Caseware UK (AP4) 2023.0.135 2023.0.135 2024-09-302024-09-3084falseNo description of principal activity2023-10-0186truefalse 01185121 2023-10-01 2024-09-30 01185121 2022-10-01 2023-09-30 01185121 2024-09-30 01185121 2023-09-30 01185121 2022-10-01 01185121 1 2023-10-01 2024-09-30 01185121 1 2022-10-01 2023-09-30 01185121 2 2023-10-01 2024-09-30 01185121 2 2022-10-01 2023-09-30 01185121 5 2023-10-01 2024-09-30 01185121 5 2022-10-01 2023-09-30 01185121 d:CompanySecretary1 2023-10-01 2024-09-30 01185121 d:Director1 2023-10-01 2024-09-30 01185121 d:Director2 2023-10-01 2024-09-30 01185121 d:Director3 2023-10-01 2024-09-30 01185121 d:Director5 2023-10-01 2024-09-30 01185121 d:Director6 2023-10-01 2024-09-30 01185121 d:Director6 2024-09-30 01185121 d:RegisteredOffice 2023-10-01 2024-09-30 01185121 d:Agent1 2023-10-01 2024-09-30 01185121 d:Agent2 2023-10-01 2024-09-30 01185121 e:Buildings 2023-10-01 2024-09-30 01185121 e:Buildings 2024-09-30 01185121 e:Buildings 2023-09-30 01185121 e:Buildings e:OwnedOrFreeholdAssets 2023-10-01 2024-09-30 01185121 e:OfficeEquipment 2023-10-01 2024-09-30 01185121 e:OfficeEquipment 2024-09-30 01185121 e:OfficeEquipment 2023-09-30 01185121 e:OfficeEquipment e:OwnedOrFreeholdAssets 2023-10-01 2024-09-30 01185121 e:OwnedOrFreeholdAssets 2023-10-01 2024-09-30 01185121 e:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-10-01 2024-09-30 01185121 e:DevelopmentCostsCapitalisedDevelopmentExpenditure 2024-09-30 01185121 e:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-09-30 01185121 e:CurrentFinancialInstruments 2024-09-30 01185121 e:CurrentFinancialInstruments 2023-09-30 01185121 e:CurrentFinancialInstruments e:WithinOneYear 2024-09-30 01185121 e:CurrentFinancialInstruments e:WithinOneYear 2023-09-30 01185121 e:ReportableOperatingSegment1 2023-10-01 2024-09-30 01185121 e:ReportableOperatingSegment1 2022-10-01 2023-09-30 01185121 f:UnitedKingdom 2023-10-01 2024-09-30 01185121 f:UnitedKingdom 2022-10-01 2023-09-30 01185121 f:RestEuropeOutsideUK 2023-10-01 2024-09-30 01185121 f:RestEuropeOutsideUK 2022-10-01 2023-09-30 01185121 f:RestWorldOutsideUK 2023-10-01 2024-09-30 01185121 f:RestWorldOutsideUK 2022-10-01 2023-09-30 01185121 e:UKTax 2023-10-01 2024-09-30 01185121 e:UKTax 2022-10-01 2023-09-30 01185121 e:ShareCapital 2024-09-30 01185121 e:ShareCapital 2023-09-30 01185121 e:SharePremium 2023-10-01 2024-09-30 01185121 e:SharePremium 2024-09-30 01185121 e:SharePremium 2023-09-30 01185121 e:RetainedEarningsAccumulatedLosses 2023-10-01 2024-09-30 01185121 e:RetainedEarningsAccumulatedLosses 2024-09-30 01185121 e:RetainedEarningsAccumulatedLosses 2022-10-01 2023-09-30 01185121 e:RetainedEarningsAccumulatedLosses 2023-09-30 01185121 e:RetainedEarningsAccumulatedLosses 2022-10-01 01185121 d:OrdinaryShareClass1 2023-10-01 2024-09-30 01185121 d:OrdinaryShareClass1 2024-09-30 01185121 d:FRS102 2023-10-01 2024-09-30 01185121 d:Audited 2023-10-01 2024-09-30 01185121 d:FullAccounts 2023-10-01 2024-09-30 01185121 d:PrivateLimitedCompanyLtd 2023-10-01 2024-09-30 01185121 e:WithinOneYear 2024-09-30 01185121 e:WithinOneYear 2023-09-30 01185121 e:BetweenOneFiveYears 2024-09-30 01185121 e:BetweenOneFiveYears 2023-09-30 01185121 e:PlantEquipmentOtherAssetsUnderOperatingLeases 2024-09-30 01185121 e:PlantEquipmentOtherAssetsUnderOperatingLeases 2023-09-30 01185121 e:PlantEquipmentOtherAssetsUnderOperatingLeases e:WithinOneYear 2024-09-30 01185121 e:PlantEquipmentOtherAssetsUnderOperatingLeases e:WithinOneYear 2023-09-30 01185121 e:PlantEquipmentOtherAssetsUnderOperatingLeases e:BetweenOneFiveYears 2024-09-30 01185121 e:PlantEquipmentOtherAssetsUnderOperatingLeases e:BetweenOneFiveYears 2023-09-30 01185121 e:DevelopmentCostsCapitalisedDevelopmentExpenditure e:InternallyGeneratedIntangibleAssets 2023-10-01 2024-09-30 01185121 e:AcceleratedTaxDepreciationDeferredTax 2024-09-30 01185121 e:AcceleratedTaxDepreciationDeferredTax 2023-09-30 01185121 e:TaxLossesCarry-forwardsDeferredTax 2024-09-30 01185121 e:TaxLossesCarry-forwardsDeferredTax 2023-09-30 01185121 e:DevelopmentCostsCapitalisedDevelopmentExpenditure e:OwnedIntangibleAssets 2023-10-01 2024-09-30 xbrli:shares iso4217:GBP xbrli:pure
Company registration number: 01185121







ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 SEPTEMBER 2024


BUTTERWORTH LABORATORIES LIMITED






































img5f79.png                        

 


BUTTERWORTH LABORATORIES LIMITED
 


 
COMPANY INFORMATION


Directors
John M Gearey, FCA 
David J Hawkins, BSc (Hons), MRQA 
David A Riches, BSc (Hons), CChem, MRSC 
Patrick D Stewart, BA (Hons) 
Paris Sheppard FCCA 




Company secretary
Paris Sheppard FCCA



Registered number
01185121



Registered office
54-56 Waldegrave Road

Teddington

Middlesex

TW11 8NY




Independent auditor
Menzies LLP
Chartered Accountants & Statutory Auditor

Ashcombe House

5 The Crescent

Leatherhead

Surrey

KT22 8DY




Bankers
HSBC UK Bank PLC
165 Fleet Street

London

EC4A 2DY





National Westminster Bank plc

25 King Street

Twickenham

TW1 3SU




Solicitors
TWM Solicitors LLP
65 Woodbridge Road

Guildford

Surrey

GU1 4RD





 


BUTTERWORTH LABORATORIES LIMITED
 



CONTENTS



Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of income and retained earnings
9
Statement of financial position
10
Statement of cash flows
11
Analysis of net debt
12
Notes to the financial statements
13 - 24

 


BUTTERWORTH LABORATORIES LIMITED
 


 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024

Introduction
 
The principal activity of the company continues to be the provision of contract analytical services, mainly to the pharmaceutical industry.

Business review
 
2023-24 can be described as a year of renewed growth, building on a strong foundation provided by 2022-23. Increased investment in staff development and laboratory equipment, coupled with strong customer demand and a growing order book, has positioned the company well to expand its portfolio of services. 
Overall turnover increased by just over 9%, with a significant shift towards EU sales (+20%) and modest domestic sales growth (+4%), though at the expense of sales to the rest of the world (-10%). The resulting operating profit was £1,032,034 (2023: £705,686). 

Additionally, stable interest rates during the year yielded interest income of £203,309 (2023: £102,796), increasing pre-tax profit to £1,235,343 from £808,482 in 2023. 
 
The company had reserves of £9,384,491 (2023: £8,544,650) at the year end, and with substantial cash resources and positive cash flow, it is well-positioned to capitalise on the increased opportunities already apparent in the current financial year.

Principal risks and uncertainties
 
The ongoing conflict in Ukraine and uncertainty in the Middle East remain a concern, particularly with the risk of escalation in these regions. The wider economic impact is uncertain. Additionally, with a new administration in the USA, the potential imposition of trade tariffs may negatively affect the economies of the UK and Europe, especially as our European exports continue to grow in significance.
Despite rumours of rising energy prices, we have secured reduced tariffs until July 2027.
The principal risk to the company is the total loss of laboratory facilities, such as through fire, as it would not be possible to repair or replace these facilities quickly. Rebuilding would take many months, by which time clients might have sought alternative services. However, a business continuity plan is in place to mitigate this risk.
Another risk arises from the UK’s recent budget, which includes increased employer National Insurance costs and the prospect of the Employment Rights Bill. While these may increase our costs, our initial assessment indicates that we can absorb the additional burden.
The company's reserves and liquidity levels allow it to absorb lesser risks without materially affecting its ability to continue trading.

Key performance indicators
 
The company uses a number of measures to monitor the progress and performance of the business.  The principal metrics are:

i.the ratio of staff costs to turnover held at 55% (2023: 55%);
ii.the ratio of overheads to turnover improved slightly to 30% (2023: 32%);
iii.the operating profit  margin which increased to 12% from 9%;
iv.debtor days – 41 (2023: 40);
v.liquidity – measured by the ratio of current assets to current liabilities – 5:1 at 30 September 2024 as compared to 4.3:1  a year earlier; and
vi.cash flow from operating activities £978,868 (2023: £1,323,984).

Page 1

 


BUTTERWORTH LABORATORIES LIMITED
 



STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024


This report was approved by the board and signed on its behalf.



................................................
Paris Sheppard FCCA
Director

Date: 4 March 2025
Page 2

 


BUTTERWORTH LABORATORIES LIMITED
 


 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024

The directors present their report and the financial statements for the year ended 30 September 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year, and they have done so in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. 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 the period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £909,841 (2023: £636,623).

Dividends of £70,000 (2023: £Nil) were paid in the year.

Directors

The directors who served during the year were:

John M Gearey, FCA 
David J Hawkins, BSc (Hons), MRQA 
David A Riches, BSc (Hons), CChem, MRSC 
Patrick D Stewart, BA (Hons) 
Paris Sheppard FCCA (appointed 3 July 2024)

Matters covered in the Strategic Report

The company has chosen in accordance with Section 414c(11) of the Companies Act 2006 (Strategic Report and Director's Report) Regulation 2013 to set out within the company's Strategic Report the Company's Report Information Required by Schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulations 2008. This included information that would have been included in the business review and details of principal risk and uncertainties.

Page 3

 


BUTTERWORTH LABORATORIES LIMITED
 


 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditor is aware of that information.

Auditor

Under section 487(2) of the Companies Act 2006 Menzies LLPwill be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar,whichever is earlier.

This report was approved by the board and signed on its behalf.
 





................................................
Paris Sheppard FCCA
Director

Date: 4 March 2025
Page 4

 


BUTTERWORTH LABORATORIES LIMITED
 

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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BUTTERWORTH LABORATORIES LIMITED

Opinion


We have audited the financial statements of Butterworth Laboratories Limited (the 'company') for the year ended 30 September 2024, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position, the Statement of Cash Flows and the related notes, including a summary of significant accounting policiesThe 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 30 September 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 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 United Kingdom, including the Financial Reporting Council'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


We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.



Other information


The directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditor's Report 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 statementsour 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.


Page 5

 


BUTTERWORTH LABORATORIES LIMITED


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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BUTTERWORTH LABORATORIES LIMITED (CONTINUED)

Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.



Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.

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

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or 
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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 Directors' Responsibilities Statement on page 1, 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 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 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.



Page 6

 


BUTTERWORTH LABORATORIES LIMITED


img3e36.png
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BUTTERWORTH LABORATORIES LIMITED (CONTINUED)

Auditor's responsibilities for the audit of the financial statements
 

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

The company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation. We determined that the following laws and regulations were most significant:

The Companies Act 2006;
Financial Reporting Standard 102;
UK employment legislation;
Industry specific accreditations as required by the company's customers;
General Data Protection Regulations; and
UK tax legislation.

We assessed the extent of compliance with these laws and regulations as part of our procedures on the related          financial statement items.

We understood how the company is complying with those legal and regulatory frameworks by, making inquiries to management, those responsible for legal and compliance procedures and the company secretary. We corroborated our inquiries through our review of board minutes.

The engagement partner assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. The assessment did not identify any issues in this area.

We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included;

Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
Challenging assumptions and judgements made by management in its significant accounting estimates; and
Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.

As a result of the above procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

The application of inappropriate judgements or estimation to manipulate the company's financial position;
Posting of unusual journals and complex transactions; and
The use of management override of controls to manipulate results, or to cause the company to enter into transactions not in its best interests.

Page 7

 


BUTTERWORTH LABORATORIES LIMITED


img7f3e.png
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF BUTTERWORTH LABORATORIES LIMITED (CONTINUED)

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


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 2006Our 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.





Anna Johnston ACA (Senior statutory auditor)
for and on behalf of
Menzies LLP
Chartered Accountants & Statutory Auditor
Ashcombe House
5 The Crescent
Leatherhead
Surrey
KT22 8DY

12 March 2025
Page 8

 


BUTTERWORTH LABORATORIES LIMITED
 


 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
8,432,017
7,749,712

Cost of sales
  
(4,866,347)
(4,505,353)

Gross profit
  
3,565,670
3,244,359

Administrative expenses
  
(2,553,452)
(2,538,673)

Other operating income
 5 
19,816
-

Operating profit
 6 
1,032,034
705,686

Interest receivable and similar income
 10 
203,309
102,796

Profit before tax
  
1,235,343
808,482

Tax on profit
 11 
(325,502)
(171,859)

Profit after tax
  
909,841
636,623

  

  

Retained earnings at the beginning of the year
  
8,544,650
7,908,027

  
8,544,650
7,908,027

Profit for the year
  
909,841
636,623

Dividends declared and paid
 12 
(70,000)
-

Retained earnings at the end of the year
  
9,384,491
8,544,650

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of income and retained earnings.

The notes on pages 13 to 24 form part of these financial statements.

Page 9

 


BUTTERWORTH LABORATORIES LIMITED
REGISTERED NUMBER:01185121



STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 13 
27,838
22,000

Tangible assets
 14 
3,660,614
3,526,000

  
3,688,452
3,548,000

Current assets
  

Debtors: amounts falling due within one year
 15 
2,008,672
1,690,677

Cash at bank and in hand
  
5,664,001
5,234,737

  
7,672,673
6,925,414

Creditors: amounts falling due within one year
 16 
(1,516,808)
(1,546,429)

Net current assets
  
 
 
6,155,865
 
 
5,378,985

Total assets less current liabilities
  
9,844,317
8,926,985

Provisions for liabilities
  

Deferred tax
 17 
(453,626)
(376,135)

  
 
 
(453,626)
 
 
(376,135)

Net assets
  
9,390,691
8,550,850


Capital and reserves
  

Called up share capital 
 18 
5,000
5,000

Share premium account
 19 
1,200
1,200

Profit and loss account
 19 
9,384,491
8,544,650

  
9,390,691
8,550,850


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
Paris Sheppard FCCA
Director

Date: 4 March 2025

The notes on pages 13 to 24 form part of these financial statements.

Page 10

 


BUTTERWORTH LABORATORIES LIMITED
 



STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
909,841
636,623

Adjustments for:

Amortisation of intangible assets
10,747
8,195

Depreciation of tangible assets
531,714
496,122

Interest received
(203,309)
(102,796)

Taxation charge
325,502
193,047

(Increase) in debtors
(317,995)
(298,713)

(Decrease)/increase in creditors
(103,604)
431,382

Corporation tax (paid)
(174,028)
(39,876)

Net cash generated from operating activities

978,868
1,323,984


Cash flows from investing activities

Purchase of intangible fixed assets
(16,585)
(5,670)

Purchase of tangible fixed assets
(666,345)
(335,647)

Proceeds from disposal of tangible fixed assets
17
-

Interest received
203,309
102,796

Net cash from investing activities

(479,604)
(238,521)

Cash flows from financing activities

Dividends paid
(70,000)
-

Net cash used in financing activities
(70,000)
-

Net increase in cash and cash equivalents
429,264
1,085,463

Cash and cash equivalents at beginning of year
5,234,737
4,149,274

Cash and cash equivalents at the end of year
5,664,001
5,234,737


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
5,664,001
5,234,737

5,664,001
5,234,737


The notes on pages 13 to 24 form part of these financial statements.

Page 11

 


BUTTERWORTH LABORATORIES LIMITED
 



ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 SEPTEMBER 2024




At 1 October 2023
Cash flows
At 30 September 2024
£

£

£

Cash at bank and in hand

5,234,737

429,264

5,664,001


5,234,737
429,264
5,664,001

The notes on pages 13 to 24 form part of these financial statements.
Page 12

 


BUTTERWORTH LABORATORIES LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

1.


General information

Butterworth Laboratories Limited is a private company limited by shares incorporated in England and Wales. The address of the registered office and principal place of business are shown on the company information page.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland, and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Turnover

The revenue recognised in the year represents the amounts receivable for contract analytical services carried out during the year, net of VAT. In respect of uncompleted work an estimate, calculated by reference to the stage of completion and expected recoverable amount, is recognised. 

Revenue on certain specific contracts is recognised as the expected recoverable amount according to the costs incurred on each contract to date taking into account the expected recovery based on historical performance. Where a contract is anticipated to be loss making, the full anticipated loss is recognised within the Statement of Income and Retained Earnings in the period in which the contract was undertaken.

 
2.3

Foreign currency translation

Functional and presentation currency
The financial statements are presented in sterling, which is the functional currency of the company, rounded to the nearest £.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closing rate. 
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Statement of Income and Retained Earnings.

 
2.4

Operating leases: the company as lessee

Rentals paid under operating leases are charged to the Statement of Income and Retained Earnings on a straight line basis over the leases' terms.

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BUTTERWORTH LABORATORIES LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.5

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.6

Pensions

Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in the Statement of Income and Retained Earnings when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the company in independently administered funds.

 
2.7

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current corporate tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the UK, i.e. the country where the company operates and generates its income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the date of the Statement of Financial Position, except that:
 
the recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Page 14

 


BUTTERWORTH LABORATORIES LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

2.Accounting policies (continued)

 
2.8

Intangible assets

Intangible assets under the cost model are initially recognised at cost. After recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
4%
Laboratory and office equipment
-
4%
to 20%


The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Income and Retained Earnings.
No depreciation is provided on assets under construction as these comprise capital expenditure on assets which are not yet in the location or condition necessary for use. In accordance with FRS 102 section 17.21, the depreciation on these assets in the current year is £nil.

 
2.10

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade and other debtors and creditors.

 
2.11

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 15

 


BUTTERWORTH LABORATORIES LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In the application of the company’s accounting policies, which are described in note 2, management is required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. 
A key judgement made by management in the preparation of these financial statements relates to amounts recoverable on contracts. Management are required to use judgement in assessing the stage of completion and estimate the amount recoverable on contracts at the year end. Details of how these judgements are made can be found in note 2.2.

 
4.
 

Turnover
 
2024
2023
£
£

Provision of contract analytical services
8,432,017
7,749,712

8,432,017
7,749,712


Analysis of turnover by country of destination:


2024
2023
£
£


United Kingdom
4,945,565
4,777,167

Rest of Europe
3,261,494
2,695,084

Rest of the world
224,958
277,461

8,432,017
7,749,712


5.


Other operating income

2024
2023
£
£

Other operating income
19,816
-

19,816
-


Page 16

 


BUTTERWORTH LABORATORIES LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

6.


Operating profit

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

2024
2023
£
£

Exchange differences
8,512
25,199

Operating lease rentals - land and buildings
74,208
76,208

Operating lease rentals - other
68,660
59,816

Depreciation of tangible fixed assets
531,714
496,122

Amortisation of intangible fixed assets
10,747
8,195


7.


Auditor's remuneration

2024
2023
£
£


   Fees payable to the company's auditor for the audit of the company's annual financial statements
19,960
18,950




8.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
3,939,882
3,686,111

Social security costs
445,570
425,787

Cost of defined contribution scheme
207,069
179,965

4,592,521
4,291,863


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Laboratory Direct and Indirect
53
62



Other Departments
33
22

86
84

Page 17

 


BUTTERWORTH LABORATORIES LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
422,746
431,007

Company contributions to defined contribution pension schemes
16,985
15,216

439,731
446,223


During the year retirement benefits were accruing to 3 directors (2023 -2) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £169,078 (2023 -£146,765).

The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £9,091 (2023 -£8,600).


10.


Interest receivable

2024
2023
£
£


Other interest receivable
203,309
102,796

203,309
102,796


11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
254,078
180,095

Adjustments in respect of previous periods
(6,067)
(21,188)


248,011
158,907


Total current tax
248,011
158,907

Deferred tax


Origination and reversal of timing differences
77,491
14,032

Adjustments to tax charge in respect of prior periods
-
(1,080)

Total deferred tax
77,491
12,952


Taxation on profit on ordinary activities
325,502
171,859
Page 18

 


BUTTERWORTH LABORATORIES LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 -lower than) the standard rate of corporation tax in the UK of 25% (2023 - 22.01%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
1,235,343
808,482


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 22.01%)
308,836
177,932

Effects of:


Expenses not deductible for tax purposes
233
49

Fixed asset differences
22,500
14,466

Remeasurement of deferred tax for changes in tax rate
-
1,680

Adjustments to tax charge in respect of previous periods
(6,067)
(21,188)

Adjustments to tax charge in respect of previous periods - deferred tax
-
(1,080)

Total tax charge for the year
325,502
171,859


12.


Dividends

2024
2023
£
£


Equity dividends paid during the year on ordinary shares
70,000
-

70,000
-

Page 19

 


BUTTERWORTH LABORATORIES LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

13.


Intangible assets




Software

£



Cost


At 1 October 2023
55,111


Additions
16,585


Disposals
(17,965)



At 30 September 2024

53,731



Amortisation


At 1 October 2023
33,111


Charge for the year
10,747


On disposals
(17,965)



At 30 September 2024

25,893



Net book value



At 30 September 2024
27,838



At 30 September 2023
22,000



Page 20

 


BUTTERWORTH LABORATORIES LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

14.


Tangible fixed assets





Freehold property
Laboratory and office equipment
Total

£
£
£



Cost


At 1 October 2023
2,416,131
3,110,065
5,526,196


Additions
-
666,345
666,345


Disposals
-
(467,842)
(467,842)



At 30 September 2024

2,416,131
3,308,568
5,724,699



Depreciation


At 1 October 2023
461,131
1,539,065
2,000,196


Charge for the year
90,000
441,714
531,714


Disposals
-
(467,825)
(467,825)



At 30 September 2024

551,131
1,512,954
2,064,085



Net book value



At 30 September 2024
1,865,000
1,795,614
3,660,614



At 30 September 2023
1,955,000
1,571,000
3,526,000


15.


Debtors

2024
2023
£
£


Trade debtors
1,084,595
945,698

Other debtors
3,300
2,719

Prepayments and accrued income
920,777
742,260

2,008,672
1,690,677


Included within prepayments and accrued income above is £132,605 (2023 - £180,400) relating to amounts recoverable on contracts.

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BUTTERWORTH LABORATORIES LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

16.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
648,496
550,869

Corporation tax
254,078
180,095

Other taxation and social security
214,495
169,431

Other creditors
108
-

Accruals and deferred income
399,631
646,034

1,516,808
1,546,429


Included within accruals and deferred income above are pension contributions totaling £30,996 (2023 - £27,706) which were payable to the company's defined contribution pension scheme at the reporting date. 


17.


Deferred taxation




2024
2023


£

£






At beginning of year
376,135
363,183


Charged to profit or loss
77,491
12,952



At end of year
453,626
376,135

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Fixed asset timing differences
461,375
379,944

Short term timing differences
(7,749)
(3,809)

453,626
376,135

Page 22

 


BUTTERWORTH LABORATORIES LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

18.


Share capital

2024
2023
£
£
Shares classified as equity

Allotted, called up and fully paid



5,000 Ordinary shares of £1 each
5,000
5,000

Each ordinary share entitles the holder to one vote. All dividends are apportioned and paid based on shareholdings and on winding up the assets shall be divided equally between each share.


19.


Reserves

Share premium account

This reserve records the capital surplus received for shares issued above par value.

Profit and loss account

This reserve records retained earnings and accumulated losses.


20.


Capital commitments


At 30 September 2024 the company had capital commitments as follows:

2024
2023
£
£


IT Software
334,900
410,200

334,900
410,200

Page 23

 


BUTTERWORTH LABORATORIES LIMITED
 


 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024

21.


Commitments under operating leases

At 30 September 2024 the company had future minimum lease payments under non-cancellable operating leases as follows:

2024
2023
£
£

Office equipment


Not later than 1 year
68,660
68,660

Later than 1 year and not later than 5 years
52,665
121,325

121,325
189,985

2024
2023

£
£

Land and buildings


Not later than 1 year
74,208
74,208

Later than 1 year and not later than 5 years
92,760
166,968

166,968
241,176


22.


Related party transactions

During the year, the company incurred legal fees totaling £63,895 (2023 - £58,064)  from an LLP in which a director was a member until 31 July 2024. All fees were charged on an arms length basis.


23.


Controlling party

The Company does not have a parent company. TWM Trust Corporation Limited holds a majority shareholding in order to govern the entity on behalf of its ultimate beneficiaries. Accordingly, there is not considered to be an ultimate controlling party.

Page 24