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REGISTERED NUMBER: 01280694 (England and Wales)











Strategic Report,

Report of the Directors and

Financial Statements

for the Year Ended 31 August 2024

for

TRANSONICS PLC

TRANSONICS PLC (REGISTERED NUMBER: 01280694)






Contents of the Financial Statements
for the Year Ended 31 August 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 7

Report of the Independent Auditors 9

Income Statement 13

Other Comprehensive Income 14

Balance Sheet 15

Statement of Changes in Equity 16

Cash Flow Statement 17

Notes to the Financial Statements 18


TRANSONICS PLC

Company Information
for the Year Ended 31 August 2024







DIRECTORS: Mrs H French
D A French





SECRETARY: Mrs H French





REGISTERED OFFICE: ATA House
Boundary Way
Hemel Hempstead
Hertfordshire
HP2 7SS





REGISTERED NUMBER: 01280694 (England and Wales)





AUDITORS: JLA (UK) Ltd
42 Lytton Road
Barnet
Hertfordshire
EN5 5BY

TRANSONICS PLC (REGISTERED NUMBER: 01280694)

Strategic Report
for the Year Ended 31 August 2024

The directors present their strategic report for the year ended 31 August 2024.

REVIEW OF BUSINESS
The results for the year show pre-tax profits of £458,114 (2023: £2,326,429) and turnover of £10,866,395 (2023; £16,347,067).

The company experienced a decline in turnover, primarily due to the conclusion of the post-COVID economic surge and broader market challenges. In response, the company remains focused on identifying and developing new profitable opportunities. To support this strategy and drive future growth, additional team members have been recruited to enhance operational capacity and maximise long-term profitability.

Gross Profit Margin

Gross profit during the year as a percentage of sales was 37% (2023: 35%)

Profit after taxation

The profit for the year after taxation was £317,054 (2023: £1,688,370)

Cash at bank

The balance at bank at 31 August 2024 was £1,075,194 (2023: £2,514,826)

Shareholders' Funds

As at 31 August 2024 these stood at £5,611,281 (2023: £5,294,227)


TRANSONICS PLC (REGISTERED NUMBER: 01280694)

Strategic Report
for the Year Ended 31 August 2024

PRINCIPAL RISKS AND UNCERTAINTIES
The management of the business and the execution of the company's strategies are subject to a number of risks. The business risks and uncertainties affecting the company are considered to relate to competition, technology and the state of the UK manufacturing base. The external commercial environment is expected to remain competitive and challenging for the foreseeable future, particularly given the uncertainties surrounding Brexit and the UK's trading relationship with Europe.

The directors are confident that the company will maintain its current level of performance.

In the programming business there has been continued investment in new technology to ensure that the production process continues to be competitive.

In the distribution business there is continued investment in people and systems in order to deliver an efficient service to customers. This all serves to ensure the continued success of the company's businesses.

Key risks and the company's response to these risks are shown below.


1- Financial Risk Management

The company's financial instruments comprise of cash at bank, loan and overdraft facility at the company's disposal. The main purpose of these financial instruments is to raise adequate finance for the company's operations, together with management of working capital.

The main risk arising from the company's financial instruments is liquidity risk. As can be seen from the cash flow notes in the annexed financial statements, the company currently does not suffer from a liquidity problem. It alleviates this risk by agreeing credit terms with its customers and suppliers.


2- Foreign Currency Risk

The company is exposed to foreign currency fluctuation as most the company's purchases are in foreign currencies

The company minimises this risk by engaging in forward contracts.


3- Customer concentration risk

As with any business of its size, the company relies on a relatively small number of customers for a large percentage of its turnover. The loss of a key customer can have a detrimental impact on earnings.

The company is focused on customer retention by supplying top rate products and service as well as obtaining new customers thus broadening the number of key customers.


4- Competitive pressure risk

The company operates in a highly competitive market environment and performance may suffer if there is a loss of competitiveness vis-a- vis its customers.


5-Credit risk

Default by customers on receivables could negatively affect the earnings.

Credit is assessed and monitored by the company and where risk is judged to be high, credit facilities are not offered to customers.


6- Loss of supply of critical products.

Loss of supply of critical products from key suppliers can be mitigated by alternative suppliers and re-shoring.

TRANSONICS PLC (REGISTERED NUMBER: 01280694)

Strategic Report
for the Year Ended 31 August 2024


Where possible, the company attempts to dual source all key products from multiple suppliers. The company also endeavours to maintain supply contracts with all key suppliers.


TRANSONICS PLC (REGISTERED NUMBER: 01280694)

Strategic Report
for the Year Ended 31 August 2024

SECTION 172(1) STATEMENT
Directors statement of compliance with duty to promote the success of the Company

Under Section 172(1) of the companies Act 2006, the Board has a duty to act in good faith and in a way that would be most likely to promote the success of the Company for the benefit of its shareholders with having regard to matters set in S172(1) (a-f) of the Act:

(a) the likely long-term consequences of decisions;
(b) the interest of the Company's employees;
(c) the need to foster the Company's business relationship with suppliers, customers and other stakeholders;
(d) the impact of the Company's operations on the community and the environment;
(e) the desirability of the Company maintaining a reputation for high standards of business and conduct; and
(f) the need to act fairly as between the Company's owners.

To discharge their S172(1) duties, the Board had regard to the factors set out above in making the principal decisions taken by the Company.

General confirmation of Directors' duties
When making decisions, each director ensures that he/she acts in the way he/she considers, in good faith, would most likely promote the Company's success for the benefit of its members as whole, and in doing so have regard (among other matters) to:

S172(1) (A) "The likely consequences of any decision in the long-term"
The Directors understand the evolving environment in which the business operates, including the challenges imposed by the Covid-19 pandemic in the short-term and the long-term. The Directors have taken several decisions which they believe best support the Company's ambitions to survive the pandemic and to grow in order to ensure the best outcome for all stakeholders.

S172(1) (B) "The interest of the company's employees"
The Directors recognise that the employees are fundamental and core to the business and the delivery of the strategic ambitions. The success of the business depends on attracting, retaining and motivating employees. From ensuring that we remain a responsible employer, pay and benefits, to our health and safety in the workplace environment, which was ever more important during the challenge presented by the Covid19 pandemic. The Directors factor the implications of decisions on employees and the wider workforce, wherever relevant and feasible.

S172(1) (C) "The need to foster the Company's business relationships stakeholders
Fostering positive relationships with key stakeholders, such as customers and suppliers, is important to the success of the Company's business. With regards to suppliers, the company enjoys close relationship with its suppliers with range from large international manufacturers to local logistics and couriers. With regards to customers, the Company has a diverse range of customers across all sectors of the engineering and electrical industry, in additions the company has large customer base across the hospitality and healthcare industries for their supply of electronic dispensers and dryers.

S172(1) (D) "The impact of the Company's operations on the community and environment"
The Board recognises that the environmental impact of the Company's operations is an ever more important consideration and as such they promote green behaviours including implementing policies to help reduce the Company's carbon footprint. The Company uses existing couriers and logistics companies to deliver their products to local customers instead of own delivery vehicles and believe that this helps reduce their carbon footprint. In addition, a green approach is adopted in the warehouses and office by promoting recycling and reducing the use of plastic. The company believes this also adds to our positive presence in the local community as a responsible employer.

S172(1) (E) "The desirability of the company maintaining a reputation for high standards of business conduct"
The Directors consider it crucial that the Company maintains a reputation for high standards of business conduct. The Board is responsible for setting, monitoring and upholding the culture, values, standards, ethics, brand and reputation of the Company. Management drives the embedding of the desired culture throughout the organisation and its values of quality, service, honesty, innovation, efficiency and relationships are driven throughout the heart of the business and in everything we do, reflected in our policies and practices and how we deal with others. These values and standards guide decision making and promote success, including the long-term consequences of those decisions.

S172(1) (F) "The need to act fairly as between members of the company"

TRANSONICS PLC (REGISTERED NUMBER: 01280694)

Strategic Report
for the Year Ended 31 August 2024

After weighing up all relevant factors, the Directors consider which course of action best enables delivery of their strategy through the long-term, taking into consideration the impact on stakeholders. In doing so, the Directors act fairly as between the Company's members but are not required to balance the Company's interest with those of other stakeholders, and this can sometimes mean that certain stakeholders interest may not be fully aligned.

ON BEHALF OF THE BOARD:





D A French - Director


27 February 2025

TRANSONICS PLC (REGISTERED NUMBER: 01280694)

Report of the Directors
for the Year Ended 31 August 2024

The directors present their report with the financial statements of the company for the year ended 31 August 2024.

As we review our performance for the past financial year, we acknowledge that our sales revenue has experienced a decline compared to the previous year. While this may seem concerning at first glance, it is essential to frame this moment within the context of strategic growth and long-term value creation.

A pivotal highlight of this year has been our significant investment of over £2.5 million in the creation of a new entity within the group.This strategic move aligns with our vision to enhance our service offerings and expand our market presence. By integrating this new entity into our operations, we are well-positioned to leverage their expertise, broaden our capabilities, and ultimately deliver greater value to our clients.

We believe that this investment will not only mitigate the current revenue fluctuations but also pave the way for sustained growth in the coming years. The synergies created through this addition will enable us to innovate and diversify our services, which we anticipate will drive increased demand and customer loyalty.

Looking ahead, we are optimistic about our trajectory. The foundation we are laying today, in terms of enhanced capabilities and expanded services, will ensure that we emerge stronger and more competitive in the evolving market landscape. We remain committed to delivering exceptional value to our stakeholders and are confident that our strategic decisions now will yield fruitful results in the near future.

Thank you for your continued support and trust in our vision. Together, we are embarking on an exciting journey towards renewed growth and success.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of manufacture of electronic components.

DIVIDENDS
No dividends will be distributed for the year ended 31 August 2024.

RESEARCH AND DEVELOPMENT
The company has commenced investment in the development of a fully integrated, reporting and quality control processes that will ensure its staff have access to the latest technology in recording and communicating data, and analysis to its customers with the implementation of new computer systems in April 2024.

FUTURE DEVELOPMENTS
The directors intend to maintain and invest in the management policies, quality system and technology that have supported business growth to date and which will allow the company to be increasingly efficient.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 September 2023 to the date of this report.

Mrs H French
D A French

FINANCIAL INSTRUMENTS
The company's financial instruments comprise bank balances, bank overdrafts, trade creditors, trade debtors and loans to the company. The main purpose of these instruments is to finance the company's operations. Due to the nature of the financial instruments used by the group, there is no exposure to price risk.

In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding, and flexibility through an overdraft facility. The company makes use of money market facilities, as appropriate.

The company has a loan from the related pension scheme, on which there is a variable rate of interest. The company manages the liquidity risk by ensuring that there are sufficient funds available to meet the payments due.

Trade debtors are managed for credit and cash flow risk by the strict application of policies over the credit offered to customers, and by regular monitoring amounts outstanding for both time and credit limits.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts falling due.


TRANSONICS PLC (REGISTERED NUMBER: 01280694)

Report of the Directors
for the Year Ended 31 August 2024

CHARITABLE DONATIONS AND EXPENDITURE
During the year, the company made charitable donations of £218,828 (2023: £200,870). No political donations were made during the year.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-state whether applicable accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, JLA (UK) Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





D A French - Director


27 February 2025

Report of the Independent Auditors to the Members of
Transonics Plc

Opinion
We have audited the financial statements of Transonics Plc (the 'company') for the year ended 31 August 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Financial Statements, including a summary of 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 August 2024 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.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Transonics Plc


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where 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 directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page eight, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Transonics Plc


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

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

The engagement partner and engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and affect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation; we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management.

The identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

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

- Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of
actual, suspected and alleged fraud;
- And considering the measures in place to mitigate risks of fraud and non-compliance with laws and regulations.

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

- Performed analytical procedures to identify any unusual or unexpected relationships;
- Tested journal entries to identify unusual transactions
- Assessed whether judgements and assumptions made in determining the accounting estimates that were
indicative of potential bias.
- Performed substantive testing on management expenses and transactions

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

- Agreeing financial statement disclosures to underlying supporting documentation;
- Enquiring of management as to actual and potential litigation and claims
- And reviewing available correspondence with HMRC and the company's legal advisors.

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

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
Transonics Plc


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 a Report of the Auditors 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.




Jeffrey Ian Lermer, FCA (Senior Statutory Auditor)
for and on behalf of JLA (UK) Ltd
42 Lytton Road
Barnet
Hertfordshire
EN5 5BY

27 February 2025

TRANSONICS PLC (REGISTERED NUMBER: 01280694)

Income Statement
for the Year Ended 31 August 2024

31.8.24 31.8.23
Notes £    £    £    £   

TURNOVER 4 10,866,395 16,347,067

Cost of sales 6,932,359 10,573,302
GROSS PROFIT 3,934,036 5,773,765

Distribution costs 79,798 78,443
Administrative expenses 3,392,186 3,330,362
3,471,984 3,408,805
OPERATING PROFIT 6 462,052 2,364,960

Interest receivable and similar income 48,709 -
510,761 2,364,960

Interest payable and similar expenses 7 52,647 38,531
PROFIT BEFORE TAXATION 458,114 2,326,429

Tax on profit 8 141,060 638,059
PROFIT FOR THE FINANCIAL YEAR 317,054 1,688,370

TRANSONICS PLC (REGISTERED NUMBER: 01280694)

Other Comprehensive Income
for the Year Ended 31 August 2024

31.8.24 31.8.23
Notes £    £   

PROFIT FOR THE YEAR 317,054 1,688,370


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

317,054

1,688,370

TRANSONICS PLC (REGISTERED NUMBER: 01280694)

Balance Sheet
31 August 2024

31.8.24 31.8.23
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 10 1,113,184 1,256,350

CURRENT ASSETS
Stocks 11 1,596,350 1,551,135
Debtors 12 4,436,623 3,070,644
Cash at bank 1,075,194 2,514,826
7,108,167 7,136,605
CREDITORS
Amounts falling due within one year 13 1,939,564 2,200,933
NET CURRENT ASSETS 5,168,603 4,935,672
TOTAL ASSETS LESS CURRENT
LIABILITIES

6,281,787

6,192,022

CREDITORS
Amounts falling due after more than one year 14 (397,120 ) (589,262 )

PROVISIONS FOR LIABILITIES 19 (273,386 ) (308,533 )
NET ASSETS 5,611,281 5,294,227

CAPITAL AND RESERVES
Called up share capital 20 250,000 250,000
Share premium 21 24,612 24,612
Capital redemption reserve 21 25,000 25,000
Retained earnings 21 5,311,669 4,994,615
SHAREHOLDERS' FUNDS 5,611,281 5,294,227

The financial statements were approved by the Board of Directors and authorised for issue on 27 February 2025 and were signed on its behalf by:





D A French - Director


TRANSONICS PLC (REGISTERED NUMBER: 01280694)

Statement of Changes in Equity
for the Year Ended 31 August 2024

Called up Capital
share Retained Share redemption Total
capital earnings premium reserve equity
£    £    £    £    £   
Balance at 1 September 2022 250,000 5,306,245 24,612 25,000 5,605,857

Changes in equity
Dividends - (2,000,000 ) - - (2,000,000 )
Total comprehensive income - 1,688,370 - - 1,688,370
Balance at 31 August 2023 250,000 4,994,615 24,612 25,000 5,294,227

Changes in equity
Total comprehensive income - 317,054 - - 317,054
Balance at 31 August 2024 250,000 5,311,669 24,612 25,000 5,611,281

TRANSONICS PLC (REGISTERED NUMBER: 01280694)

Cash Flow Statement
for the Year Ended 31 August 2024

31.8.24 31.8.23
Notes £    £   
Cash flows from operating activities
Cash generated from operations 25 (1,275,153 ) 2,152,942
Interest paid (43,114 ) (38,531 )
Interest element of hire purchase or finance
lease rental payments paid

(9,533

)

-
Tax paid (103,454 ) (1,132,922 )
Net cash from operating activities (1,431,254 ) 981,489

Cash flows from investing activities
Purchase of tangible fixed assets (82,087 ) (528,637 )
Sale of tangible fixed assets - 988
Interest received 48,709 -
Net cash from investing activities (33,378 ) (527,649 )

Cash flows from financing activities
Amount introduced by directors 111,790 41,790
Amount withdrawn by directors (86,790 ) -
Equity dividends paid - (2,000,000 )
Net cash from financing activities 25,000 (1,958,210 )

Decrease in cash and cash equivalents (1,439,632 ) (1,504,370 )
Cash and cash equivalents at beginning
of year

26

2,514,826

4,019,196

Cash and cash equivalents at end of
year

26

1,075,194

2,514,826

TRANSONICS PLC (REGISTERED NUMBER: 01280694)

Notes to the Financial Statements
for the Year Ended 31 August 2024

1. STATUTORY INFORMATION

Transonics Plc is a private company , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


The financial statements are prepared to the nearest pound sterling.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Plant and machinery - 12.5% on cost
Fixtures and fittings - 20% on Cost
Computer equipment - 33% on cost

Stocks
Stock is stated at the lower of cost and net realisable value, after making due allowances for obsolete and slow moving items.

At each balance sheet date, stock is assessed for impairment. If stock is impaired, the carrying value amount is reduced to its selling price less cost to complete and sell. The impairment loss is recognised immediately in profit or loss account.

TRANSONICS PLC (REGISTERED NUMBER: 01280694)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

2. ACCOUNTING POLICIES - continued

Financial instruments
The company only enters into basic instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from bank and other third parties, loans to related parties.
Debt instruments like loans and other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method; Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However if the arrangements of a short term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially and subsequently, at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate. Which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is an 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.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


Foreign currencies
Transactions denominated in foreign currencies are translated into sterling and recorded at the rate of exchange ruling at the date of transactions. Balances denominated in foreign currency are translated into sterling at the exchange rate prevailing at the Balance Sheet date.

TRANSONICS PLC (REGISTERED NUMBER: 01280694)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

2. ACCOUNTING POLICIES - continued

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The judgements made by the directors, in the application of the accounting policies and key sources of estimation uncertainties were as follows;

Impairments of trade debtors:
A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all outstanding amounts in full, or there are indications that collection is doubtful, which requires judgement from management.

4. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

31.8.24 31.8.23
£    £   
United Kingdom 10,024,441 15,270,647
Europe 841,954 1,054,920
Rest of the world - 21,500
10,866,395 16,347,067

5. EMPLOYEES AND DIRECTORS
31.8.24 31.8.23
£    £   
Wages and salaries 1,790,636 1,540,663
Social security costs 194,980 188,681
Other pension costs 29,909 30,575
2,015,525 1,759,919

The average number of employees during the year was as follows:
31.8.24 31.8.23

Sales 28 28
Administration 16 8
44 36

31.8.24 31.8.23
£    £   
Directors' remuneration 13,760 14,129

TRANSONICS PLC (REGISTERED NUMBER: 01280694)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

6. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.8.24 31.8.23
£    £   
Depreciation - owned assets 174,104 212,212
Depreciation - assets on hire purchase contracts or finance leases 51,149 -
Profit on disposal of fixed assets - (969 )
Auditors' remuneration 22,480 25,810
Foreign exchange differences (135,175 ) 357

7. INTEREST PAYABLE AND SIMILAR EXPENSES
31.8.24 31.8.23
£    £   
Bank interest 9,349 9,368
Loan interest 33,765 29,038
Late payment interest charge - 125
Hire purchase 9,533 -
52,647 38,531

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.8.24 31.8.23
£    £   
Current tax:
UK corporation tax 176,207 418,593

Deferred tax (35,147 ) 219,466
Tax on profit 141,060 638,059

UK corporation tax was charged at 21.51%) in 2023.

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.8.24 31.8.23
£    £   
Profit before tax 458,114 2,326,429
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 21.515%)

114,529

500,531

Effects of:
Expenses not deductible for tax purposes 19,011 60,961
Capital allowances in excess of depreciation - (121,673 )
Depreciation in excess of capital allowances 42,667 -
Deferred taxation (35,147 ) 219,466
Disposal of fixed assets - (208 )
Group Relief - (21,018 )
Total tax charge 141,060 638,059

TRANSONICS PLC (REGISTERED NUMBER: 01280694)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

9. DIVIDENDS
31.8.24 31.8.23
£    £   
Interim - 2,000,000

10. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Computer
machinery fittings equipment Totals
£    £    £    £   
COST
At 1 September 2023 1,311,115 142,770 114,238 1,568,123
Additions 20,098 39,961 22,028 82,087
At 31 August 2024 1,331,213 182,731 136,266 1,650,210
DEPRECIATION
At 1 September 2023 164,997 76,951 69,825 311,773
Charge for year 166,401 29,521 29,331 225,253
At 31 August 2024 331,398 106,472 99,156 537,026
NET BOOK VALUE
At 31 August 2024 999,815 76,259 37,110 1,113,184
At 31 August 2023 1,146,118 65,819 44,413 1,256,350

Fixed assets, included in the above, which are held under hire purchase contracts or finance leases are as follows:
Plant and Computer
machinery equipment Totals
£    £    £   
COST
At 1 September 2023
and 31 August 2024 400,127 10,284 410,411
DEPRECIATION
At 1 September 2023 - 10,282 10,282
Charge for year 51,149 - 51,149
At 31 August 2024 51,149 10,282 61,431
NET BOOK VALUE
At 31 August 2024 348,978 2 348,980
At 31 August 2023 400,127 2 400,129

11. STOCKS
31.8.24 31.8.23
£    £   
Finished goods 1,596,350 1,551,135

TRANSONICS PLC (REGISTERED NUMBER: 01280694)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.8.24 31.8.23
£    £   
Trade debtors 3,102,540 2,816,523
Amounts owed by group undertakings 472,391 110,000
Other debtors 770,438 22,939
Directors' current accounts 3,210 -
Prepayments and accrued income 88,044 121,182
4,436,623 3,070,644

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.8.24 31.8.23
£    £   
Other loans (see note 15) 222,949 226,266
Trade creditors 965,175 1,139,313
Amounts owed to group undertakings - 277,609
Tax 113,706 40,953
Social security and other taxes 283,661 188,809
Other creditors 42,822 32,975
Directors' current accounts 70,000 41,790
Accruals and deferred income 241,251 253,218
1,939,564 2,200,933

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
31.8.24 31.8.23
£    £   
Other loans (see note 15) 397,120 589,262

15. LOANS

An analysis of the maturity of loans is given below:

31.8.24 31.8.23
£    £   
Amounts falling due within one year or on demand:
Other loans 222,949 226,266

Amounts falling due between one and two years:
Other loans - 1-2 years 258,221 201,139

Amounts falling due between two and five years:
Other loans - 2-5 years 138,899 388,123

16. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.8.24 31.8.23
£    £   
Within one year 131,849 193,988
Between one and five years 400,000 419,333
In more than five years 300,000 300,000
831,849 913,321

TRANSONICS PLC (REGISTERED NUMBER: 01280694)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

17. SECURED DEBTS

The following secured debts are included within creditors:

31.8.24 31.8.23
£    £   
Other loans 620,069 815,528

18. FINANCIAL INSTRUMENTS

Derivatives
The company enters into forward foreign currency contracts to mitigate the exchange rate risk for certain foreign currency payables. At 31 August 2024, the outstanding contracts all mature within a month of the year end (2023: within the year end). The company is committed to buy $300,000 and pay a fixed sterling amount, is committed to sell $300,000 and buy a fixed sterling amount.

The forward currency contracts are measured at fair value, which is determined using valuation techniques that utilise observable inputs. The key assumptions used in valuing the derivatives are the forward exchange rates for GBP:USD and GBP:EUR. The fair value, in aggregate, of the forward currency contracts are £456,204 (2023: £nil).

The company has no interest rate derivative financial instruments (2023: none).

19. PROVISIONS FOR LIABILITIES
31.8.24 31.8.23
£    £   
Deferred tax
Accelerated capital allowances 273,386 308,533

Deferred
tax
£   
Balance at 1 September 2023 308,533
Reversal of provision (35,147 )
Balance at 31 August 2024 273,386

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.8.24 31.8.23
value: £    £   
250,000 Ordinary £1 250,000 250,000

21. RESERVES
Capital
Retained Share redemption
earnings premium reserve Totals
£    £    £    £   

At 1 September 2023 4,994,615 24,612 25,000 5,044,227
Profit for the year 317,054 317,054
At 31 August 2024 5,311,669 24,612 25,000 5,361,281

TRANSONICS PLC (REGISTERED NUMBER: 01280694)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

22. ULTIMATE PARENT COMPANY

Castello Holding Company Limited is regarded by the directors as being the company's ultimate parent company.

Castello Holding Company Limited financial statements for the company are available from Companies House.

23. RELATED PARTY DISCLOSURES

At the balance sheet date, the company owed the French Family Pension Scheme £388,216 (2023: £500,000) which is included as loans within creditors. In relation to those loans, interest of 7.5% is charged. The directors of the company are all members of the scheme.

24. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is Castello Holding Company Limited.

25. RECONCILIATION OF OPERATING PROFIT TO CASH GENERATED FROM OPERATIONS

31.8.24 31.8.23
£    £   
Operating profit 462,052 2,364,960
Depreciation charges 225,253 212,211
Profit on disposal of fixed assets - (969 )
Inter-company loan (750,000 ) -
(62,695 ) 2,576,202
(Increase)/decrease in stocks (45,215 ) 644,916
(Increase)/decrease in trade and other debtors (1,085,837 ) 1,738,661
Decrease in trade and other creditors (81,406 ) (2,806,837 )
Cash generated from operations (1,275,153 ) 2,152,942

26. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 August 2024
31.8.24 1.9.23
£    £   
Cash and cash equivalents 1,075,194 2,514,826
Year ended 31 August 2023
31.8.23 1.9.22
£    £   
Cash and cash equivalents 2,514,826 4,019,196


TRANSONICS PLC (REGISTERED NUMBER: 01280694)

Notes to the Financial Statements - continued
for the Year Ended 31 August 2024

27. ANALYSIS OF CHANGES IN NET FUNDS

At 1.9.23 Cash flow At 31.8.24
£    £    £   
Net cash
Cash at bank 2,514,826 (1,439,632 ) 1,075,194
2,514,826 (1,439,632 ) 1,075,194
Debt
Debts falling due within 1 year (226,266 ) 3,317 (222,949 )
Debts falling due after 1 year (589,262 ) 192,142 (397,120 )
(815,528 ) 195,459 (620,069 )
Total 1,699,298 (1,244,173 ) 455,125