Company registration number 02833761 (England and Wales)
NEW ENGLAND BIOLABS (U.K.) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
NEW ENGLAND BIOLABS (U.K.) LIMITED
COMPANY INFORMATION
Directors
Dr C J Keating
B T Tinger
S V Russello
Company number
02833761
Registered office
75-77 Knowl Piece
Wilbury Way
Hitchin
Hertfordshire
UK
SG4 0TY
Auditor
Azets Audit Services
Suites B & D
Burnham Yard
London End
Beaconsfield
Buckinghamshire
United Kingdom
HP9 2JH
NEW ENGLAND BIOLABS (U.K.) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 5
Independent auditor's report
6 - 8
Income statement
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 29
NEW ENGLAND BIOLABS (U.K.) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -

The directors present the strategic report for the year ended 30 September 2024.

Review of the business

The income statement for the financial year 2023/24 is shown on page 9 of this Annual Report and Financial Statements. As of 30 September 2024, the Company turnover increased from £35m in 2022/23 to £35.7m driven by an increase in customised solutions sales in the UK and Europe. Core catalogue product sales showed good underlying growth making up for a loss in revenue from COVID related sales.

Principal risks and uncertainties

The Company, in line with others in the UK, is subject to several risks and uncertainties and the board continuously monitors and evaluates these and looks to mitigate the effects of any risks. These risks include the general financial health of the UK economy which could adversely affect government funded research and development in the academic sector. These same risks to the health of the UK and European economies could also affect the amount of venture capital money invested in the biotech and diagnostics sector. There are also risks associated with the general life science market consolidation of competitors and the setting up of new competitor companies. Operational risks also exist including cybercrime and retention of staff and recruitment of new staff.

Currency fluctuations remain the largest financial risk with sterling performing poorly against the US Dollar along with current volatility in this market. Cash flow and cash reserves remain strong, and the Company does not have borrowings, so interest rate risks do not feature. The Company maintains an organised approach to aged debt, and we do not expect exposure to large-scale bad debt or difficulties in maintaining cashflow.

Despite the risks facing the Company, management believes they have procedures in place to mitigate these risks and are well placed for future challenges.

Key performance indicators

Staff numbers: 2024: 43 (2023: 40)

Sales revenue per staff member: £830,750 (2023: £875,311)

Other information and explanations

The small reduction in revenue per employee following the COVID pandemic period demonstrates the resilience of the core business. The company is well placed to take advantage of the post COVID life sciences market. A rebound in investment in the biotech sector in the UK along with the strength in pharma research and development provides an opportunity for strong growth for the company.

Directors' statement of compliance with duty to promote the success of the Company - Companies Act 2006 s172
Employees

The employees remain a vital stakeholder group for the company, as an organization we value the longevity and commitment of our staff. Even with the substantial additional recruitment the company has made of the past few of years our average staff tenure remains over 9 year. This is a testament to the recruitment and retention policies we have in place for staff along with an indication that staff value the culture within the organization. Over the past year the company has increased training opportunities for all staff as well as offering staff the opportunity to take paid leave to volunteer within our communities. The company has also launched a number of additional employment benefits and set up charity, DEI and sustainability working parties to further engage and empower staff in these important areas. The company is in the process of achieving Hertfordshire Healthy Workplace accreditation. This accreditation will confirm our focus on staff well-being and provide us with additional tools to support our workforce’s physical and mental wellbeing. NEB operates a hybrid working policy for many of its office-based staff that allow many staff to work three days in the office and two from home, reducing commuting and its traffic and environmental impact along with giving some staff a more family friendly work life balance.

Suppliers, Customers and Community

The company maintains a commitment to long-term relationships with our trusted supplier partners. We have further enhanced these relationships with new supplier engagement and evaluation scheme. Partnership with suppliers is important to the company as we produce our carbon NetZero plans and commitments. We also value the drive and innovation of our long-term supplier base.

NEW ENGLAND BIOLABS (U.K.) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -

Our customers remain at the core of everything that we do as an organization. Our aim is to develop and nurture a long-term partnership with our customers. The deepening of this relationship extends beyond the provision of products to an overall alignment to our customers community and sustainability goals, and becoming a trusted partner in their scientific and commercial journey.

Corporate Social Responsibility and Sustainability

New England Biolabs as a global organisation celebrated 50 years in 2024. The company is still motivated by a set of core, foundational values that are as true today as they were when the company was founded by Don Comb back in 1974:

 

 

While passion for science helps us to drive discovery, we continue to be guided by our responsibility to each other and our community, both locally and globally, to work towards a more just world. As such, our offices in the US and around the world are committed to the same core values and sustainability practices. The UK subsidiary office mirrors this corporate ethos both locally and nationally.

 

Environment

The company has operated for 30 years with sustainability and the environment at the heart of all that we do. We aim for product and operational excellence while minimizing the effect of our business on our environment. This year the company has continued the process of comprehensive carbon accounting which will allow us to understand where we can work to minimize our carbon spend. The company has published a detailed report on our carbon audit which will be available via our website. This report will allow our NetZero plan and commitment to be based around a sound understanding of how we can affect our carbon usage, allowing us to develop science-based targets for carbon reduction. We have also expanded our NEBeesTM programme in partnership with The Honeybee Man Ltd sponsored the setting up of three new honeybee colonies in an apiary in Weston, Hertfordshire. Along with this sustainable beekeeping company, we will help to drive an increase in the UK honeybee population. The company has continued to maintain an active polystyrene packaging reuse and recycle programme to ensure any polystyrene packaging used can be reused or recycled. We also invest in continued packaging development with the aim of reducing the impact of our business on the environment. We have also set up a staff salary sacrifice scheme to encourage the leasing of electric vehicles or bikes to reduce the impact of staff commuting.

 

Human Rights, Modern Slavery, Anti-corruption and Anti-bribery policies

The company reviews these policies each year to ensure full compliance with the relevant legislation. The parent company is in the process of retaining it B Corp.

On behalf of the board

Dr C J Keating
Director
11 March 2025
NEW ENGLAND BIOLABS (U.K.) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -

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

Principal activities

The principal activities of the company continued to be the supply of molecular biology reagents to the academic, pharmaceutical and biotech research market, as well as supplying customised products for the molecular diagnostic and biological therapeutic manufacturing markets.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £8,000,000. The directors do not recommend payment of a final dividend.

Directors

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

Dr C J Keating
B T Tinger
S V Russello
Financial instruments

In respect of bank balances the liquidity risk is managed by maintaining a balace between the continuity of funding and flexibility through use of overdrafts at floating rates of interest. 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 terms. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Future developments

The Directors aim is to continue to drive growth in the UK Life Sciences market in line with global group policies. The Company has robust forecast calculations in place and confidently expect to meet those forecast targets. The Company will continue to train and develop its staff and has an opportunity to hire additional staff members where required. We expect to increase headcount in customer facing sales and marketing roles in the next financial year. Following the successful implementation of our new ERP system and subsequent improvements to our CRM and web presence we will focus on utilisation of these new systems to deliver an even more efficient and customer focused business model.

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.

Energy and carbon report

New England Biolabs recognises the importance of making a full and lasting commitment to reducing the greenhouse gas emissions from our activities, in support of the wider commitment of the world to limit global temperature increases and the impact on the planet.

2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
189,225
209,575
NEW ENGLAND BIOLABS (U.K.) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
-
-
- Fuel consumed for owned transport
10.70
10.60
10.70
10.60
Scope 2 - indirect emissions
- Electricity purchased
-
-
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the
66.70
103.60
Total gross emissions
77.40
114.20
Intensity ratio
Tonnes CO2e per employee
1.8
2.9
Quantification and reporting methodology

The company categorises its Greenhouse Gas (GHG) Emissions as Scope 1, 2 or 3 as referred to in the WBCSD – WRI Greenhouse Gas Protocol (revised edition, dated March 2014). Emissions in Carbon Dioxide equivalent (CO2e) for all scopes are calculated using the conversion factors listed in DESNZ Greenhouse Gas Conversion Factors for the relevant 12-month period over which the carbon emissions are calculated. Procured renewable electricity and gas is calculated in accordance with the WBCSD – WSI Scope 2 Guidance on procured renewable energy (2015).

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per employee, the recommended ratio for the sector.

Measures taken to improve energy efficiency
NEW ENGLAND BIOLABS (U.K.) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 5 -
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.

On behalf of the board
Dr C J Keating
Director
11 March 2025
NEW ENGLAND BIOLABS (U.K.) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NEW ENGLAND BIOLABS (U.K.) LIMITED
- 6 -
Opinion

We have audited the financial statements of New England Biolabs (U.K.) Limited (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 (U.K.) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NEW ENGLAND BIOLABS (U.K.) LIMITED
- 7 -
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:

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 (U.K.) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NEW ENGLAND BIOLABS (U.K.) LIMITED
- 8 -

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 18 October 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
13 March 2025
Chartered Accountants
Statutory Auditor
Suites B & D
Burnham Yard
London End
Beaconsfield
Buckinghamshire
United Kingdom
HP9 2JH
NEW ENGLAND BIOLABS (U.K.) LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 9 -
2024
2023
Notes
£
£
Revenue
4
35,722,251
35,012,437
Cost of sales
(29,452,433)
(28,749,835)
Gross profit
6,269,818
6,262,602
Other operating income
-
10,802
Administrative expenses
(4,527,057)
(5,481,177)
Operating profit
5
1,742,761
792,227
Investment revenues
8
352,211
525,141
Finance costs
9
(29,974)
-
0
Profit before taxation
2,064,998
1,317,368
Income tax income/(expense)
10
336,274
(330,822)
Profit and total comprehensive income for the year
2,401,272
986,546
NEW ENGLAND BIOLABS (U.K.) LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
30 SEPTEMBER 2024
30 September 2024
- 10 -
2024
2023
Notes
£
£
Non-current assets
Property, plant and equipment
12
1,686,921
1,753,608
Current assets
Inventories
13
2,753,610
2,448,750
Trade and other receivables
14
4,626,653
3,751,030
Cash and cash equivalents
3,591,414
17,049,702
10,971,677
23,249,482
Current liabilities
Trade and other payables
18
2,483,593
8,407,832
Current tax liabilities
(502,138)
211,423
Borrowings
16
-
0
93,950
1,981,455
8,713,205
Net current assets
8,990,222
14,536,277
Non-current liabilities
Deferred tax liabilities
19
62,380
76,394
Net assets
10,614,763
16,213,491
Equity
Called up share capital
21
500,000
500,000
Retained earnings
10,114,763
15,713,491
Total equity
10,614,763
16,213,491
The financial statements were approved by the board of directors and authorised for issue on 11 March 2025 and are signed on its behalf by:
Dr C J Keating
Director
Company registration number 02833761
NEW ENGLAND BIOLABS (U.K.) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
Share capital
Retained earnings
Total
Notes
£
£
£
Balance at 1 October 2022
500,000
14,726,945
15,226,945
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
986,546
986,546
Balance at 30 September 2023
500,000
15,713,491
16,213,491
Year ended 30 September 2024:
Profit and total comprehensive income for the year
-
2,401,272
2,401,272
Transactions with owners in their capacity as owners:
Dividends
11
-
(8,000,000)
(8,000,000)
Balance at 30 September 2024
500,000
10,114,763
10,614,763
NEW ENGLAND BIOLABS (U.K.) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
27
(5,174,261)
4,051,477
Interest paid
(29,974)
-
0
Income taxes (paid)/refunded
(391,976)
93,585
Net cash (outflow)/inflow from operating activities
(5,596,211)
4,145,062
Investing activities
Purchase of property, plant and equipment
(120,338)
(106,990)
Interest received
352,211
525,141
Net cash generated from investing activities
231,873
418,151
Financing activities
Dividends paid
(8,000,000)
-
0
Net cash used in financing activities
(8,000,000)
-
Net (decrease)/increase in cash and cash equivalents
(13,364,338)
4,563,213
Cash and cash equivalents at beginning of year
16,955,752
12,392,539
Cash and cash equivalents at end of year
3,591,414
16,955,752
Relating to:
Bank balances and short term deposits
3,591,414
17,049,702
Bank overdrafts
-
0
(93,950)
NEW ENGLAND BIOLABS (U.K.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 13 -
1
Accounting policies
Company information

New England Biolabs (U.K.) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 75-77 Knowl Piece, Wilbury Way, Hitchin, Hertfordshire, UK, SG4 0TY. 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 (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.

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 £.

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

1.2
Going concern

The directors have at the time of approving the financial statements, a reasonable expectation that the truecompany has adequate resources to continue in operational existence for the foreseeable future. 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 of 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 payment is due.

NEW ENGLAND BIOLABS (U.K.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 14 -
1.4
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

 

If significant parts of an item of property, plant and equipment have different 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 recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold property
2% straight line
Office equipment
15% straight line
Machinery and equipment
15% straight line
IT hardware
33% straight line
Motor vehicles
over the lease term, 36 months
Freehold land
NIL
Building improvements
10% straight line

Land is not depreciated. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Company will obtain ownership by the end of the lease term. Depreciation is provided on all other items of property, plant and equipment so as to write off their carrying value over their expected useful economic lives.

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 recognised in the income statement.

1.5
Impairment of tangible and intangible assets

At each reporting end date, the company reviews the carrying amounts of its tangible 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.

 

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.

NEW ENGLAND BIOLABS (U.K.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.6
Inventories

Inventories are stated at the lower of cost and net realisable value. Costs of inventories are determined on a weighted average basis. Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale.

 

Inventories held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

1.7
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.

1.8
Financial assets

Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

 

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial assets at fair value through profit or loss

When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognized initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.

Financial assets held at amortised cost

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

Impairment of financial assets

Financial assets carried at amortised cost are assessed for indicators of impairment at each reporting end date.

 

The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

 

For trade receivables, the simplified approach permitted by IFRS 9 is applied, which requires expected lifetime losses to be recognised from initial recognition of the receivables.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

NEW ENGLAND BIOLABS (U.K.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.9
Financial liabilities

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

Other financial liabilities

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

1.10
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.

1.11
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 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.

Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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 income statement, 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

A liability is recognised for benefits accruing 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.

NEW ENGLAND BIOLABS (U.K.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 17 -
1.13
Retirement benefits

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

1.14
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 company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.

1.15
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 recognised in the income statement.

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.

3
Critical accounting estimates and judgements

In the application of the company’s accounting policies, the directors are 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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

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

Key sources of estimation uncertainty
Provision for impairment of inventories

Inventories are stated at the lower of costs and net realisable value. Costs of inventories are determined on a first in, first out basis. Net realisable value represents the estimated selling price for inventores less all estimated costs of completion and costs necessary to make the sale.

NEW ENGLAND BIOLABS (U.K.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
3
Critical accounting estimates and judgements
(Continued)
- 18 -
Estimation of useful lives of assets

The Company has a policy of capitalising assets over £5,000.

 

Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses. If significant parts of an item of property, plant and equipment have different 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 capitalised assets excluding land so as to write off their carrying value over their expected useful economic lives.

Trade and other receivables and contract assets

The Company makes use of a simplified approach in accounting for trade and other receivables as well as contract assets and records the loss allowance as lifetime expected credit losses. These are the expected shortfalls in contractual cash flows, considering the potential for default at any point during the life of the financial instrument. In calculating, the Company uses its historical experience, external indicators and forward-looking information to calculate the expected credit losses using a provision matrix. The Company assesses impairment of trade receivables on a collective basis as they possess shared credit risk characteristics they have been grouped based on the days past due.

Contingent assets and liabilities

Provisions for product warranties, legal disputes, onerous contracts or other claims are recognised when the Company has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of economic resources will be required from the Company and amounts can be estimated reliably. The timing or amount of the outflow may still be uncertain. Restructuring provisions are recognised only if a detailed formal plan for the restructuring exists and management has either communicated the plan's main features to those affected or started implementation. Provisions are not recognised for future operating losses. Provisions are measured at the estimated expenditure required to settle the present obligation, based on the most reliable evidence available at the reporting date, including the risks and uncertainties associated with the present obligation. Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. Provisions are discounted to their present values, where the time value of money is material. Any reimbursement that the Company is virtually certain to collect from a third party with respect to the obligation is recognised as a separate asset. However, this asset may not exceed the amount of the related provision.

4
Revenue
2024
2023
£
£
Revenue analysed by class of business
Sale of goods
35,722,251
35,012,437
NEW ENGLAND BIOLABS (U.K.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
4
Revenue
(Continued)
- 19 -
2024
2023
£
£
Revenue analysed by geographical market
United Kingdom
25,101,856
24,669,476
Rest of Europe
9,162,162
8,761,094
Rest of the world
1,458,233
1,581,867
35,722,251
35,012,437
5
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
93,796
(374,689)
Depreciation of property, plant and equipment
187,025
170,918
Loss on disposal of property, plant and equipment
675
15,654
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
25,200
58,000
For other services
Other services
4,420
71,103

The Company appointed new auditors in the period who do not provide the same non-audit services as the previous firm.

7
Employees

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

2024
2023
Number
Number
Management
1
1
Administration
42
39
Total
43
40
NEW ENGLAND BIOLABS (U.K.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
7
Employees
(Continued)
- 20 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,520,339
2,493,590
Social security costs
306,207
295,742
Pension costs
260,330
228,018
3,086,876
3,017,350
8
Investment income
2024
2023
£
£
Interest income
Financial instruments measured at amortised cost:
Bank deposits
352,211
518,030
Other interest income on financial assets
-
0
7,111
Total interest revenue
352,211
525,141
Income above relates to assets held at amortised cost, unless stated otherwise.
9
Finance costs
2024
2023
£
£
Interest on bank overdrafts and loans
29,974
-
10
Income tax expense
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
-
0
322,260
Adjustments in respect of prior periods
(322,260)
40
Total UK current tax
(322,260)
322,300
Deferred tax
Origination and reversal of temporary differences
(14,014)
8,522
Total tax charge/(credit)
(336,274)
330,822
NEW ENGLAND BIOLABS (U.K.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
10
Income tax expense
(Continued)
- 21 -

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

2024
2023
£
£
Profit before taxation
2,064,998
1,317,368
Expected tax charge based on a corporation tax rate of 25.00% (2023: 22.00%)
516,250
289,821
Effect of expenses not deductible in determining taxable profit
16,168
11,426
Adjustment in respect of prior years
(322,260)
40
Group relief
(555,755)
-
0
Permanent capital allowances in excess of depreciation
23,337
21,013
Deferred tax adjustments
(14,014)
8,522
Taxation (credit)/charge for the year
(336,274)
330,822

The amount noted within adjustments in prior period relates to a reversal in Corporation Tax liability for the prior period following group relief claimed from a fellow subsidiary.

11
Dividends
2024
2023
2024
2023
Amounts recognised as distributions:
per share
per share
Total
Total
£
£
£
£
Ordinary shares
Interim dividend paid
16.00
-
8,000,000
-
0
NEW ENGLAND BIOLABS (U.K.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -
12
Property, plant and equipment
Freehold property
Machinery and equipment
Office equipment
IT hardware
Motor vehicles
Freehold land
Building improvements
Total
£
£
£
£
£
£
£
£
Cost
At 1 October 2022
1,541,674
307,574
80,651
135,948
103,305
113,406
379,315
2,661,873
Additions
-
0
2,662
-
0
22,445
48,068
-
0
33,815
106,990
Disposals
-
0
(155,849)
(14,736)
(93,511)
(1,580)
-
0
-
0
(265,676)
At 30 September 2023
1,541,674
154,387
65,915
64,882
149,793
113,406
413,130
2,503,187
Additions
-
0
12,605
-
0
23,101
84,632
-
0
-
0
120,338
Disposals
-
0
-
0
-
0
(9,650)
(56,419)
-
0
-
0
(66,069)
At 30 September 2024
1,541,674
166,992
65,915
78,333
178,006
113,406
413,130
2,557,456
Accumulated depreciation and impairment
At 1 October 2022
446,454
181,493
22,525
98,792
29,950
-
0
49,469
828,683
Charge for the year
30,833
24,992
10,440
22,163
41,733
-
0
40,757
170,918
Eliminated on disposal
-
0
(147,145)
(10,082)
(91,215)
(1,580)
-
0
-
0
(250,022)
At 30 September 2023
477,287
59,340
22,883
29,740
70,103
-
0
90,226
749,579
Charge for the year
30,834
24,768
9,887
23,788
56,435
-
0
41,313
187,025
Eliminated on disposal
-
0
-
0
-
0
(9,650)
(56,419)
-
0
-
0
(66,069)
At 30 September 2024
508,121
84,108
32,770
43,878
70,119
-
0
131,539
870,535
Carrying amount
At 30 September 2024
1,033,553
82,884
33,145
34,455
107,887
113,406
281,591
1,686,921
At 30 September 2023
1,064,387
95,047
43,032
35,142
79,690
113,406
322,904
1,753,608
NEW ENGLAND BIOLABS (U.K.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 23 -

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

Right-of-use assets
2024
2023
£
£
Net values at the year end
Motor vehicles
178,006
79,690
Total additions in the year
84,632
48,068
Depreciation charge for the year
Motor vehicles
56,435
41,733

Assets pledged as security

Barclays Bank plc holds a legal charge over the freehold property known as 75/77 Knowl Piece, Wilbury Way, Hitchin, Herts owned by the company and included within freehold property above dated 29 September 2005. Barclays Bank plc also holds a charge dated February 2020 over the accounts of the Company containing fixed and floating charges and a negative pledge.

13
Inventories
2024
2023
£
£
Goods in transit
422,642
236,783
Finished goods
2,330,968
2,211,967
2,753,610
2,448,750

Inventories recognised as an expense within cost of sales amount to £29,358,637 (2023: £29,125,042).

14
Trade and other receivables
2024
2023
£
£
Trade receivables
4,320,435
3,297,451
Amounts owed by fellow group undertakings
-
0
1,241
Other receivables
158,201
47,696
Prepayments
148,017
404,642
4,626,653
3,751,030
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 (U.K.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
15
Trade receivables - credit risk
(Continued)
- 24 -

Credit risk analysis

Credit risk is the risk that a counterparty fails to discharge an obligation to the company. The company is exposed to credit risk from financial assets including cash and cash equivalents held at banks, trade and other receivables.

 

Credit risk management

The credit risk is managed on a group basis based on the company's credit risk management policies and procedures. The credit risk in respect of cash balances held with banks and deposits with banks are managed via diversification of bank deposits, and are only with major reputable financial institutions.

 

The company continuously monitors the credit quality of customers based on a credit rating scorecard. Where available, external credit ratings and/or reports on customers are obtained and used. The company's policy is to deal only with credit worthy couterparties. The credit terms range between 30 and 90 days. The credit terms for customers as negotiated with customers are subject to an internal approval process which considers the credit rating scorecard. The ongoing credit risk is managed through regular review of ageing analysis, together with credit limits per customer.

 

Trade receivables consist of a large number of customers in various industries and geographical areas. The company does not hold any security on any trade receivables balance at each annual reporting date. In addition, the company does not hold any collateral relating to other financial assets (e.g. derivative assets, cash and cash equivalents held with banks) at each annual reporting date.

 

Trade receivables

The company applies the IFRS 9 simplified model of recognising lifetime expected credit losses for all trade receivables as these items do not have a significant financing component. In measuring the expected credit losses, the trade receivables have been assessed on a collective basis as they possess shared credit risk characteristics. They have been grouped based on the days past due.

 

The expected loss rates are based on the payment profile for sales over the past 24 months before 30 September 2024 and 30 September 2023 respectively as well as the corresponding historical credit losses during that period. The historical rates are adjusted to reflect current and forward looking macroeconomic factors affecting the customer's ability to settle the amount outstanding. Trade receivables are written off (i.e. derecognised) when there is no reasonable expectation of recovery. Failure to make payments within 180 days from the invoice date and failure to engage with the company on alternative payment arrangement amongst others is considered indicators of no reasonable expectation of recovery.

 

Based on these parameters the expected credit loss at 30 September 2024 was £NIL (2023: £NIL).

16
Borrowings
2024
2023
£
£
Borrowings held at amortised cost:
Bank overdrafts
-
93,950
17
Market risk
Market risk management

The company's activities expose it to a variety of financial risks: market risk (including foreign currency and price risk), credit risk and liquidity risk. The company's overall risk management program focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the company. The company uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate, foreign exchange and ageing analysis for credit risk.

NEW ENGLAND BIOLABS (U.K.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
17
Market risk
(Continued)
- 25 -
Foreign exchange risk

The company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. Exchange rate exposures are managed within approved policy parameters utilising forward foreign exchange contracts.

 

The carrying amounts of the company's foreign currency denominated monetary assets and liabilities at the reporting date are as follows:

Assets
2024
2023
£
£
US Dollar
526,772
983,354
Euro
85,302
1,586,169
Other price risks

The company is not exposed to any significant price risk.

18
Trade and other payables
2024
2023
£
£
Trade payables
66,776
78,022
Payments received on account
97,619
125,323
Amount owed to parent undertaking
817,423
6,684,150
Amounts owed to fellow group undertakings
16,700
29,127
Accruals
979,309
1,028,504
Social security and other taxation
482,288
440,526
Other payables
23,478
22,180
2,483,593
8,407,832

Barclays Bank plc holds fixed and floating charges and a negative pledge over assets of the company in a charge dated February 2020.

NEW ENGLAND BIOLABS (U.K.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 26 -
19
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
67,872
Deferred tax movements in prior year
Charge/(credit) to profit or loss
8,522
Liability at 1 October 2023
76,394
Deferred tax movements in current year
Charge/(credit) to profit or loss
(14,014)
Liability at 30 September 2024
62,380
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
260,330
228,018

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.

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Authorised
Ordinary shares of £1 each
500,000
500,000
500,000
500,000
Issued and fully paid
Ordinary shares of £1 each
500,000
500,000
500,000
500,000

There is a single class of Ordinary shares which hold full voting rights. There are no restrictions on the distribution of dividends and repayment of capital.

22
Contingent liabilities and guarantees

Short-term deposits include £100,000 held in a bond account in favour of HM Revenue and Customs.

NEW ENGLAND BIOLABS (U.K.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 27 -
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
10,395
4,879

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
7,244
10,395
Between two and five years
4,224
9,521
In over five years
8,448
12,672
19,916
32,588
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 below in aggregate for each of the categories specified in IAS 24 Related Party Disclosures. Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Company.

2024
2023
£
£
Short-term employee benefits
208,281
177,154
Post-employment benefits
18,558
17,422
226,839
194,576
NEW ENGLAND BIOLABS (U.K.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
25
Related party transactions
(Continued)
- 28 -
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
-
0
-
0
28,209,869
30,196,790
Other related parties
16,798
16,537
77,552
35,601
16,798
16,537
28,287,421
30,232,391

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due to related parties
£
£
Parent company
817,423
6,684,150
Other related parties
16,699
29,128
834,122
6,713,278

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due from related parties
£
£
Other related parties
-
0
1,241

No expense has been recognised in the current or prior years for bad or doubtful debts in respect of amounts owed by related parties. No guarantees have been given or received.

Other related parties includes companies under common control and 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 (U.K.) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 29 -
27
Cash (absorbed by)/generated from operations
2024
2023
£
£
Profit for the year before income tax
2,064,998
1,317,368
Adjustments for:
Finance costs
29,974
-
Investment income
(352,211)
(525,141)
Loss on disposal of property, plant and equipment
675
15,654
Depreciation and impairment of property, plant and equipment
187,025
170,918
Movements in working capital:
Increase in inventories
(304,860)
(866,067)
Increase in trade and other receivables
(875,623)
(694,077)
(Decrease)/increase in trade and other payables
(5,924,239)
4,632,822
Cash (absorbed by)/generated from operations
(5,174,261)
4,051,477
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