REGISTERED NUMBER: |
Strategic Report, |
Report of the Directors and |
Financial Statements |
for the Year Ended 31 August 2024 |
for |
TRANSONICS PLC |
REGISTERED NUMBER: |
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: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
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: |
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. |
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: |
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. |
for and on behalf of |
42 Lytton Road |
Barnet |
Hertfordshire |
EN5 5BY |
TRANSONICS PLC (REGISTERED NUMBER: 01280694) |
Income Statement |
for the Year Ended 31 August 2024 |
31.8.24 | 31.8.23 |
Notes | £ | £ | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Distribution costs |
Administrative expenses |
3,471,984 | 3,408,805 |
OPERATING PROFIT | 6 |
Interest receivable and similar income |
510,761 | 2,364,960 |
Interest payable and similar expenses | 7 |
PROFIT BEFORE TAXATION |
Tax on profit | 8 |
PROFIT FOR THE FINANCIAL YEAR |
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 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
TRANSONICS PLC (REGISTERED NUMBER: 01280694) |
Balance Sheet |
31 August 2024 |
31.8.24 | 31.8.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 14 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Share premium | 21 |
Capital redemption reserve | 21 |
Retained earnings | 21 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
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 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 August 2023 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 31 August 2024 |
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 | ( |
) |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase or finance lease rental payments paid |
( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Amount introduced by directors | 111,790 | 41,790 |
Amount withdrawn by directors | (86,790 | ) | - |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year |
26 |
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 |
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 |
Plant and machinery | - |
Fixtures and fittings | - |
Computer equipment | - |
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 |
Europe |
Rest of the world | - | 21,500 |
5. | EMPLOYEES AND DIRECTORS |
31.8.24 | 31.8.23 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
31.8.24 | 31.8.23 |
Sales | 28 | 28 |
Administration | 16 | 8 |
31.8.24 | 31.8.23 |
£ | £ |
Directors' remuneration |
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 |
Depreciation - assets on hire purchase contracts or finance leases |
Profit on disposal of fixed assets | ( |
) |
Auditors' remuneration |
Foreign exchange differences | ( |
) |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.8.24 | 31.8.23 |
£ | £ |
Bank interest |
Loan interest |
Late payment interest charge |
Hire purchase |
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 |
Deferred tax | ( |
) |
Tax on profit |
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 |
Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | - | ( |
) |
Depreciation in excess of capital allowances | - |
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 |
10. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and | Computer |
machinery | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 September 2023 |
Additions |
At 31 August 2024 |
DEPRECIATION |
At 1 September 2023 |
Charge for year |
At 31 August 2024 |
NET BOOK VALUE |
At 31 August 2024 |
At 31 August 2023 |
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 |
DEPRECIATION |
At 1 September 2023 |
Charge for year |
At 31 August 2024 |
NET BOOK VALUE |
At 31 August 2024 |
At 31 August 2023 |
11. | STOCKS |
31.8.24 | 31.8.23 |
£ | £ |
Finished goods |
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 |
Amounts owed by group undertakings |
Other debtors |
Directors' current accounts | 3,210 | - |
Prepayments and accrued income |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.8.24 | 31.8.23 |
£ | £ |
Other loans (see note 15) |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
Other creditors |
Directors' current accounts | 70,000 | 41,790 |
Accruals and deferred income |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.8.24 | 31.8.23 |
£ | £ |
Other loans (see note 15) |
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 |
Amounts falling due between one and two years: |
Other loans - 1-2 years | 258,221 |
Amounts falling due between two and five years: |
Other loans - 2-5 years |
16. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
31.8.24 | 31.8.23 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
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 |
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 |
Deferred |
tax |
£ |
Balance at 1 September 2023 |
Reversal of provision | (35,147 | ) |
Balance at 31 August 2024 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.8.24 | 31.8.23 |
value: | £ | £ |
Ordinary | £1 | 250,000 | 250,000 |
21. | RESERVES |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 September 2023 | 5,044,227 |
Profit for the year |
At 31 August 2024 | 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 |
25. | RECONCILIATION OF OPERATING PROFIT TO CASH GENERATED FROM OPERATIONS |
31.8.24 | 31.8.23 |
£ | £ |
Operating profit |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Inter-company loan | (750,000 | ) | - |
(62,695 | ) | 2,576,202 |
(Increase)/decrease in stocks | ( |
) |
(Increase)/decrease in trade and other debtors | ( |
) |
Decrease in trade and other creditors | ( |
) | ( |
) |
Cash generated from operations | ( |
) |
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 | ( |
) | 1,075,194 |
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 |