Company Registration No. 10642293 (England and Wales)
Orthopediatrics EU Limited
Annual report and financial statements
for the year ended 31 December 2023
Orthopediatrics EU Limited
Company information
Director
Fred Hite
Company number
10642293
Registered office
71 Queen Victoria Street
London
EC4V 4BE
Independent auditor
Saffery LLP
71 Queen Victoria Street
London
EC4V 4BE
Orthopediatrics EU Limited
Contents
Page
Director's report
1
Director's responsibilities statement
2
Independent auditor's report
3 - 6
Statement of comprehensive income
7
Statement of financial position
8
Statement of changes in equity
9
Notes to the financial statements
10 - 18
Orthopediatrics EU Limited
Director's report
For the year ended 31 December 2023
1
The director presents his annual report and financial statements for the year ended 31 December 2023.
Principal activities
The company's principal activity was that of the retail sale of medical and orthopaedic goods.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Fred Hite
Director's insurance
The company maintains insurance policies on behalf of the director against liability arising from negligence, breach of duty and breach of trust in relation to the company.
Post reporting date events
After the reporting date the coronavirus pandemic has caused significant economic uncertainty. The director continues to monitor the rapidly evolving situation and has taken actions based on guidance from international and domestic authorities. While the impact on future performance is yet to be fully quantified the parent company is in a position to continue to provide support should this be required.
Auditor
Saffery LLP have expressed their willingness to continue in office.
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.
On behalf of the board
Fred Hite
Director
16 February 2025
Orthopediatrics EU Limited
Director's responsibilities statement
For the year ended 31 December 2023
2
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
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.
Orthopediatrics EU Limited
Independent auditor's report
To the members of Orthopediatrics EU Limited
3
Opinion
We have audited the financial statements of Orthopediatrics EU Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the statement of financial position, 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:
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;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
We would like to draw users attention to note 1.2 in the financial statements which sets out that the company is reliant on the support of the parent Orthopediatrics Corp. Our opinion is not modified in respect of this matter.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
the director's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
the director has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
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.
Orthopediatrics EU Limited
Independent auditor's report (continued)
To the members of Orthopediatrics EU Limited
4
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the director's report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the director's 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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the director was not entitled to take advantage of the small companies exemption from the requirement to prepare a strategic report.
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.
Orthopediatrics EU Limited
Independent auditor's report (continued)
To the members of Orthopediatrics EU Limited
5
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and updating our understanding of the sector in which the company operates.
Laws and regulations of direct significance in the context of the company include The Companies Act 2006, and UK Tax legislation.
Audit response to risks identified:
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through 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.
Orthopediatrics EU Limited
Independent auditor's report (continued)
To the members of Orthopediatrics EU Limited
6
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.
Neil Davies (Senior Statutory Auditor)
for and on behalf of Saffery LLP
17 February 2025
Accountants
Statutory Auditors
71 Queen Victoria Street
London
EC4V 4BE
Orthopediatrics EU Limited
Statement of comprehensive income
For the year ended 31 December 2023
7
2023
2022
Notes
£
£
Turnover
3
2,552,244
2,315,026
Cost of sales
(1,071,803)
(1,340,137)
Gross profit
1,480,441
974,889
Administrative expenses
(1,353,927)
(1,041,351)
Other operating expenses
(3,235)
Operating profit/(loss)
4
126,514
(69,697)
Interest receivable and similar income
7
1,129
Interest payable and similar expenses
8
(33,854)
(34,979)
Profit/(loss) before taxation
93,789
(104,676)
Tax on profit/(loss)
9
Profit/(loss) for the financial year
93,789
(104,676)
Other comprehensive income
Currency translation (loss)/gain taken to retained earnings
(13,818)
9,209
Total comprehensive income for the year
79,971
(95,467)
The income statement has been prepared on the basis that all operations are continuing operations.
Orthopediatrics EU Limited
Statement of financial position
As at 31 December 2023
8
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
1,136,652
799,571
Current assets
Stocks
11
7,096,347
5,339,733
Debtors
12
1,084,842
818,072
Cash at bank and in hand
573,926
532,747
8,755,115
6,690,552
Creditors: amounts falling due within one year
13
(9,283,844)
(6,921,750)
Net current liabilities
(528,729)
(231,198)
Total assets less current liabilities
607,923
568,373
Creditors: amounts falling due after more than one year
14
(1,492,326)
(1,532,747)
Net liabilities
(884,403)
(964,374)
Capital and reserves
Called up share capital
16
10
10
Profit and loss reserves
(884,413)
(964,384)
Total equity
(884,403)
(964,374)
The financial statements were approved and signed by the director and authorised for issue on 16 February 2025.
Fred Hite
Director
Company Registration No. 10642293
Orthopediatrics EU Limited
Statement of changes in equity
For the year ended 31 December 2023
9
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
10
(868,917)
(868,907)
Year ended 31 December 2022:
Loss
-
(104,676)
(104,676)
Other comprehensive income:
Currency translation differences
-
9,209
9,209
Total comprehensive income
-
(95,467)
(95,467)
Balance at 31 December 2022
10
(964,384)
(964,374)
Year ended 31 December 2023:
Profit
-
93,789
93,789
Other comprehensive income:
Currency translation differences
-
(13,818)
(13,818)
Total comprehensive income
-
79,971
79,971
Balance at 31 December 2023
10
(884,413)
(884,403)
Orthopediatrics EU Limited
Notes to the financial statements
For the year ended 31 December 2023
10
1
Accounting policies
Company information
Orthopediatrics EU Limited is a private company limited by shares incorporated in England and Wales. The registered office is 71 Queen Victoria Street, London, EC4V 4BE.
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 £1.
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:
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts and interest income/expense and net gains/losses for each category of financial instrument;
The financial statements of the company are consolidated in the financial statements of Orthopediatrics Corp. These consolidated financial statements are available from its registered office, 2850 Frontier Drive, Warsaw, IN 46582, USA.
1.2
Going concern
The company is reliant on the support of its parent company, Orthopediatrics Corp, owing them £9,734,963 at the reporting date. The parent company has confirmed that they will continue to provide financial support to the company and, as such, the directors have prepared the accounts on the going concern basis.true
1.3
Turnover
Turnover is recognised at the fair value of the consideration received for retail sale of medical and orthopaedic goods, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
1.4
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.
Orthopediatrics EU Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
11
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:
Plant and equipment
20% Straight line
Computers
33% 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.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
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.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to net realisable value.
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.
1.7
Cash at bank and in hand
Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at all banks. Bank overdrafts are shown within borrowings in current liabilities.
Orthopediatrics EU Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
12
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors, 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 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.
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
Orthopediatrics EU Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies (continued)
13
1.9
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
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 are included in the income statement for the period. Amounts owed to the parent company, denominated in US dollars, are not translated at the year end as the parent entity undertakes the foreign currency risk.
2
Critical accounting 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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Interest rate of the intercompany loan
The parent company charges interest on its long term loan at a rate of 2.5%. This rate is considered to approximate a market rate after taking into account the future prospects of the company.
Transfer pricing
Stock and fixed assets are purchased from Group companies. These items are transferred between group members at prices set by the parent.
Orthopediatrics EU Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
14
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by geographical market
Europe
305,976
308,628
UK
2,246,268
2,006,398
2,552,244
2,315,026
2023
2022
£
£
Other revenue
Interest income
1,129
-
4
Operating profit/(loss)
2023
2022
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Exchange (gains)/losses
(69,864)
152,589
Fees payable to the company's auditor for the audit of the company's financial statements
21,500
20,500
Depreciation of owned tangible fixed assets
306,399
318,476
Loss on disposal of tangible fixed assets
256
-
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
21,500
20,500
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
3
1
Orthopediatrics EU Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
6
Employees (continued)
15
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
482,475
186,726
Social security costs
60,765
25,177
Pension costs
28,920
12,747
572,160
224,650
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
1,129
8
Interest payable and similar expenses
2023
2022
£
£
Interest payable to group undertakings
33,854
34,979
9
Taxation
The actual charge for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit/(loss) before taxation
93,789
(104,676)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
22,059
(19,888)
Change in unrecognised deferred tax assets
(22,059)
19,888
Taxation charge for the year
-
-
Orthopediatrics EU Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
16
10
Tangible fixed assets
Plant and equipment
Computers
Total
£
£
£
Cost
At 1 January 2023
1,829,592
2,522
1,832,114
Additions
643,736
643,736
Disposals
(970)
(207)
(1,177)
At 31 December 2023
2,472,358
2,315
2,474,673
Depreciation and impairment
At 1 January 2023
1,032,089
454
1,032,543
Depreciation charged in the year
305,693
706
306,399
Eliminated in respect of disposals
(921)
(921)
At 31 December 2023
1,336,861
1,160
1,338,021
Carrying amount
At 31 December 2023
1,135,497
1,155
1,136,652
At 31 December 2022
797,503
2,068
799,571
11
Stocks
2023
2022
£
£
Finished goods and goods for resale
7,096,347
5,339,733
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,042,702
800,527
Other debtors
42,140
17,545
1,084,842
818,072
Orthopediatrics EU Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
17
13
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
31,611
6,392
Amounts owed to group undertakings
9,060,181
6,805,722
Other creditors
147,907
66,537
Accruals and deferred income
44,145
43,099
9,283,844
6,921,750
14
Creditors: amounts falling due after more than one year
2023
2022
£
£
Amounts owed to group undertakings
1,492,326
1,532,747
The long-term loans are secured by a fixed and floating fixed charge over all the property and undertaking of the company.
15
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
28,920
12,747
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
16
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
10
10
10
10
17
Financial commitments, guarantees and contingent liabilities
Fixed and floating charges are held over the assets of the company.
Orthopediatrics EU Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
18
18
Related party transactions
The company is exempt from disclosing transactions with other group companies on the basis that it is wholly owed.
At the balance sheet date, the entity owed £10,552,507 (2022: £8,338,469) to its parent company, OrthoPediatrics Corp and other group companies. Included in this balance was a loan totalling £1,284,124 (2022: £1,362,278) which is due to be repaid in May 2027. The loan incurred an interest rate of 2.5% which resulted in a charge of £33,854 (2022: £34,979). Accrued interest on the loan balance was £208,202 at the year end (2022: £170,469).
The remainder of the balance is repayable within 1 year and accrues no interest.
19
Ultimate controlling party
The company is a wholly owned subsidiary of Orthopediatrics Corp, a corporation registered in 2850 Frontier Drive, Warsaw, IN 46582, USA. Consolidated accounts can be obtained from their registered office.
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