Company registration number 08717711 (England and Wales)
ADVENT BIOSERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
ADVENT BIOSERVICES LIMITED
COMPANY INFORMATION
Director
Ms L F Powers
Company number
08717711
Registered office
Sawston Business Park
Sawston
Cambridge
CB22 3JG
Auditor
Mercer & Hole LLP
21 Lombard Street
London
EC3V 9AH
ADVENT BIOSERVICES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 24
ADVENT BIOSERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The director presents the strategic report for the year ended 31 December 2023.

Review of the business

The principal activities of the company continued to be that of Contract Development and GMP Manufacturing of Advanced Therapeutical Medicinal Products and related products, and the provision of ultra-cold storage.

Business review

The 2023 results of the Company showed turnover was £20.4m giving rise to a net income of £7.6m.

Principal risks and uncertainties

The principal risks and uncertainties that have the potential to have the most significant impact on the Company have been identified as follows:

External risks

Supply chain risk

The Company has identified the potential for supply chain disruption due to external factors such as global conflicts and big pharmaceutical organisations bulk buying laboratory supplies, which could negatively impact the availability of consumables required for manufacturing operations. The Company employs the services of a procurement partner to access high-level procurement expertise and a wider supplier market.

Technological risk

Due to the highly specialised industry in which the Company operates, it utilises bespoke software from niche vendors that cannot be easily replaced if the vendor were to unexpectedly withdraw its services. To mitigate this risk, most systems are ‘on-premises’, which would enable continuity of service until an alternative software provider is sourced, and written agreements are in place with all vendors to protect the Company’s interests.

Natural disaster and other major incidents

An incident causing major damage to the premises and/or electrical outage would compromise the integrity of the cleanrooms and cause significant disruption to revenue generating activities. The Company has alert systems and contingencies in place including continuous temperature monitoring, backup power supplies, a building maintenance system and fire maintenance plan.

Financial risks

The Director and Executive Team are responsible for assessing the Company’s financial risks, implementing strategies to mitigate those risks and monitoring cash flows to ensure the continued financial health of the Company. Financial risks have been identified as follows:

Client credit risk

The Company receives a significant proportion of its manufacturing revenues from a limited number of clients and has been unable to accept business from additional interested prospective clients due to limited facility capacity. The Company is pursuing expansion of this capacity and has also mitigated this risk by diversifying its service offerings as described above. The Company has also acquired the use of additional lab space to increase its capacity for the provision of certain services, including process development and external quality control services. Additionally, the Company has implemented a credit control policy to vet clients using external credit information and has developed strategies to closely and continually monitor debt collection and recovery.

ADVENT BIOSERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Development and performance

The Company plans to continue its Contract Development and GMP Manufacturing business activities, and its ultra-cold storage business activities. The Company hopes to expand its process development activities and external quality control testing services.

Key performance indicators

The Company’s financial performance is measured by the following key performance indicators (KPIs):

These KPIs are shown in the table below:

 

Year Ended 31 December 2023

Year Ended 31 December 2022

Change

Total revenues

£20,351,410

£16,526,725

23%

Net income

£7,621,277

£6,431,397

19%

 

The increase in net income was produced by sustained increases in revenue and a continued focus on cost control. Furthermore, net income also increased significantly in 2023 due to a reduction in administrative expenses resulting from successful completion in early 2023 of a resource intensive research and development project.

On behalf of the board

Ms L F Powers
Director
4 March 2025
ADVENT BIOSERVICES LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The director presents her annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company continued to be that of manufacture of pharmaceutical products.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

Director

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

Ms L F Powers
Auditor

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

Statement of disclosure to auditor

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

Medium-sized companies exemption

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

On behalf of the board
Ms L F Powers
Director
4 March 2025
ADVENT BIOSERVICES LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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

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

In preparing these financial statements, the director is required to:

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

ADVENT BIOSERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ADVENT BIOSERVICES LIMITED
- 5 -
Opinion

We have audited the financial statements of Advent Bioservices Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material uncertainty relating to going concern

We draw attention to note 1.2 of the financial statements, which discusses the Company's ability to continue as a going concern. As at 31 December 2023, the Company is in a net current asset position of £16,766,481. However, this includes debtor balances totalling £18,790,723 including related party balances totalling £17,343,771 where the timing and its recoverability is uncertain.

 

As stated in note 1.2, these conditions indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

ADVENT BIOSERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ADVENT BIOSERVICES LIMITED (CONTINUED)
- 6 -
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 director's report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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

Explanations as to what extent the audit was considered capable of detecting irregularities, including fraud

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. These included, but were not limited to, the Companies Act 2006 and tax legislation.

 

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements and the financial report (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate entries including journals to overstate revenue or understate expenditure and management bias in accounting estimates.

 

 

ADVENT BIOSERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ADVENT BIOSERVICES LIMITED (CONTINUED)
- 7 -

Audit procedures performed by engagement team include:

 

 

 

 

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters which we are required to address

The comparative year balances were not audited.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Miss Helen Cain BA FCA (Senior Statutory Auditor)
For and on behalf of Mercer & Hole LLP, Statutory Auditor
Chartered Accountants
21 Lombard Street
London
EC3V 9AH
4 March 2025
ADVENT BIOSERVICES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
Unaudited
2023
2022
Notes
£
£
Turnover
3
20,351,410
16,526,725
Cost of sales
(2,758,607)
(2,435,502)
Gross profit
17,592,803
14,091,223
Distribution costs
(75,702)
(60,973)
Administrative expenses
(7,738,434)
(6,920,212)
Other operating income
-
0
3,000
Operating profit
4
9,778,667
7,113,038
Amounts written off investments
6
(247,244)
816,199
Profit before taxation
9,531,423
7,929,237
Tax on profit
7
(1,910,146)
(1,497,840)
Profit for the financial year
7,621,277
6,431,397

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

ADVENT BIOSERVICES LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
Unaudited
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
8
23,718
10,244
Tangible assets
9
919,168
632,912
Investments
10
5,780,300
3,460,919
6,723,186
4,104,075
Current assets
Debtors
12
18,790,723
12,342,266
Cash at bank and in hand
370,379
1,245,445
19,161,102
13,587,711
Creditors: amounts falling due within one year
13
(2,394,621)
(1,823,396)
Net current assets
16,766,481
11,764,315
Total assets less current liabilities
23,489,667
15,868,390
Provisions for liabilities
Deferred tax liability
14
373,574
373,574
(373,574)
(373,574)
Net assets
23,116,093
15,494,816
Capital and reserves
Called up share capital
17
1
1
Profit and loss reserves
23,116,092
15,494,815
Total equity
23,116,093
15,494,816

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

The financial statements were approved and signed by the director and authorised for issue on 4 March 2025
Ms L F Powers
Director
Company registration number 08717711 (England and Wales)
ADVENT BIOSERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
1
9,063,418
9,063,419
Year ended 31 December 2022:
Profit and total comprehensive income
-
6,431,397
6,431,397
Balance at 31 December 2022
1
15,494,815
15,494,816
Year ended 31 December 2023:
Profit and total comprehensive income
-
7,621,277
7,621,277
Balance at 31 December 2023
1
23,116,092
23,116,093
ADVENT BIOSERVICES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Unaudited
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
2,870,707
1,978,426
Income taxes paid
(1,650,029)
(105,915)
Net cash inflow from operating activities
1,220,678
1,872,511
Investing activities
Purchase of intangible assets
(13,474)
-
0
Purchase of tangible fixed assets
(766,538)
(212,599)
Proceeds from disposal of tangible fixed assets
81,196
-
0
Purchase of investments
(2,566,625)
(1,243,967)
Repayment of loans
1,169,697
(1,169,697)
Net cash used in investing activities
(2,095,744)
(2,626,263)
Net decrease in cash and cash equivalents
(875,066)
(753,752)
Cash and cash equivalents at beginning of year
1,245,445
1,999,197
Cash and cash equivalents at end of year
370,379
1,245,445
ADVENT BIOSERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information

Advent Bioservices Limited is a private company limited by shares incorporated in England and Wales. The registered office is Sawston Business Park, Sawston, Cambridge, CB22 3JG.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1.

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

1.2
Going concern

As at 31 December 2023, the Company is in a net current asset position of £16,766,481. However, this includes debtor balances totalling £18,790,723 which includes related party balances totalling £17,343,771 where the timing and its recoverability is uncertain.

 

After making enquiries and considering the uncertainties described above, the director has a reasonable expectation that the Company will have adequate resources to continue operating for the foreseeable future. Thus the director continues to adopt the going concern basis in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. Turnover includes re-billable expenses. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. In the prior year turnover was stated gross of trade discounts which were presented as a cost of sale.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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

Patents & licences
Infinite useful life
1.5
Tangible fixed assets

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

ADVENT BIOSERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -

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

Plant and equipment
Straight line over 4 years
Fixtures and fittings
Straight line over 4 years
Computers
Straight line over 4 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Fixed asset investments

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

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

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

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

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

ADVENT BIOSERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

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

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

ADVENT BIOSERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

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

Derecognition of financial liabilities

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

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

ADVENT BIOSERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

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

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.15

Research and development

Research and development expenditure is written off against profits in the year in which it is incurred unless it is capitalised in accordance with the intangible fixed asset accounting policy 1.3.

 

Amounts receivable from research and development tax credits are recognised on the date from which there is reasonable certainty in respect of the amount of the claim, usually being the date on which the claim is approved by HMRC.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

ADVENT BIOSERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 17 -
Key sources of estimation uncertainty

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

Valuation of Investments

The directors review the carrying value of the Company’s investments and the associated impairment loss that may be required annually using a recoverable amount approach which factors in management assumptions and estimates of future performance.

3
Turnover
Unaudited
2023
2022
£
£
Turnover analysed by class of business
Services provided
20,351,410
16,526,725
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
20,351,410
16,526,725
4
Operating profit
Unaudited
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
205,439
171,528
Fees payable to the company's auditor for the audit of the company's financial statements
-
0
-
0
Depreciation of owned tangible fixed assets
412,265
325,782
Profit on disposal of tangible fixed assets
(13,179)
-
ADVENT BIOSERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
5
Employees

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

Unaudited
2023
2022
Number
Number
Executive
1
1
Office and administrative
28
21
Production and lab
31
25
Research and development
7
5
Other operations
6
4
Total
73
56

Their aggregate remuneration comprised:

Unaudited
2023
2022
£
£
Wages and salaries
3,726,461
2,610,781
Social security costs
423,410
313,960
Pension costs
286,871
138,788
4,436,742
3,063,529
6
Amounts written off investments
Unaudited
2023
2022
£
£
Fair value gains/(losses) on financial instruments
Amounts written off fair value through profit or loss
(247,244)
-
0
Other gains/(losses)
Amounts written back to investments held at fair value
-
816,199
(247,244)
816,199
7
Taxation
Unaudited
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
2,233,388
1,414,862
Adjustments in respect of prior periods
(323,242)
(105,843)
Total current tax
1,910,146
1,309,019
ADVENT BIOSERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Taxation
Unaudited
2023
2022
(Continued)
- 19 -
Deferred tax
Origination and reversal of timing differences
-
0
188,821
Total tax charge
1,910,146
1,497,840

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

Unaudited
2023
2022
£
£
Profit before taxation
9,531,423
7,929,237
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
2,239,884
1,506,555
Tax effect of expenses that are not deductible in determining taxable profit
72,921
74,554
Tax effect of utilisation of tax losses not previously recognised
-
0
(176,002)
Adjustments in respect of prior years
(323,242)
(105,843)
Permanent capital allowances in excess of depreciation
(79,417)
9,755
Deferred tax
-
0
188,821
Taxation charge for the year
1,910,146
1,497,840
8
Intangible fixed assets
Patents & licences
£
Cost
At 1 January 2023
10,244
Additions
13,474
At 31 December 2023
23,718
Amortisation and impairment
At 1 January 2023 and 31 December 2023
-
0
Carrying amount
At 31 December 2023
23,718
At 31 December 2022
10,244
ADVENT BIOSERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
9
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 January 2023
1,296,766
9,177
102,056
1,407,999
Additions
684,418
11,738
70,382
766,538
Disposals
(81,196)
-
0
-
0
(81,196)
At 31 December 2023
1,899,988
20,915
172,438
2,093,341
Depreciation and impairment
At 1 January 2023
714,865
3,695
56,527
775,087
Depreciation charged in the year
379,169
3,115
29,981
412,265
Eliminated in respect of disposals
(13,179)
-
0
-
0
(13,179)
At 31 December 2023
1,080,855
6,810
86,508
1,174,173
Carrying amount
At 31 December 2023
819,133
14,105
85,930
919,168
At 31 December 2022
581,901
5,482
45,529
632,912
10
Fixed asset investments
Unaudited
2023
2022
£
£
Other investments other than loans
5,780,300
3,460,919
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 January 2023
3,460,919
Additions
2,749,346
Valuation changes
(247,244)
Exhange rate adjustments
(182,721)
At 31 December 2023
5,780,300
Carrying amount
At 31 December 2023
5,780,300
At 31 December 2022
3,460,919

Since the year end, the share price has fallen from $0.70 per share to $0.25 per share as of 17 February 2025.

ADVENT BIOSERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
11
Financial instruments
Unaudited
2023
2022
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
5,780,300
3,460,919
12
Debtors
Unaudited
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,241,559
1,622,206
Other debtors
17,466,759
10,677,410
Prepayments and accrued income
82,405
42,650
18,790,723
12,342,266
13
Creditors: amounts falling due within one year
Unaudited
2023
2022
Notes
£
£
Trade creditors
640,539
213,161
Corporation tax
1,286,024
1,025,907
Deferred income
15
169,234
303,984
Other creditors
143,072
103,600
Accruals
155,752
176,744
2,394,621
1,823,396
14
Deferred taxation

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

Unaudited
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
162,982
162,982
Investments
210,592
210,592
373,574
373,574
There were no deferred tax movements in the year.
ADVENT BIOSERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
15
Deferred income
Unaudited
2023
2022
£
£
Other deferred income
169,234
303,984
16
Retirement benefit schemes
Unaudited
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
286,871
138,788

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

17
Share capital
Unaudited
Unaudited
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1
1
1
1
18
Operating lease commitments

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

Unaudited
2023
2022
£
£
Within one year
206,204
119,910
Between two and five years
454,318
479,640
In over five years
1,470,931
1,672,828
2,131,453
2,272,378
ADVENT BIOSERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
19
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

Unaudited
2023
2022
£
£
Aggregate compensation
620,700
-
0

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due from related parties
£
£
Other related parties
17,343,771
9,451,662
20
Directors' transactions

One of the directors was issued a short-term, interest-free loan by the company. The loan was repaid in full on 3 January 2023.

Description
% Rate
Opening balance
Amounts repaid
Closing balance
£
£
£
Loan
-
1,169,697
(1,169,697)
-
1,169,697
(1,169,697)
-
ADVENT BIOSERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
21
Cash generated from operations
Unaudited
2023
2022
£
£
Profit for the year after tax
7,621,277
6,431,397
Adjustments for:
Taxation charged
1,910,146
1,497,840
Gain on disposal of tangible fixed assets
(13,179)
-
Depreciation and impairment of tangible fixed assets
412,265
325,782
Other gains and losses
247,244
(816,199)
Movements in working capital:
Increase in debtors
(7,618,154)
(4,942,686)
Increase/(decrease) in creditors
445,858
(821,692)
(Decrease)/increase in deferred income
(134,750)
303,984
Cash generated from operations
2,870,707
1,978,426
22
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,245,445
(875,066)
370,379
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