Company registration number 09518942 (England and Wales)
MAC CLINICAL RESEARCH FINANCE LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
MAC CLINICAL RESEARCH FINANCE LTD
COMPANY INFORMATION
Director
Dr M C Dale
Company number
09518942
Registered office
19 Park Road
Lytham St. Annes
FY8 1PW
Auditor
MHA
Richard House
9 Winckley Square
Preston
PR1 3HP
MAC CLINICAL RESEARCH FINANCE LTD
CONTENTS
Page
Strategic report
1 - 5
Director's report
6 - 7
Director's responsibilities statement
8
Independent auditor's report
9 - 11
Profit and loss account
12
Statement of comprehensive income
13
Balance sheet
14
Statement of changes in equity
15
Notes to the financial statements
16 - 29
MAC CLINICAL RESEARCH FINANCE LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

The director presents the strategic report for the year ended 30 June 2024.

Review of the business
MAC CLINICAL RESEARCH FINANCE LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Review of the Business continued
MAC CLINICAL RESEARCH FINANCE LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
Development and performance
MAC CLINICAL RESEARCH FINANCE LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -

Investing in marketing technology

The business continues to embrace the opportunities provided by the digital revolution. The company invests in research and development to enhance our IT and digital skills. Our marketing strategy has seen the business rank higher for key Clinical Research search terms while growing social media communities, which in turn has led to a growth of new business.

 

The company also operates paperless files in much of the business and is aiming for even greater coverage by the end of the next financial year. This goes hand in hand with a significant on-going investment in stringent cyber security measures. The company is currently adding in a variety of AI solutions to improve areas of the business.

 

In the community

With 9 local offices in the UK, maintaining close relationships with local communities is extremely important to the business and company actively supports the community from each of our local sites.

 

Future outlook

The future remains increasingly competitive for the company and a flexible and innovative approach to business operations will be required. However, we remain confident that we will continue to maintain and strive to improve our current level of performance by remaining agile in our approach and therefore able to capitalise on all opportunities. MAC has a proven track record of delivering studies across a multi-site operation and is expanding into Europe and North America which will allow it to attract more international CRO opportunities from its existing client base. Along with the 9 clinical sites in the UK we have opened a US facility. The company continues to invest into internal service growth adding in our pathology and bioanalytical services in 2024 located in our MHRA accredited Manchester Early Phase Unit.

Key performance indicators

Revenue remained stable in FY24 driven primarily driven by strong performance of MAC’s CRO services.

 

Wages & salaries currently represent the largest cost for MAC, being c.£16.5m during FY24, of which all are recognised in overheads.

 

Pipeline has continued to grow significantly in past 12 months and is forecast to continue. MAC’s global reach and scale will allow it to carry out its CRO services on larger trials and this trend will continue as the business grows. MAC is a full service CRO, working with leading pharmaceutical and biotechnology companies to assist them in the development of new and improved treatments for patients on a global basis. The Group utilises its full end-to-end clinical research capabilities to accommodate the most complex Phase I trials through to Phase IV and to date has completed over 350 trials.

 

MAC CLINICAL RESEARCH FINANCE LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 5 -
Description of Principal Risks and Uncertainties

 

The management of the business and the execution of the company strategy are subject to a number of risks. In 2023 and 2024 the company was affected by regulatory delays within the UK of many of its projects which had an impact on FY23 Q4 revenue and 2024 Q1 Q2 and Q3 revenues. All risks are formally reviewed by the board and appropriate processes put in place to monitor and mitigate them. The key business risks affecting the company are set out below:

 

Financial management risks

The company's operations expose it to a variety of financial risks that include the effects of changes in liquidity risk, cash flow risk and interest risk.

 

The business' principal financial instruments comprise bank overdrafts and, trade debtors and trade creditors. The main purpose of these instruments is to finance the business' operations. In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at floating rates of interest. All of the business' cash balances are held in such a way that achieves a competitive rate of interest. Cash flow projections are used to manage future plans.

 

The company has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the company. The company does not use derivative financial instruments to manage interest rate costs and no such hedge accounting is applied.

 

Competition

The company acknowledges that the principal risk to its business is competition. The company constantly reviews its performance to ensure the level of service offered is second to none. In addition, the company continues to actively market and promote its products and services. In Q3 2024 MAC Clinical Research Finance ltd acquired Intelligent Clinical Ltd a Glasgow based research company to further expand our geographical reach and services within the UK.

 

Employee risks

The company acknowledges that employees are key to the success of the business and ensures that appropriate training and support are provided to secure longevity of service.

 

Economy

The Board is aware of risks associated with the general economic outlook and will continue to review the situation.

 

Analysis of Development and Performance

 

A number of projects started during the year that have continued post year end with the aim to streamline operations and improve internal efficiencies.

On behalf of the board

Dr M C Dale
Director
29 October 2024
MAC CLINICAL RESEARCH FINANCE LTD
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 6 -

The director presents his annual report and financial statements for the year ended 30 June 2024.

Principal activities

The principal activity of the company continued to be that of the management and consultancy of Clinical Trials.

Results and dividends

The results for the year are set out on page 12.

Ordinary dividends were paid amounting to £18,750. The director does not recommend payment of a further dividend.

Director

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

Dr M C Dale
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

MAC has introduced a biannual staff survey to identify areas new areas of improvement and develop staff engagement in the process. Staff working groups have been established to address issues raised. A portal for structured suggestions “new innovations and ideas” has been set up to collate opinions. There is a new Biannual inspiring peoples award to recognise staff achievements. There are new task forces established working groups and senior leadership team groups to improve employee contribution to problem solving. There has also been the launch of an internal mentoring program to support staff development needs.

Auditor

MHA were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Medium-sized companies exemption

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

MAC CLINICAL RESEARCH FINANCE LTD
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
On behalf of the board
Dr M C Dale
Director
29 October 2024
MAC CLINICAL RESEARCH FINANCE LTD
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

 

 

The director is 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. He is 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.

MAC CLINICAL RESEARCH FINANCE LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF MAC CLINICAL RESEARCH FINANCE LTD
- 9 -
Opinion

We have audited the financial statements of MAC Clinical Research Finance Ltd (the 'company') for the year ended 30 June 2024 which comprise the profit and loss account, the statement of comprehensive income, 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).

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 director's 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 director with respect to going concern are described in the relevant sections of this report.

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 director is 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.

 

We have nothing to report in this regard.

MAC CLINICAL RESEARCH FINANCE LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF MAC CLINICAL RESEARCH FINANCE LTD (CONTINUED)
- 10 -

Opinions on other matters prescribed by the Companies Act 2006

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

 

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

Matters on which we are required to report by exception

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 director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below:

MAC CLINICAL RESEARCH FINANCE LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF MAC CLINICAL RESEARCH FINANCE LTD (CONTINUED)
- 11 -

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities 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 member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Karen Hain BA FCA
Senior Statutory Auditor
For and on behalf of MHA, Statutory Auditor
Preston, United Kingdom
29 October 2024
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)
MAC CLINICAL RESEARCH FINANCE LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
2024
2023
Notes
£
£
Turnover
3
22,373,337
22,648,208
Cost of sales
(2,258,885)
(2,260,470)
Gross profit
20,114,452
20,387,738
Administrative expenses
(22,127,045)
(19,858,194)
Operating (loss)/profit
4
(2,012,593)
529,544
Interest receivable and similar income
7
30,331
36,568
Interest payable and similar expenses
8
(64,059)
(7,241)
Amounts written off investments
9
237,552
-
(Loss)/profit before taxation
(1,808,769)
558,871
Tax on (loss)/profit
10
2,688,919
1,744,664
Profit for the financial year
880,150
2,303,535

The profit and loss account has been prepared on the basis that all operations are continuing operations.

MAC CLINICAL RESEARCH FINANCE LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
2024
2023
£
£
Profit for the year
880,150
2,303,535
Other comprehensive income
-
-
Total comprehensive income for the year
880,150
2,303,535
MAC CLINICAL RESEARCH FINANCE LTD
BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 14 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
775,355
491,488
Tangible assets
13
1,846,067
1,272,711
Investments
14
4,037,816
1,311,908
6,659,238
3,076,107
Current assets
Debtors
17
10,848,085
10,380,520
Cash at bank and in hand
251
2,335,349
10,848,336
12,715,869
Creditors: amounts falling due within one year
18
(6,402,455)
(6,174,381)
Net current assets
4,445,881
6,541,488
Total assets less current liabilities
11,105,119
9,617,595
Creditors: amounts falling due after more than one year
19
(668,817)
(425,126)
Provisions for liabilities
Deferred tax liability
22
382,433
-
0
(382,433)
-
Net assets
10,053,869
9,192,469
Capital and reserves
Called up share capital
23
10
10
Profit and loss reserves
10,053,859
9,192,459
Total equity
10,053,869
9,192,469

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

The financial statements were approved and signed by the director and authorised for issue on 29 October 2024
Dr M C Dale
Director
Company registration number 09518942 (England and Wales)
MAC CLINICAL RESEARCH FINANCE LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 15 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2022
10
6,907,674
6,907,684
Year ended 30 June 2023:
Profit and total comprehensive income
-
2,303,535
2,303,535
Dividends
11
-
(18,750)
(18,750)
Balance at 30 June 2023
10
9,192,459
9,192,469
Year ended 30 June 2024:
Profit and total comprehensive income
-
880,150
880,150
Dividends
11
-
(18,750)
(18,750)
Balance at 30 June 2024
10
10,053,859
10,053,869
MAC CLINICAL RESEARCH FINANCE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
1
Accounting policies
Company information

MAC Clinical Research Finance Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 19 Park Road, Lytham St. Annes, FY8 1PW. The principle place of business is Kaman Court, 1 Faraday Way, Blackpool, FY2 0JH.

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 £.

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

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of MAC Research Limited. These consolidated financial statements are available from its registered office.

1.2
Going concern

Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover represents the value, net of value added tax and discounts, of goods provided to customers and work carried out in respect of services provided to customers.

MAC CLINICAL RESEARCH FINANCE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 17 -
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.

 

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:

Software Development
10% straight line
1.5
Tangible fixed assets

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

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

Leasehold improvements
25% straight line
Plant and machinery
25% straight line
Motor vehicles
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 credited or charged to profit or loss.

1.6
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

MAC CLINICAL RESEARCH FINANCE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 18 -
1.7
Impairment of fixed 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.

1.8
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.

1.9
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 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.

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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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.

MAC CLINICAL RESEARCH FINANCE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 19 -
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 creditors, bank loans, loans from fellow group companies and preference shares 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.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

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.

Other financial liabilities

Derivatives, including interest rate swaps and 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, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.10
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.

1.11
Taxation

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

MAC CLINICAL RESEARCH FINANCE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 20 -
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 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 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 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.

1.12
Employee benefits

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

1.13
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 balance sheet 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.

1.14

Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

MAC CLINICAL RESEARCH FINANCE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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.

Key sources of estimation uncertainty

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

Revenue recognition

Income from contracts is taken as the work is carried out and once certain milestones have been reached. These milestones are set out in each respective contract. The profit is calculated on a prudent basis to reflect the proportion of work carried out by the year end by recording turnover and related costs as contract activity progresses.

 

Amounts recoverable on contracts are amounts not yet invoiced for which work has been completed but not yet invoiced.

3
Turnover and other revenue

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

2024
2023
£
£
Turnover analysed by class of business
Provision of services
22,373,337
22,648,208
2024
2023
£
£
Turnover analysed by geographical market
UK
2,309,275
6,323,999
Europe
4,791,209
2,077,959
Rest of world
15,272,853
14,246,250
22,373,337
22,648,208
2024
2023
£
£
Other revenue
Interest income
30,331
36,568
MAC CLINICAL RESEARCH FINANCE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
4
Operating (loss)/profit
2024
2023
Operating (loss)/profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
17,500
12,200
Depreciation of owned tangible fixed assets
497,376
193,348
5
Employees

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

2024
2023
Number
Number
Management
40
30
Operational staff
325
321
Total
365
351

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
15,058,195
13,761,643
Social security costs
1,582,434
1,443,924
16,640,629
15,205,567
6
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
18,000
10,800
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
30,331
36,568
MAC CLINICAL RESEARCH FINANCE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
23,552
459
Interest on finance leases and hire purchase contracts
40,507
6,782
64,059
7,241
9
Amounts written off investments
2024
2023
£
£
Fair value gains/(losses) on financial instruments
Gain on financial assets held at fair value through profit or loss
237,552
-
0
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(2,724,127)
(1,744,664)
Adjustments in respect of prior periods
(347,225)
-
0
Total current tax
(3,071,352)
(1,744,664)
Deferred tax
Origination and reversal of timing differences
145,945
-
0
Adjustment in respect of prior periods
236,488
-
0
Total deferred tax
382,433
-
0
Total tax credit
(2,688,919)
(1,744,664)
MAC CLINICAL RESEARCH FINANCE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
10
Taxation
(Continued)
- 24 -

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

2024
2023
£
£
(Loss)/profit before taxation
(1,808,769)
558,871
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
(452,192)
139,718
Tax effect of expenses that are not deductible in determining taxable profit
3,083
5,433
Research and development tax credit
(2,240,404)
(1,850,395)
Superdeductions
594
(39,420)
Taxation credit for the year
(2,688,919)
(1,744,664)
11
Dividends
2024
2023
£
£
Final paid
18,750
18,750
12
Intangible fixed assets
Software Development
£
Cost
At 1 July 2023
683,484
Additions
283,867
At 30 June 2024
967,351
Amortisation and impairment
At 1 July 2023 and 30 June 2024
191,996
Carrying amount
At 30 June 2024
775,355
At 30 June 2023
491,488
MAC CLINICAL RESEARCH FINANCE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 25 -
13
Tangible fixed assets
Leasehold improvements
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost
At 1 July 2023
467,983
2,744,265
20,500
3,232,748
Additions
68,797
1,001,935
-
0
1,070,732
At 30 June 2024
536,780
3,746,200
20,500
4,303,480
Depreciation and impairment
At 1 July 2023
288,261
1,651,276
20,500
1,960,037
Depreciation charged in the year
59,653
437,723
-
0
497,376
At 30 June 2024
347,914
2,088,999
20,500
2,457,413
Carrying amount
At 30 June 2024
188,866
1,657,201
-
0
1,846,067
At 30 June 2023
179,722
1,092,989
-
0
1,272,711
14
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
15
35,728
-
0
Unlisted investments
1,764,536
1,311,908
Listed investments
2,237,552
-
0
4,037,816
1,311,908
Fixed asset investments revalued

Listed investments are included at fair value with any movements recorded in the profit and loss account.

Fixed asset investments not carried at market value

Unlisted investments and investments in subsidiaries are held at Historic cost less impairment.

MAC CLINICAL RESEARCH FINANCE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
14
Fixed asset investments
(Continued)
- 26 -
Movements in fixed asset investments
Shares in subsidiaries
Other investments
Listed investments
Total
£
£
£
£
Cost or valuation
At 1 July 2023
-
1,311,908
-
1,311,908
Additions
35,728
452,628
2,000,000
2,488,356
Valuation changes
-
-
237,552
237,552
At 30 June 2024
35,728
1,764,536
2,237,552
4,037,816
Carrying amount
At 30 June 2024
35,728
1,764,536
2,237,552
4,037,816
At 30 June 2023
-
1,311,908
-
0
1,311,908
15
Subsidiaries

Details of the company's subsidiaries at 30 June 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Intelligent Clinical Limited
Ground Floor, Fleming Pavilion Todd Campus, West Of Scotland Science Park, Glasgow, Scotland, G20 0X
Ordinary
100.00
16
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
1,764,536
1,311,908
17
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
4,652,911
4,049,950
Gross amounts owed by contract customers
522,739
2,190,261
Corporation tax recoverable
2,764,384
1,744,664
Other debtors
2,241,305
1,715,892
Prepayments and accrued income
666,746
679,753
10,848,085
10,380,520
MAC CLINICAL RESEARCH FINANCE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 27 -
18
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
20
791,578
-
0
Obligations under finance leases
21
222,375
114,515
Trade creditors
2,837,315
1,758,891
Amounts owed to group undertakings
511,646
472,849
Other creditors
83,858
54,756
Accruals and deferred income
1,955,683
3,773,370
6,402,455
6,174,381
19
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
21
668,817
425,126
20
Loans and overdrafts
2024
2023
£
£
Bank overdrafts
791,578
-
0
Payable within one year
791,578
-
0
21
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
222,375
114,515
In two to five years
668,817
425,126
891,192
539,641

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. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. The finance lease obligations are secured by the assets to which they relate to.

MAC CLINICAL RESEARCH FINANCE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 28 -
22
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
435,306
-
Tax losses
(45,967)
-
Short term timing differences
(6,906)
-
382,433
-
2024
Movements in the year:
£
Liability at 1 July 2023
-
Charge to profit or loss
382,433
Liability at 30 June 2024
382,433
23
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
10
10
10
10
24
Financial commitments, guarantees and contingent liabilities

MAC Clinical Research Finance Limited has an unlimited guarantee with the bank which contains a fixed and floating charge over the company and a negative pledge.

25
Operating lease commitments

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

2024
2023
£
£
Within one year
387,982
556,732
Between two and five years
398,021
750,003
In over five years
63,000
99,000
849,003
1,405,735
MAC CLINICAL RESEARCH FINANCE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 29 -
26
Events after the reporting date

Following the end of the financial period the company's listed fixed asset investments have been seen to significantly reduce in value. At a measurement point in October 2024, the value had fallen by £619k. This reduction is not included within these financial statements.

27
Related party transactions
Balances with related parties

The following amounts were outstanding at the reporting end date:

Category
Amounts owed by
Amounts owed to
related parties
related parties
2024
2023
2024
2023
£
£
£
£
Other related parties
1,950,965
1,025,024
-
0
-
0
Other information

The company has taken advantage of the exemption permitted under Section 1A paragraph 35C from disclosing transactions with its fellow group companies.

28
Ultimate controlling party

MAC Clinical Research Finance Limited is wholly owned by MAC Research Limited a company incorporated in England and Wales. The registered office is 19 Park Road, Lytham St Annes, FY8 1PW. The principle place of business is Kaman Court, 1 Faraday Way, Blackpool. FY2 0JH.

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