park
Bellinger Close
CHIPPENHAM
Wiltshire
England
SN15 1BN
WREN LABORATORIES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
10,247,185
10,709,022
Cost of sales
(4,358,226)
(4,366,329)
Gross profit
5,888,959
6,342,693
Administrative expenses
(5,570,822)
(5,574,238)
Other operating income
806
150
Operating profit
4
318,943
768,605
Interest receivable and similar income
6
1,627
4,048
Profit before taxation
320,570
772,653
Tax on profit
7
(79,987)
(132,444)
Profit for the financial year
240,583
640,209
The profit and loss account has been prepared on the basis that all operations are continuing operations.
WREN LABORATORIES LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
9
12,978
14,490
Tangible assets
10
151,274
127,404
164,252
141,894
Current assets
Stocks
12
2,752,388
2,592,345
Debtors
13
1,795,749
1,982,571
Cash at bank and in hand
752,629
491,003
5,300,766
5,065,919
Creditors: amounts falling due within one year
14
(4,202,106)
(1,935,829)
Net current assets
1,098,660
3,130,090
Total assets less current liabilities
1,262,912
3,271,984
Provisions for liabilities
Provisions
15
40,000
40,000
Deferred tax liability
16
345
(40,345)
(40,000)
Net assets
1,222,567
3,231,984
Capital and reserves
Called up share capital
18
100
100
Profit and loss reserves
1,222,467
3,231,884
Total equity
1,222,567
3,231,984
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 29 October 2024 and are signed on its behalf by:
J Janmohamed
Director
Company registration number 05094520 (England and Wales)
WREN LABORATORIES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
100
2,591,675
2,591,775
Year ended 31 March 2023:
Profit and total comprehensive income
-
640,209
640,209
Balance at 31 March 2023
100
3,231,884
3,231,984
Year ended 31 March 2024:
Profit and total comprehensive income
-
240,583
240,583
Dividends
8
-
(2,250,000)
(2,250,000)
Balance at 31 March 2024
100
1,222,467
1,222,567
The notes on pages 10 to 22 form part of these financial statements.
WREN LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
1
Accounting policies
Company information
Wren Laboratories Limited is a private company limited by shares incorporated in England and Wales. The registered office is 21-22 Mayfield Avenue Industrial Park, Fyfield Road, Weyhill, ANDOVER, Hampshire, SP11 8HU.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Medipharma Group Ltd. These consolidated financial statements are available from its registered office, Medipharma Group, 21 & 22 Mayfield Avenue Industrial Park, Weyhill, Andover, Hampshire, SP11 7RE.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
WREN LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 11 -
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Trademark
10% straight line
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment
10% straight line
Fixtures and fittings
33% straight line
Computers
33% straight line
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
WREN LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 12 -
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials on a first in, first out basis and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
WREN LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
WREN LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
WREN LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
1.15
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sales of goods
10,247,185
10,709,022
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
5,179,111
6,172,229
Rest of World
5,068,074
4,536,793
10,247,185
10,709,022
2024
2023
£
£
Other revenue
Interest income
1,627
4,048
WREN LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Exchange losses
29,947
4,401
Fees payable to the company's auditor for the audit of the company's financial statements
17,856
17,004
Depreciation of owned tangible fixed assets
28,453
27,139
Loss on disposal of tangible fixed assets
171
1,416
Amortisation of intangible assets
1,512
630
Operating lease charges
29,167
43,750
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Sales and Distribution
82
67
Administration
16
14
Directors
4
4
Total
102
85
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
3,306,017
3,027,114
Social security costs
382,040
369,670
Pension costs
133,266
111,001
3,821,323
3,507,785
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
1,627
4,048
WREN LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
40,988
159,457
Adjustments in respect of prior periods
4,684
433
Total current tax
45,672
159,890
Deferred tax
Origination and reversal of timing differences
34,315
(27,446)
Total tax charge
79,987
132,444
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
320,570
772,653
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
80,143
146,804
Tax effect of expenses that are not deductible in determining taxable profit
751
865
Change in unrecognised deferred tax assets
(5,986)
(6,588)
Adjustments in respect of prior years
4,684
(7,167)
Other differences
(1,470)
Fixed asset differences
395
Taxation charge for the year
79,987
132,444
8
Dividends
2024
2023
£
£
Interim paid
2,250,000
WREN LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
9
Intangible fixed assets
Trademark
£
Cost
At 1 April 2023 and 31 March 2024
15,120
Amortisation and impairment
At 1 April 2023
630
Amortisation charged for the year
1,512
At 31 March 2024
2,142
Carrying amount
At 31 March 2024
12,978
At 31 March 2023
14,490
10
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
162,419
13,308
45,381
8,445
229,553
Additions
49,379
3,465
52,844
Disposals
(6,450)
(8,445)
(14,895)
At 31 March 2024
211,798
6,858
48,846
267,502
Depreciation and impairment
At 1 April 2023
50,756
13,308
30,161
7,924
102,149
Depreciation charged in the year
19,983
8,470
28,453
Eliminated in respect of disposals
(6,450)
(7,924)
(14,374)
At 31 March 2024
70,739
6,858
38,631
116,228
Carrying amount
At 31 March 2024
141,059
10,215
151,274
At 31 March 2023
111,663
15,220
521
127,404
WREN LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
11
Subsidiaries
Details of the company's subsidiaries at 31 March 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Optibac Probiotics (Vietnam) Limited
108/44A1 Tran Quang Dieu Street, Ward 14, District 3, Ho Chi Minh City, Vietnam
Ordinary
100.00
12
Stocks
2024
2023
£
£
Raw materials and consumables
330,777
345,632
Finished goods and goods for resale
2,421,611
2,246,713
2,752,388
2,592,345
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,495,192
1,006,742
Amounts owed by group undertakings
71,116
504,290
Other debtors
62,982
119,130
Prepayments and accrued income
166,459
318,439
1,795,749
1,948,601
Deferred tax asset (note 16)
33,970
1,795,749
1,982,571
14
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
726,405
1,090,138
Amounts owed to group undertakings
2,698,377
36,302
Corporation tax
114,816
159,457
Other taxation and social security
103,349
171,378
Other creditors
72,504
52,366
Accruals and deferred income
486,655
426,188
4,202,106
1,935,829
WREN LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
15
Provisions for liabilities
2024
2023
£
£
Dilapidation provision
40,000
40,000
Movements on provisions:
Dilapidation provision
£
At 1 April 2023 and 31 March 2024
40,000
The dilapidation provision of £40,000 will be released when the lease terminates in November 2029.
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Balances:
£
£
£
£
Short term timing differences
(35,492)
-
-
(29,210)
Fixed asset timing differences
35,837
-
-
63,180
345
-
-
33,970
2024
Movements in the year:
£
Asset at 1 April 2023
(33,970)
Charge to profit or loss
34,315
Liability at 31 March 2024
345
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
WREN LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
133,266
111,001
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
At the year end contributions totalling £24,811 (2023 - £21,596) were payable to the fund and are included in creditors.
18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share of £1 each
100
100
100
100
Ordinary shares are entitled to one vote per share held, are entitled to dividend payments or any other distribution and are entitled to participate in a distribution arising from a winding up of the company.
19
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
29,167
46,378
Between two and five years
29,167
29,167
75,545
WREN LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
20
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
Sales
2024
2023
£
£
Entities with control, joint control or significant influence over the company
1,100
1,320
Other related parties
6,421,179
5,299,744
Services received
Rent paid
2024
2023
2024
2023
£
£
£
£
Entities with control, joint control or significant influence over the company
559,981
657,396
62,000
-
Other related parties
-
26,464
-
-
2024
2023
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
1,961,650
-
Other related parties
736,727
36,302
Balances owed to/from related parties are interest free and repayable on demand.
2024
2023
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
-
382,577
Other related parties
71,116
121,713
Balances owed to/from related parties are interest free and repayable on demand.
21
Ultimate controlling party
Wren Laboratories Limited is controlled by Medipharma Group Ltd, a company registred in England and Wales. The results of Wren Laboratories Limited are included in the consolidated financial statements of Medipharma Group Ltd, which are avaliable from companies house and their registered office: Unit 21-22 Mayfield Avenue Industrial Park, Fyfield Road, Weyhill, Andover, United Kingdom, SP11 8HU.
2024-03-312023-04-01falseCCH SoftwareCCH Accounts Production 2024.210F I I JanmohamedJ JanmohamedF JanmohamedS JanmohamedD Matchamfalsefalse050945202023-04-012024-03-3105094520bus:Director12023-04-012024-03-3105094520bus:Director22023-04-012024-03-3105094520bus:Director32023-04-012024-03-3105094520bus:Director42023-04-012024-03-3105094520bus:CompanySecretary12023-04-012024-03-3105094520bus:RegisteredOffice2023-04-012024-03-31050945202024-03-31050945202022-04-012023-03-3105094520core:RetainedEarningsAccumulatedLosses2022-04-012023-03-3105094520core:RetainedEarningsAccumulatedLosses2023-04-012024-03-3105094520core:OtherResidualIntangibleAssets2024-03-3105094520core:OtherResidualIntangibleAssets2023-03-3105094520core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2024-03-3105094520core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-03-31050945202023-03-3105094520core:PlantMachinery2024-03-3105094520core:FurnitureFittings2024-03-3105094520core:ComputerEquipment2024-03-3105094520core:MotorVehicles2024-03-3105094520core:PlantMachinery2023-03-3105094520core:FurnitureFittings2023-03-3105094520core:ComputerEquipment2023-03-3105094520core:MotorVehicles2023-03-3105094520core:CurrentFinancialInstrumentscore:WithinOneYear2024-03-3105094520core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3105094520core:CurrentFinancialInstruments2024-03-3105094520core:CurrentFinancialInstruments2023-03-3105094520core:ShareCapital2024-03-3105094520core:ShareCapital2023-03-3105094520core:RetainedEarningsAccumulatedLosses2024-03-3105094520core:RetainedEarningsAccumulatedLosses2023-03-3105094520core:ShareCapital2022-03-3105094520core:RetainedEarningsAccumulatedLosses2022-03-3105094520core:IntangibleAssetsOtherThanGoodwill2023-04-012024-03-3105094520core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-04-012024-03-3105094520core:PlantMachinery2023-04-012024-03-3105094520core:FurnitureFittings2023-04-012024-03-3105094520core:ComputerEquipment2023-04-012024-03-3105094520core:MotorVehicles2023-04-012024-03-3105094520core:UKTax2023-04-012024-03-3105094520core:UKTax2022-04-012023-03-310509452012023-04-012024-03-310509452012022-04-012023-03-310509452022023-04-012024-03-310509452022022-04-012023-03-3105094520core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-03-3105094520core:PlantMachinery2023-03-3105094520core:FurnitureFittings2023-03-3105094520core:ComputerEquipment2023-03-3105094520core:MotorVehicles2023-03-31050945202023-03-310509452012023-04-012024-03-3105094520core:WithinOneYear2024-03-3105094520core:WithinOneYear2023-03-3105094520core:BetweenTwoFiveYears2024-03-3105094520core:BetweenTwoFiveYears2023-03-3105094520core:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntitycore:SaleOrPurchaseGoods2023-04-012024-03-3105094520core:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntitycore:SaleOrPurchaseGoods2022-04-012023-03-3105094520core:OtherRelatedPartiescore:SaleOrPurchaseGoods2023-04-012024-03-3105094520core:OtherRelatedPartiescore:SaleOrPurchaseGoods2022-04-012023-03-3105094520core:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntity2024-03-3105094520bus:PrivateLimitedCompanyLtd2023-04-012024-03-3105094520bus:FRS1022023-04-012024-03-3105094520bus:Audited2023-04-012024-03-3105094520bus:FullAccounts2023-04-012024-03-31xbrli:purexbrli:sharesiso4217:GBP