Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2023
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QUEST DIAGNOSTICS INTERNATIONAL HOLDINGS LIMITED
COMPANY INFORMATION
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QUEST DIAGNOSTICS INTERNATIONAL HOLDINGS LIMITED
CONTENTS
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QUEST DIAGNOSTICS INTERNATIONAL HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The directors present the Annual Report (comprising the Strategic Report and the Directors' Report) of Quest Diagnostics International Holdings Limited ("the company") for the year ended 31 December 2023.
The company acts as a holding company for a group of investments in the UK and overseas, and its income derives from dividends and distributions from the investee companies.
During the year investment income of $Nil (2022 - $Nil) was received and the company incurred a nominal level of administrative expenses. Following a review of the investment valuation by the directors, no impairment charge was recognised during the year (2022 - $3,799,946). Dividends of $Nil (2022 - $Nil) were paid during the year to the parent undertaking.
The principal risks and uncertainties are in respect of the valuation of the investments which are held by the company.
To mitigate the risks, the directors regularly monitor the business activities of the subsidiaries and their trading performance against budget to identify issues in the performance of the subsidiaries and hence potential impairments. The directors have considered the relevant business and financial risks and the ability of the company to continue in operational existence for the foreseeable future. The Ukraine war and other geopolitical events, increase in inflation and interest rates has created significant operational and financial pressures on the global economy and for companies in general. The directors have considered the impact of the Ukraine war and other geopolitical events, increase in inflation and interest rates on the company and having reviewed updated cashflow forecasts and the plans in place consider the adoption of the going concern basis in preparing these financial statements appropriate.
Given the straightforward nature of the company's business, the directors are of the opinion that analysis using KPI's is not necessary for an understanding of the development, performance or position of the business.
This report was approved by the board and signed on its behalf.
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QUEST DIAGNOSTICS INTERNATIONAL HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The directors present their report and the financial statements for the year ended 31 December 2023.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements of the company, the directors are required to:
∙select suitable accounting policies for the company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and to 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.
The profit for the year, after taxation, amounted to $322,480 (2022 - loss $3,454,004).
During the year dividends of $Nil (2022 - $Nil) were paid.
The directors who served during the year were:
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QUEST DIAGNOSTICS INTERNATIONAL HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
The directors' assessment of the principal risks, uncertainties and financial key performance indicators is set out in the Stretegic Report.
Under section 487(2) of the Companies Act 2006, Rawlinson & Hunter Audit LLP will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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QUEST DIAGNOSTICS INTERNATIONAL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF QUEST DIAGNOSTICS INTERNATIONAL HOLDINGS LIMITED
We have audited the financial statements of Quest Diagnostics International Holdings Limited ("the company") for the year ended 31 December 2023, which comprise the Profit and Loss Account, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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 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.
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.
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QUEST DIAGNOSTICS INTERNATIONAL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF QUEST DIAGNOSTICS INTERNATIONAL HOLDINGS LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report and Financial Statements other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the Annual Report and Financial Statements. 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.
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.
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.
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QUEST DIAGNOSTICS INTERNATIONAL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF QUEST DIAGNOSTICS INTERNATIONAL HOLDINGS LIMITED (CONTINUED)
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.
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.
Our assessment for the susceptibility of the entity's financial statements to material misstatement, include how fraud might occur, is considered to be low. This conclusion was reached after the consideration of the following:
∙due to the relatively simple business model and relatively low volume of transactions within the company there are comparatively few unexpected fluctuations in the reported results and balances and any such unexpected items would be specifically enquired into by us; and
∙there are a number of individuals which comprise “management” and therefore there is no single individual who is likely to be able to override controls to effect a fraud.
We designed our audit procedures to respond to identified audit risks, including non-compliance with laws and regulations (irregularities) that are material to the financial statements. Some of the specific procedures performed to detect irregularities, including fraud, are detailed below:
∙the review of control accounts and journal entries for large, unusual or unauthorised entries;
∙the analytical review of the detailed profit and loss account for variances that are either unexpected or considered not to be in accordance with our understanding of the business during the year;
∙obtaining and reviewing for completeness a list of entities and persons considered to be related parties (as defined by Financial Reporting Standard 102) and reviewing the ledgers of the company for previously unreported related party transactions;
∙the review of transactions and journals for any indication of fraud or management override and bias; and
∙assessing the appropriateness of use of the going concern basis with reference to the company’s current performance and expectations for future periods.
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 Auditor's Report.
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QUEST DIAGNOSTICS INTERNATIONAL HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF QUEST DIAGNOSTICS INTERNATIONAL HOLDINGS LIMITED (CONTINUED)
This report is made solely to the company's directors, 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 directors 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 directors, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditor
Eighth Floor
6 New Street Square
New Fetter Lane
EC4A 3AQ
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QUEST DIAGNOSTICS INTERNATIONAL HOLDINGS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
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QUEST DIAGNOSTICS INTERNATIONAL HOLDINGS LIMITED
REGISTERED NUMBER: 11119933
BALANCE SHEET
AS AT 31 DECEMBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 11 to 23 form part of these financial statements.
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QUEST DIAGNOSTICS INTERNATIONAL HOLDINGS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
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QUEST DIAGNOSTICS INTERNATIONAL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Quest Diagnostics International Holdings Limited ("the company") is a private company incorporated and registered in England and Wales. The address of the registered office is Keystone Law, 1st Floor, 48 Chancery Lane, London, WC2A 1JF.
The company is, indirectly, a wholly owned subsidiary of Quest Diagnostics Incorporated ("QDI"), which is incorporated in the United States of America. The company is consolidated within the consolidated financial statements of QDI. As a result, the company is taking advantage of the exemption conferred by Section 401 of the Companies Act 2006 and therefore the directors present the financial statements of the company as a stand-alone entity rather than the results for the group which the company heads.
2.Summary of significant accounting policies
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all periods presented unless otherwise stated.
The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' ("FRS 102") and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (Note 3).
The directors have considered the relevant business and financial risks and the ability of the company to continue in operational existence for the foreseeable future. The Ukraine war and other geopolitical events, and increase in inflation and interest rates has created significant operational and financial pressures on the global economy and for companies in general. The directors have considered the impact of the Ukraine war and other geopolitical events, increase in inflation and interest rates on the company and having reviewed updated cashflow forecasts and the plans in place consider the adoption of the going concern basis in preparing these financial statements is appropriate.
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QUEST DIAGNOSTICS INTERNATIONAL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Summary of significant accounting policies (continued)
The company, being a subsidiary undertaking controlled within the group whose consolidated financial statements are publicly available, is exempt from the requirement to draw up a cash flow statement in accordance with FRS 102.
Functional and presentation currency
Transactions and balances
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QUEST DIAGNOSTICS INTERNATIONAL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Summary of significant accounting policies (continued)
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QUEST DIAGNOSTICS INTERNATIONAL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Summary of significant accounting policies (continued)
Financial liabilities and equity are classified according to the substance of the financial instrument's contractual obligations, rather than the financial instrument's legal form.
Financial liabilities are initially classified as financial liabilities at fair value through profit or loss, loans and borrowings, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.
The company determines the classification of its financial liabilities at initial recognition. All financial liabilities are recognised initially at fair value and in the case of loans and borrowings, plus directly attributable transaction costs. Subsequently, the measurement of financial liabilities depends on their classification as follows: After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method. Gains and losses arising on the repurchase, settlement or otherwise cancellation of liabilities are recognised respectively in finance revenue and finance cost. Where an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such as an exchange or modification, this is treated as a derecognition of the original liability, such that the difference in the respective carrying amounts together with any costs or fees incurred are recognised in profit or loss.
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QUEST DIAGNOSTICS INTERNATIONAL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Summary of significant accounting policies (continued)
Impairment of fixed asset investments The company makes an estimate of the recoverable value of fixed asset investments. When assessing impairment of investments, management considers factors including the expected future performance of the investment, expected future cash flows from the investment and the prevailing economic environment, in particular as relates to the market sector and geographical location of the investment's principal operations.
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QUEST DIAGNOSTICS INTERNATIONAL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The company has no employees other than the directors, who did not receive any remuneration (2022 - $Nil).
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QUEST DIAGNOSTICS INTERNATIONAL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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QUEST DIAGNOSTICS INTERNATIONAL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
7.Taxation (continued)
From 1 April 2023, the corporation tax rate increased to 25%.
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QUEST DIAGNOSTICS INTERNATIONAL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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QUEST DIAGNOSTICS INTERNATIONAL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Subsidiary undertakings (continued)
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QUEST DIAGNOSTICS INTERNATIONAL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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QUEST DIAGNOSTICS INTERNATIONAL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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QUEST DIAGNOSTICS INTERNATIONAL HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Profit and loss account
The immediate parent undertaking is Quest Diagnostics Holdings Incorporated, a company incorporated in the United States of America.
The ultimate parent undertaking and controlling party is Quest Diagnostics Incorporated, which is incorporated in the United States of America. The results of the company and its subsidiary undertakings are consolidated in the consolidated financial statements of Quest Diagnostics Incorporated for the year ended 31 December 2023 which are publicly available and may be obtained from 500 Plaza Drive, Secaucus, New Jersey, 07094, USA.
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