Company registration number 07754376 (England and Wales)
NEW ENGLAND BIOLABS LYOPHILIZATION SCIENCES LTD.
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
NEW ENGLAND BIOLABS LYOPHILIZATION SCIENCES LTD.
COMPANY INFORMATION
Directors
K Harding
N Nichols
S Russello
Company number
07754376
Registered office
178 Brook Drive
Milton Park
Abingdon
Oxfordshire
England
OX14 4SD
Auditor
Azets Audit Services
Suites B & D
Burnham Yard
London End
Beaconsfield
Buckinghamshire
United Kingdom
HP9 2JH
NEW ENGLAND BIOLABS LYOPHILIZATION SCIENCES LTD.
CONTENTS
Page
Directors' report
1 - 2
Independent auditor's report
3 - 5
Income statement
6
Statement of financial position
7
Statement of changes in equity
8
Statement of cash flows
9
Notes to the financial statements
10 - 25
NEW ENGLAND BIOLABS LYOPHILIZATION SCIENCES LTD.
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -

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

Principal activities

The principal activity of the Company during the year under review was that of providing customised lyophilised molecular biological reagents to the Life Sciences Applied Markets.

Results and dividends

The results for the year are set out on page 6.

Directors

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

K Harding
N Nichols
S Russello
Charitable donations

The company made the following charitable donations in the current year: £NIL (2023: £9,300).

Financial instruments

In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility from the US parent company, NEB Inc. Trade debtors are managed in respect of credit and cashflow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Future developments

We remain invested in the development of the lyophilisation business within NEB’s Customised Products Division, working strategically across the globe to expand our reach and opportunities to showcase the new facility. Additionally, we shall continue to build on the success of co-developed lyophilised catalogue products with, and sold through the US parent company.

 

From October 1, 2024, NEBLS shall operate as a contract manufacturer to NEB Inc., with all customer transactions streamlined through the Customised Products Division and local sales entity. The parent company, NEB Inc. shall renumerate NEBLS on an operational cost-plus basis under a toll manufacturing arrangement.

 

The state-of-the-art Oxford facility is now fully operational and equipped for large scale lyophilised manufacturing, with the ability to accommodate a wide array of final product formats, including bead production to address market trends. Since October 2024, NEBLS holds both ISO 13485: 2016 and ISO 9001: 2015 certifications at its facility.

Auditor

Azets Audit Services were appointed as auditor to the company and in accordance with section 487(2) of the Companies Act 2006, will be deemed re-appointed.

NEW ENGLAND BIOLABS LYOPHILIZATION SCIENCES LTD.
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
Statement of directors' responsibilities

The directors are responsible for preparing the annual 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. Under that law the directors have elected to prepare the financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. 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, International Accounting Standard 1 requires that directors:

 

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 of disclosure to auditor

Each director in office at the date of approval of this annual report confirms that:

 

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

Business Review

The Directors acknowledge the lower-than-expected growth in revenue (6% growth FY22/23 vs FY23/24). This slow growth reflects the ongoing challenges of our key customers and the market in general to pivot from the heavily funded pandemic era to new diagnostics. Furthermore, due to the customised nature of the business, the sales cycle continues to be slow. We are addressing this through easier access to concept products including our differentiated lyophilised bead formats.

Small companies exemption

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

On behalf of the board
K Harding
Director
14 March 2025
NEW ENGLAND BIOLABS LYOPHILIZATION SCIENCES LTD.
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NEW ENGLAND BIOLABS LYOPHILIZATION SCIENCES LTD.
- 3 -
Opinion

We have audited the financial statements of New England Biolabs Lyophilization Sciences Ltd. (the 'company') for the year ended 30 September 2024 which comprise the income statement, the statement of financial position, 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 UK adopted international accounting standards.

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.

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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are 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:

NEW ENGLAND BIOLABS LYOPHILIZATION SCIENCES LTD.
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NEW ENGLAND BIOLABS LYOPHILIZATION SCIENCES LTD.
- 4 -
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 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

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.

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.

NEW ENGLAND BIOLABS LYOPHILIZATION SCIENCES LTD.
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NEW ENGLAND BIOLABS LYOPHILIZATION SCIENCES LTD.
- 5 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Other matters which we are required to address

The financial statements of the company for the year ended 30 September 2023 were audited by another auditor who expressed an unmodified opinion on those statements on 26 September 2024.

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.

Adam East ACA (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
14 March 2025
Chartered Accountants
Statutory Auditor
Suites B & D
Burnham Yard
London End
Beaconsfield
Buckinghamshire
United Kingdom
HP9 2JH
NEW ENGLAND BIOLABS LYOPHILIZATION SCIENCES LTD.
INCOME STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 6 -
2024
2023
Notes
£
£
Revenue
4
1,330,594
1,253,631
Cost of sales
(222,983)
(556,843)
Gross profit
1,107,611
696,788
Other operating income
21,006
71,442
Administrative expenses
(4,480,915)
(3,009,523)
Operating loss
5
(3,352,298)
(2,241,293)
Investment revenues
9
22,457
12,156
Finance costs
10
(207,398)
(486,483)
Loss before taxation
(3,537,239)
(2,715,620)
Income tax (expense)/income
11
-
75,534
Loss and total comprehensive income for the year
(3,537,239)
(2,640,086)
NEW ENGLAND BIOLABS LYOPHILIZATION SCIENCES LTD.
STATEMENT OF FINANCIAL POSITION
AS AT
30 SEPTEMBER 2024
30 September 2024
- 7 -
2024
2023
Notes
£
£
Non-current assets
Property, plant and equipment
12
18,609,321
12,918,344
Current assets
Inventories
13
87,714
91,705
Trade and other receivables
14
2,041,989
1,876,399
Cash and cash equivalents
1,135,299
923,141
3,265,002
2,891,245
Current liabilities
Trade and other payables
16
681,534
13,486,605
Lease liabilities
17
349,568
174,784
1,031,102
13,661,389
Net current assets/(liabilities)
2,233,900
(10,770,144)
Non-current liabilities
Lease liabilities
17
2,862,427
3,015,958
Net assets/(liabilities)
17,980,794
(867,758)
Equity
Called up share capital
20
1,422
1,421
Share premium account
21
22,396,500
10,710
Capital redemption reserve
22
831
831
Retained earnings
(4,417,959)
(880,720)
Total equity
17,980,794
(867,758)

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 14 March 2025 and are signed on its behalf by:
K Harding
Director
Company registration number 07754376
NEW ENGLAND BIOLABS LYOPHILIZATION SCIENCES LTD.
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 8 -
Share capital
Share premium account
Capital redemption reserve
Retained earnings
Total
Notes
£
£
£
£
£
Balance at 1 October 2022
1,421
10,710
831
1,759,366
1,772,328
Year ended 30 September 2023:
Loss and total comprehensive income for the year
-
-
-
(2,640,086)
(2,640,086)
Balance at 30 September 2023
1,421
10,710
831
(880,720)
(867,758)
Year ended 30 September 2024:
Loss and total comprehensive income for the year
-
-
-
(3,537,239)
(3,537,239)
Transactions with owners in their capacity as owners:
Conversion of loan
20
1
-
0
-
-
1
Other movements
-
22,385,790
-
-
22,385,790
Balance at 30 September 2024
1,422
22,396,500
831
(4,417,959)
17,980,794
NEW ENGLAND BIOLABS LYOPHILIZATION SCIENCES LTD.
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 9 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
7,549,153
5,192,122
Interest paid
(207,398)
(486,483)
Income taxes refunded
-
0
10,335
Net cash inflow from operating activities
7,341,755
4,715,974
Investing activities
Purchase of property, plant and equipment
(7,253,671)
(9,155,637)
Proceeds from disposal of property, plant and equipment
80,364
-
0
Interest received
22,457
12,156
Net cash used in investing activities
(7,150,850)
(9,143,481)
Financing activities
Payment of lease liabilities
21,253
19,956
Net cash generated from financing activities
21,253
19,956
Net increase/(decrease) in cash and cash equivalents
212,158
(4,407,551)
Cash and cash equivalents at beginning of year
923,141
5,330,692
Cash and cash equivalents at end of year
1,135,299
923,141
NEW ENGLAND BIOLABS LYOPHILIZATION SCIENCES LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 10 -
1
Accounting policies
Company information

New England Biolabs Lyophilization Sciences Ltd. is a private company limited by shares incorporated in England and Wales. The registered office is 178 Brook Drive, Milton Park, Abingdon, Oxfordshire, England, OX14 4SD. The company's principal activities and nature of its operations are disclosed in the directors' report.

1.1
Accounting convention

The financial statements have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations as adopted by the UK (collectively IFRSs).

These financial statements are presented in pound sterling, which is the Company's functional currency. All amounts have been rounded to the nearest pound, unless otherwise indicated.

The financial statements have been prepared on the historical cost basis except for financial instruments which are fair valued through the income statement. The principal accounting policies adopted are set out below.

1.2
Going concern

At 30 September 2024 the company had net trueassets of £17,980,794 after converting payables due to the parent company into equity. The parent company has pledged their continuing financial support for the foreseeable future to ensure the company can meet all its financial obligations as they fall due. At the time of approving the financial statements, the directors have reasonable expectation that the company has the resources to continue in operational existence for a period of at least 12 months from the date of the approval of these accounts. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Revenue

Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The company recognises revenue when it transfers control over a product or service to a customer.

 

The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Company does not adjust any of the transaction prices for the time value of money.

Sale of goods

Revenue from the sale of goods is recognised on the satisfaction of performance obligations, such as the transfer of a promised good, identified in the contract between the Company and the customer.

 

A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

NEW ENGLAND BIOLABS LYOPHILIZATION SCIENCES LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 11 -
1.4
Property, plant and equipment

Property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment.

 

If significant parts of an item of property, plant and equipment have difference useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss. Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.

Depreciation is provided on all other items or property, plant and equipment so as to write off their carrying value over their expected useful economic lives. It is provided at the following rates:

Right of use assets
over the lease term, 15 years
Leasehold Improvements - 178 Milton Park
over the remaining lease term, maximum 15 years
Fixtures and Fittings
10% straight line
Lab equipment
20% straight line
IT equipment
33.3% straight line
Motor vehicles
25% straight line
1.5
Inventories

Inventories are stated at the lower of cost and net realisable value. Cost of inventories are determined on a first in, first out basis.

Net realisable value is the estimated selling price less all estimated costs of completion and costs necessary to make the sale.

1.6
Cash and cash equivalents

Cash and cash equivalents 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.

1.7
Equity instruments

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

1.8
Taxation

Income 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 income statement 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.

NEW ENGLAND BIOLABS LYOPHILIZATION SCIENCES LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 12 -
Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probably that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.

 

The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 liabilities and assets are measured at the tax rates that are expected to apply in he period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

 

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

1.9
Employee benefits

A liability is recognised for benefits acrruing to employees in respect of wages and salaries, annual leave and sick leave in the period the related service is rendered at the undiscounted amount of the benefits expected to be paid in exchange for that service.

1.10
Retirement benefits

Payments to defined contribution retirement benefit plans are recognised as an expense when employees have rendered service entitling them to the contributions.

1.11
Leases

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.

 

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

NEW ENGLAND BIOLABS LYOPHILIZATION SCIENCES LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 13 -

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The Company has applied IFRS 16 short-term lease recognition exemption to those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option. It also applies the low-value assets recognition exemption. Lease payments on short term leases and low value assets are recognised as an expense on a straight line basis over the lease term.

1.12
Foreign exchange

Foreign currency transactions are translated at rates of exchange in effect at the dates of the transaction. Resulting foreign currency denominated monetary assets and liabilities are translated at the rates of exchange in effect at the balance sheet date. Gains and losses on foreign exchange are recognised in the income statement.

1.13

Financial Instruments

Financial assets and financial liabilities are recognised when an entity becomes a party to the contractual provisions of the instruments.

 

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

2
New standards, interpretations and amendments not yet effective

Certain amendments to accounting standards have been published that are not mandatory for 30 September 2024 reporting periods and have not been early adopted by the Company. These amendments are not expected to have a material impact on the entity in the current or future reporting periods.

NEW ENGLAND BIOLABS LYOPHILIZATION SCIENCES LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 14 -
3
Critical accounting estimates and judgements

In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of the Company accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

 

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to esimates are recognised prospectively.

 

The areas where judgements and estimates have been made in preparing the financial statements and their effects are as below.

 

Provision for impairment of inventories

 

The provision for impairment of inventories assessment requires a degree of estimation and judgement. The level of the provision is assessed by taking into account the recent sales experience, the ageing of inventories and other factors that affect inventory obsolescence.

 

Estimation of useful lives of assets

 

The company determines the estimated useful lives and related depreciation charges for its property, plant and equipment assets. The useful lives could change significantly as a result of technical innovations or some other event. The depreciation charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been abandoned or sold will be written off or written down.

4
Revenue

The following is an analysis of the Company's revenue for the year from continuing operations:

2024
2023
£
£
Revenue analysed by class of business
Sales of goods
1,330,594
1,253,631
2024
2023
£
£
Analysis of revenue by country of destination
Europe
316,165
453,116
Rest of World
1,014,429
800,515
1,330,594
1,253,631
2024
2023
£
£
Other income
Royalty income
21,006
71,442
NEW ENGLAND BIOLABS LYOPHILIZATION SCIENCES LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 15 -
5
Operating loss
2024
2023
Operating loss for the year is stated after charging/(crediting):
£
£
Exchange losses
46,927
276,854
Depreciation of property, plant and equipment
1,531,161
668,530
Profit on disposal of property, plant and equipment
(48,831)
-
6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
19,400
13,000
For other services
Other services
2,960
6,618
7
Employees

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

2024
2023
Number
Number
16
14

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,283,206
1,108,301
Social security costs
158,958
140,693
Pension costs
162,908
227,804
1,605,072
1,476,798
8
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
475,753
430,622
Company pension contributions to defined contribution schemes
27,347
71,700
503,100
502,322
NEW ENGLAND BIOLABS LYOPHILIZATION SCIENCES LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
8
Directors' remuneration
(Continued)
- 16 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
407,965
324,908
Company pension contributions to defined contribution schemes
13,000
5,200
9
Investment income
2024
2023
£
£
Interest income
Financial instruments measured at amortised cost:
Bank deposits
22,457
12,156
Income above relates to assets held at amortised cost, unless stated otherwise.
10
Finance costs
2024
2023
£
£
Interest on lease liabilities
207,398
206,101
Other interest payable
-
0
280,382
Total interest expense
207,398
486,483
11
Income tax expense
2024
2023
£
£
Deferred tax
Origination and reversal of temporary differences
-
0
(75,534)
NEW ENGLAND BIOLABS LYOPHILIZATION SCIENCES LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
11
Income tax expense
(Continued)
- 17 -

The charge for the year can be reconciled to the loss per the income statement as follows:

2024
2023
£
£
Loss before taxation
(3,537,239)
(2,715,620)
Expected tax credit based on a corporation tax rate of 25.00% (2023: 25.00%)
(884,310)
(678,905)
Effect of expenses not deductible in determining taxable profit
4,530
31,770
Unutilised tax losses carried forward
149,712
535,806
Group relief
555,754
-
0
Permanent capital allowances in excess of depreciation
198,729
111,329
Short-term timing difference leading to an increase/(decrease) in taxation
-
0
(75,534)
Other adjustments
(24,415)
-
0
Taxation charge/(credit) for the year
-
(75,534)

Factors that may affect future tax charges

As at 30 September 2024 the company had £1,274,418 of trading tax losses available to carry forward for use against future periods.

NEW ENGLAND BIOLABS LYOPHILIZATION SCIENCES LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 18 -
12
Property, plant and equipment
Right of use assets
Leasehold Improvements - 178 Milton Park
Lab equipment
Fixtures and Fittings
IT equipment
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 October 2022
3,425,173
610,439
809,234
-
0
-
0
26,353
4,871,199
Additions
-
0
8,939,758
24,833
-
0
191,046
-
0
9,155,637
At 30 September 2023
3,425,173
9,550,197
834,067
-
0
191,046
26,353
14,026,836
Additions
-
0
6,439,734
367,193
282,132
164,612
-
0
7,253,671
Disposals
-
0
-
0
(77,500)
-
0
-
0
-
0
(77,500)
At 30 September 2024
3,425,173
15,989,931
1,123,760
282,132
355,658
26,353
21,203,007
Accumulated depreciation and impairment
At 1 October 2022
71,234
10,789
347,508
-
0
-
0
10,431
439,962
Charge for the year
213,703
272,060
166,079
-
0
10,100
6,588
668,530
At 30 September 2023
284,937
282,849
513,587
-
0
10,100
17,019
1,108,492
Charge for the year
213,703
1,006,855
187,200
16,965
99,850
6,588
1,531,161
Eliminated on disposal
-
0
-
0
(45,967)
-
0
-
0
-
0
(45,967)
At 30 September 2024
498,640
1,289,704
654,820
16,965
109,950
23,607
2,593,686
Carrying amount
At 30 September 2024
2,926,533
14,700,227
468,940
265,167
245,708
2,746
18,609,321
At 30 September 2023
3,140,236
9,267,348
320,480
-
180,946
9,334
12,918,344
NEW ENGLAND BIOLABS LYOPHILIZATION SCIENCES LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 19 -

Property, plant and equipment includes right-of-use assets, as follows:

Right-of-use assets
2024
2023
£
£
Net values at the year end
Property
2,926,533
3,140,236
Depreciation charge for the year
Property
213,703
213,703
13
Inventories
2024
2023
£
£
Raw materials
87,714
71,206
Work in progress
-
20,499
87,714
91,705

The amount of inventories recognised as an expense during 2024 was £161,094 (2023: £253,823).

14
Trade and other receivables
2024
2023
£
£
Trade receivables
136,037
1,070,183
Provision for bad and doubtful debts
-
0
(819,090)
136,037
251,093
Amount owed by parent undertaking
332,845
-
0
Amounts owed by fellow group undertakings
21,317
19,654
Other receivables
115,069
675,069
Prepayments
1,436,721
930,583
2,041,989
1,876,399
15
Trade receivables - credit risk
Fair value of trade receivables

The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.

No significant receivable balances are impaired at the reporting end date.

NEW ENGLAND BIOLABS LYOPHILIZATION SCIENCES LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
15
Trade receivables - credit risk
(Continued)
- 20 -

Credit risk management

Credit risks arise from the possibility that customers may not be able to settle their obligation as agreed. To manage this risk the company periodically assess customer credit risk and assigns individual credit limits.

The provisions for expected credit losses for customers are based on forward looking expected credit loss, which includes possible default events over the entire holding period of the trade receivables.

In measuring the expected credit loss, trade receivables are grouped based on past due days. In determining the expected credit loss rates, the company considers current forward looking macroeconomic factors that may affect the ability of the customers to settle receivables, and historical loss rates for each ageing category of debts. Based on these parameters the expected credit loss at 30 September 2024 was £Nil.

Movement in the allowances for impairment of trade receivables
2024
2023
£
£
Balance at 1 October 2023
819,090
819,090
Amounts written off as uncollectible
(819,090)
-
Balance at 30 September 2024
-
0
819,090
16
Trade and other payables
2024
2023
£
£
Trade payables
272,699
1,306,613
Amount owed to parent undertaking
-
0
11,200,337
Amounts owed to fellow group undertakings
7,831
1,241
Accruals
289,967
863,526
Social security and other taxation
90,956
30,542
Other payables
20,081
84,346
681,534
13,486,605
17
Lease liabilities
2024
2023
Maturity analysis
£
£
Within one year
349,568
174,784
In two to five years
1,197,550
1,197,550
In over five years
1,664,877
1,818,408
Total undiscounted liabilities
3,211,995
3,190,742
NEW ENGLAND BIOLABS LYOPHILIZATION SCIENCES LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
17
Lease liabilities
(Continued)
- 21 -

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2024
2023
£
£
Current liabilities
349,568
174,784
Non-current liabilities
2,862,427
3,015,958
3,211,995
3,190,742
2024
2023
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
207,398
206,101
Other leasing information is included in note 23.
18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

Accelerated capital allowances
£
Liability at 1 October 2022
75,534
Deferred tax movements in prior year
Charge/(credit) to profit or loss
(75,534)
Liability at 1 October 2023 and 30 September 2024
-
0
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
162,908
227,804

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.

NEW ENGLAND BIOLABS LYOPHILIZATION SCIENCES LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Authorised
Ordinary of 10p each
14,205
14,205
1,421
1,421
B Ordinary of $1 each
1
-
1
-
14,206
14,205
1,422
1,421
Issued and fully paid
Ordinary of 10p each
14,205
14,205
1,421
1,421
B Ordinary of $1 each
1
-
1
-
14,206
14,205
1,422
1,421

Each Ordinary share carries one vote, an equal right to dividends and capital (including on a winding up) and is not redeemable. Each B Ordinary share carries one vote, an equal right to dividends and capital (including on a winding up) and is not redeemable.

Reconciliation of movements during the year:
Ordinary
B Ordinary
Number
Number
At 1 October 2023
14,205
-
Issue of fully paid shares
-
1
At 30 September 2024
14,205
1

On 23 September 2024 the Company converted the outstanding loan balance due to NEB Inc to equity by issuing 1 B Ordinary share with par value of $1 (£1) for consideration of $27,663,389 (£22,385,791) to the parent company.

21
Share premium account
2024
2023
£
£
At the beginning of the year
10,710
10,710
Other movements
22,385,790
-
At the end of the year
22,396,500
10,710
22
Capital redemption reserve
2024
2023
£
£
At the beginning and end of the year
831
831
NEW ENGLAND BIOLABS LYOPHILIZATION SCIENCES LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 23 -
23
Other leasing information
Lessee

Amounts recognised in profit or loss as an expense during the period in respect of lease arrangements are as follows:

2024
2023
£
£
Expense relating to short-term leases
59,309
54,962

Set out below are the future cash outflows to which the lessee is potentially exposed that are not reflected in the measurement of lease liabilities:

2024
2023
Operating leases apart from land and buildings
£
£
Within one year
-
14,569
Information relating to lease liabilities is included in note 17.
24
Capital risk management

The company is not subject to any externally imposed capital requirements.

25
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel, including directors, is set out within the wages and directors' remuneration note.

Other transactions with related parties

During the year the company entered into the following transactions with related parties:

Sale of goods
Purchase of goods
2024
2023
2024
2023
£
£
£
£
Parent company
669,065
173,697
4,491
117,738
Other related parties
-
0
-
0
10,587
5,663
669,065
173,697
15,078
123,401
NEW ENGLAND BIOLABS LYOPHILIZATION SCIENCES LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
25
Related party transactions
(Continued)
- 24 -
Recharge of expenses
Interest payable on loan
2024
2023
2024
2023
£
£
£
£
Parent company
-
-
-
275,421
Other related parties
6,086
10,874
-
-
6,086
10,874
-
275,421

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due to related parties
£
£
Parent company
37
11,200,338
Other related parties
7,831
1,240
7,868
11,201,578

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due from related parties
£
£
Parent company
332,883
19,564
Other related parties
21,317
-
354,200
19,564
Other information

Amounts owed to parent company and other related parties are unsecured and have no fixed repayment date. Other related parties includes entities considered fellow group companies.

26
Controlling party

The immediate and ultimate parent company and controlling party is New England Biolabs Inc. for which group financial statements are prepared. The company is incorporated and registered in the United States of America. Copies of the consolidated group financial statements are not publicly available.

NEW ENGLAND BIOLABS LYOPHILIZATION SCIENCES LTD.
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 25 -
27
Cash generated from operations
2024
2023
£
£
Loss for the year before income tax
(3,537,239)
(2,715,620)
Adjustments for:
Finance costs
207,398
486,483
Investment income
(22,457)
(12,156)
Gain on disposal of property, plant and equipment
(48,831)
-
Depreciation and impairment of property, plant and equipment
1,531,161
668,530
Movements in working capital:
Decrease in inventories
3,991
271,295
Increase in trade and other receivables
(165,587)
(1,052,853)
Increase in trade and other payables
9,580,717
7,546,443
Cash generated from operations
7,549,153
5,192,122
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