Company registration number 05480227 (England and Wales)
TSI HEALTH SCIENCES (EUROPE) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
TSI HEALTH SCIENCES (EUROPE) LIMITED
COMPANY INFORMATION
Directors
Mr M Sunderland
Mr J J Zhou
Company number
05480227
Registered office
Suite 115
Imperial House
79 Hornby Street
Bury
Auditor
Barlow Andrews LLP
Carlyle House
78 Chorley New Road
Bolton
Bankers
HSBC Bank Plc
2 Yorkshire Street
Rochdale
TSI HEALTH SCIENCES (EUROPE) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 21
TSI HEALTH SCIENCES (EUROPE) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present the strategic report for the year ended 31 December 2024.
Review of the business
The key performance indicators for the company are as follows:
2024
2023
£
£
as restated
Turnover
20,728,372
18,595,198
Gross profit margin
3.64%
4.31%
In 2024 the revenue grew by 11% in comparison with the prior year, as a result of marketing efforts and participation in pharmaceutical exhibitions. However, profit margins remained under pressure as costs kept rising. Despite this, we benefited from higher sales volumes and an expanding customer base.
To improve the results in 2025, we continue to focus on strengthening our market position through enhanced customer acquisition strategies, deeper engagement with key stakeholders, and the expansion of its product portfolio to meet evolving market needs. Investment in research and development will drive innovation, ensuring continued product differentiation and value creation. We will also aim to explore new geographical markets and strategic partnerships to drive sustainable long-term growth.
We aim to maintain our market share within the European hydroxymethylbutyrate market and increase share of the European glucosamine market. In 2025 we will continue to maintain the European pharmaceutical tablet business within TSI Health Sciences (Europe) Limited.
Principal risks and uncertainties
The company is exposed to general and industry specific business risks including the following:
1 - Currency risks
With the majority of the company’s business conducted in US$ and € currencies rather than the GBP, there is the risk that a devaluation of a specific currency can negatively impact the financial results. The risk occurs during the order processing through to collection period, from the time of order confirmation until payment of invoice. To mitigate this, the company processes orders in the same currency that the customer uses. However, the currency risk to the related account receivable remains.
2 - Government regulations
TSI Health Sciences (Europe) Limited's business is subject to European, UK, and China food supplement, medical food and pharmaceutical regulations. There is therefore a general risk that changes in regulations might impact on the business. These risks are mitigated by the Group's technical expertise and regulatory and quality documentation.
3 - Brexit
The new trade agreement between the UK and the EU could result in an increase in the cost of imports due to duties/tariffs, however any impact is not expected to be significant and can be mitigated by the continental European warehousing and distribution the business has in place.
TSI HEALTH SCIENCES (EUROPE) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Future developments
TSI Health Sciences (Europe) Limited’s is part of the TSI Group, one of the largest manufacturers of glucosamine and hydroxymethylbutyrate in the world. Production is based in China. As the EMEA region is a key region and growth target for the TSI Group, the parent would readily provide funding if it was required. TSI Health Sciences (Europe) Limited meets its financial obligations on a timely basis using generated cashflow.
It is expected that the industry will see three key trends over the next several years, which are the following: 1)
Growth in value due to the consumers' health focus 2) Industry consolidation 3) Limited innovation due to regulatory
controls. The company is well established to capitalise on the positive trends in the health food supplement industry
due to its new product and intellectual property plans. TSI Health Sciences (Europe) Limited is playing an active
role in this new product process and seeking to develop new value added opportunities for the EMEA region.
Mr M Sunderland
Director
27 March 2025
TSI HEALTH SCIENCES (EUROPE) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the company continued to be that of the sale of raw materials for use in the manufacture of pharmaceuticals, food supplements and food stuffs and the sale of finished health products.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. 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:
Mr M Sunderland
Mr J J Zhou
Auditor
In accordance with the company's articles, a resolution proposing that Barlow Andrews LLP be reappointed as auditor of the company will be put at a General Meeting.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr M Sunderland
Director
27 March 2025
TSI HEALTH SCIENCES (EUROPE) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and 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.
TSI HEALTH SCIENCES (EUROPE) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TSI HEALTH SCIENCES (EUROPE) LIMITED
- 5 -
Opinion
We have audited the financial statements of TSI Health Sciences (Europe) Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
TSI HEALTH SCIENCES (EUROPE) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TSI HEALTH SCIENCES (EUROPE) LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience;
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and taxation legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions; and
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.
TSI HEALTH SCIENCES (EUROPE) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TSI HEALTH SCIENCES (EUROPE) LIMITED (CONTINUED)
- 7 -
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
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.
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.
Christopher Harland (Senior Statutory Auditor)
For and on behalf of Barlow Andrews LLP, Statutory Auditor
Carlyle House
78 Chorley New Road
Bolton
27 March 2025
TSI HEALTH SCIENCES (EUROPE) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
as restated
Notes
£
£
Turnover
3
20,728,372
18,595,198
Cost of sales
(19,972,874)
(17,793,531)
Gross profit
755,498
801,667
Administrative expenses
(740,631)
(810,386)
Operating profit/(loss)
4
14,867
(8,719)
Interest payable and similar expenses
(1,331)
Profit/(loss) before taxation
14,867
(10,050)
Tax on profit/(loss)
8
(2,856)
(1,374)
Profit/(loss) for the financial year
12,011
(11,424)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
TSI HEALTH SCIENCES (EUROPE) LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
7,370
3,396
Investments
11
360
360
7,730
3,756
Current assets
Stocks
13
3,845,321
3,041,545
Debtors
14
4,801,826
4,603,929
Cash at bank and in hand
2,552,227
2,036,386
11,199,374
9,681,860
Creditors: amounts falling due within one year
15
(10,628,262)
(9,118,785)
Net current assets
571,112
563,075
Net assets
578,842
566,831
Capital and reserves
Called up share capital
17
1
1
Profit and loss reserves
578,841
566,830
Total equity
578,842
566,831
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 27 March 2025 and are signed on its behalf by:
Mr M Sunderland
Director
Company registration number 05480227 (England and Wales)
TSI HEALTH SCIENCES (EUROPE) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2023
1
578,254
578,255
Year ended 31 December 2023:
Loss and total comprehensive income
-
(11,424)
(11,424)
Balance at 31 December 2023
1
566,830
566,831
Year ended 31 December 2024:
Profit and total comprehensive income
-
12,011
12,011
Balance at 31 December 2024
1
578,841
578,842
TSI HEALTH SCIENCES (EUROPE) LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
21
524,604
(60,824)
Interest paid
(1,331)
Income taxes paid
(2,238)
(69,507)
Net cash inflow/(outflow) from operating activities
522,366
(131,662)
Investing activities
Purchase of tangible fixed assets
(6,525)
Net cash used in investing activities
(6,525)
-
Net increase/(decrease) in cash and cash equivalents
515,841
(131,662)
Cash and cash equivalents at beginning of year
2,036,386
2,168,048
Cash and cash equivalents at end of year
2,552,227
2,036,386
TSI HEALTH SCIENCES (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
1
Accounting policies
Company information
TSI Health Sciences (Europe) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Suite 115, Imperial House, 79 Hornby Street, Bury.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, The principal accounting policies adopted are set out below.
The company has not prepared consolidated accounts on the grounds that the subsidiary is not considered material.
1.2
Prior period error
Following a review of the prior year financial statements, an adjustment has been identified in regard to the classification of postage, courier and delivery costs. In the prior year, related costs amounting to £653,177 were disclosed within distribution costs. These costs have been reclassified as cost of sales in line with the current year.
1.3
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
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:
Office equipment
25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
TSI HEALTH SCIENCES (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.6
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.7
Impairment of fixed assets
At each reporting period 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.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials. Stock is recognised using the first in first out method of valuation.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade debtors and cash and bank balances, are initially measured at transaction price including transaction costs. Financial assets classified as receivable within one year are not amortised.
TSI HEALTH SCIENCES (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including trade creditors and loans from fellow group companies, are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
TSI HEALTH SCIENCES (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
1.16
Foreign exchange
Transactions in currencies other than the functional currency (foreign currency) are initially recorded at the exchange rate prevailing on the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies are translated at the rate ruling at the date of the transaction, or, if the asset or liability is measured at fair value, the rate when that fair value was determined.
All translation differences are taken to profit or loss.
2
Judgements and key sources of estimation uncertainty
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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
TSI HEALTH SCIENCES (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
(Continued)
- 16 -
3
Turnover
2024
2023
£
£
Turnover analysed by geographical market
UK
4,996,810
7,335,701
Europe
15,637,089
11,140,224
Rest of World
94,473
119,273
20,728,372
18,595,198
All revenue arose from the principal activity of the company.
4
Operating profit/(loss)
2024
2023
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
69,046
(109,487)
Depreciation of owned tangible fixed assets
2,551
2,991
Operating lease charges
18,779
18,911
5
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
15,450
13,500
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
8
8
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
436,829
448,386
Social security costs
52,539
50,049
Pension costs
33,791
36,967
523,159
535,402
TSI HEALTH SCIENCES (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
150,782
135,730
Company pension contributions to defined contribution schemes
14,600
13,500
165,382
149,230
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023: 1).
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
2,856
2,225
Deferred tax
Origination and reversal of timing differences
(851)
Total tax charge
2,856
1,374
The actual charge for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit/(loss) before taxation
14,867
(10,050)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.25%)
3,717
(2,337)
Tax effect of expenses that are not deductible in determining taxable profit
120
3,866
Adjustments in respect of prior years
13
Permanent capital allowances in excess of depreciation
(994)
(155)
Taxation charge for the year
2,856
1,374
TSI HEALTH SCIENCES (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
9
Intangible fixed assets
Licences
£
Cost
At 1 January 2024 and 31 December 2024
227,854
Amortisation and impairment
At 1 January 2024 and 31 December 2024
227,854
Carrying amount
At 31 December 2024
At 31 December 2023
10
Tangible fixed assets
Office equipment
£
Cost
At 1 January 2024
19,449
Additions
6,525
At 31 December 2024
25,974
Depreciation and impairment
At 1 January 2024
16,053
Depreciation charged in the year
2,551
At 31 December 2024
18,604
Carrying amount
At 31 December 2024
7,370
At 31 December 2023
3,396
11
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
12
360
360
TSI HEALTH SCIENCES (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
12
Subsidiaries
Details of the company's subsidiaries at 31 December 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
FMC Pharma Limited
The Racecourse, Danesfort, Co. Kilkenny, Ireland
Ordinary
100.00
TSI Health Sciences (Europe) Limited has not prepared consolidated accounts on the basis that the subsidiary is considered to be immaterial.
13
Stocks
2024
2023
£
£
Finished goods and goods for resale
3,845,321
3,041,545
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
4,499,181
4,293,169
Other debtors
264,417
264,881
Prepayments and accrued income
38,228
45,879
4,801,826
4,603,929
15
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
589,588
73,686
Amounts owed to group undertakings
9,809,074
8,718,084
Corporation tax
2,843
2,225
Other taxation and social security
12,637
65,201
Other creditors
169,914
74,324
Accruals and deferred income
44,206
185,265
10,628,262
9,118,785
TSI HEALTH SCIENCES (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
33,791
36,967
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.
Contributions totalling £4,149 (2023: £3,480) were payable to the fund at the year end and are included in other creditors.
17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share of £1 each
1
1
1
1
Share capital in issue is entitled to one vote in any circumstances.
18
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
16,060
15,300
19
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Purchases
Purchases
2024
2023
£
£
Entities with control, joint control or significant influence over the company
19,473,837
16,489,540
2024
2023
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
9,673,468
8,642,282
Entities over which the entity has control, joint control or significant influence
-
75,802
TSI HEALTH SCIENCES (EUROPE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
20
Ultimate controlling party
TSI Group Limited is the ultimate parent company, and is the smallest and largest group for which consolidated accounts including TSI Health Sciences (Europe) Limited are prepared. The registered office of TSI Group Limited is, Room 1905, 19/F West Tower, Shun Tak Centre, 168-200 Connaught Road Central, Hong Kong.
TSI Group Limited is considered to be the ultimate controlling party by way of ownership. The majority shareholder of TSI Group Limited is Mrs L Long.
The immediate parent of TSI Health Sciences (Europe) Limited is Hygieia Health Co Ltd, a company incorporated in China.
21
Cash generated from/(absorbed by) operations
2024
2023
£
£
Profit/(loss) after taxation
12,011
(11,424)
Adjustments for:
Taxation charged
2,856
1,374
Finance costs
1,331
Depreciation and impairment of tangible fixed assets
2,551
2,991
Movements in working capital:
Increase in stocks
(803,776)
(254,314)
Increase in debtors
(197,897)
(690,114)
Increase in creditors
1,508,859
889,332
Cash generated from/(absorbed by) operations
524,604
(60,824)
22
Analysis of changes in net funds
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
2,036,386
515,841
2,552,227
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