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Registered number: 11851997










MEDNEO DIAGNOSTICS UK LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

 
MEDNEO DIAGNOSTICS UK LIMITED
 
 
COMPANY INFORMATION


Directors
S D Webb 
E S Tracey 




Registered number
11851997



Registered office
155-157 Great Portland Street

London

W1W 6QP




Independent auditors
HaysMac LLP

10 Queen Street Place

London

EC4R 1AG





 
MEDNEO DIAGNOSTICS UK LIMITED
 

CONTENTS



Page
Strategic Report
1 - 3
Directors' Report
4 - 5
Independent Auditors' Report
6 - 9
Statement of Comprehensive Income
10
Statement of Financial Position
11
Statement of Changes in Equity
12
Notes to the Financial Statements
13 - 22


 
MEDNEO DIAGNOSTICS UK LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

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

Principal activities

medneo delivers diagnostic imaging services across the UK from static, mobile, and relocatable facilities. Services are delivered by clinically led, professionally skilled teams and underpinned by a strong culture of operational excellence. Our flexible infrastructure and technology-enabled approach positions us as a trusted partner to both public and private healthcare providers, supporting the evolving demands of the diagnostic imaging sector.

Business review
 
In 2024, the company focused on strengthening its business capabilities and operational infrastructure to better respond to market dynamics, including changing demand patterns and NHS contracting cycles. Demand for services increased during the year, and additional equipment hires were sourced at intervals to meet customer requirements and timelines.
Revenue rose by 3.5% to £19.65m (2023: £18.99m), driven by stable service delivery, increased demand, and expansion of the customer base. However, operating profitability was impacted by ongoing investment in staffing and business processes, as well as continued cost inflation. This resulted in an operating loss of £2.23m and an operating margin of -11.4% (2023: -5.1%). The net loss for the year was £2.28m (2023: £0.98m loss), which includes £9.24m of charges from group companies for the use of imaging facilities and head office services - an increase of £0.68m over the prior year.
Cash balances increased to £0.46m* (2023: £0.34m), which are sufficient to meet the working capital needs of the business, with additional support from group companies available if required. Prudent cash management has supported operational continuity and investment during this loss-making year. Net liabilities rose to £2.07m (2023: £0.49m), reflecting the year’s losses, though the company expects to reduce this over the medium term as it targets sustained revenue growth and to achieve profitability.

Key Performance Indicators (KPIs)

Management monitors a mix of financial and operational KPIs to assess business performance, including:
 
Patient experience
Staff engagement and retention
Asset utilisation rates
Revenue and pricing
Gross and operating profit margins

Key financial indicators for the year are shown below:
Metric                                            2024                  2023
Revenue                                       £19,650,475        £18,985,712
Gross profit margin                       50.8%                 52.7%
Operating proft margin                 -11.4%                -5.1%
Cash held                                  £462,704*         £340,533
Net liabilities                                (£2,073,945)        (£490,301)
* The cash balance of the company at year end is held under a pooling arrangement with Medneo UK Limited.

 
Page 1

 
MEDNEO DIAGNOSTICS UK LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Future developments

The company is well-positioned to capitalise on expected growth in demand for diagnostic imaging services across both NHS and private healthcare markets. Looking ahead, medneo will continue to pursue a focused strategy centred on service expansion, operational excellence, and building long-term value through trusted partnerships.
Key areas of focus for the coming period include:
 
Expansion of Service Capacity: The medneo group will continue to scale its mobile and relocatable imaging capabilities to meet evolving customer needs and respond to increasing demand. This includes expanding geographical reach across the UK and exploring new contract opportunities across both public and private sectors
 
Strengthening Customer Relationships: medneo remains committed to deepening engagement with existing customers and healthcare partners. By aligning services closely with client priorities and adapting delivery models to local needs, the company aims to reinforce its position as a reliable, responsive partner.

Workforce Development: As a clinically led organisation, medneo will invest in recruitment, training, and retention strategies to maintain a skilled, compassionate workforce capable of delivering consistently high standards of patient care.

Sustainability and Operational Resilience: The company is beginning to explore ESG-aligned initiatives, including enhancing energy efficiency across its fleet and facilities, and improving environmental sustainability in line with broader stakeholder expectations.

These initiatives support the company’s ambition to deliver long-term, sustainable growth while maintaining high levels of service quality, customer satisfaction, and financial discipline.

Principal risks and uncertainties
 
Workforce risk 

A considerable proportion of the company’s operating costs is accounted for by salaries and employment expenses. The company faces industry-wide pressures from wage inflation, exacerbated by a continued period of high inflation and rising living costs. There is an ongoing shortage of skilled healthcare workers, which is impacting the sector broadly. If minimum safe staffing levels cannot be maintained, service delivery and financial performance may be affected. To mitigate this risk, Medneo places a high priority on workforce planning, offering competitive compensation, and implementing strategies to improve staff retention and attract new talent.

Counterparty risk

The company operates with well-established credit management processes and has strong relationships with its customers, actively managing its trade debtor positions. A substantial portion of the customer base is in the public sector, reducing the likelihood of default. However, any significant disruption in public sector funding or policy changes could impact revenue collections. The directors believe that, despite these risks, the overall risk of default remains minimal.

Liquidity & cash management risk

The directors regularly review the cash position and cash flow forecasts to ensure liquidity is maintained. The company has a stable cash position and benefits from the support of group companies. As a result, the directors are confident that the company can meet its financial obligations, and there is no material risk
Page 2

 
MEDNEO DIAGNOSTICS UK LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

regarding the company’s ability to do so.

Regulatory risk

The diagnostic imaging sector is subject to a complex regulatory environment, including healthcare regulations, data protection laws, and clinical standards. Any changes in these regulations, or failure to comply, could result in operational disruptions, legal liabilities, or reputational damage. The company closely monitors regulatory changes and engages in proactive compliance measures to mitigate any potential impact.

Competitive risk

The healthcare sector, including diagnostic imaging, is highly competitive, with numerous players offering similar services. This competition could affect medneo’s market share, pricing flexibility, and ability to attract new customers or retain existing ones. The company mitigates this risk by continuously enhancing service quality, leveraging innovative technologies, and deepening customer relationships to maintain a competitive edge.

Operational risk

Operational risks include potential disruptions to imaging equipment, mobile and relocatable facility operations, and workforce availability. Any breakdowns, delays, or operational inefficiencies could impact service delivery and customer satisfaction. The company actively manages these risks through regular equipment maintenance, contingency planning, and robust operational processes, ensuring continuity of service even in the event of unforeseen circumstances.

Reputational risk

As a provider of healthcare services, medneo’s reputation is critical to its success. Any issues relating to patient care, service quality, or operational failures could result in reputational damage, loss of customer trust, and decreased market share. The company mitigates reputational risk by maintaining high standards of patient care, clear communication with stakeholders, and a commitment to quality and compliance across all its operations.




This report was approved by the board on 30 June 2025 and signed on its behalf.



S D Webb
Director

Page 3

 
MEDNEO DIAGNOSTICS UK LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

The directors present their report and the financial statements for the year ended 31 December 2024.

Results for the year and distributions 

The results of the Company are set out in the statement of comprehensive income. The total comprehensive loss for the year 2024 was £2.28m (2023: £0.98m loss). 
On 21 June 2024, 1 Ordinary share of £0.01 was alloted for a total consideration of £700,000.
There was no dividend proposed by the directors (2023: Nil).
The Company made no political donations in 2024 (2023: Nil).

Directors

The directors who served during the year were:

A M Spellman (resigned 1 March 2025)
B R Cole (resigned 9 August 2024)
S D Webb 

Post balance sheet events

Refer to Note 19 to the financial statements for post balance sheet events.
Going concern

At 31 December 2024, the Company had net current liabilities of £2,079,989 (2023: £502,538) and net liabilities of £2,073,945 (2023: £490,301). Notwithstanding this, the financial statements have been prepared on a going concern basis as the Directors have assessed the Company’s ability to continue in operational existence for a period of at least 12 months from the date of approval of these financial statements and have a reasonable expectation that the Company has adequate resources to meet its obligations as they fall due.
In forming this view, the Directors have considered post–balance sheet trading performance, forecast cash flows, available working capital facilities, and access to borrowing. The company maintains strong relationships with its shareholder and operates with robust working capital controls and cash management processes.
The Directors remain confident in the underlying demand for the Company’s services, supported by structural growth in diagnostic imaging requirements across both NHS and private markets. The existing asset base and imaging infrastructure provide a strong platform for continued customer growth.
A detailed cash flow forecast for the 12-month period from the date of approval of these financial statements has been prepared, incorporating reasonable assumptions regarding trading conditions and cost pressures. In addition, while not contractually committed, the company has a track record of support from its shareholders, who have indicated a willingness to continue to support the business if required.
Based on these factors, the Directors consider it appropriate to adopt the going concern basis of accounting in preparing these financial statements.
 

Page 4

 
MEDNEO DIAGNOSTICS UK LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the directors are aware, there is no relevant audit information of which the Company's auditors are unaware, and

the directors have taken all the steps that ought to have been taken as directors in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

On 18 November 2024, the Company's auditors changed their name from Haysmacintyre LLP to HaysMac LLP.

The auditorsHaysMac LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





S D Webb
Director

Date: 30 June 2025

Page 5

 
MEDNEO DIAGNOSTICS UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MEDNEO DIAGNOSTICS UK LIMITED
 

Opinion


We have audited the financial statements of Medneo Diagnostics UK Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2024 and of its loss 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 United Kingdom, including the Financial Reporting Council'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. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the Company’s ability to continue as a going concern.


Page 6

 
MEDNEO DIAGNOSTICS UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MEDNEO DIAGNOSTICS UK LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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 Directors' Responsibilities Statement set out on page 5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 7

 
MEDNEO DIAGNOSTICS UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MEDNEO DIAGNOSTICS UK LIMITED (CONTINUED)


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 an Auditors' 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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Based on our understanding of the company and industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to company law applicable in England and Wales, as well as the regulatory requirements for the health and diagnostic imaging sector. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, payroll and sales tax, as well as potential monetary implications arising from non-compliance with CQC regulations. 
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries to revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included:
i) Inspecting correspondence with tax authorities;
ii) Discussions with management including consideration of known or suspected instances of noncompliance with laws and regulation and fraud;
iii) Evaluating management’s controls designed to prevent and detect irregularities;
iv) Identifying and testing journals, in particular journal entries that share key risk characteristics; and
v) Challenging significant assumptions and judgements made by management in their critical accounting estimates.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditors' Report.


Page 8

 
MEDNEO DIAGNOSTICS UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MEDNEO DIAGNOSTICS UK LIMITED (CONTINUED)


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 2006Our 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 Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Christopher Cork (Senior Statutory Auditor)
for and on behalf of
HaysMac LLP
Statutory Auditors
10 Queen Street Place
London
EC4R 1AG

30 June 2025
Page 9

 
MEDNEO DIAGNOSTICS UK LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
£
£

  

Turnover
 4 
19,650,475
18,985,712

Cost of sales
  
(9,669,335)
(8,987,263)

Gross profit
  
9,981,140
9,998,449

Administrative expenses
  
(12,219,040)
(11,020,412)

Other operating income
  
918
48,910

Operating loss
  
(2,236,982)
(973,053)

Interest receivable and similar income
 7 
-
5,787

Interest payable and similar expenses
 8 
(46,662)
(8,228)

Loss before tax
  
(2,283,644)
(975,494)

Tax on loss
 9 
-
-

Loss for the financial year
  
(2,283,644)
(975,494)

There was no other comprehensive income for 2024 (2023:£NIL).

Page 10

 
MEDNEO DIAGNOSTICS UK LIMITED
REGISTERED NUMBER: 11851997

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 10 
6,044
12,237

Current assets
  

Debtors: amounts falling due within one year
 11 
1,998,855
2,215,383

Cash at bank and in hand
 12 
-
340,533

  
1,998,855
2,555,916

Creditors: amounts falling due within one year
 13 
(4,078,844)
(3,058,454)

Net current liabilities
  
 
 
(2,079,989)
 
 
(502,538)

Total assets less current liabilities
  
(2,073,945)
(490,301)

  

Net liabilities
  
(2,073,945)
(490,301)


Capital and reserves
  

Called up share capital 
 14 
1
1

Share premium account
 15 
6,850,000
6,150,000

Profit and loss account
 15 
(8,923,946)
(6,640,302)

  
(2,073,945)
(490,301)


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 



S D Webb
Director

Date: 30 June 2025

The notes on pages 13 to 22 form part of these financial statements.

Page 11

 
MEDNEO DIAGNOSTICS UK LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£


At 1 January 2023
1
6,150,000
(5,664,808)
485,193



Loss for the year
-
-
(975,494)
(975,494)



At 1 January 2024
1
6,150,000
(6,640,302)
(490,301)



Loss for the year
-
-
(2,283,644)
(2,283,644)

Shares issued during the year
-
700,000
-
700,000


At 31 December 2024
1
6,850,000
(8,923,946)
(2,073,945)


The notes on pages 13 to 22 form part of these financial statements.

Page 12

 
MEDNEO DIAGNOSTICS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

Medneo Diagnostics UK Limited is a private company, limited by shares, incorporated in England and Wales, company number 11851997. The company's registered office address is 155-157 Great Portland Street, London, England, W1W 6QP. The principal activity of the company is the provision of diagnostic imaging services. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Medneo UK Limited as at 31 December 2024 and these financial statements may be obtained from 10 Queen Street Place, London, EC4R 1AG.

Page 13

 
MEDNEO DIAGNOSTICS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.3

Going concern

At 31 December 2024, the Company had net current liabilities of £2,079,989 (2023: £502,538) and net liabilities of £2,073,945 (2023: £490,301). Notwithstanding this, the financial statements have been prepared on a going concern basis as the Directors have assessed the Company’s ability to continue in operational existence for a period of at least 12 months from the date of approval of these financial statements and have a reasonable expectation that the Company has adequate resources to meet its obligations as they fall due.
In forming this view, the Directors have considered post–balance sheet trading performance, forecast cash flows, available working capital facilities, and access to borrowing. The company maintains strong relationships with its shareholder and operates with robust working capital controls and cash management processes.
The Directors remain confident in the underlying demand for the Company’s services, supported by structural growth in diagnostic imaging requirements across both NHS and private markets. The existing asset base and imaging infrastructure provide a strong platform for continued customer growth.
A detailed cash flow forecast for the 12-month period from the date of approval of these financial statements has been prepared, incorporating reasonable assumptions regarding trading conditions and cost pressures. In addition, while not contractually committed, the company has a track record of support from its shareholders, who have indicated a willingness to continue to support the business if required.
Based on these factors, the Directors consider it appropriate to adopt the going concern basis of accounting in preparing these financial statements.

 
2.4

Revenue

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

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Page 14

 
MEDNEO DIAGNOSTICS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.5

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Pensions

Defined contribution pension plan

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

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

Page 15

 
MEDNEO DIAGNOSTICS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Computer equipment
-
33%
Straight-line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.10

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.11

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.12

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.13

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of
financial assets and liabilities like trade and other debtors and creditors, loans from group entities.

Page 16

 
MEDNEO DIAGNOSTICS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The directors make estimates and assumptions about the future. These estimates and assumptions impact recognised assets and liabilities, as well as revenue and expenses and other disclosures. These estimates are based on historical experience and on various assumptions considered reasonable under the prevailing conditions. The actual outcome may diverge from these estimates if other assumptions are made, or other conditions arise. The estimates and assumptions that may have a significant effect on the carrying amounts of assets and liabilities within financial year include:
Tangible fixed assets are recognised at cost, less accumulated depreciation and any impairments. Depreciation takes place over the estimated useful life, down to the assessed residual value. The carrying amount of the company’s fixed assets is tested as soon as changed conditions show that a need for impairment has arisen.
The recoverability of trade debtors and associated provisioning is considered on a regular basis. When calculating the debtor provision, the directors consider the age of the debts and the financial position of its customers.


4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Provision of diagnostic imaging services
19,650,475
18,985,712


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
19,650,475
18,985,712



5.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
19,360
17,600

Fees payable to the Company's auditors in respect of:

Taxation compliance services
3,275
2,750

Other non-audit services not included above
2,500
2,300

Page 17

 
MEDNEO DIAGNOSTICS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

6.


Employees

Staff costs were as follows:


2024
2023
£
£

Wages and salaries
8,088,731
7,473,828

Social security costs
937,598
873,218

Cost of defined contribution scheme
375,205
254,385

9,401,534
8,601,431


The directors did not receive any remuneration during the year (2023: £nil) as the remuneration is paid by a Group Company.
The average monthly number of employees, including directors, during the year was 147 (2023: 141). 


7.


Interest receivable

2024
2023
£
£


Other interest receivable
-
5,787


8.


Interest payable and similar expenses

2024
2023
£
£


Loans from group undertakings
40,115
3,326

Other interest payable
6,547
4,902

46,662
8,228

Page 18

 
MEDNEO DIAGNOSTICS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

9.


Taxation


2024
2023
£
£



Total current tax
-
-

Deferred tax

Total deferred tax
-
-


Tax on loss
-
-

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 23.52%). The differences are explained below:

2024
2023
£
£


Loss on ordinary activities before tax
(2,283,644)
(975,494)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.52%)
(570,911)
(229,442)

Effects of:


Fixed asset differences
-
(60)

Expenses not deductible for tax purposes
33,404
354

Capital allowances for year in excess of depreciation
537,507
(14,414)

Movement in deferred tax not recognised
-
243,562

Total tax charge for the year
-
-


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Losses carried forward from prior years
As at 31 December 2024 the Company had unutilised losses of £8,744,425 (2023: £6,543,737). No deferred tax asset has been recognised in relation to these losses on the basis that there is not considered to be a sufficient degree of certainty around their utilisation. The value of unutilised tax losses is considered to exceed any fixed asset timing differences and therefore no deferred tax liability has been recognised.

Page 19

 
MEDNEO DIAGNOSTICS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

10.


Tangible fixed assets





Computer equipment

£



Cost or valuation


At 1 January 2024
28,443


Additions
1,322



At 31 December 2024

29,765



Depreciation


At 1 January 2024
16,206


Charge for the year
7,515



At 31 December 2024

23,721



Net book value



At 31 December 2024
6,044



At 31 December 2023
12,237

Page 20

 
MEDNEO DIAGNOSTICS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

11.


Debtors

2024
2023
£
£


Trade debtors
1,330,165
2,013,477

Amounts owed by group undertakings
462,704
-

Prepayments and accrued income
205,172
201,906

Other debtors
814
-

1,998,855
2,215,383


The trade debtors balance is presented net of a bad debt provision amounting to £67,649 (2023: £49,566).
Amounts owed by group undertakings relates to cash balance of the Company at year end held under a pooling arrangement with Medneo UK Limited.


12.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
-
340,533



13.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
159,268
164,743

Amounts owed to group undertakings
2,470,145
1,562,661

Other taxation and social security
567,902
716,660

Other creditors
91,163
71,721

Accruals and deferred income
790,366
542,669

4,078,844
3,058,454


Included in amounts owed to group undertakings is £614,655 (2023: £762,913) with respect to trading balances due to Medneo Logistics UK Limited and £105,109 (2023: £98,118) with respect to trading balances due to Medneo UK Limited. Also included in amounts owed to group undertakings is a balance of £1,750,381 (2023: £701,630) relating to a loan from Medneo UK Limited. The loan provided by Medneo UK Limited carries interest on any outstanding amounts at a rate of 8% p.a and the loan including all interest accrued thereon is repayable on demand and in any event no later than 31 December 2025.

Page 21

 
MEDNEO DIAGNOSTICS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

14.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



105 (2023 - 104) Ordinary shares of £0.01 each
1
1

On 21 June 2024, 1 Ordinary share of £0.01 was alloted for a total consideration of £700,000.



15.


Reserves

Share premium account

The share premium account includes any premiums received by the company on issue of the shares. Any transaction costs associated with the issuing of the shares are deducted from the share premium. 

Profit and loss account

This reserve records retained earnings and accumulated losses.


16.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £375,205 (2023: £254,385). Contributions totalling £Nil (2023: £43,873) were payable to the fund at the reporting date and are included in creditors.


17.


Related party transactions

As permitted by FRS102 paragraphs 1.12e and 33.1a, the company has taken advantage of the exemption from disclosing the transactions entered into between two or more members of a group as all subsidiary undertakings are wholly-owned by a member of that group.


18.


Controlling party

The immediate parent undertaking is Medneo UK Limited, a company registered in England and Wales and the Company is included in the consolidated financial statements of this entity.
The ultimate controlling party in the UK is Morley UK Holdco Limited with registered office address at C/O D&M Financial Services Anumerate 2.05 Clockwise, Old Town Hall, 30 Tweedy Road, Bromley, England, United Kingdom, BR1 3FE.


19.


Post balance sheet events

Subsequent to the year end, the Company on 10 February 2025 has issued 1 ordinary share with nominal value £0.01 per share for £1,750,000 giving rise to share premium.

Page 22