Company registration number 02659543 (England and Wales)
CRYOGENIC LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
CRYOGENIC LIMITED
COMPANY INFORMATION
Directors
Dr J Good
Dr R Mitchell
Ms Z Omar
Mr M Owczarkowski
Secretary
Mr N Krishnathas
Company number
02659543
Registered office
Unit 6, Acton Park Industrial Estate
The Vale
Acton
London
W3 7QE
Auditor
Ward Williams Limited
Belgrave House
39-43 Monument Hill
Weybridge
Surrey
KT13 8RN
Bankers
National Westminster Bank Plc
Turnpike House
123 High Street
Crawley
West Sussex
RH10 1DQ
Turkiye is Bankasi
London Branch
8 Princess Street
London
EC2R 8HL
Barclays Bank Plc
Acorn House
36-38 Park Royal Road
London
BX3 2BB
CRYOGENIC LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Income statement
8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 28
CRYOGENIC LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report and financial statements for the year ended 31 March 2024.

Review of the business

The principal activity of the company continues to be the design and manufacture of cryogenic instruments and the supply of magnets for research, industrial, medical and scientific applications.

 

The results for the business are set out on page 8. The company has performed in line with expectations, notwithstanding the impact of increased inflation in the UK. The directors are satisfied with the year-end position and remain confident in the company's future prospects.

 

 

Key Performance Indicators

The directors use and review many performance measures. Three key performance indicators required for the company to meet its objectives are:

     2024 2023

Revenue     £15.39m £15.77m

Gross Profit     £9.11m £9.79m

Gross Profit margin 59.2% 62.1%

 

The directors consider the track of these KPIs indicate that the company is achieving its business objectives.

Principal risks and uncertainties

Financial risk management

The company uses various financial instruments including bank loans, hire purchase contracts, cash and various items such as trade creditors that arise directly from its operations. The main purpose for these financial instruments is to finance the company's operations. The principal risks arising from the company's financial instruments are liquidity risk, currency risk, credit risk and cash flow interest rate risk. The directors review and agree policies for managing each of these risks and they are summarised below:

 

Liquidity risk

The company is funded by retained earnings and loans. Its funding requirements are reviewed regularly by the directors and the finance department of Cryogenic Ltd to ensure the company has sufficient funds for operations and expansion. Hire purchase contracts are established to match the turnover and life of the assets. The maturity of borrowings is set out in note 17 to the accounts.

 

Currency risk

The company enters into forward contracts throughout the year to mitigate the risk of adverse currency fluctuations.

 

Credit risk

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

 

Cash flow interest rate risk

The directors have considered the interest rate risk and concluded that the company is not exposed to a significant level of interest risk and consequently no risk management tools have been used.

 

Environmental

The company believes it is in the company's best interest to minimise the risk arising from the social and environmental impact of its activities and is committed to conducting its activities and operations in line with current legislation and best environmental practice.

 

Research and development

Activities are concentrated on ensuring that Cryogenic continue to compete in the market with emphasis on a new product pipeline that is considered by the directors to be of key importance to the business strategy for growth.

 

 

CRYOGENIC LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

On behalf of the board

Dr J Good
Director
29 November 2024
CRYOGENIC LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Directors

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

Dr J Good
Dr R Mitchell
Ms Z Omar
Mr M Owczarkowski

Secretary

Nishanthan Krishnathas has been appointed company secretary.

Results and dividends

The results for the year are set out on page 8.

The directors do not recommend payment of an ordinary dividend.

Auditor
The auditors, Ward Williams Limited, are deemed to be reappointed under section 487(2) of the Companies Act 2006.
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
Dr J Good
Director
29 November 2024
CRYOGENIC LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 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). 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.

CRYOGENIC LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CRYOGENIC LIMITED
- 5 -
Opinion

We have audited the financial statements of Cryogenic Limited (the 'company') for the year ended 31 March 2024 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows 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:

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 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.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report 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.

 

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the 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:

CRYOGENIC LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CRYOGENIC LIMITED
- 6 -
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:

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.

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.

 

The objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud or error; and to respond appropriately to those risks. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

 

CRYOGENIC LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CRYOGENIC LIMITED
- 7 -

 

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.

Colin Hamilton (Senior Statutory Auditor)
for and on behalf of Ward Williams Limited
29 November 2024
Chartered Accountants
Belgrave House
Statutory Auditor
39-43 Monument Hill
Weybridge
Surrey
KT13 8RN
CRYOGENIC LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Revenue
3
15,393,532
15,772,113
Cost of sales
(6,283,030)
(5,978,707)
Gross profit
9,110,502
9,793,406
Administrative expenses
(7,662,186)
(8,516,953)
Operating profit
4
1,448,316
1,276,453
Finance costs
7
(293,271)
(219,175)
Other gains and losses
8
41,776
(212,719)
Profit before taxation
1,196,821
844,559
Tax on profit
9
99,381
284,548
Profit for the financial year
1,296,202
1,129,107

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

CRYOGENIC LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
£
£
Profit for the year
1,296,202
1,129,107
Other comprehensive income
-
-
Total comprehensive income for the year
1,296,202
1,129,107
CRYOGENIC LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2024
31 March 2024
- 10 -
2024
2023
Notes
£
£
£
£
Non-current assets
Intangible assets
10
22,741
-
0
Property, plant and equipment
11
1,116,769
1,258,879
1,139,510
1,258,879
Current assets
Inventories
13
4,915,083
4,886,466
Trade and other receivables
14
12,235,976
9,923,278
Cash and cash equivalents
1,505,493
2,012,740
18,656,552
16,822,484
Current liabilities
15
(8,405,421)
(7,460,560)
Net current assets
10,251,131
9,361,924
Total assets less current liabilities
11,390,641
10,620,803
Non-current liabilities
16
(853,447)
(1,379,811)
Net assets
10,537,194
9,240,992
Equity
Called up share capital
20
31,600
31,600
Share premium account
21
53,400
53,400
Retained earnings
22
10,452,194
9,155,992
Total equity
10,537,194
9,240,992
The financial statements were approved by the board of directors and authorised for issue on 29 November 2024 and are signed on its behalf by:
Dr J Good
Director
Company Registration No. 02659543
CRYOGENIC LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
Share capital
Share premium account
Retained earnings
Total
£
£
£
£
Balance at 1 April 2022
31,600
53,400
8,026,885
8,111,885
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
1,129,107
1,129,107
Balance at 31 March 2023
31,600
53,400
9,155,992
9,240,992
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
1,296,202
1,296,202
Balance at 31 March 2024
31,600
53,400
10,452,194
10,537,194
CRYOGENIC LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
28
(186,057)
1,141,842
Interest paid
(293,271)
(219,175)
Income taxes refunded
284,548
134,840
Net cash (outflow)/inflow from operating activities
(194,780)
1,057,507
Investing activities
Purchase of intangible assets
(22,741)
-
0
Purchase of property, plant and equipment
(246,790)
(357,290)
Proceeds from disposal of investments
41,776
(212,719)
Net cash used in investing activities
(227,755)
(570,009)
Financing activities
Repayment of bank loans
(65,850)
496,472
Repayment of derivatives
(96,714)
(157,781)
Payment of finance leases obligations
(173,470)
(3,129)
Net cash (used in)/generated from financing activities
(336,034)
335,562
Net (decrease)/increase in cash and cash equivalents
(758,569)
823,060
Cash and cash equivalents at beginning of year
1,384,832
561,772
Cash and cash equivalents at end of year
626,263
1,384,832
Relating to:
Cash at bank and in hand
1,505,493
2,012,740
Bank overdrafts included in creditors payable within one year
(879,230)
(627,908)
CRYOGENIC LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
1
Accounting policies
Company information

Cryogenic Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 6, Acton Park Industrial Estate, The Vale, Acton, London, W3 7QE.

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 pound.

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

1.2
Going concern

The company meets its day to day working capital requirements through an overdraft facility, bank loans, and a loan from a director / shareholder. The nature of the business is such that there can be an element of inconsistency in the timing of cash inflows. However, the directors have prepared detailed forecasts and based on these, correspondence with the bank and continued support of the director / shareholder, consider that the company will have sufficient working capital and will be able to operate within the terms of the current facilities for at least the next 12 months.

 

1.3
Revenue

Revenue 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.

 

Profit is recognised on long term contracts if the final outcome can be assessed with reasonable certainty, by recognising in the income statement revenue and related cost as contract activity progresses. Revenue is calculated as that proportion of total contract value which cost to date bear to total expected cost for that contract.

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.

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:

Patents
10 years
Development Costs
4 years
CRYOGENIC LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.5
Property, plant and equipment

Property, plant and equipment 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:

Land and buildings Short leasehold
Straight line over the life of the lease
Plant and machinery
20% reducing balance & 10% straight line
Fixtures, fittings & equipment
20% reducing balance & 33% reducing balance
Computer equipment
33% reducing balance
Motor vehicles
33% 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 non-current 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.

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.

 

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) prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

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 inventories to their present location and condition.

 

Inventories 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 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 also recognised in profit or loss.

CRYOGENIC LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
1.8
Long term contracts

Where the outcome of a long term contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.

 

Where the outcome of a long term contract cannot be estimated reliably, contract costs are recognised as expenses in the period in which they are incurred and contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

Amounts recoverable on long term contracts, which are included in receivables, are stated at the net sales value of the work done after provision for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account. Excess progress payments are included in creditors as payments on account.

1.9
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.

1.10
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 statement of financial position 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 trade and other receivables 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.

CRYOGENIC LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -

Trade receivables, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

 

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

Impairment of financial assets

Financial assets, 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 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 trade and other payables and bank loans 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including 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.

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.

CRYOGENIC LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.11
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.

1.12
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.13
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 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 income statement, 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.

1.14
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 inventory.

 

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.

CRYOGENIC LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
1.15
Retirement benefits

The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the income statement in the year they are payable.

1.16
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 lease asset are consumed.

1.17
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

1.18
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 the income statement for the period.

CRYOGENIC LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
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.

Critical judgements

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

Useful lives of plant and equipment

In determining appropriate depreciation rates to apply against property, plant and equipment, the directors have used their knowledge and experience of both the company and the industry to assess the useful lives of each individual asset.

Provision for the impairment of receivables

The company establishes a provision for the impairment of trade receivables in accordance with its policy in note 1. The recoverable amount of trade receivables is compared to the carrying amount to determine the amount of impairment. These calculations require the use of estimates.

Stage of completion of long term contracts

The company have long term contracts in place, and recognise revenue and costs based on the stage of completion of these contracts, as set out in note 1. The stage of completion of contracts is based on the directors' judgement.

3
Revenue

An analysis of the company's revenue is as follows:

2024
2023
£
£
Turnover
Sale of goods
15,393,532
15,772,113
Revenue analysed by geographical market
2024
2023
£
£
United Kingdom
470,151
438,070
EEC
3,085,257
3,480,476
Other
11,838,125
11,853,567
15,393,532
15,772,113
CRYOGENIC LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(423,487)
372,292
Fees payable to the company's auditor for the audit of the company's financial statements
15,800
14,650
Depreciation of owned property, plant and equipment
112,165
195,227
Depreciation of property, plant and equipment held under finance leases
277,375
282,171
Amortisation of intangible assets
-
42,066
Cost of inventories recognised as an expense
5,829,797
5,364,248
Operating lease charges
644,509
658,240
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
480,831
455,144
Company pension contributions to defined contribution schemes
67,038
43,649
547,869
498,793

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).

Remuneration disclosed above include the following amounts paid to the highest paid director:
Remuneration for qualifying services
137,672
133,837
6
Employees

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

2024
2023
Number
Number
Administration
11
11
Sales and distribution
8
9
Production
80
78
Total
99
98
CRYOGENIC LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
6
Employees
(Continued)
- 21 -
2024
2023
£
£
Wages and salaries
4,881,209
4,870,506
Social security costs
531,977
531,332
Pension costs
505,885
439,165
5,919,071
5,841,003

 

7
Finance costs
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
(1,249)
6,074
Other finance costs:
Interest on finance leases and hire purchase contracts
294,520
213,101
293,271
219,175
8
Other gains and losses
2024
2023
£
£
Fair value gains/(losses) on financial instruments
Exchange differences arising on hedging instrument in cash flow hedge
41,776
(212,719)
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(99,381)
(284,548)
CRYOGENIC LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
9
Taxation
(Continued)
- 22 -

The actual credit 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
1,196,821
844,559
Expected tax charge based on the standard rate of corporation tax in the UK of 0% (2023: 0%)
-
0
-
0
Research and development tax credit
(99,381)
(284,548)
Taxation credit for the year
(99,381)
(284,548)

Tax losses of £1,482,514 (2023: £1,482,514) are available to carry forward to use against future profits. Due to uncertainty over the level of losses that the company will be able to utilise, deferred tax has not been provided for.

10
Intangible fixed assets
Patents
Development Costs
Total
£
£
£
Cost
At 1 April 2023
55,335
348,566
403,901
Additions
22,741
-
0
22,741
At 31 March 2024
78,076
348,566
426,642
Amortisation and impairment
At 1 April 2023 and 31 March 2024
55,335
348,566
403,901
Carrying amount
At 31 March 2024
22,741
-
0
22,741
At 31 March 2023
-
0
-
0
-
0
CRYOGENIC LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
11
Property, plant and equipment
Land and buildings Short leasehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
1,429,905
3,323,522
910,473
92,793
5,756,693
Additions
10,000
226,291
10,499
-
0
246,790
At 31 March 2024
1,439,905
3,549,813
920,972
92,793
6,003,483
Depreciation and impairment
At 1 April 2023
1,330,617
2,352,460
742,654
72,083
4,497,814
Depreciation charged in the year
104,288
228,483
49,294
6,835
388,900
At 31 March 2024
1,434,905
2,580,943
791,948
78,918
4,886,714
Carrying amount
At 31 March 2024
5,000
968,870
129,024
13,875
1,116,769
At 31 March 2023
99,288
971,062
167,819
20,710
1,258,879

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Plant and machinery
898,765
684,656
Fixtures, fittings & equipment
129,024
171,502
Motor vehicles
13,875
17,215
Computer equipment
70,105
382,867
1,111,769
1,256,240
12
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
4,296,506
11,285,815
Instruments measured at fair value through profit or loss
69,245
-
0
Carrying amount of financial liabilities
Measured at fair value through profit or loss
- Other financial liabilities
-
27,469
Measured at amortised cost
7,719,677
7,729,413

The company uses derivative financial instruments to hedge against adverse movements in foreign exchange. At the end of the year the company had forward foreign exchange contracts in place. These contracts are not traded in active markets. They have been measured at fair value based on the forward exchange rate at the maturity of the contract and the spot rate at the year end.

CRYOGENIC LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
13
Inventories
2024
2023
£
£
Raw materials and consumables
1,726,493
1,820,544
Work in progress
3,188,590
3,073,837
Payments received on account
-
0
(7,915)
4,915,083
4,886,466
14
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
4,004,895
3,886,880
Corporation tax recoverable
99,381
284,548
Derivative financial instruments
69,245
-
Other receivables
111,611
215,181
Prepayments and accrued income
7,950,844
5,536,669
12,235,976
9,923,278

Trade receivables disclosed above are measured at amortised cost.

15
Current liabilities
2024
2023
Notes
£
£
Borrowings
17
3,622,190
3,100,533
Obligations under finance leases
18
297,995
305,101
Payments received on account
864,279
329,231
Trade payables
2,914,543
2,213,186
Other taxation and social security
108
380,881
Derivative financial instruments
-
0
27,469
Other payables
20,670
20,670
Accruals and deferred income
685,636
1,083,489
8,405,421
7,460,560
16
Non-current liabilities
2024
2023
Notes
£
£
Bank loans and overdrafts
17
540,000
900,000
Obligations under finance leases
18
313,447
479,811
853,447
1,379,811
CRYOGENIC LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
17
Borrowings
2024
2023
£
£
Bank loans
2,663,190
2,729,040
Bank overdrafts
879,230
627,908
Directors' loans
619,770
643,585
4,162,190
4,000,533
Payable within one year
3,622,190
3,100,533
Payable after one year
540,000
900,000

In 2021, the company received a Coronavirus Business Interruption Loan of £1,800,000. The loan is repayable by 31 July 2026 and interest is being charged at 3.8%. Capital repayments commenced in October 2021. The company also has a working capital facility in place of £2,500,000 on which interest being charged at LIBOR+3%. At the end of the year, £1,763,190 of this facility was in use. The working capital facility is secured by a debenture dated 13 September 2017 containing a fixed and floating charge over the assets of the company and contains a negative pledge.

 

18
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
297,995
305,101
In two to five years
313,447
479,811
611,442
784,912

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. Lease terms are between three and five years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
505,885
439,165

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.

On 31 March 2024 the amount payable to the scheme was £99,435 (2023: £55,911).

CRYOGENIC LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
20
Share capital
2024
2023
Ordinary share capital
£
£
Issued and fully paid
316 Ordinary shares of £100 each
31,600
31,600

The company has only one class of ordinary shares which carry no right to fixed income.

21
Share premium account

The share premium accounts represents the premium arising on the issue of shares net of issues costs.

22
Retained earnings

The retained earnings account represents cumulative profits and losses net of dividends and other adjustments.

23
Operating lease commitments
Lessee

Operating lease payments represent rentals payable by the company for certain items of equipment. Operating leases are negotiated for average terms of 5 years.

At 31 March 2024 the company was committed the following payments under non cancellable operating leases in the year to 31 March 2024.

2024
2023
£
£
Within one year
214,783
531,544
Between two and five years
-
0
216,239
214,783
747,783

The operating leases represent leases of properties from third parties. The leases are negotiated over terms of 10 years with break clauses after 5 years. All leases include a provision for five-yearly upward rent reviews according to prevailing market conditions.

24
Financial commitments, guarantees and contingent liabilities

The company is, from time to time, required to provide guarantees in accordance with the terms of contracts entered into in its normal course of business. The amount of these guarantees as at 31 March 2024 was £29,372 (2023: £69,086).

 

The company had provided the following outstanding guarantees at 31 March 2024:

Limited Guarantee given by export credits departments for CHF 519,150

Limited Guarantee given by export credits departments for GBP 40,500

Limited Guarantee given by export credits departments for EUR 1,077,350

 

CRYOGENIC LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
25
Capital commitments

Amounts contracted for but not provided in the financial statements:

2024
2023
£
£
Acquisition of property, plant and equipment
54,215
65,059
26
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
547,869
498,793
Other information

During the year the company accrued interest of £40,000 (2023: £40,000) on a loan from Dr J Good, a director of the company. At the year end the accrued interest was £19,499 (2023: £43,315) outstanding to Dr J Good.

 

At the end of the year, loan capital of £600,270 (2023: £600,270) was due to Dr J Good.

27
Ultimate controlling party

The ultimate controlling party is Dr J Good, a director of the company.

28
Cash (absorbed by)/generated from operations
2024
2023
£
£
Profit for the year after tax
1,296,202
1,129,107
Adjustments for:
Taxation credited
(99,381)
(284,548)
Finance costs
293,271
219,175
Amortisation and impairment of intangible assets
-
0
42,066
Depreciation and impairment of property, plant and equipment
388,900
477,398
Other gains and losses
(41,776)
212,719
Movements in working capital:
Increase in inventories
(28,617)
(472,130)
Increase in trade and other receivables
(2,428,620)
(120,828)
Increase/(decrease) in trade and other payables
433,964
(61,117)
Cash (absorbed by)/generated from operations
(186,057)
1,141,842
CRYOGENIC LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 28 -
29
Analysis of changes in net debt
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
2,012,740
(507,247)
1,505,493
Bank overdrafts
(627,908)
(251,322)
(879,230)
1,384,832
(758,569)
626,263
Borrowings excluding overdrafts
(2,729,040)
65,850
(2,663,190)
Obligations under finance leases
(784,912)
173,470
(611,442)
(2,129,120)
(519,249)
(2,648,369)
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