Everest Biotech Limited |
Notes to the Accounts |
for the year ended 31 December 2023 |
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1 |
Accounting policies |
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Basis of preparation |
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The financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 paragraph 1A, and with 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 £. |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Cash and cash equivalents |
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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 with borrowings in current liabilities. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Freehold buildings |
over 50 years |
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Leasehold land and buildings |
over the lease term |
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Plant and machinery |
over 5 years |
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Fixtures, fittings, tools and equipment |
over 5 years |
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Basic financial assets |
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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. |
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell, which is equivalent to the net realisable value. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Provision is made for damaged, obsolete and slow-moving stock where appropriate. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Going concern |
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The financial position of the company is reflective of the business model of the group. At the time of approving the financial statements, and with the continued commitment of support across all entities, including this company, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements. |
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Financial instruments |
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Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
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Provisions |
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Provisions (i.e liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
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Leases |
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Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease, except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate. |
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2 |
Audit information |
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The audit report is qualified. |
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Senior statutory auditor: |
Duncan Stratford |
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Firm: |
Azets Audit Services |
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Date of audit report: |
16 January 2025 |
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Independent auditor's report to the members of Everest Biotech Limited |
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Qualified opinion |
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We have audited the financial statements of Everest Biotech Limited (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, the balance sheet, the statement of changes in equity and 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). |
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In our opinion the accounts, except for the effects of the matter described in the basis for qualified opinion section of our report, the financial statements: |
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give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended; |
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
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have been prepared in accordance with the requirements of the Companies Act 2006. |
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Basis for qualified opinion |
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We were not appointed as auditor of the company until after 31 December 2023 and thus did not observe the counting of physical stock at the end of the year, nor the prior year ended 31 December 2022. We were unable to satisfy ourselves by alternative means concerning the stock quantities held at 31 December 2023 and 31 December 2022, which are included in the balance sheet at £373,945 and £326,401 respectively, by using other audit procedures. Consequently we were unable to determine whether any adjustments to this amount was necessary or whether there was any consequential effect on the cost of sales for the period ended 31 December 2023. |
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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 qualified opinion. |
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3 |
Employees |
2023 |
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2022 |
Number |
Number |
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Average number of persons employed by the company |
5 |
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6 |
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4 |
Tangible fixed assets |
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Plant and machinery etc |
£ |
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Cost |
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At 1 January 2023 |
28,597 |
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At 31 December 2023 |
28,597 |
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Depreciation |
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At 1 January 2023 |
27,989 |
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Charge for the year |
608 |
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At 31 December 2023 |
28,597 |
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Net book value |
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At 31 December 2023 |
- |
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At 31 December 2022 |
608 |
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5 |
Debtors |
2023 |
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2022 |
£ |
£ |
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Trade debtors |
148,977 |
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90,479 |
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Amounts owed by group undertakings and undertakings in which the company has a participating interest |
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2,227,656 |
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1,595,729 |
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Other debtors |
135,692 |
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123,731 |
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2,512,325 |
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1,809,939 |
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6 |
Creditors: amounts falling due within one year |
2023 |
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2022 |
£ |
£ |
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Bank loans and overdrafts |
231 |
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198 |
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Trade creditors |
11,822 |
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14,223 |
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Amounts owed to group undertakings and undertakings in which the company has a participating interest |
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665,311 |
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365,203 |
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Other taxes and social security costs |
10,482 |
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26,688 |
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Other creditors |
193,525 |
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151,723 |
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881,371 |
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558,035 |
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7 |
Pension commitments |
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The company operates a defined contribution scheme for the benefit of its employees. The assets of the scheme are administrated by trustees in a fund independent from those of the company. The pension costs charges in this accounting period have amounted to 31 December 2023 £13,685 (year ending December 2022 £21,091). |
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8 |
Taxation |
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As at 31st December 2023 there were unrelieved capital losses of £88,800 to carry forward. (2022 £88,800) |
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9 |
Post Balance sheet events |
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The group, of which Everest Biotech Limited is a subsidiary, entered into a re-financing arrangement on 7th June 2024, which are secured by fixed and floating charges over all of the assets of the company. |
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10 |
Controlling party |
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The immediate parent company is Everest Biotech Holdings Limited, a company registered in England and Wales. The ultimate controlling party of the group is Thompson Street Capital Partners IV, L.P. |
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11 |
Other information |
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Everest Biotech Limited is a private company limited by shares and incorporated in England. Its registered office is: |
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Cherwell Innovation Centre |
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77 Heyford Park |
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Upper Heyford |
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Nr Bicester |
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OX25 5HD |