Company registration number 13698926 (England and Wales)
MEDCAPTAIN UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2023
MEDCAPTAIN UK LIMITED
COMPANY INFORMATION
Directors
X Gao
Y Zhong
Company number
13698926
Registered office
Abingdon Science Park
Barton Lane
Abingdon
Oxfordshire
OX14 3NB
Auditor
Critchleys Audit LLP
First Floor, Park Central
40-41 Park End Street
Oxford
OX1 1JD
MEDCAPTAIN UK LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 32
MEDCAPTAIN UK LIMITED
STRATEGIC REPORT
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the 9 month period ended 31 December 2023.

Review of the business

The result for the period ended 31 December 2023 are set out in the statement of income and retained earnings. The directors consider the results for the period and financial position for the group at the year end to be satisfactory in relation to the company's role within the group structure.

Principal risks and uncertainties

The key risk to the business continues to be the ongoing service of group debt and maintaining sufficient cashflow to meet the debt obligations

 

Key performance indicators

The Directors consider that the key financial performance indicators of the group are those that communicate the financial performance and strength of the group as a whole, these being turnover and profit margins.

 

In the 9 months ended 31 December 2023 (“CY2023”), the group recorded turnover of £15.2m compared with £20.6m for the 12 months ended 31 March 2023 (“FY2023”).

 

The Company achieved a gross margin of 37.1% in CY2023 versus 28.5% in FY2023.

Future Developments

As set out in our Strategic Report, management have a well-defined growth strategy which is underpinned by innovation. They are looking to pursue sales in potential new markets and B2B business on vaporizer products, besides, they are also exploring the possibilities to add more product lines to the UK market to increase UK revenue.

 

Continued investment is to be made around cost optimisation, through value engineering of the existing products to save further on the future raw material costs, and overhead cost optimisation, therefore enable these products to be sold at a more attractive price. This is critical also in terms of the cost base having increased due to the global turmoil around the war in Ukraine.

Additionally, the group has continued to invest in research and development activities to strengthen the core portfolio of products. Penlon is working closely with Medcaptain R&D team to develop next generation products and optimize its current product range.

 

With the improved product portfolio, continuous cost optimisation, and increase in geographical reach, the management have high expectations for growth and profitability over the coming few years.

On behalf of the board

X Gao
Director
18 November 2024
MEDCAPTAIN UK LIMITED
DIRECTORS' REPORT
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2023
- 2 -

The directors present their annual report and financial statements for the 9 month period ended 31 December 2023.

Principal activities

The principal activity of the group continued to be that of manufacturing of medical instruments and supplies. The principle activity of the company is that of a holding company.

Results and dividends

The results for the 9 month period are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the 9 month period and up to the date of signature of the financial statements were as follows:

X Gao
Y Zhong
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 auditor of the company 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 auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
X Gao
Director
18 November 2024
MEDCAPTAIN UK LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2023
- 3 -

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

MEDCAPTAIN UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MEDCAPTAIN UK LIMITED
- 4 -

Qualified opinion on financial statements

We have audited the financial statements of MedCaptain UK Limited (the 'parent company') and its subsidiaries (the 'group') for the 9 month period ended 31 December 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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, except for the effects of the matter described in the basis for qualified opinion section of our report, the financial statements:

Basis for qualified opinion

The company's year end stock balance is a material component of the financial statements, representing £6.1m as at 31 December 2023. We were appointed as auditors of the company in May 2024, after the company's period end, and were therefore unable to attend the physical stock count conducted as at 31 December 2023 or observe related stock procedures. Since stock is a significant component of the financial statements, we were unable to obtain sufficient appropriate audit evidence regarding the existence and valuation of stock as at 31 December 2023 by alternative audit procedures. Consequently, we were unable to determine whether any adjustments might have been necessary to stock, cost of sales and the related disclosures in the financial statements. In addition, were any adjustments to the stock balance to be required, the strategic report would also need to be amended.

 

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 group and parent 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 group's and parent 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.

MEDCAPTAIN UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MEDCAPTAIN UK LIMITED
- 5 -

Other information

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

 

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the stock quantity and valuation as at 31 December 2023. We have concluded that where the other information refers to the stock balance ore related items such as cost of sales, or operating profit it may be materially misstated for the same reasons.

Opinions on other matters prescribed by the Companies Act 2006

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of our audit:

 

Matters on which we are required to report by exception

In respect solely of the limitation on our work relating to stock, described above:

 

Except for the matter described in the basis for qualified opinion section of our report, in the light of the knowledge and understanding of the group and the parent company and their 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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.

MEDCAPTAIN UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MEDCAPTAIN UK LIMITED
- 6 -
Auditor's responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

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

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

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.

Katherine Wilkes
Senior Statutory Auditor
For and on behalf of Critchleys Audit LLP
25 November 2024
Chartered Accountants
Statutory Auditor
First Floor, Park Central
40-41 Park End Street
Oxford
OX1 1JD
MEDCAPTAIN UK LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2023
- 8 -
9 months
Year
ended
ended
31 December
31 March
2023
2023
Notes
£
£
Turnover
3
15,176,271
20,564,569
Cost of sales
(9,533,831)
(15,534,163)
Gross profit
5,642,440
5,030,406
Distribution costs
(1,796,882)
(2,691,753)
Administrative expenses
(3,746,716)
(6,564,533)
Other operating income
54,527
-
Operating profit/(loss)
4
153,369
(4,225,880)
Interest receivable and similar income
7
63,868
33,735
Interest payable and similar expenses
8
-
0
(23,188)
Profit/(loss) before taxation
217,237
(4,215,333)
Tax on profit/(loss)
9
199,846
392,273
Profit/(loss) for the financial 9 month period
417,083
(3,823,060)
Profit/(loss) for the financial 9 month period is all attributable to the owners of the parent company.
MEDCAPTAIN UK LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2023
- 9 -
9 months
Year
ended
ended
31 December
31 March
2023
2023
£
£
Profit/(loss) for the 9 month period
417,083
(3,823,060)
Other comprehensive income
-
-
Total comprehensive income for the 9 month period
417,083
(3,823,060)
Total comprehensive income for the 9 month period is all attributable to the owners of the parent company.
MEDCAPTAIN UK LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
31 December 2023
31 March 2023
Notes
£
£
£
£
Fixed assets
Goodwill
11
9,939,650
11,222,185
Other intangible assets
11
530,732
639,207
Total intangible assets
10,470,382
11,861,392
Tangible assets
12
618,861
675,452
11,089,243
12,536,844
Current assets
Stocks
15
6,176,232
3,796,732
Debtors
16
10,455,802
9,817,100
Cash at bank and in hand
1,182,302
1,961,929
17,814,336
15,575,761
Creditors: amounts falling due within one year
17
(6,214,052)
(5,822,647)
Net current assets
11,600,284
9,753,114
Net assets
22,689,527
22,289,958
Capital and reserves
Called up share capital
20
26,095,504
26,095,504
Other reserves
-
0
17,514
Profit and loss reserves
(3,405,977)
(3,823,060)
Total equity
22,689,527
22,289,958

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 18 November 2024 and are signed on its behalf by:
18 November 2024
X Gao
Director
Company registration number 13698926 (England and Wales)
MEDCAPTAIN UK LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
31 December 2023
31 March 2023
Notes
£
£
£
£
Fixed assets
Investments
13
21,128,315
21,128,315
Current assets
Debtors
16
6,223,503
5,956,296
Cash at bank and in hand
145,964
327,844
6,369,467
6,284,140
Creditors: amounts falling due within one year
17
(1,260,868)
(1,260,868)
Net current assets
5,108,599
5,023,272
Net assets
26,236,914
26,151,587
Capital and reserves
Called up share capital
20
26,095,504
26,095,504
Profit and loss reserves
141,410
56,083
Total equity
26,236,914
26,151,587

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £85,327 (2023 - £56,083 profit).

The financial statements were approved by the board of directors and authorised for issue on 18 November 2024 and are signed on its behalf by:
18 November 2024
X Gao
Director
Company registration number 13698926 (England and Wales)
MEDCAPTAIN UK LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2023
- 12 -
Share capital
Foreign exchange reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
-
0
-
-
0
-
Year ended 31 March 2023:
Loss and total comprehensive income
-
-
(3,823,060)
(3,823,060)
Issue of share capital
20
26,095,504
-
-
26,095,504
Foreign exchange reserve
-
17,514
-
17,514
Balance at 31 March 2023
26,095,504
17,514
(3,823,060)
22,289,958
Period ended 31 December 2023:
Profit and total comprehensive income
-
-
417,083
417,083
Other movements
-
(17,514)
-
(17,514)
Balance at 31 December 2023
26,095,504
-
(3,405,977)
22,689,527
MEDCAPTAIN UK LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
-
0
-
0
-
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
56,083
56,083
Issue of share capital
20
26,095,504
-
26,095,504
Balance at 31 March 2023
26,095,504
56,083
26,151,587
Period ended 31 December 2023:
Profit and total comprehensive income
-
85,327
85,327
Balance at 31 December 2023
26,095,504
141,410
26,236,914
MEDCAPTAIN UK LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2023
- 14 -
2023
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
23
(878,404)
(6,456,291)
Income taxes refunded
161,259
-
Net cash outflow from operating activities
(717,145)
(6,456,291)
Investing activities
Purchase of fixed asset investments
-
(19,867,510)
Cash acquied on acquisition of subsidiary
-
2,298,000
Purchase of tangible fixed assets
(172,155)
(140,499)
Proceeds from disposal of tangible fixed assets
45,805
-
Interest received
63,868
33,735
Net cash used in investing activities
(62,482)
(17,676,274)
Financing activities
Proceeds from issue of shares
-
26,095,504
Interest paid
-
0
(1,010)
Net cash (used in)/generated from financing activities
-
26,094,494
Net (decrease)/increase in cash and cash equivalents
(779,627)
1,961,929
Cash and cash equivalents at beginning of 9 month period
1,961,929
-
0
Cash and cash equivalents at end of 9 month period
1,182,302
1,961,929
MEDCAPTAIN UK LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2023
- 15 -
2023
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
24
(269,918)
(4,695,491)
Income taxes (paid)/refunded
(63)
63
Net cash outflow from operating activities
(269,981)
(4,695,428)
Investing activities
Proceeds from disposal of subsidiaries
-
0
(21,128,315)
Interest received
88,101
56,083
Net cash generated from/(used in) investing activities
88,101
(21,072,232)
Financing activities
Proceeds from issue of shares
-
26,095,504
Net cash (used in)/generated from financing activities
-
26,095,504
Net (decrease)/increase in cash and cash equivalents
(181,880)
327,844
Cash and cash equivalents at beginning of 9 month period
327,844
-
0
Cash and cash equivalents at end of 9 month period
145,964
327,844
MEDCAPTAIN UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information

MedCaptain UK Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Abingdon Science Park, Barton Lane, Abingdon, Oxfordshire, OX14 3NB.

 

The group consists of MedCaptain UK Limited and all of its subsidiaries.

1.1
Reporting period

The reporting period is a short 9 month period from 1 April 2023 to 31 December 2023. Therefore comparative amounts presented in the financial statements (including the related notes) are not entirely comparable.

1.2
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

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

1.3
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.4
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company MedCaptain UK Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

MEDCAPTAIN UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.5
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.6
Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised.

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

 

1.7
Research and development expenditure

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 5 years.

 

If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

MEDCAPTAIN UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.8
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.9
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Development costs
3 years
1.10
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
10% straight line
Plant and equipment
10% - 25% straight line
Fixtures and fittings
10% - 25% straight line

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 profit and loss account.

1.11
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

MEDCAPTAIN UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.12
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.13
Stocks

Stocks 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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.14
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.

MEDCAPTAIN UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.15
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and loans from fellow group companies that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

MEDCAPTAIN UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.16
Equity instruments

Equity instruments issued by the group 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 group.

1.17
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is 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.

1.18
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.19
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.20
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.

MEDCAPTAIN UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2023
- 22 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Provisions for stock

The Company makes provisions for stock based upon the volume of stock and the expected use of that stock., Any volume of stock that is not expected to be consumed within 52 weeks is provided for at 100% of costs. Stock that is expected to be consumed after 26 weeks is provided for at 50% unless reasonable justification to override.

Provisons for trade debtors

The Company makes provisions for trade debtors where the management predict that it is more likely than not that a debt is uncollectable. These debts are provided in full.

Warranty

A provision has been recognised for expected warranty claims on products sold during the last two years. It is expected that most of these costs will be incurred in the next financial year, however, this provision is revised annually based on warranty costs incurred.

3
Turnover and other revenue
2023
2023
£
£
Turnover analysed by class of business
Sale of goods
15,176,271
20,564,569
2023
2023
£
£
Turnover analysed by geographical market
United Kingdom
1,250,677
1,536,220
Rest of Europe
2,530,108
4,411,560
Rest of the world
11,395,486
14,616,789
15,176,271
20,564,569
2023
2023
£
£
Other revenue
Interest income
63,868
33,735
MEDCAPTAIN UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2023
- 23 -
4
Operating profit/(loss)
2023
2023
£
£
Operating profit/(loss) for the period is stated after charging/(crediting):
Exchange gains
(173,869)
(261,102)
Fees payable to the group's auditor for the audit of the group's financial statements
65,000
65,000
Depreciation of owned tangible fixed assets
182,941
141,660
Amortisation of intangible assets
1,391,010
1,766,595
Impairment of intangible assets
-
0
157,882
Operating lease charges
396,521
494,744
5
Auditor's remuneration
2023
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
65,000
65,000
Audit of the financial statements of the company's subsidiaries
41,000
26,873
106,000
91,873
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the 9 month period was:

Group
Company
2023
2023
2023
2023
Number
Number
Number
Number
Production
78
69
-
-
Selling and distribution
21
29
-
-
Administration
32
22
-
-
Total
131
120
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2023
2023
2023
£
£
£
£
Wages and salaries
3,888,819
5,841,968
-
0
-
0
Social security costs
374,570
453,375
-
-
Pension costs
151,608
301,723
-
0
-
0
4,414,997
6,597,066
-
0
-
0
MEDCAPTAIN UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2023
- 24 -
7
Interest receivable and similar income
2023
2023
£
£
Interest income
Interest on bank deposits
63,868
33,735
2023
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
63,868
33,735
8
Interest payable and similar expenses
2023
2023
£
£
Other finance costs:
Other interest
-
23,188
9
Taxation
2023
2023
£
£
Current tax
UK corporation tax on profits for the current period
-
0
2,827
Adjustments in respect of prior periods
(161,322)
(21,502)
Total current tax
(161,322)
(18,675)
Deferred tax
Origination and reversal of timing differences
(38,524)
(373,598)
Total tax credit
(199,846)
(392,273)
MEDCAPTAIN UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 25 -

The actual credit for the 9 month period can be reconciled to the expected charge/(credit) for the 9 month period based on the profit or loss and the standard rate of tax as follows:

2023
2023
£
£
Profit/(loss) before taxation
217,237
(4,215,333)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
54,309
(800,913)
Tax effect of expenses that are not deductible in determining taxable profit
354,685
-
0
Tax effect of income not taxable in determining taxable profit
(9,156)
-
0
Adjustments in respect of prior years
(161,322)
-
0
Group relief
20,571
-
0
Fixed asset differences
1,957
-
0
Other permanent differences
289
408,640
Deferred tax adjustments in respect of prior years
(461,179)
-
0
Taxation credit
(199,846)
(392,273)
10
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2023
Notes
£
£
In respect of:
Intangible assets
11
-
157,882
Recognised in:
Administrative expenses
-
157,882

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

MEDCAPTAIN UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2023
- 26 -
11
Intangible fixed assets
Group
Goodwill
Development costs
Total
£
£
£
Cost
At 1 April 2023
12,825,354
1,504,472
14,329,826
Disposals
-
0
(792,951)
(792,951)
At 31 December 2023
12,825,354
711,521
13,536,875
Amortisation and impairment
At 1 April 2023
1,603,169
865,265
2,468,434
Amortisation charged for the 9 month period
1,282,535
108,475
1,391,010
Disposals
-
0
(792,951)
(792,951)
At 31 December 2023
2,885,704
180,789
3,066,493
Carrying amount
At 31 December 2023
9,939,650
530,732
10,470,382
At 31 March 2023
11,222,185
639,207
11,861,392
The company had no intangible fixed assets at 31 December 2023 or 31 March 2023.

More information on impairment movements in the 9 month period is given in note 10.

MEDCAPTAIN UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2023
- 27 -
12
Tangible fixed assets
Group
Leasehold land and buildings
Assets under construction
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
£
Cost
At 1 April 2023
596,024
35,812
2,055,968
746,933
3,434,737
Additions
1
114,262
53,495
4,397
172,155
Disposals
(490,627)
(3,234)
(1,494,535)
(670,072)
(2,658,468)
At 31 December 2023
105,398
146,840
614,928
81,258
948,424
Depreciation and impairment
At 1 April 2023
469,425
-
0
1,645,515
644,345
2,759,285
Depreciation charged in the 9 month period
55,313
-
0
56,531
71,097
182,941
Eliminated in respect of disposals
(482,693)
-
0
(1,459,878)
(670,092)
(2,612,663)
At 31 December 2023
42,045
-
0
242,168
45,350
329,563
Carrying amount
At 31 December 2023
63,353
146,840
372,760
35,908
618,861
At 31 March 2023
126,599
35,812
410,453
102,588
675,452
The company had no tangible fixed assets at 31 December 2023 or 31 March 2023.
13
Fixed asset investments
Group
Company
2023
2023
2023
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
21,128,315
21,128,315
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023 and 31 December 2023
21,128,315
Carrying amount
At 31 December 2023
21,128,315
At 31 March 2023
21,128,315
14
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

MEDCAPTAIN UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2023
14
Subsidiaries
(Continued)
- 28 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Penlon Limited
1-5 Barton Lane, Abingdon Science Park, Abingdon, Oxfordshire, OX14 3NB
Ordinary
100.00
Intermed Limited
1-5 Barton Lane, Abingdon Science Park, Abingdon, Oxfordshire, OX14 3NB
Ordinary
100.00
15
Stocks
Group
Company
2023
2023
2023
2023
£
£
£
£
Raw materials and consumables
1,506,085
1,769,854
-
-
Work in progress
6,636
600,603
-
-
Finished goods and goods for resale
4,663,511
1,426,275
-
0
-
0
6,176,232
3,796,732
-
-
16
Debtors
Group
Company
2023
2023
2023
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,246,689
3,725,849
-
0
-
0
Amounts owed by group undertakings
4,999,943
3,683,265
6,223,233
5,956,296
Other debtors
209,553
450,247
270
-
0
Prepayments and accrued income
379,246
375,892
-
0
-
0
8,835,431
8,235,253
6,223,503
5,956,296
Amounts falling due after more than one year:
Deferred tax asset (note 18)
1,620,371
1,581,847
-
0
-
0
Total debtors
10,455,802
9,817,100
6,223,503
5,956,296
MEDCAPTAIN UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2023
- 29 -
17
Creditors: amounts falling due within one year
Group
Company
2023
2023
2023
2023
£
£
£
£
Trade creditors
2,320,665
2,956,588
-
0
-
0
Amounts owed to group undertakings
1,070,370
-
0
-
0
-
0
Corporation tax payable
-
0
63
-
0
63
Other taxation and social security
297,803
104,577
-
-
Other creditors
1,446,318
2,122,141
1,260,868
1,260,805
Accruals and deferred income
1,078,896
639,278
-
0
-
0
6,214,052
5,822,647
1,260,868
1,260,868
18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Assets
Assets
2023
2023
Group
£
£
Accelerated capital allowances
(128,246)
(161,609)
Tax losses
1,744,607
1,718,378
Short term timing differences
4,010
25,078
1,620,371
1,581,847
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the 9 month period:
£
£
Asset at 1 April 2023
(1,581,847)
-
Credit to profit or loss
(38,524)
-
Asset at 31 December 2023
(1,620,371)
-

The deferred tax asset set out above is expected to reverse within the next few years and relates to the utilisation of tax losses against future expected profits of the same period.

19
Retirement benefit schemes
2023
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
151,608
301,723
MEDCAPTAIN UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2023
19
Retirement benefit schemes
(Continued)
- 30 -

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

20
Share capital
Group and company
2023
2023
2023
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of 10p each
260,955,040
260,955,040
26,095,504
26,095,504
21
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2023
2023
2023
£
£
£
£
Within one year
552,182
448,974
-
-
Between two and five years
3,014,944
1,807,329
-
-
3,567,126
2,256,303
-
-
22
Controlling party

The ultimate controlling part is Medcaptain Medical Technology Limited, a privately owned business domiciled in China who is the parent of the smallest and largest group for which consolidated financial statements are prepared.

MEDCAPTAIN UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2023
- 31 -
23
Cash absorbed by group operations
2023
2023
£
£
Profit/(loss) for the 9 month period after tax
417,083
(3,823,060)
Adjustments for:
Taxation credited
(199,846)
(373,535)
Finance costs
-
0
1,010
Investment income
(63,868)
(33,735)
Amortisation and impairment of intangible assets
1,391,010
1,955,434
Depreciation and impairment of tangible fixed assets
182,941
179,851
Foreign exchange gains on cash equivalents
(17,514)
17,514
Movements in working capital:
Increase in stocks
(2,379,500)
(515,732)
Increase in debtors
(600,178)
(2,697,237)
Increase in creditors
391,468
2,516,464
(Increase)/decrease in amounts owed by group
-
(3,683,265)
Cash absorbed by operations
(878,404)
(6,456,291)
24
Cash absorbed by operations - company
2023
2023
£
£
Profit for the 9 month period after tax
85,327
56,083
Adjustments for:
Investment income
(88,101)
(56,083)
Movements in working capital:
Increase in debtors
(267,207)
(5,956,296)
Increase in creditors
63
1,260,805
Cash absorbed by operations
(269,918)
(4,695,491)
25
Analysis of changes in net funds - group
1 April 2023
Cash flows
Exchange rate movements
31 December 2023
£
£
£
£
Cash at bank and in hand
1,961,929
(770,965)
(8,662)
1,182,302
MEDCAPTAIN UK LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE 9 MONTH PERIOD ENDED 31 DECEMBER 2023
- 32 -
26
Analysis of changes in net funds - company
1 April 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
327,844
(181,880)
145,964
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