IRIS Accounts Productionv25.1.0.73400933463Board of Directors1.8.2331.7.2431.7.24Medium entitiesspecialist suppliers of surgical instruments and equipment.truefalsetruetruefalsefalsetruefalseThese accounts have been prepared in accordance with the provisions applicable to companies subject to the medium-sized companies regime.Fair value modelOrdinary1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh009334632023-07-31009334632024-07-31009334632023-08-012024-07-31009334632022-07-31009334632022-08-012023-07-31009334632023-07-3100933463ns15:EnglandWales2023-08-012024-07-3100933463ns14:PoundSterling2023-08-012024-07-3100933463ns10:Director12023-08-012024-07-3100933463ns10:CompanySecretary12023-08-012024-07-3100933463ns10:PrivateLimitedCompanyLtd2023-08-012024-07-3100933463ns10:MediumEntities2023-08-012024-07-3100933463ns10:Audited2023-08-012024-07-3100933463ns10:Medium-sizedCompaniesRegimeForDirectorsReport2023-08-012024-07-3100933463ns10:Medium-sizedCompaniesRegimeForAccounts2023-08-012024-07-3100933463ns10:FullAccounts2023-08-012024-07-3100933463ns10:OrdinaryShareClass12023-08-012024-07-3100933463ns10:Director22023-08-012024-07-3100933463ns10:Director32023-08-012024-07-3100933463ns10:RegisteredOffice2023-08-012024-07-310093346312023-08-012024-07-310093346312022-08-012023-07-310093346322023-08-012024-07-310093346322022-08-012023-07-3100933463ns5:CurrentFinancialInstruments2024-07-3100933463ns5:CurrentFinancialInstruments2023-07-3100933463ns5:Non-currentFinancialInstruments2024-07-3100933463ns5:Non-currentFinancialInstruments2023-07-3100933463ns5:ShareCapital2024-07-3100933463ns5:ShareCapital2023-07-3100933463ns5:CapitalRedemptionReserve2024-07-3100933463ns5:CapitalRedemptionReserve2023-07-3100933463ns5:FurtherSpecificReserve3ComponentTotalEquity2024-07-3100933463ns5:FurtherSpecificReserve3ComponentTotalEquity2023-07-3100933463ns5:RetainedEarningsAccumulatedLosses2024-07-3100933463ns5:RetainedEarningsAccumulatedLosses2023-07-3100933463ns5:ShareCapital2022-07-3100933463ns5:RetainedEarningsAccumulatedLosses2022-07-3100933463ns5:CapitalRedemptionReserve2022-07-3100933463ns5:FurtherSpecificReserve3ComponentTotalEquity2022-07-3100933463ns5:RetainedEarningsAccumulatedLosses2022-08-012023-07-3100933463ns5:CapitalRedemptionReserve2022-08-012023-07-3100933463ns5:FurtherSpecificReserve3ComponentTotalEquity2022-08-012023-07-3100933463ns5:RetainedEarningsAccumulatedLosses2023-08-012024-07-3100933463ns5:CapitalRedemptionReserve2023-08-012024-07-3100933463ns5:FurtherSpecificReserve3ComponentTotalEquity2023-08-012024-07-3100933463ns10:HighestPaidDirector2023-08-012024-07-3100933463ns10:HighestPaidDirector2022-08-012023-07-3100933463ns5:OwnedAssets2023-08-012024-07-3100933463ns5:OwnedAssets2022-08-012023-07-3100933463ns5:LeasedAssets2023-08-012024-07-3100933463ns5:LeasedAssets2022-08-012023-07-3100933463ns10:OrdinaryShareClass12022-08-012023-07-3100933463ns5:LandBuildings2023-07-3100933463ns5:PlantMachinery2023-07-3100933463ns5:FurnitureFittings2023-07-3100933463ns5:MotorVehicles2023-07-3100933463ns5:LandBuildings2023-08-012024-07-3100933463ns5:PlantMachinery2023-08-012024-07-3100933463ns5:FurnitureFittings2023-08-012024-07-3100933463ns5:MotorVehicles2023-08-012024-07-3100933463ns5:LandBuildings2024-07-3100933463ns5:PlantMachinery2024-07-3100933463ns5:FurnitureFittings2024-07-3100933463ns5:MotorVehicles2024-07-3100933463ns5:LandBuildings2023-07-3100933463ns5:PlantMachinery2023-07-3100933463ns5:FurnitureFittings2023-07-3100933463ns5:MotorVehicles2023-07-3100933463ns5:MotorVehiclesns5:LeasedAssetsHeldAsLessee2023-07-3100933463ns5:MotorVehiclesns5:LeasedAssetsHeldAsLessee2023-08-012024-07-3100933463ns5:MotorVehiclesns5:LeasedAssetsHeldAsLessee2024-07-3100933463ns5:MotorVehiclesns5:LeasedAssetsHeldAsLessee2023-07-3100933463ns5:WithinOneYearns5:CurrentFinancialInstruments2024-07-3100933463ns5:WithinOneYearns5:CurrentFinancialInstruments2023-07-3100933463ns5:WithinOneYearns5:CurrentFinancialInstrumentsns5:HirePurchaseContracts2024-07-3100933463ns5:WithinOneYearns5:CurrentFinancialInstrumentsns5:HirePurchaseContracts2023-07-3100933463ns5:BetweenOneFiveYearsns5:HirePurchaseContracts2024-07-3100933463ns5:BetweenOneFiveYearsns5:HirePurchaseContracts2023-07-3100933463ns5:HirePurchaseContracts2024-07-3100933463ns5:HirePurchaseContracts2023-07-3100933463ns5:WithinOneYear2024-07-3100933463ns5:WithinOneYear2023-07-3100933463ns5:BetweenOneFiveYears2024-07-3100933463ns5:BetweenOneFiveYears2023-07-3100933463ns5:AllPeriods2024-07-3100933463ns5:AllPeriods2023-07-3100933463ns5:DeferredTaxation2023-08-012024-07-3100933463ns5:DeferredTaxation2024-07-3100933463ns10:OrdinaryShareClass12024-07-3100933463ns5:RetainedEarningsAccumulatedLosses2023-07-3100933463ns5:CapitalRedemptionReserve2023-07-3100933463ns5:FurtherSpecificReserve3ComponentTotalEquity2023-07-31

REGISTERED NUMBER: 00933463 (England and Wales)
















MERCIAN SURGICAL SUPPLY CO. LTD

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JULY 2024






MERCIAN SURGICAL SUPPLY CO. LTD (REGISTERED NUMBER: 00933463)


CONTENTS OF THE FINANCIAL STATEMENTS

For The Year Ended 31 JULY 2024











Page



Company Information  

1



Strategic Report  

2



Report of the Directors  

3



Report of the Independent Auditors  

4



Income Statement  

8



Other Comprehensive Income  

9



Balance Sheet  

10



Statement of Changes in Equity  

11



Cash Flow Statement  

12



Notes to the Cash Flow Statement  

13



Notes to the Financial Statements

14




MERCIAN SURGICAL SUPPLY CO. LTD


COMPANY INFORMATION

For The Year Ended 31 JULY 2024









DIRECTORS:

J F Duffy


K J Turner


P C Duffy







SECRETARY:

K J Turner







REGISTERED OFFICE:

10 Topaz Business Park


Topaz Way


Bromsgrove


Worcestershire


B61 0GD







REGISTERED NUMBER:

00933463 (England and Wales)







AUDITORS:

Charles Lovell & Co Limited


Chartered Certified Accountants


and Statutory Auditors


8 Church Green East


Redditch


Worcestershire


B98 8BP


MERCIAN SURGICAL SUPPLY CO. LTD (REGISTERED NUMBER: 00933463)


STRATEGIC REPORT

For The Year Ended 31 JULY 2024



The directors present their strategic report for the year ended 31 July 2024.


PRINCIPAL ACTIVITIES

The company's principal activity is that of specialist suppliers of surgical instruments and equipment to the healthcare sector.


REVIEW OF THE BUSINESS

The year under review discloses a consolidation of the growth of the company's business achieved in the previous year. The directors expect, that despite the financial pressures present in the healthcare marketplace, a similar trading performance in the forthcoming year.


PRINCIPAL RISKS AND UNCERTAINTIES

The directors are aware of the increased competitiveness of the sector and together with NHS cost saving initiatives and the move towards e-procurement and its associated costs will pose further challenges in the future. The directors' strategy will be to maintain the core strength of the company and to ensure, as far as possible, that those future uncertainties are given due consideration in planning the future growth and development of the company.


RESULTS AND PERFORMANCE

Turnover for the year has shown a satisfactory increase over the previous year and overall gross profit margins were maintained. Operating costs were well controlled and were in line with budgeted costs. In the view of the directors the company performed satisfactorily and in line with their expectations.


ON BEHALF OF THE BOARD:






K J Turner - Secretary



28 April 2025


MERCIAN SURGICAL SUPPLY CO. LTD (REGISTERED NUMBER: 00933463)


REPORT OF THE DIRECTORS

For The Year Ended 31 JULY 2024



The directors present their report with the financial statements of the company for the year ended 31 July 2024.


DIVIDENDS

An interim dividend of 6250 per share was paid on 22 December 2023. The directors recommend that no final dividend be paid.


The total distribution of dividends for the year ended 31 July 2024 will be £ 1,812,500 .


DIRECTORS

The directors shown below have held office during the whole of the period from 1 August 2023 to the date of this report.


J F Duffy

K J Turner

P C Duffy


STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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;
-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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors,  Charles Lovell & Co Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.


ON BEHALF OF THE BOARD:




K J Turner - Secretary



28 April 2025


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

MERCIAN SURGICAL SUPPLY CO. LTD



Opinion

We have audited the financial statements of Mercian Surgical Supply Co. Ltd (the 'company') for the year ended 31 July 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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 July 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.


Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.


In connection with our audit of the financial statements, 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 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 the audit:

-

the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-

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


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

MERCIAN SURGICAL SUPPLY CO. LTD



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 Report of the Directors.


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

-

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-

the financial statements are not in agreement with the accounting records and returns; or

-

certain disclosures of directors' remuneration specified by law are not made; or

-

we have not received all the information and explanations we require for our audit.


Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

MERCIAN SURGICAL SUPPLY CO. LTD



Auditors' 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 a Report of the Auditors 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 objectives of our audit are to identify and assess the risks of material misstatement of the financial statements due to fraud or error; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud and error; and to respond appropriately to those risks.  Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatement in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).


In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:


- We obtained an understanding of the legal and regulatory frameworks applicable to the Company and the nature of the industry and the sector in which they operate.  We determined that the following laws and regulations were most significant; the Companies Act 2006, the UK Corporate Governance Code and UK corporate taxation laws.


- We obtained an understanding of how the Company are complying with those legal and regulatory frameworks by making inquiries with the management of the Company and the Company's audit department.


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


          - identifying and assessing the design effectiveness of controls that management has in place to

            prevent and detect fraud.


          - Understanding how those charged with governance considered and addressed the potential for

            override of controls or other inappropriate influence over the financial reporting process.


         - challenging assumptions and judgements made by management in its significant accounting

           estimates.


         - identifying and testing journal enteries and performing analytical procedures to identify any unusual

           or unexpected relationships that may indicate risks of material misstatement due to fraud.


         - assessing the extent of compliance with the relevant laws and regulations.


- We also communicated relevant identified laws and regulations and potential fraud risk to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF

MERCIAN SURGICAL SUPPLY CO. LTD



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 a Report of the Auditors 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.





Richard James Beresford (Senior Statutory Auditor)

for and on behalf of Charles Lovell & Co Limited

Chartered Certified Accountants

and Statutory Auditors

8 Church Green East

Redditch

Worcestershire

B98 8BP


28 April 2025


MERCIAN SURGICAL SUPPLY CO. LTD (REGISTERED NUMBER: 00933463)


INCOME STATEMENT

For The Year Ended 31 JULY 2024



31.7.24


31.7.23


Notes

£   

£   



TURNOVER

3

12,173,157


10,751,487




Cost of sales

5,608,971


4,892,825



GROSS PROFIT

6,564,186


5,858,662




Administrative expenses

3,140,357


3,044,977



3,423,829


2,813,685




Other operating income

50,134


18,222



OPERATING PROFIT

5

3,473,963


2,831,907




Interest receivable and similar income

249,957


54,266



3,723,920


2,886,173




Interest payable and similar expenses

6

3,648


-



PROFIT BEFORE TAXATION

3,720,272


2,886,173




Tax on profit

7

880,598


612,979



PROFIT FOR THE FINANCIAL YEAR

2,839,674


2,273,194




MERCIAN SURGICAL SUPPLY CO. LTD (REGISTERED NUMBER: 00933463)


OTHER COMPREHENSIVE INCOME

For The Year Ended 31 JULY 2024



31.7.24


31.7.23


Notes

£   

£   



PROFIT FOR THE YEAR

2,839,674


2,273,194





OTHER COMPREHENSIVE INCOME  


Profit and loss account reserve

(142,764

)

-



Fair value reserve

107,073


-




OTHER COMPREHENSIVE INCOME FOR

THE YEAR

(35,691

)

-




TOTAL COMPREHENSIVE INCOME FOR THE

YEAR


2,803,983



2,273,194




MERCIAN SURGICAL SUPPLY CO. LTD (REGISTERED NUMBER: 00933463)


BALANCE SHEET

31 JULY 2024



31.7.24

31.7.23



Notes

£   

£   

£   


FIXED ASSETS

Tangible assets

9

1,617,051


2,023,362



Investment property

10

600,000


-



2,217,051


2,023,362




CURRENT ASSETS

Stocks

11

2,807,414


2,597,454



Debtors

12

1,377,492


1,262,964



Cash at bank and in hand

9,407,867


8,446,481



13,592,773


12,306,899



CREDITORS

Amounts falling due within one year

13

2,694,194


2,231,787



NET CURRENT ASSETS

10,898,579


10,075,112



TOTAL ASSETS LESS CURRENT

LIABILITIES

13,115,630


12,098,474




CREDITORS

Amounts falling due after more than one year

14

-


(5,612

)



PROVISIONS FOR LIABILITIES

17

(31,285

)

-



NET ASSETS

13,084,345


12,092,862




CAPITAL AND RESERVES

Called up share capital

18

290


290



Capital redemption reserve

19

710


710



Fair value reserve

19

107,073


-



Retained earnings

19

12,976,272


12,091,862



SHAREHOLDERS' FUNDS

13,084,345


12,092,862




The financial statements were approved by the Board of Directors and authorised for issue on 28 April 2025 and were signed on its behalf by:






J F Duffy - Director



MERCIAN SURGICAL SUPPLY CO. LTD (REGISTERED NUMBER: 00933463)


STATEMENT OF CHANGES IN EQUITY

For The Year Ended 31 JULY 2024



Called up


Capital


Fair



share


Retained


redemption


value


Total


capital


earnings


reserve


reserve


equity

£   

£   

£   

£   

£   


Balance at 1 August 2022

290


11,449,918


710


-


11,450,918




Changes in equity

Dividends

-


(1,631,250

)

-


-


(1,631,250

)


Total comprehensive income

-


2,273,194


-


-


2,273,194



Balance at 31 July 2023

290


12,091,862


710


-


12,092,862




Changes in equity

Dividends

-


(1,812,500

)

-


-


(1,812,500

)


Total comprehensive income

-


2,696,910


-


107,073


2,803,983



Balance at 31 July 2024

290


12,976,272


710


107,073


13,084,345




MERCIAN SURGICAL SUPPLY CO. LTD (REGISTERED NUMBER: 00933463)


CASH FLOW STATEMENT

For The Year Ended 31 JULY 2024



31.7.24


31.7.23


Notes

£   

£   


Cash flows from operating activities

Cash generated from operations

1

3,331,001


2,573,625



Interest paid

(3,648

)

-



Tax paid

(614,967

)

(670,001

)


Net cash from operating activities

2,712,386


1,903,624




Cash flows from investing activities

Purchase of tangible fixed assets

(232,547

)

(67,512

)


Sale of tangible fixed assets

63,171


22,000



Interest received

249,957


54,266



Net cash from investing activities

80,581


8,754




Cash flows from financing activities

Capital repayments in year

(19,081

)

(13,468

)


Equity dividends paid

(1,812,500

)

(1,631,250

)


Net cash from financing activities

(1,831,581

)

(1,644,718

)



Increase in cash and cash equivalents

961,386


267,660



Cash and cash equivalents at beginning of

year

2

8,446,481


8,178,821




Cash and cash equivalents at end of year

2

9,407,867


8,446,481




MERCIAN SURGICAL SUPPLY CO. LTD (REGISTERED NUMBER: 00933463)


NOTES TO THE CASH FLOW STATEMENT

For The Year Ended 31 JULY 2024



1.

RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS



31.7.24


31.7.23

£   

£   



Profit before taxation

3,720,272


2,886,173




Depreciation charges

114,300


101,085




Loss/(profit) on disposal of fixed assets

4,151


(12,277

)



Gain on revaluation of fixed assets

(142,764

)

-




Finance costs

3,648


-




Finance income

(249,957

)

(54,266

)


3,449,650


2,920,715




Increase in stocks

(209,960

)

(489,002

)



Increase in trade and other debtors

(114,528

)

(104,985

)



Increase in trade and other creditors

205,839


246,897




Cash generated from operations

3,331,001


2,573,625




2.

CASH AND CASH EQUIVALENTS



The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:



Year ended 31 July 2024


31.7.24


1.8.23

£   

£   



Cash and cash equivalents

9,407,867


8,446,481




Year ended 31 July 2023


31.7.23


1.8.22

£   

£   



Cash and cash equivalents

8,446,481


8,178,821





3.

ANALYSIS OF CHANGES IN NET FUNDS



At 1.8.23

Cash flow

At 31.7.24

£   

£   

£   



Net cash



Cash at bank and in hand

8,446,481


961,386


9,407,867



8,446,481


961,386


9,407,867




Debt


Finance leases

(19,081

)

19,081


-



(19,081

)

19,081


-




Total

8,427,400


980,467


9,407,867




MERCIAN SURGICAL SUPPLY CO. LTD (REGISTERED NUMBER: 00933463)


NOTES TO THE FINANCIAL STATEMENTS

For The Year Ended 31 JULY 2024



1.

STATUTORY INFORMATION



Mercian Surgical Supply Co. Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.


2.

ACCOUNTING POLICIES



Basis of preparing the financial statements


These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.  



Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.


Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Land & Buildings - 2% on cost of buildings, straight line over 125 years and Nil on land
Fixtures & equipment - 20% on reducing balance
Motor vehicles - 30% on reducing balance


Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.


Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.


Financial instruments

Financial instruments are recognised only when the company becomes a party to the contractual provisions of the instrument.

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.


MERCIAN SURGICAL SUPPLY CO. LTD (REGISTERED NUMBER: 00933463)


NOTES TO THE FINANCIAL STATEMENTS - continued

For The Year Ended 31 JULY 2024



2.

ACCOUNTING POLICIES - continued



Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.


Research and development

Research expenditure is recognised as an expense as incurred. Costs incurred on development projects (relating to the design and testing of new or improved products) are recognised as intangible assets when it is probable that the project will be a success, considering its commercial and technological feasibility, but only if the cost can be measured reliably.

Other development expenditure is recognised as an expense as incurred.

Development costs previously recognised as an expense are not recognised as an asset in a subsequent period.

Development costs which have been capitalised are amortised from the date the product is available for use on a straight line basis over the period of its expected benefit.


Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.


Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.


Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.

TURNOVER


The percentage of turnover that in the opinion of the directors is attributable to markets outside the UK is 8% (2023: 8%).


MERCIAN SURGICAL SUPPLY CO. LTD (REGISTERED NUMBER: 00933463)


NOTES TO THE FINANCIAL STATEMENTS - continued

For The Year Ended 31 JULY 2024



4.

EMPLOYEES AND DIRECTORS


31.7.24


31.7.23

£   

£   



Wages and salaries

2,527,339


2,276,476




Other pension costs

65,748


63,742



2,593,087


2,340,218





The average number of employees during the year was as follows:


31.7.24


31.7.23



Directors

3


3




Administrative and sales

12


12




Production

10


10



25


25





31.7.24


31.7.23

£   

£   



Directors' remuneration

1,125,000


1,087,500




Directors' pension contributions to money purchase schemes  

32,000


32,000





Information regarding the highest paid director is as follows:


31.7.24


31.7.23

£   

£   



Emoluments etc

425,000


400,000




Pension contributions to money purchase schemes

10,000


12,000




5.

OPERATING PROFIT



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



31.7.24


31.7.23

£   

£   



Depreciation - owned assets

105,624


84,560




Depreciation - assets on hire purchase contracts

8,676


16,525




Loss/(profit) on disposal of fixed assets

4,151


(12,277

)



Auditors' remuneration

8,500


7,500




6.

INTEREST PAYABLE AND SIMILAR EXPENSES



31.7.24


31.7.23

£   

£   



Interest payable

3,648


-




MERCIAN SURGICAL SUPPLY CO. LTD (REGISTERED NUMBER: 00933463)


NOTES TO THE FINANCIAL STATEMENTS - continued

For The Year Ended 31 JULY 2024



7.

TAXATION



Analysis of the tax charge


The tax charge on the profit for the year was as follows:


31.7.24


31.7.23

£   

£   



Current tax:


UK corporation tax

885,004


612,979





Deferred tax

(4,406

)

-




Tax on profit

880,598


612,979





Tax effects relating to effects of other comprehensive income




31.7.24



Gross


Tax


Net


£   

£   

£   



Profit and loss account reserve

(142,764

)

-


(142,764

)



Fair value reserve

107,073


-


107,073



(35,691

)

-


(35,691

)



8.

DIVIDENDS


31.7.24


31.7.23

£   

£   



Ordinary shares of £1 each


Interim

1,812,500


1,631,250




9.

TANGIBLE FIXED ASSETS


Land &


Plant and


Fixtures


Motor



Buildings


machinery


& equipment


vehicles


Totals

£   

£   

£   

£   

£   



COST


At 1 August 2023

2,228,698


45,333


111,807


264,834


2,650,672




Additions

42,203


58,772


42,858


88,714


232,547




Disposals

(567,725

)

(37,875

)

(4,910

)

(161,720

)

(772,230

)



At 31 July 2024

1,703,176


66,230


149,755


191,828


2,110,989




DEPRECIATION


At 1 August 2023

404,540


35,195


70,456


117,119


627,310




Charge for year

37,419


13,463


17,075


46,343


114,300




Eliminated on disposal

(110,490

)

(32,474

)

(3,623

)

(101,085

)

(247,672

)



At 31 July 2024

331,469


16,184


83,908


62,377


493,938




NET BOOK VALUE


At 31 July 2024

1,371,707


50,046


65,847


129,451


1,617,051




At 31 July 2023

1,824,158


10,138


41,351


147,715


2,023,362




Included in cost of land and buildings is leasehold land of £400,000 (2023 - £400,000) which is not depreciated.


MERCIAN SURGICAL SUPPLY CO. LTD (REGISTERED NUMBER: 00933463)


NOTES TO THE FINANCIAL STATEMENTS - continued

For The Year Ended 31 JULY 2024



9.

TANGIBLE FIXED ASSETS - continued



Fixed assets, included in the above, which are held under hire purchase contracts are as follows:


Motor


vehicles

£   



COST


At 1 August 2023

68,855




Disposals

(68,855

)



At 31 July 2024

-




DEPRECIATION


At 1 August 2023

30,296




Charge for year

8,676




Eliminated on disposal

(38,972

)



At 31 July 2024

-




NET BOOK VALUE


At 31 July 2024

-




At 31 July 2023

38,559




10.

INVESTMENT PROPERTY


Total

£   



FAIR VALUE


Additions

457,236




Revaluations

142,764




At 31 July 2024

600,000




NET BOOK VALUE


At 31 July 2024

600,000





Fair value at 31 July 2024 is represented by:

£   



Valuation in 2024

142,764




Cost

457,236



600,000





The investment property has not had a professional valuation.



The directors are of the opinion that the current value of the property is in the region of £600,000 and this valuation has been reflected in the July 2024 accounts.


11.

STOCKS


31.7.24


31.7.23

£   

£   



Stocks

2,807,414


2,597,454




MERCIAN SURGICAL SUPPLY CO. LTD (REGISTERED NUMBER: 00933463)


NOTES TO THE FINANCIAL STATEMENTS - continued

For The Year Ended 31 JULY 2024



12.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR



31.7.24


31.7.23

£   

£   



Trade debtors

1,233,505


1,130,647




Other debtors

2,778


6,111




Prepayments

141,209


126,206



1,377,492


1,262,964




13.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR



31.7.24


31.7.23

£   

£   



Hire purchase contracts  (see note 15)

-


13,469




Trade creditors

581,516


529,217




Corporation tax

565,004


294,967




Social security and other taxes

81,158


56,017




VAT

274,458


264,681




Accrued expenses

1,192,058


1,073,436



2,694,194


2,231,787




14.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR



31.7.24


31.7.23

£   

£   



Hire purchase contracts  (see note 15)

-


5,612




15.

LEASING AGREEMENTS



Minimum lease payments fall due as follows:



Hire purchase contracts



31.7.24


31.7.23


£   

£   



Net obligations repayable:


Within one year

-


13,469




Between one and five years

-


5,612



-


19,081





Non-cancellable

operating leases



31.7.24


31.7.23

£   

£   



Within one year

404


905




Between one and five years

-


167



404


1,072




MERCIAN SURGICAL SUPPLY CO. LTD (REGISTERED NUMBER: 00933463)


NOTES TO THE FINANCIAL STATEMENTS - continued

For The Year Ended 31 JULY 2024



15.

LEASING AGREEMENTS - continued




31.7.24


31.7.23




Rental Income:




Within one year


46,278


46,278




Between one and five years


115,696


161,974





161,974


208,252




16.

SECURED DEBTS



The following secured debts are included within creditors:



31.7.24


31.7.23

£   

£   



Hire purchase contracts

-


19,081





On 27 February 2017 a fixed and floating charge (covering all property or undertaking of the company) was created in favour of National Westminster Bank PLC.


17.

PROVISIONS FOR LIABILITIES


31.7.24


31.7.23

£   

£   



Deferred tax

31,285


-





Deferred



tax


£   



Provided during year

31,285




Balance at 31 July 2024

31,285




18.

CALLED UP SHARE CAPITAL



Allotted, issued and fully paid:


Number:

Class:

Nominal

31.7.24


31.7.23


value:

£   

£   



290

Ordinary

£1

290


290




19.

RESERVES


Capital


Fair



Retained


redemption


value



earnings


reserve


reserve


Totals

£   

£   

£   

£   




At 1 August 2023

12,091,862


710


-


12,092,572




Profit for the year

2,839,674


2,839,674




Dividends

(1,812,500

)

(1,812,500

)



Revaluation

(142,764

)

-


142,764


-




Deferred tax

-


-


(35,691

)

(35,691

)



At 31 July 2024

12,976,272


710


107,073


13,084,055




MERCIAN SURGICAL SUPPLY CO. LTD (REGISTERED NUMBER: 00933463)


NOTES TO THE FINANCIAL STATEMENTS - continued

For The Year Ended 31 JULY 2024



20.

RELATED PARTY DISCLOSURES



During the year, dividends were paid to the directors.


21.

ULTIMATE CONTROLLING PARTY



Mr J F Duffy was the ultimate controlling party during the year.