Company Registration No. 00203774 (England and Wales)
WS Audiology Limited
Annual report and financial statements
for the year ended 30 September 2024
WS Audiology Limited
Company information
Director
Philip Stores
Company number
00203774
Registered office
Winster House Lakeside
Chester Business Park
Chester
Cheshire
CH4 9QT
Independent auditor
Saffery LLP
Trinity
16 John Dalton Street
Manchester
M2 6HY
Business address
Endeavour House, First Floor
Crawley Business Quarter
Manor Royal
Crawley
West Sussex
RH10 9LW
WS Audiology Limited
Contents
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 28
WS Audiology Limited
Strategic report
For the year ended 30 September 2024
1
The director presents the strategic report for the year ended 30 September 2024.
Review of the business
It is the director’s expectation that underlying demographic trends underpinning historic market growth remain unchanged and the company continues its commitment to introduce innovative products to improve the life of the hearing impaired through new platforms in all group product portfolios.
Performance during the financial year was in line with the expectations of the director. Turnover was £47,077k (2023: £41,335k) and the company made a profit after tax of £18,370k (2023: £387k), which included an intercompany dividend of £17,971k.
The company balance sheet remains strong, with net assets of £26,652k (2023: £8,228k). Inventories increased by £917k to £1,768k (2023: £851k) mostly due to the merger and due to timing of sales orders. Trade and other debtors increased to £36,082k (2023: £10,504k) as a result of increased cash held at group following an intercompany dividend received.
Analysis of key performance indicators
WS Audiology Limited measures performance against several key performance indicators. Turnover increased by 14% (2023: 14%) in line with the previous financial year. Operating margin was 4.2% (2023: 2.1%).
Future developments
The company has continued to develop and introduce new and innovative solutions to the market.
The company is committed to working with customers and suppliers and maintaining exemplary service levels.
Principal risks and uncertainties
The company has implemented a co-ordinated set of risk management and control systems, including strategic planning and management reporting, to help anticipate, measure, monitor and manage its exposure to risk. Risks which the company faces include price and product competition, performance risks under long term fixed price contracts, loss of supply of product components, changes in the regulatory and legal environment, and credit risks.
Pricing and product risk
The Company’s cost base and margin may be impacted by fluctuations in freight, energy, labour and other input costs. The Company and the parent entities have a strong commercial focus on procurement and the Company will review pricing as required. Pricing and cost improvement initiatives are maintained along with ongoing monitoring of the commercial implications of product price and other input cost movements.
The company is reliant upon its parent entities for product development and supply with management working closely with management within the parent entities to communicate commercial needs and requirements.
Credit risk
Credit risk is the risk that customers or counterparties will not be able to meet their obligations to the company. The company has policies aimed at minimising such losses including regular management review of debt and of customer credit limits.
Regulatory risk
The risk faced by the business is the regulatory risk relating to changes to employment and tax legislation. The company actively engages in the consultation phase of any proposed legislative changes and positively embraces the final legislation. The company is committed to investing in both the resources and system changes necessary to ensure full compliance with such legislative changes.
WS Audiology Limited
Strategic report (continued)
For the year ended 30 September 2024
2
Going concern
Based on the company's forecasts, the directors consider that the company will trade profitably and generate a positive cash flow from operations over the next 12 months. Additionally, the company’s immediate parent company operates a cash pooling facility whereby cash balances generated by entities are consolidated and group companies can draw down on these facilities if required.
For 2024/2025, based on his assessment of the company’s financial position, future performance, liquidity and risks, the director has a reasonable expectation that the company has adequate resources to adopt the going concern basis of accounting.
Philip Stores
Director
26 June 2025
WS Audiology Limited
Director's report
For the year ended 30 September 2024
3
The director presents his annual report and financial statements for the year ended 30 September 2024.
Principal activities
WS Audiology Limited is engaged in the sale and distribution of hearing aids, audiological equipment and associated products.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Philip Stores
Supplier payment policy
The company's current policy concerning the payment of trade creditors is to follow the CBI's Prompt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WC1A 1DU).
The company's current policy concerning the payment of trade creditors is to:
settle the terms of payment with suppliers when agreeing the terms of each transaction;
ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts; and
pay in accordance with the company's contractual and other legal obligations.
Research and development
The company's immediate parent company undertakes research and development on behalf of the company and continues to apply considerable funds to the improvement of its product lines and the development of new products to meet customer demands.
Future developments
An indication of likely future developments in the business have been included under the 'Future developments' section of the Strategic Report on page 1.
Auditor
The auditor, Saffery LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
WS Audiology Limited
Director's report (continued)
For the year ended 30 September 2024
4
Statement of director's responsibilities
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is 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. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
The director who held office at the date of this director's report confirm that, so far as he is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the director has taken all the necessary steps that he ought to have taken as director in order to make himself 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
Philip Stores
Director
26 June 2025
WS Audiology Limited
Independent auditor's report
To the members of WS Audiology Limited
5
Opinion
We have audited the financial statements of WS Audiology Limited (the 'company') for the year ended 30 September 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity 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 101 Reduced Disclosure Framework (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 30 September 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 director's 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 director with respect to going concern are described in the relevant sections of this report.
The director is responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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.
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 the audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
WS Audiology Limited
Independent auditor's report (continued)
To the members of WS Audiology Limited
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 director's 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 director
As explained more fully in the director's responsibilities statement set out on page 3, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the director, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with director and by updating our understanding of the sector in which the company operates.
Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.
Audit response to risks identified:
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
WS Audiology Limited
Independent auditor's report (continued)
To the members of WS Audiology Limited
7
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through 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.
Simon Kite (Senior Statutory Auditor)
For and on behalf of Saffery LLP
26 June 2025
Statutory Auditors
Trinity
16 John Dalton Street
Manchester
M2 6HY
WS Audiology Limited
Statement of comprehensive income
For the year ended 30 September 2024
8
2024
2023
Notes
£'000
£'000
Revenue
2
47,077
41,335
Cost of sales
(39,165)
(36,167)
Gross profit
7,912
5,168
Administrative expenses
(6,874)
(4,507)
Other operating income
951
207
Operating profit
3
1,989
868
Investment income
7
18,531
122
Interest payable to group undertakings
8
(662)
(156)
Other finance costs
8
(158)
(23)
Other gains and losses
9
(780)
(103)
Profit before taxation
18,920
708
Tax on profit
10
(550)
(321)
Profit and total comprehensive income for the financial year
18,370
387
WS Audiology Limited
Statement of financial position
As at 30 September 2024
9
2024
2023
Notes
£'000
£'000
£'000
£'000
Non-current assets
Property, plant and equipment
11
574
401
Investments
12
1,626
1,150
2,200
1,551
Current assets
Inventories
15
1,768
851
Trade and other receivables
16
36,082
10,504
Cash and cash equivalents
311
47
38,161
11,402
Current liabilities
17
(12,506)
(3,072)
Net current assets
25,655
8,330
Total assets less current liabilities
27,855
9,881
Non-current liabilities
17
(274)
(899)
Provisions for liabilities
Other provisions
22
(929)
(754)
Net assets
26,652
8,228
Equity
Called up share capital
24
2,000
2,000
Merger reserve
25
54
-
Retained earnings
24,598
6,228
Total equity
26,652
8,228
The financial statements were approved and signed by the director and authorised for issue on 26 June 2025
Philip Stores
Director
Company registration number 00203774 (England and Wales)
WS Audiology Limited
Statement of changes in equity
For the year ended 30 September 2024
10
Share capital
Merger reserve
Retained earnings
Total
£'000
£'000
£'000
£'000
Balance at 1 October 2022
2,000
-
5,841
7,841
Year ended 30 September 2023:
Profit and total comprehensive income
-
-
387
387
Balance at 30 September 2023
2,000
-
6,228
8,228
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
18,370
18,370
Transactions with owners:
Arising on hive-across of net assets
-
54
-
54
Balance at 30 September 2024
2,000
54
24,598
26,652
WS Audiology Limited
Notes to the financial statements
For the year ended 30 September 2024
11
1
Accounting policies
Company information
WS Audiology Limited is a private company, limited by shares, incorporated in England and Wales, registration number 00203774. The registered office is Winster House, Lakeside, Chester Business Park, Chester, Cheshire, CH4 9QT. The principal place of business is Endeavour House, First Floor, Crawley Business Quarter, Manor Royal, RH10 9LW. The company's principal activities and nature of its operations are disclosed in the director's report.
1.1
Accounting convention
The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.
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 £'000.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS:
presentation of a statement of cash flows and related notes;
disclosure of the objectives, policies and processes for managing capital;
disclosure of key management personnel compensation;
disclosure of the categories of financial instrument and the nature and extent of risks arising on these financial instruments;
comparative period reconciliations for the number of shares outstanding and the carrying amounts of property, plant and equipment and investment property;
disclosure of the future impact of new International Financial Reporting Standards in issue but not yet effective at the reporting date;
related party disclosures for transactions with the parent or wholly owned members of the group.
Where required, equivalent disclosures are given in the group accounts of WS Audiology A/S. The group accounts of WS Audiology A/S are available to the public and can be obtained as detailed below.
The financial statements contain information about WS Audiology Limited as an individual company and do not contain financial information as the parent of a group. The company is exempt under Section 401 of the Companies Act 2006 from the requirement to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its ultimate parent company; WS Audiology A/S.
Consolidated accounts for WS Audiology A/S are available at the group's website at https://www.wsa.com/en/investor-relations/annual-report/
WS Audiology Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
12
1.2
Going concern
Based on the company's forecasts, the director considers that the company will trade profitably and generate positive cash flow from operations over the next 12 months. Additionally, the wider group operates a cash pooling facility whereby cash balances generated by entities are passed to the group and companies can draw down on these facilities if required. true
Based on his assessment of the company's financial position, future performance, liquidity and risks, the director has a reasonable expectation that the company has adequate resources to adopt the going concern basis of accounting.
The financial statements have been prepared on a going concern basis which the director considers to be appropriate for the following reasons.
The director has considered cash flow forecasts for a period of 12 months from the date of approval of these financial statements which indicate that, taking account of reasonably possible downsides, the company will have sufficient funds, through funding from its ultimate parent company, WS Audiology A/S to meet its liabilities as they fall due for that period.
Those forecasts are dependent on WS Audiology A/S not seeking repayment of the amounts currently due to the group and providing additional financial support during that period. WS Audiology A/S has indicated its intention to continue to make available such funds as are needed by the company, and that it does not intend to seek repayment of the amounts due at the balance sheet date for the period covered by the forecasts. As with any company placing reliance on other group entities for financial support, the directors acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so.
Consequently, the director is confident that the company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.
1.3
Revenue
Revenue 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 and other sales related taxes. The fair value of consideration also takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised for hearing instruments and associated product sales when the significant risks and rewards of ownership of the goods has transferred to the buyer, being the point of dispatch.
1.4
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
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:
Short term leasehold land and buildings
over duration of the lease
Plant and equipment
4 - 5 years
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the income statement.
WS Audiology Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
13
1.5
Non-current 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.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
1.6
Impairment of tangible and intangible assets
At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
1.7
Inventories
Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the first-in-first-out principal and includes expenditure incurred in acquiring the stocks, production or conversion costs and other costs in bringing them to their existing location and condition. In the case of manufactured stock and work in progress, cost includes an appropriate share of overheads based on normal operating capacity.
1.8
Cash and cash equivalents
Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on demand are included in current liabilities. The company is part of a group cash pooling arrangement. Balances within this facility are classified as receivables from group companies and amounts due to group companies.
1.9
Financial assets
Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets. The financial assets of the company are considered to be trade and other receivables and amounts owed by related parties.
At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.
WS Audiology Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
14
Financial assets held at amortised cost
Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg Trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.
Impairment of financial assets
Financial assets 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 of the investment have been affected.
1.10
Financial liabilities
The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.
Other financial liabilities
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
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 income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
WS Audiology Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
15
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to 'other comprehensive income', in which case the deferred tax is also dealt with in 'other comprehensive income'. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event and it is probable that the company will be required to settle that obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
1.14
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of inventories or non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
A termination benefit liability is recognised at the earlier of when the entity can no longer withdraw the offer of the termination benefit and when the entity recognises any related restructuring costs.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense when employees have rendered the service entitling them to the contributions.
WS Audiology Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
16
1.16
Leases
At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.
When the company acts as a lessor, leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees, over the major part of the economic life of the asset. All other leases are classified as operating leases. If an arrangement contains lease and non-lease components, the company applies IFRS 15 to allocate the consideration in the contract. When the company is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately, classifying the sub-lease with reference to the right-of-use asset arising from the head lease instead of the underlying asset.
WS Audiology Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies (continued)
17
1.17
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Gains and losses arising on translation in the period are included in profit or loss.
1.18
Interest receivable and interest payable is recognised in profit or loss as it accrues, using the effective interest method. Dividend income is recognised in the profit and loss account on the date the entity's right to receive payments is established. Foreign currency gains and losses are reported on a net basis.
2
Revenue
2024
2023
£'000
£'000
Revenue analysed by class of business
Sale of audiological equipment and
accessories
47,077
41,335
2024
2023
£'000
£'000
Revenue analysed by geographical market
United Kingdom
41,268
37,068
Europe excluding United Kingdom
5,796
4,253
Rest of the World
13
14
47,077
41,335
3
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£'000
£'000
Exchange losses
29
14
Fees payable to the company's auditor for the audit of the company's financial statements
47
41
Depreciation of property, plant and equipment
188
171
Cost of inventories recognised as an expense
39,165
36,167
WS Audiology Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
18
4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£'000
£'000
For audit services
Audit of the financial statements of the company
47
41
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Administration and finance
6
8
Sales and marketing
66
42
Directors
1
1
Total
73
51
2024
2023
£'000
£'000
Wages and salaries
3,462
2,281
Social security costs
333
255
Pension costs
266
237
4,061
2,773
6
Director's remuneration
2024
2023
£'000
£'000
Remuneration for qualifying services
263
228
Company pension contributions to defined contribution schemes
17
16
280
244
The number of directors for whom retirement benefits are accruing under money purchase schemes amounted to 1 (2023 - 1).
WS Audiology Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
6
Director's remuneration (continued)
19
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£'000
£'000
Remuneration for qualifying services
263
228
Company pension contributions to defined contribution schemes
17
16
7
Investment income
2024
2023
£'000
£'000
Interest income
Interest receivable from group companies
560
113
Other interest income
9
Total interest revenue
560
122
Income from fixed asset investments
Income from shares in group undertakings
17,971
Total income
18,531
122
8
Finance costs
2024
2023
£'000
£'000
Interest on financial liabilities measured at amortised cost:
Interest payable to group undertakings
662
156
Interest on lease liabilities
158
23
820
179
9
Other gains and losses
2024
2023
£'000
£'000
Exchange loss on financial assets held at fair value through profit or loss
(780)
(103)
WS Audiology Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
20
10
Taxation
2024
2023
£'000
£'000
Current tax
UK corporation tax on profits for the current period
2
169
Adjustments in respect of prior periods
(347)
133
Total UK current tax
(345)
302
Foreign taxes and reliefs
892
547
302
Deferred tax
Origination and reversal of temporary differences
(23)
19
Adjustment in respect of prior periods
26
3
19
Total tax charge
550
321
The charge for the year can be reconciled to the profit per the income statement as follows:
2024
2023
£'000
£'000
Profit before taxation
18,920
708
Expected tax charge based on a corporation tax rate of 25.00% (2023: 26.50%)
4,730
188
Effect of expenses not deductible in determining taxable profit
11
Under/(over) provided in prior years
(347)
133
Deferred tax adjustments in respect of prior years
26
-
Movement in deferred tax not recognised
67
-
Fixed asset differences
(60)
-
Other tax adjustments, reliefs and transfers
(190)
-
Exempt dividends received
(4,493)
-
Foreign withholding tax paid on dividends received
892
-
Transfer pricing adjustments
(86)
-
Taxation charge for the year
550
321
With effect from 1 April 2023 the rate of corporation tax increased from 19% to 25%. From the same date a small companies rate of 19% was introduced for companies with profits of £50,000 or less. The main rate of 25% applies to companies with profits over £250,000 and marginal relief applies for profit between the thresholds. The corporation tax liabilities within the financial statements are calculated using these rates.
WS Audiology Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
21
11
Property, plant and equipment
Notes
Short term leasehold land and buildings
Plant and equipment
Total
£'000
£'000
£'000
Cost
At 1 October 2023
896
532
1,428
Additions
331
187
518
Business combinations
27
374
581
955
Disposals
(439)
(135)
(574)
At 30 September 2024
1,162
1,165
2,327
Accumulated depreciation and impairment
At 1 October 2023
624
403
1,027
Charge for the year
103
85
188
Eliminated on disposal
(221)
(86)
(307)
Business combinations
27
340
505
845
At 30 September 2024
846
907
1,753
Carrying amount
At 30 September 2024
316
258
574
At 30 September 2023
272
129
401
Property, plant and equipment includes right-of-use assets, as follows:
Right-of-use assets
2024
2023
£'000
£'000
Net values at the year end
Short-term leasehold land and buildings
323
272
Plant and equipment
134
31
457
303
Total additions in the year
518
-
Depreciation charge for the year
Short-term leasehold land and buildings
103
81
Plant and equipment
47
48
150
129
WS Audiology Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
22
12
Investments
Current
Non-current
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Investments in subsidiaries
-
-
1,150
1,150
Investments in associates
-
-
476
-
1,626
1,150
Fair value of financial assets carried at amortised cost
The director believes that the carrying amounts of financial assets carried at amortised cost in the financial statements approximate to their fair values.
Movements in non-current investments
Shares in subsidiaries and associates
Notes
£'000
Cost or valuation
At 1 October 2023
1,150
Business combinations
26
476
At 30 September 2024
1,626
Carrying amount
At 30 September 2024
1,626
At 30 September 2023
1,150
13
Subsidiaries
Details of the company's subsidiaries at 30 September 2024 are as follows:
Name of undertaking
Address
Class of
shares held
% Held
Direct
Indirect
Sivantos (Suzhou) Co. Limited
*
Ordinary
100.00
-
*No. 120 Su Tong,Road, China-Singapore Suzhou Industrial Park, 215021 Suzhou, Peoples Republic of China
WS Audiology Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
23
14
Associates
Details of the company's associates at 30 September 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Sound Advice Hearing Limited
*
Ordinary
49.00
-
Sound Advice Hearing Horncastle Limited
*
Ordinary
-
49.00
Sound Advice Hearing Kings Lynn Limited
*
Ordinary
-
49.00
Sound Advice Hearing Norwich Limited
*
Ordinary
-
49.00
Sound Advice Hearing Peterborough Limited
*
Ordinary
-
49.00
Sound Advice Hearing Lincoln Limited
*
Ordinary
-
49.00
Sound Advice Hearing Nottingham Limited
*
Ordinary
-
49.00
Sound Advice Hearing Southport Limited
*
Ordinary
-
49.00
Sound Advice Hearing Winchester Limited
*
Ordinary
-
49.00
Sound Advice Hearing Hull Limited
*
Ordinary
-
49.00
*Orchard House, 1 Bramley Grove, Heighington, Lincolnshire, England, LN4 1FZ
15
Inventories
2024
2023
£'000
£'000
Finished goods
1,768
851
Raw materials, consumables and changes in finished goods and work in progress recognised as cost of sales in the year amounted to £39,108k (2023: £36,167k).
16
Trade and other receivables
Current
Non-current
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Trade receivables
6,730
6,425
-
-
Provision for bad and doubtful debts
(232)
-
-
-
6,498
6,425
-
-
Corporation tax recoverable
579
-
-
-
Amounts owed by related parties
20,806
3,697
-
-
Other receivables
41
115
7,516
-
Prepayments and accrued income
589
237
-
-
28,513
10,474
7,516
-
Deferred tax asset
53
30
-
-
28,566
10,504
7,516
-
WS Audiology Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
24
17
Liabilities
Current
Non-current
2024
2023
2024
2023
Notes
£'000
£'000
£'000
£'000
Borrowings
18
418
Trade and other payables
19
10,616
1,894
26
669
Corporation tax
-
26
-
-
Other taxation and social security
1,179
1,042
-
-
Lease liabilities
20
293
110
248
230
12,506
3,072
274
899
18
Borrowings
2024
2023
£'000
£'000
Borrowings held at amortised cost:
Bank overdrafts
418
-
19
Trade and other payables
Current
Non-current
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Trade payables
649
633
Amounts owed to fellow group undertakings
8,461
-
-
-
Accruals and deferred income
1,215
1,092
26
669
Other payables
291
169
-
-
10,616
1,894
26
669
20
Lease liabilities
2024
2023
Maturity analysis
£'000
£'000
Within one year
187
123
In two to five years
255
34
Total undiscounted liabilities
442
157
WS Audiology Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
20
Lease liabilities (continued)
25
Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:
2024
2023
£'000
£'000
Current liabilities
293
110
Non-current liabilities
248
230
541
340
2024
2023
Amounts recognised in profit or loss include the following:
£'000
£'000
Interest on lease liabilities
158
23
21
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.
Accelerated capital allowances
Short term timing differences
Total
£'000
£'000
£'000
Asset at 1 October 2022
(30)
-
(30)
Asset at 1 October 2023
(30)
-
(30)
Deferred tax movements in current year
Charge to profit or loss
(7)
(16)
(23)
Asset at 30 September 2024
(37)
(16)
(53)
22
Provisions for liabilities
2024
2023
£'000
£'000
Asset retirement obligation
117
29
Warranty
121
51
Right of return
691
674
929
754
WS Audiology Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
22
Provisions for liabilities (continued)
26
Movements on provisions:
Asset retirement obligation
Warranty
Right of return
Total
£'000
£'000
£'000
£'000
At 1 October 2023
29
51
674
754
Additional provisions in the year
13
-
-
13
Reversal of provision
-
(51)
(25)
(76)
Hive- across transfer
75
121
42
238
At 30 September 2024
117
121
691
929
Asset retirement obligation
In 2010 the Company signed a 15-year lease on premises at Winster House. In 2022 the Company signed a 10-year lease on premises at Endeavour House.
The provisions are an estimate of the costs of returning the buildings to the state required by the landlord at the end of the lease terms.
Warranties
Calculations for providing for the cost of future warranty claims are based on historical trends for the period of the standard manufacturer’s warranty plus the costs of meeting warranty obligations to customers in excess of the period covered by the manufacturer. The change in the year reflects changes in the cost of repair and the number of units under warranty.
Right of return
Reasonable estimates are made based on past experiences, to establish the value of potential returns under the company’s right of return policy.
23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£'000
£'000
Charge to profit or loss in respect of defined contribution schemes
266
237
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.
24
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£'000
£'000
Issued and fully paid
Ordinary shares of £'0001 each
2,000,000
2,000,000
2,000
2,000
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company.
WS Audiology Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
27
25
Merger reserve
2024
2023
£'000
£'000
At the beginning of the year
-
-
Arising on hive-across of net assets
54
-
At the end of the year
54
-
On 30 September 2024, the trade and assets of Widex UK Limited were transferred to WS Audiology Limited. This has resulted in a balance on the merger reserve, being the difference between consideration, £8,283,288 and net assets transferred from Widex UK Limited, £8,337,737.
26
Related party transactions
During the year the company entered into the following transactions with related parties:
Sale of goods
Purchase of goods
2024
2023
2024
2023
£'000
£'000
£'000
£'000
Sivantos group companies
119
87
38,725
35,181
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£'000
£'000
Sivantos group companies
19,437
3,697
27
Business combinations
On 30 September 2024, the trade and assets of Widex UK Limited, a subsidiary of Sivantos GmbH, were hived across to the company. This was carried out in order to streamline the UK business of the ultimate controlling party.
The hive across was treated under the merger method of accounting. There were no revisions made to the book values of the assets and liabilities transferred, with the exception of transition adjustments resulting from Widex UK Limited reporting under the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The transition adjustments had no impact on the value of the net assets transferred. This hive across has had no impact on revenue or profit for the year.
A merger reserve has been created as a result of the business combination, being the difference between consideration, £8,283,288 and net assets transferred from Widex UK Limited, £8,337,737.
WS Audiology Limited
Notes to the financial statements (continued)
For the year ended 30 September 2024
28
28
Ultimate parent company and parent company of larger group
The company is a subsidiary undertaking of Sivantos GmbH a company incorporated in Germany whose registered office is Henri-Dunat Str, 100, 91058 Erlangen, Germany. The ultimate controlling party is WS Audiology A/S whose registered office is Nymallevej 6, 3540 Lynge, Denmark. The consolidated financial statements of this group are available to the public and may be obtained from the group's website, referenced in Note 1.1 of the accounting policies.
The smallest and largest group in which the results of the company are consolidated is that headed by WS Audiology A/S.
29
Post balance sheet events
After the year end the company was made aware that a customer entered intro a restructuring plan, resulting in all year end receivables with this customer being deemed irrecoverable. The balance of trade receivables written off at year end amounted to £1,833,072 in relation to this customer.
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