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Company registration number: 03224075

Propath (UK) Limited

Filleted Annual Report and Financial Statements

for the Year Ended 30 June 2024

 

Propath (UK) Limited

Contents

Balance Sheet

1

Notes to the Financial Statements

2 to 9

 

Propath (UK) Limited

(Registration number: 03224075)
Balance Sheet as at 30 June 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

4

1,044,970

917,972

Other debtors

7

5,493,889

3,810,028

Other financial assets

5

87,477

97,365

 

6,626,336

4,825,365

Current assets

 

Stocks

6

149,387

65,218

Debtors

7

940,232

492,002

Cash at bank and in hand

 

1,121,526

1,008,328

 

2,211,145

1,565,548

Creditors: Amounts falling due within one year

8

(1,384,535)

(621,581)

Net current assets

 

826,610

943,967

Total assets less current liabilities

 

7,452,946

5,769,332

Provisions for liabilities

 

Deferred tax liabilities

 

(259,403)

(227,879)

Net assets

 

7,193,543

5,541,453

Capital and reserves

 

Called up share capital

5,000

5,000

Capital redemption reserve

5,000

5,000

Fair value reserve

 

2,486

7,657

Profit and loss account

7,181,057

5,523,796

Total equity

 

7,193,543

5,541,453

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006. The option not to file the profit and loss account and directors’ report has been taken.

Approved and authorised by the director on 28 March 2025 .
 


Dr P K Soni
Director

   
 

Propath (UK) Limited

Notes to the Financial Statements
for the Year Ended 30 June 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Willow Court
Netherwood Road
Hereford
HR2 6JU
United Kingdom

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

These financial statements are presented in Sterling (£).

Going concern

The financial statements have been prepared on a going concern basis.

Turnover recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

Other operating income

Other operating income relates to income receivable in relation to research and development tax credits and governments grants which are recognised in the period to which they relate.

 

Propath (UK) Limited

Notes to the Financial Statements
for the Year Ended 30 June 2024

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.

Grants of a revenue nature are recognised in the Profit and Loss Account in the same period as the related expenditure.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:

• The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
• Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Tangible assets

Tangible assets are stated at cost, less accumulated depreciation and accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

 

Propath (UK) Limited

Notes to the Financial Statements
for the Year Ended 30 June 2024

Depreciation of tangible assets

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

20% reducing balance

Investments

Investments in unlisted company shares, whose market value can be reliably determined, are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in the Profit and Loss Account for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each Balance Sheet date. Gains and losses on remeasurement are recognised in the Profit and Loss Account for the period.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

 

Propath (UK) Limited

Notes to the Financial Statements
for the Year Ended 30 June 2024

Reserves

Called up share capital represents the nominal value of shares that have been issued.

Profit and loss account includes all current and prior period profits and losses.

Capital redemption reserve records the nominal value of shares repurchased by the company.

Fair value reserve is the surplus or deficit arising on the valuation of investments to fair value. Any change in value is recognised within the profit and loss for the year and then transferred, through a reserves transfer, to the fair value reserve. This reserve is non-distributable.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

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

The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

3

Staff numbers

The average number of persons employed by the company (including the director) during the year was 31 (2023 - 33).

 

Propath (UK) Limited

Notes to the Financial Statements
for the Year Ended 30 June 2024

4

Tangible assets

Plant and machinery
 £

Cost or valuation

At 1 July 2023

1,609,785

Additions

346,009

At 30 June 2024

1,955,794

Depreciation

At 1 July 2023

691,813

Charge for the year

219,011

At 30 June 2024

910,824

Carrying amount

At 30 June 2024

1,044,970

At 30 June 2023

917,972

 

Propath (UK) Limited

Notes to the Financial Statements
for the Year Ended 30 June 2024

5

Other financial assets (current and non-current)

Financial assets at fair value through profit and loss
£

Total
£

Non-current financial assets

Cost or valuation

At 1 July 2023

97,365

97,365

Fair value adjustments

2,486

2,486

Additions

84,991

84,991

Disposals

(97,365)

(97,365)

At 30 June 2024

87,477

87,477

Carrying amount

At 30 June 2024

87,477

87,477

6

Stocks

2024
£

2023
£

Work in progress

57,101

23,021

Other stocks

92,286

42,197

149,387

65,218

7

Debtors

Current

2024
£

2023
£

Trade debtors

881,437

478,201

Prepayments

57,703

13,323

Other debtors

1,092

478

 

940,232

492,002

Non-current

Note

2024
£

2023
£

Other debtors

10

5,493,889

3,810,028

   

5,493,889

3,810,028

 

Propath (UK) Limited

Notes to the Financial Statements
for the Year Ended 30 June 2024

8

Creditors

Creditors: amounts falling due within one year

2024
£

2023
£

Due within one year

Trade creditors

550,340

158,753

Taxation and social security

323,573

150,543

Accruals and deferred income

509,465

316,654

Other creditors

1,157

(4,369)

1,384,535

621,581

9

Reserves reconciliation

Capital redemption reserve
£

Fair value reserve
£

At 1 July 2023

5,000

7,657

Fair value reserve - transfer of realised gains/losses

-

(7,657)

Transfer of fair value adjustment from profit & loss

-

2,486

At 30 June 2024

5,000

2,486

Capital redemption reserve
£

Fair value reserve
£

At 1 July 2022

5,000

3,460

Transfer of fair value adjustment from profit & loss

-

4,197

At 30 June 2023

5,000

7,657

 

Propath (UK) Limited

Notes to the Financial Statements
for the Year Ended 30 June 2024

10

Related party transactions

Propath Group Holdings Limited is the immediate and ultimate parent company. The registered office of Propath Group Holdings Limited is Willow Court, Netherwood Road, Hereford, United Kingdom, HR2 6JU.

The company maintains interest free loan accounts with companies controlled by the director. These loans are repayable within 24 months of the year end, and the director understands that they will not be collected within 12 months of the year end. Therefore, these loans are being shown as due to the company after one year. At the year end the company was owed £5,493,889 (2023: £3,810,028) from companies controlled by the director. Whilst the debt is unsecured, the director is confident, at the point of signing these accounts, that this debt is fully recoverable.

11

Audit Report

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 28 March 2025 was Christopher Walford BSc ACA, who signed for and on behalf of Albert Goodman LLP.