Company Registration No. 05696673 (England and Wales)
Forsite Diagnostics Limited
Annual Report And Financial Statements
For The Year Ended 30 June 2024
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
COMPANY INFORMATION
Directors
Mr C H F Yates
Dr C W Hand
Secretary
Mr C H F Yates
Company number
05696673
Registered office
York Biotech Campus
Sand Hutton
York
North Yorkshire
YO41 1LZ
Auditor
BDO LLP
Central Square
29 Wellington Street
Leeds
LS1 4DL
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Notes to the financial statements
12 - 29
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

The directors present the strategic report for the year ended 30 June 2024.

Review of the business

Our mission at Forsite, and Abingdon (the "Group"), is to improve life by making rapid tests accessible to all. We achieve this by supporting our customers, as an integrated lateral flow Contract Research Organisation (“CRO”) and Contract Development and Manufacturing Organisation (“CDMO”), in developing and manufacturing lateral flow tests across a range of sectors including human health, such as infectious disease testing, animal health, plant pathogen, food and environmental testing.

The rapid diagnostic market is forecast to be worth over $280 billion by 2033 growing at a cumulative annual growth rate (CAGR) of 20.8% between 2023 and 2033. The lateral flow segment is estimated to be the largest segment of the rapid testing market, accounting for 36% of the market in 2023 (Source: Precedence Research: 2024 Rapid Diagnostics Market report. This growth is being driven in part by reduced barriers to adoption for lateral flow technology (“LFT”) due to the widespread adoption of LFT during the COVID-19 pandemic. According to Statista, there were 1.15 billion and 0.5 billion COVID-19 lateral flow tests performed in the US and the UK respectively by December 2022. The vast majority of people have performed a lateral flow test and understand the technology. The second growth driver is innovation. We believe the COVID-19 pandemic has driven a second wave of innovation in the lateral flow market and this is driving greater possible use of the technology as the usability and performance of lateral flow technology improves. Further growth drivers include the expansion in infectious disease testing, growing use within chronic disease management, rising consumer interest and growth in home testing kits, integration of digital technologies and regulatory and reimbursement developments.

We remain committed to becoming a leading lateral flow CRO and CDMO. The CRO and CDMO business model, well-established in the pharmaceutical industry, has direct application to the medical diagnostics market, and our CRO/CDMO team have the capability to take a project from “idea to commercial success” with our contract services covering R&D, scale-up, technical transfer and manufacturing as well as added-value services such as reagent development, regulatory consultancy and clinical trial support, packaging design and kitting.

Looking forward

As a CRO/CDMO focused on lateral flow technology with a well-established track record of bringing products from “idea to market” we believe we are well-placed to support a broad range of customers across the clinical (point of care & self-test), pharmaceutical, animal health, food, plant pathogen and environmental testing markets. We believe our full-service contract service proposition strongly resonates with customers, and we look forward to continuing to support our customers in bringing their innovative tests to market.

 

We would like to thank all our employees for their hard work, dedication and commitment during the past year as we continued to grow our revenues. We are confident that our contract services customer base and our current growing pipeline means we are well positioned to grow our business and deliver shareholder value going forward. We would like to thank shareholders for their support.

Funding

The Company believes it has no current requirement for additional funding. We believe we have sufficient cash resources within the Group to fund progress beyond 12 months from the signing date of the accounts, with our priority continuing to be moving the Company to a positive cashflow position. The Group’s cash resources were strengthened by the completion of a fundraising in August 2025 which raised net proceeds of £5.1m.

Key performance indicators

We are pleased to report continued revenue growth in the year ended 30 June 2024 and an improving cashflow and EBITDA performance, particularly in the second half of the financial year.

In the year, revenue rose to £5.85m (2023: £3.9m). We were pleased to report EBITDA of £0.9m which excluded a gain on settlement of £0.4m on the write-back of machinery, (2023: EBITDA loss £(0.4)m).

FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Other performance indicators

The principal risks and uncertainties of the group are considered to be:

 

 

These risks and the group's response to them are outlined in Abingdon Health plc's Strategic report in more details.

On behalf of the board

Mr C H F Yates
Director
21 November 2024
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -

The directors present their annual report and financial statements for the year ended 30 June 2024.

Principal activities

The principal activity of the company continued to be that of developing and manufacturing lateral flow devices for the diagnostics sector.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid (2023 - £nil). The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr C H F Yates
Mrs M Ross
(Resigned 18 October 2023)
Dr C W Hand

Going concern

 

The Directors have prepared cash flow forecasts under a number of scenarios, including plausible downside scenarios, for the foreseeable future, being a period of at least 12 months from the expected date of approval of the financial statements and continue to evaluate financial forecasts. The models are underpinned by a high percentage of forecast revenues up to December 2025 being based on committed milestone-based contracts. The Group continues to focus on partnering with other Companies to develop products for manufacture and transition these in a timely manner and securing sales of existing and new products through its websites and distribution channels. At 30 June 2024 the group cash bank balance was £1.4m. Cash burn on a monthly basis continues to reduce. Post-year end, in August 2024 the business completed a fundraise which raised gross proceeds of £5.6m (net proceeds of £5.1m).

Existing facilities provided by the company’s parent, Abingdon Health plc, will provide sufficient funds to continue at their current level for a minimum of 12 months from the date of the approval of these financial statements. There is a binding letter of support in place to evidence this.

Auditor

In accordance with the company's articles, a resolution proposing that BDO LLP be reappointed as auditor of the company will be put at a General Meeting.

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.

On behalf of the board
Mr C H F Yates
Director
21 November 2024
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -

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), comprising FRS 101. 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:

 

 

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.

FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF FORSITE DIAGNOSTICS LIMITED
- 5 -
Opinion

In our opinion the financial statements:

 

for the year then ended;

Practice; and

 

We have audited the financial statements of Forsite Diagnostics Limited (“the Company”) for the year ended 30 June 2024 which comprise Statement of comprehensive income, Statement of financial position, Statement of changes in equity and notes to the financial statements, including a summary of material accounting policy information. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).

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 Auditor’s responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

 

Independence

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.

 

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.

 

Other information

The Directors are responsible for the other information. 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. 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.

 

FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF FORSITE DIAGNOSTICS LIMITED
- 6 -

Other Companies Act 2006 reporting

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

 

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:

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.

 

Extent to which the audit was capable of detecting irregularities, including fraud

 

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:

 

Non-compliance with laws and regulations

Based on our understanding of the Company and the industry in which it operates; discussion with management and those charged with governance; and obtaining an understanding of the Company’s policies and procedures regarding compliance with laws and regulations; we identified that the principal risks of non-compliance with laws and regulations related to the reporting framework, FRS 101, UK tax legislation and the UK Companies Act 2006 and we have considered the extent to which non-compliance might have a direct impact and material effect on the Company’s Financial Statements on its continued operation.

FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF FORSITE DIAGNOSTICS LIMITED
- 7 -

Auditor's responsibility for the audit of the financial statements (continued)

Non-compliance with laws and regulations (continued)

Our procedures in respect of the above included:

 

Fraud

We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:

o    Detecting and responding to the risks of fraud; and

o    Internal controls established to mitigate risks related to fraud.

 

Based on our risk assessment, we considered the areas most susceptible to fraud to be management override of controls through journal postings.

Our procedures in respect of the above included:

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members who were all deemed to have appropriate competence and capabilities and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, 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, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed 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 are to become aware of it.

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.

 

FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF FORSITE DIAGNOSTICS LIMITED
- 8 -

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 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.

Daniel Wilbourn (Senior Statutory Auditor)
For and on behalf of BDO LLP, Statutory Auditor
21 November 2024
Leeds
United Kingdon
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
2024
2023
Notes
£
£
Revenue
3
5,857,769
3,939,979
Cost of sales
(2,159,828)
(1,898,031)
Gross profit
3,697,941
2,041,948
Administrative expenses
(2,857,036)
(3,071,303)
Other operating income
4
255,218
195,756
Exceptional item
5
(44,379)
(125,679)
Operating profit/(loss)
6
1,051,744
(959,278)
Investment income
9
243
625
Finance costs
10
(283,200)
(283,200)
Profit/(loss) before taxation
768,787
(1,241,853)
Tax credit on profit/(loss)
11
57,915
114,749
Profit/(loss) and total comprehensive income/(loss) for the financial year
826,702
(1,127,104)

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

The notes on pages 12 to 29 form part of these financial statements.

FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
STATEMENT OF FINANCIAL POSITION
AS AT
30 JUNE 2024
30 June 2024
- 10 -
2024
2023
Notes
£
£
£
£
Non-current assets
Intangible assets
13
33,951
56,555
Property, plant and equipment
14
254,679
365,493
288,630
422,048
Current assets
Inventories
15
404,820
279,421
Trade and other receivables
16
1,119,465
1,043,171
Cash and cash equivalents
952,134
1,386,324
2,476,419
2,708,916
Current liabilities
Trade and other payables
18
12,046,148
13,880,887
Taxation and social security
55,911
43,703
Deferred income
20
395,046
49,561
12,497,105
13,974,151
Net current liabilities
(10,020,686)
(11,265,235)
Total assets less current liabilities
(9,732,056)
(10,843,187)
Non-current liabilities
Borrowings
17
5,389,050
5,105,850
(5,389,050)
(5,105,850)
Net liabilities
(15,121,106)
(15,949,037)
Equity
Called up share capital
23
2,400
2,400
Share premium account
24
1,738,365
1,738,365
Capital contribution reserve
151,818
151,411
Retained losses
(17,013,689)
(17,841,213)
Total equity
(15,121,106)
(15,949,037)

The notes on pages 12 to 29 form part of these financial statements.

The financial statements were approved by the board of directors and authorised for issue on 21 November 2024 and are signed on its behalf by:
Mr C H F Yates
Director
Company registration number 05696673
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
Share capital
Share premium account
Capital contribution reserve
Retained losses
Total
Notes
£
£
£
£
£
Balance at 1 July 2022
2,400
1,738,365
196,605
(16,768,686)
(14,831,316)
Year ended 30 June 2023:
Loss and total comprehensive loss for the year
-
-
-
(1,127,104)
(1,127,104)
Transactions with owners in their capacity as owners:
Share based payment expense
-
-
9,383
-
0
9,383
Share options exercised
-
-
(4,035)
4,035
-
Forfeiture of share options
-
-
(50,542)
50,542
-
Balance at 30 June 2023
2,400
1,738,365
151,411
(17,841,213)
(15,949,037)
Year ended 30 June 2024:
Profit and total comprehensive income for the year
-
-
-
826,702
826,702
Transactions with owners in their capacity as owners:
Share based payment expense
22
-
0
-
0
1,229
-
1,229
Forfeiture of share options
-
-
(822)
822
-
Balance at 30 June 2024
2,400
1,738,365
151,818
(17,013,689)
(15,121,106)

The notes on pages 12 to 29 form part of these financial statements.

FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
1
Accounting policies
Company information

Forsite Diagnostics Limited is a private company limited by shares incorporated in England and Wales. The registered office is York Biotech Campus, Sand Hutton, York, YO41 1LZ. The company's principal activity is developing and manufacturing lateral flow devices for the diagnostics sector.

1.1
Accounting convention

The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with the Companies Act 2006 as applicable to companies using FRS 101.

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 £1.

The financial statements have been prepared on the historical cost basis. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 101, 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:

(i) paragraph 79 (a)(iv) of IAS 1;

(ii) paragraph 73 (e) of IAS 16 ' Property , Plant and Equipment '; and

(iii) paragraph 118 (e) of IAS 38 ' Intangible Assets '.

Where required, equivalent disclosures are given in the group accounts of Abingdon Health Plc. The group accounts of Abingdon Health Plc are available to the public and can be obtained as set out in note 27.

FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
1.2
Going concern

Since the end of the last financial year, the Group completed a fundraising which raised £5.6m (£5.1m net of expenses) from institutional and retail investors. The company remains focused on growing its CRO/CDMO revenues and continuing to maintain control over this operational cost base in order to reduce the Group’s cashburn. true

 

The Directors have prepared cash flow forecasts under a number of scenarios. The budget is the base case scenario and this is sensitised to consider plausible downside scenarios for example significantly reducing revenue growth in the next fiscal year.  

 

These forecasts cover a period of at least 12 months from the expected date of approval of the financial statements and the Business continues to evaluate financial forecasts on a regular basis. The focus of the group remains on expanding its fee for service CRO/CDMO model and any increase in headcount and/or operational footprint will be on the basis of an increase in the number of secured contracts, revenue and cash inflows. At 30 June 2023 the Group bank balance was £1.4m. Group Cash as at 4 October 2024 was £4.5m. The Board is satisfied that based on the above and the current forecasts, there is sufficient headroom and concluded that it is appropriate to prepare the Annual Report and Accounts on a going concern basis.

 

The Directors have prepared the cashflow forecasts.

1.3
Revenue

The company applies IFRS 15 ' Revenue from contracts with customers '. Under IFRS 15, the company applies the 5 - step method to identify contracts with its customers, determine performance obligations arising under those contracts, set an expected transaction price, allocate that price to the performance obligations, and then recognises revenues as and when those obligations are satisfied.

Product sales and contract manufacturing

Goods are supplied under contracts where the key performance criteria for the company are the manufacturing and delivery of the products. The fair value of the revenue, being the price per unit net of volume discounts and sales taxes, are recognised as revenue at the point of transfer of control to the customer, which is typically on dispatch from the company’s premises. Product sales include a range of rights to return, which are accrued as appropriate where expected to be utilised by the customer.

Contract development

Contract Development services typically represent a rate for a period of work with demonstrable milestones. Where milestones are met, these will typically trigger an additional stage of work, or alternatively will become a stop point for the contract. This milestone is the risk of the end customer. The company therefore breaks down these milestone payments and recognises revenue over time based on a proportion of completion basis, using its judgement as to the stage of completion of the contract through to the point of completion of that milestone.

Although Contract Development services typically cover a period of several weeks or months, the pricing of this is typically set on a day rate as opposed to any milestone or percentage of completion approach. As such, the performance obligations are considered to be availability of staff to fulfil each day’s work, as opposed to the overall contract qualifying as a long-term contract.

Revenues are therefore recognised at a point in time on the day that each unit of contract development is provided, or the day that a member of staff have been utilised, at the day rate agreed on that particular contract. Where contracts include significant uncertainties as to the technical feasibility of outcome, the revenue recognition is deferred until such time as the company has reasonable certainty as to the likely success of the development work. As the contracts typically involve the transfer of knowledge, and as any intellectual property created is owned by the customer, the Directors do not consider that there is any deferred element to the provision of staff.

 

 

FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
1.3
Revenue (continued)

Contract development (continued)

A contract liability does, however, arise where services are invoiced in advance of performance, or where a customer makes payment in advance of an invoice being raised and work being performed. The amount is released to the profit or loss in subsequent periods in reference to utilisation of staff at the prevailing day rate. A contract receivable arises where services are performed, and a sales invoice is not raised before the reporting period end.

Regulatory

Regulatory services provides customers with support in meeting compliance requirements in international IVD and medical device markets. The Group therefore recognises revenue over time as the service is provided.

1.4
Intangible assets other than goodwill

Intangible assets are initially measured at cost. Where intangible assets are acquired as part of a business combination, cost is determined by reference to a fair value estimation technique as disclosed further in note 2. After initial recognition, intangible assets are recognised at cost less any accumulated amortisation and any accumulated impairment losses.

 

The depreciable amount of an intangible asset with a finite useful life is allocated on a systematic basis over its useful life. Amortisation begins when the asset is available for use, i.e. when it is in the location and condition necessary for it to be capable of operating in the manner intended by management. Amortisation is charged to administrative expenses in the Consolidated Statement of Comprehensive Income.

 

The amortisation period and the amortisation method for intangible assets with a finite useful life is reviewed each financial period-end. If the expected useful life of the asset is different from previous estimates, the amortisation period is changed accordingly. Useful lives are typically amortised on the following basis:

 

Intellectual property        10 - 25% straight line

 

Research expenditure is written off against profits in the year in which it is incurred. Development costs incurred on specific projects are capitalised when all the following conditions are satisfied:

 

Development costs not meeting the criteria for capitalisation detailed above are expensed as incurred.

 

The cost of an internally generated intangible asset comprises all directly attributable costs necessary to create, produce and prepare the asset to be capable of operating in the manner intended by management. Directly attributable costs include employee (other than directors) costs incurred on development and directly attributable overheads. The costs of internally generated software developments are recognised as intangible assets.

 

Capitalised development costs are amortised over a period which is usually no more than five years. Amortisation commences once an asset is available for use, in line with IAS38.

FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
1.5
Property, plant and equipment

Property, plant and equipment are recognised as an asset only if it is probable that future economic benefits associated with the item will flow to the company and the cost of the item can be measured reliably.

 

An item of property, plant and equipment that qualifies for recognition as an asset is measured at its cost. Cost of an item of property, plant and equipment comprises the purchase price, any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

 

After recognition, all property, plant and equipment are carried at costs less any accumulated depreciation and any accumulated 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:

Leasehold improvements
Life of the lease
Plant and equipment
20% - 33% straight line
Computers
33% straight line

The residual value and the useful life of an asset are reviewed at least at each financial period-end and if expectations differ from previous estimates, the changes are accounted for prospectively.

 

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 recognised in the income statement.

1.6
Impairment of tangible and intangible assets

At each reporting 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.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment annually, and whenever there is an indication that the asset may be impaired.

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.

 

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.

FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
1.7
Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories 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 recognised in profit or loss.

1.8
Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and restricted cash deposits.

1.9
Financial assets

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

 

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial assets at fair value through profit or loss

When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognized initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.

Financial assets held at amortised cost

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

 

This category applies to trade and other receivables due from customers in the normal course of business. Trade and other receivables are initially recorded at fair value and thereafter are measured at amortised cost using the effective interest rate.

 

The company classifies its financial assets as at amortised cost only if both of the following criteria are met:

(i) the asset is held within a business model with the objective of collecting the contractual cash flows; and

(ii) the contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal outstanding.

 

FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 17 -
1.9
Financial assets (continued)
Impairment of financial assets

The company applies a forward-looking model of IFRS 9 to create an estimation of the expected credit losses arising in the next year on its financial assets, using an expectation derived from historical irrecoverable percentages as adjusted for predicted credit risk adjustments arising through forecast market changes.

 

If an asset is impaired, the impairment loss is the difference between the carrying value 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 when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

1.10
Financial liabilities

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Financial liabilities at fair value through profit or loss

Financial liabilities are classified as measured at fair value through profit or loss when the financial liability is held for trading. A financial liability is classified as held for trading if:

 

 

Financial liabilities at fair value through profit or loss are stated at fair value with any gains or losses arising on remeasurement recognised in profit or loss.

Other financial liabilities

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method.

 

For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 18 -
1.11
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

 

Share capital represents the nominal value of shares that have been issued. Share premium represents the excess consideration received over share capital upon the sale of shares, less any incidental costs of issue.

 

Retained losses include all current and prior period retained losses.

 

The capital contribution reserve relates to the company's share of the fair value expense imposed on the company in respect of options granted over the equity shares of the company's parent Abingdon Health Plc.

1.12
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 income statement 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 taxes are calculated using the liability method on temporary differences between the carrying amounts of assets and liabilities and their tax bases.

 

A deferred tax asset is recognised for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilised, unless the deferred tax asset arises from the initial recognition of an asset or liability in a transaction that is not a business combination and at the time of the transaction, affects neither

accounting profit nor taxable profit (tax loss). However, for deductible temporary differences associated with investments in subsidiaries a deferred tax asset is recognised when the temporary difference will reverse in the foreseeable future and taxable profit will be available against which the temporary difference can be utilised.

 

Deferred tax assets and liabilities, calculated on an undiscounted basis, are offset only when there is a legally enforceable right to set off current tax amounts and when they relate to the same tax authority and the Group intends to settle its current tax amounts on a net basis.

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 inventories or non-current 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.

FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 19 -
1.15
Share-based payments

The fair value of equity-settled share-based payments to employees is determined at the date of grant and is expensed on a straight-line basis over the vesting period based on the Group’s estimate of shares or options that will eventually vest. Full disclosure of the calculation models is given in note 22.

 

All equity-settled share-based payments are ultimately recognised as an expense in the profit or loss with a corresponding credit to “Share based payment reserve”. If vesting periods or other non-market vesting conditions apply, the expense is allocated over the vesting period, based on the best available estimate of the number of share options expected to vest. Estimates are subsequently revised if there is any indication that the number of share options expected to vest differs from previous estimates. Any cumulative adjustment prior to vesting is recognised in the current period.

 

No adjustment is made to any expense recognised in prior periods if share options ultimately exercised are different to that estimated on vesting.

 

Upon exercise of share options the proceeds received net of attributable transaction costs are credited to share capital, and where appropriate share premium.

1.16
Leases

Under IFRS 16, leases are accounted for on the right of use model. At inception, the Company assesses whether a contract contains a lease. This assessment involved the exercise of judgement about whether the Company obtains substantially all the economic benefits from the use of that asset, and whether the Company has the right to direct the use of the asset.

 

The company identifies a lease as follows:

 

 

  1. the contract involves the sole use of a specific identified asset – this may be specified explicitly or implicitly and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified;

  2. the Group has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and

  3. the Group has the right to direct the use of the asset.

 

 

 

 

 

 

 

 

 

 

 

FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 20 -
1.16
Leases (continued)

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

 

The lessee uses its incremental borrowing rate as the discount rate. Lease payments included in the measurement of the lease liability comprise fixed payments. The company does not make other types of payment referred to in IFRS 16 for its leases.

 

Generally, the lease liability represents the present value of contractual future lease payments including optional renewal periods where the company is reasonably certain to exercise the extension option. The Group does not typically enter into purchase options or variable lease payments.

 

The lease liability is measured at amortised cost using the effective interest method. The company presents right-of-use assets that do not meet the definition of investment property in ‘Property, plant and equipment’ and discloses the corresponding “Lease liability” in the statement of financial position. The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less and leases of low-value assets which it defines as having a purchase cost of £5,000. The company recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

1.17
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.

1.18

Research and development expenditure credits

Where the company receives research and development expenditure credits ("RDEC") these are accounted for as government grant income within operating income as it more closely aligns with grant income as opposed to a taxation credit. The income is recognised on the performance model under IAS 20 Accounting for Government Grants and Disclosures '.

2
Critical accounting estimates and judgements

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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
2
Critical accounting estimates and judgements
(Continued)
- 21 -
Going concern

The accounts are prepared on the going concern basis, despite significant level of retained losses. Further explanation of this judgement is provided in note 1.2.

Revenue recognition

In line with IFRS 15 management are required to determine appropriate revenue recognition points for all revenue streams. Where multiple contracts are entered into with a single counterparty any instalment payments are not considered to be a key indicator of the satisfaction of a performance obligation, although linked contracts with a counterparty are considered in conjunction when identifying the appropriate point for revenue recognition. Disclosure of the key assumptions and judgements on this is provided in note 1.3.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:

Inventory valuation

The company converts raw materials to finished goods. Stock values include any costs such as labour and overheads attributable to generating finished goods, as management believe this is the most suitable costing method to take into account the matching concept of accounting.

 

In addition, the company provides against the cost of inventories where the value of the inventory is considered to be irrecoverable, either through demand or through expiration. Details of the current inventory provision is provided in note 15.

3
Revenue
2024
2023
£
£
Revenue analysed by class of business
Contract manufacturing
1,258,170
312,262
Contract development
3,326,807
1,058,769
Product sales
467,604
2,300,785
Regulatory
805,188
268,163
5,857,769
3,939,979
2024
2023
£
£
Revenue analysed by geographical market
United Kingdom
2,289,699
1,252,665
Europe
722,198
1,128,719
USA & Canada
2,038,847
861,587
Rest of the World
315,301
218,306
Belgium
491,724
478,702
5,857,769
3,939,979
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
4
Other operating income
2024
2023
£
£
Research and development expenditure credit
255,218
195,756
255,218
195,756
5
Exceptional items
2024
2023
£
£
Expenditure
Redundancy costs
-
125,679
Provision for amounts owed by fellow group undertakings
12
44,379
-
44,379
125,679
6
Operating profit/(loss)
2024
2023
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(12,740)
41,595
Provision for amounts owed by fellow group undertakings
44,379
-
Research and development costs
2,261
59,972
Government grants
(255,218)
(195,756)
Depreciation of property, plant and equipment
127,416
403,183
Loss/(profit) on disposal of property, plant and equipment
1,092
(134)
Amortisation of intangible assets (included within administrative expenses)
8,613
10,766
Loss on disposal of intangible assets
15,924
-
Cost of inventories recognised as an expense
1,093,630
966,969
Write downs of inventories recognised as an expense
61,514
158,027
Reversal of write downs of inventories
(20,298)
(243,302)
Share-based payments
1,229
9,383
Gain on settlement of machinery (see note 12)
(360,534)
-
7
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Production
41
44
Research
18
12
Management & administration
4
2
Total
63
58
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
7
Employees
(Continued)
- 23 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,128,382
2,811,219
Social security costs
180,507
157,965
Pension costs
74,733
63,961
3,383,622
3,033,145

The directors of the company are remunerated through the parent company, Abingdon Health Plc.

8
Auditor's remuneration

In the current and prior years the company's audit fee has been borne by its parent, Abingdon Health Plc.

9
Investment income
2024
2023
£
£
Interest on bank deposits
243
625
10
Finance costs
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest payable to group undertakings
283,200
283,200
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(57,915)
31,219
Adjustments in respect of prior periods
-
(145,968)
Total UK current tax
(57,915)
(114,749)
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
11
Taxation
(Continued)
- 24 -

The credit for the year can be reconciled to the profit/(loss) per the income statement as follows:

2024
2023
£
£
Profit/(loss) before taxation
768,787
(1,241,853)
Expected tax charge/(credit) based on a corporation tax rate of 25.00% (2023: 20.50%)
192,197
(254,580)
Effect of expenses not deductible in determining taxable profit
11,118
-
0
Unutilised tax losses carried forward
(142,887)
294,238
Group relief
(5,416)
-
0
Research and development tax credit
(112,927)
(9,145)
Share based payment charge
-
1,820
Adjustments in respect of prior period research and development tax credit
-
(145,968)
Other
-
(1,114)
Taxation credit for the year
(57,915)
(114,749)

The UK corporation tax rate rose from 19% to 25% on 1 April 2023. The tax rate shown in the prior year of 20.5% is a composite figure and reflects that two different rates were applied during the year.

 

Deferred tax balances at the reporting date continue to be measured at 25% (2023 - 25%).

12
Gain on settlement

A gain on settlement of £360,534 was recognised in the current year relating to machinery that was fully impaired being replaced by the supplier. During the year, credit notes were received from the supplier on machinery that had already been fully impaired.

FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 25 -
13
Intangible fixed assets
Intellectual property
Assets under construction
Total
£
£
£
Cost
At 30 June 2023
84,748
-
0
84,748
Additions - purchased
1,933
-
0
1,933
Disposals
(15,924)
-
0
(15,924)
Transfers
(21,666)
21,666
-
0
At 30 June 2024
49,091
21,666
70,757
Amortisation and impairment
At 30 June 2023
28,193
-
28,193
Charge for the year
8,613
-
8,613
At 30 June 2024
36,806
-
36,806
Carrying amount
At 30 June 2024
12,285
21,666
33,951
At 30 June 2023
56,555
-
56,555
14
Property, plant and equipment
Leasehold improvements
Plant and equipment
Computers
Total
£
£
£
£
Cost and valuation
At 1 July 2023
16,001
5,881,314
14,695
5,912,010
Additions
-
0
17,694
-
0
17,694
Disposals
-
0
(1,746,673)
-
0
(1,746,673)
At 30 June 2024
16,001
4,152,335
14,695
4,183,031
Accumulated depreciation and impairment
At 1 July 2023
16,001
5,515,821
14,695
5,546,517
Charge for the year
-
0
127,416
-
0
127,416
Eliminated on disposal
-
0
(1,745,581)
-
0
(1,745,581)
At 30 June 2024
16,001
3,897,656
14,695
3,928,352
Carrying amount
At 30 June 2024
-
0
254,679
-
0
254,679
At 30 June 2023
-
0
365,493
-
0
365,493

 

Included within plant & machinery are assets under construction with value £nil (2023 - £29,262). The assets are not depreciated until brought into use.

FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 26 -
15
Inventories
2024
2023
£
£
Raw materials
280,989
111,445
Work in progress
58,868
122,890
Finished goods
64,963
45,086
404,820
279,421

Inventories comprise of products, which are not generally subject to rapid obsolescence on account of technological, deterioration in condition or market trends. Consequently, management considers that there is little risk of significant adjustments to the company’s inventory assets within the next financial year.

The company has recognised a total provision of £391,466 (2023 - £835,977) against its inventories. An expense has been recognised in the year relating to new impairments of £61,514 (2023 - £158,027).

16
Trade and other receivables
2024
2023
£
£
Trade receivables
663,527
449,677
Corporation tax recoverable
173,744
50,000
Amount owed by parent undertaking
-
0
106,845
Amounts owed by fellow group undertakings
-
0
41,398
Other receivables
9,660
107,492
Prepayments and accrued income
107,494
79,847
Contract assets
165,040
207,912
1,119,465
1,043,171

Expected credit losses for the following 12 months have been estimated in accordance with IFRS 9 'Financial Instruments'. The current year expected credit losses have been adjusted to reflect credit risks outstanding at the current reporting period date. The expected credit loss provision as at 30 June 2024 is £14,406 (2023: £21,665). This has been determined by reference to past default experience and known issues. Write offs are made when the irrecoverable amount becomes certain. The Directors consider that the carrying amount of trade and other receivables approximates to their fair value.

 

Contract assets have been calculated in accordance with IFRS 15 'Revenue from Contracts with Customers'.

 

Amounts owed by parent undertakings of £127,700 have been presented as a net liability against amounts owed to parent undertakings in note 18 due to similar terms, following an assessment of the recoverability of amounts receiveable. Amounts owed by fellow group undertakings of £44,379 have been provided for in full in the current year following an assessment of their recoverability given they are due from loss making entities within the Group. See note 5.

FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 27 -
17
Borrowings
Non-current
2024
2023
£
£
Borrowings held at amortised cost:
Loans from parent undertaking
5,389,050
5,105,850

The interest rate on the loan with Abingdon Health Plc, the company's ultimate parent, is 8% per annum.

18
Trade and other payables
2024
2023
£
£
Trade payables
207,945
900,742
Amount owed to parent undertaking
11,737,554
12,877,724
Amounts owed to fellow group undertakings
-
(11)
Accruals
80,004
90,780
Other payables
20,645
11,652
12,046,148
13,880,887

At present, the Directors have no formal terms over the timing of the loan, and as such the loan has been presented as due within one year.

19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

Accelerated capital allowances
Provisions
Total
£
£
£
Asset at 1 July 2022
(2,097)
2,097
-
0
Deferred tax movements in prior year
(Credit)/charge to profit or loss
2,097
(2,097)
-
0
Liability at 1 July 2023 and 30 June 2024
-
-
-
0

The company has estimated tax losses of £13,400,000 (2023 - £14,100,000) which have not been recognised as a deferred tax asset due to uncertainty over the timing and extent of the company's ability to utilise these against future taxable profits. If a deferred tax asset was recognised in full in respect of this, the company's net liabilities would increase by approximately £3,525,000 (2023 - £3,610,000).

FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 28 -
20
Deferred revenue
2024
2023
£
£
Arising from Contract liability
395,046
49,561

Deferred revenue is calculated in accordance with IFRS 15 'Revenue from Contracts with Customers'. The amount of deferred revenues relating to the prior year has been fully released in the current financial year.

21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
74,733
63,961

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 there is a pension creditor of £12,563 (2023 - £11,002).

22
Share-based payment transactions

The company has recognised the following expense in the year in respect of share-based payments:

2024
2023
£
£
Expenses
Related to equity settled share based payments
1,229
9,383

The fair value expense relates to options granted to employees of the company but are for issue of shares in Abingdon Health Plc, the company's immediate and ultimate parent; accordingly the company has taken advantage of the disclosure exemptions under FRS 101 not to present this information.

 

The determination of the fair values of the EMI options and SAYE scheme options have been made by reference to the Black-Scholes model. The expense recognised in the prior year associated with these options is adjusted to reflect the anticipated staff attrition rates over the life of each scheme.

 

The capital contribution reserve relates to the company's share of the fair value expense imposed on the company in respect of options granted over the equity shares of the company's parent Abingdon Health Plc. Amounts transferred from the reserve into retained profits represent the forfeit of share options that will not vest.

23
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 0.1p each
2,400,000
2,400,000
2,400
2,400
2,400,000
2,400,000
2,400
2,400
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
23
Share capital
(Continued)
- 29 -

Share capital represents the nominal value of shares that have been issued.

 

Share premium represents the excess consideration received over share capital upon the sale of shares, less any incidental costs of issue.

 

Retained losses include all current and prior period retained losses.

 

Capital contribution reserve relates to the fair value of options recognised as an expense, which are settled on the Company's behalf by its parent, Abingdon Health plc.

 

24
Share premium account
2024
2023
£
£
At the beginning and end of the year
1,738,365
1,738,365
25
Contingent liabilities

The company is not party to any contingent liabilities or guarantees as at the current or comparative year end.

26
Related party transactions

The company has taken advantage of the disclosure exemptions conferred by FRS 101 to not disclose related party transactions and balances where relevant group companies are all wholly owned by the group headed by Abingdon Health Plc. Details of the outstanding balances at the year end are given in notes 16 and 18.

27
Controlling party

The company's immediate parent company is Abingdon Health Plc, a company registered in England and Wales.

 

The ultimate parent company and controlling party is Abingdon Health Plc, a company incorporated in England and Wales with registered office York Biotech Campus, Sand Hutton, York, YO41 1LZ. Abingdon Health Plc is the smallest and largest group into which Forsite Diagnostics Limited is consolidated.

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