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FOR THE YEAR ENDED 31 DECEMBER 2024
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SRA DEVELOPMENTS LIMITED
COMPANY INFORMATION
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SRA DEVELOPMENTS LIMITED
CONTENTS
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SRA DEVELOPMENTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
In 2024, SRA Developments Ltd., a subsidiary of BOWA-electronic GmbH & Co. KG based in Gomaringen, Germany, continued its involvement in the development, manufacture, and sale of electrical and electronic products. BOWA-electronic GmbH & Co. KG specialises in energy-based medical technology.
The BOWA Group is divided into the business areas of automotive supplier parts and medical technology, whereby BOWA-electronic GmbH & Co. KG, as a legally independent entity, has been operating exclusively in the "Medical Technology" business area since the spin-off and transfer of the "Automotive" sub-operation to BOWA Automotive GmbH, which was founded specifically for this purpose. The core competencies are energy-based surgery with all accessories, hand instruments for open and minimally invasive surgery and systems for laparoscopic ultrasound surgery. These products are manufactured, approved and distributed both as private label and for OEM customers. In addition to the company's own products, medical devices from other manufacturers are also sold through the BOWA sales network.
The UK direct sales performance in 2024 showed encouraging growth, particularly noteworthy given the general economic downturn across the UK and Europe. However, international economic challenges impacted intercompany and OEM sales mid-year, though trends improved toward year-end.
Procurement remained difficult throughout 2024 due to rising energy and material costs, long lead times, and limited availability of raw materials and electronic components, resulting in cost increases across several areas. Research and development efforts continued to expand. BOWA-electronic GmbH & Co. KG actively collaborates with academic and research institutions on innovative medical technology projects. Development teams support both internal product lines and co-develop solutions with OEM partners to bring market-oriented innovations to life. As a forward-looking employer, BOWA remains committed to employee satisfaction and a positive workplace environment. In 2024, this commitment was supported by a broad training program, fair compensation, clear career progression, modern facilities, and quality catering. Enhancements to the digital HR platform further simplified personnel processes. These efforts are reflected in low staff turnover for the year. Environmental performance remained strong in 2024. No significant issues arose, and BOWA-electronic GmbH & Co. KG successfully renewed its ISO 14001 certification in Germany. These environmental standards are now being extended to SRA Developments Ltd., forming the foundation for upcoming ESG reporting requirements set to become mandatory in 2025. BOWA Values BOWA’s operations are guided by three core values:
∙Team First: We believe collaboration, positivity, and humility are essential to achieving shared goals.
∙Be Curious: We value an open-minded approach that supports innovation, learning, and adaptability.
∙Act with Integrity: We foster trust through respect, reliability, honesty, and accountability.
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SRA DEVELOPMENTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors have assessed ongoing global risks, including the war in Ukraine, conflict in the Middle East, the cost-of-living crisis, and the effect of global interest rates on intercompany transfer pricing in line with OECD arm’s length principles.
The conflict between Ukraine and Russia presents moderate risks to the BOWA Group. While medical products are likely to remain exempt from Western sanctions as humanitarian goods, stricter regulations may slow goods and money transfers. BOWA Eurasia continues to operate, but there is a potential for customer loss in affected regions. The company continues to supply global healthcare markets, with a focus on expanding its OEM customer base. However, this market segment—particularly in Robotic Assisted Surgery—is heavily reliant on venture capital and therefore vulnerable to funding shortages. Although 2024 brought a binding purchase commitment from a key customer, the volume fell short of expectations. A significant decline in sales could lead to short-term production shutdowns and increased inventory due to prior procurement commitments. A major emerging risk across the medical technology industry is the pace of digitalisation and AI-driven innovation. Keeping pace is critical. However, BOWA’s ongoing and future investments in R&D, production, and sales, combined with a responsive sales network, position the company well to meet this challenge. Construction progressed steadily on a new UK facility, due for completion in 2025. This move supports future business expansion, including R&D. A full UK SWOT analysis identified four key strategic priorities for continued success, and efforts are underway to achieve them. Regulatory changes, particularly in the EU, US, and CIS regions, are closely monitored. While BOWA received MDR certification in 2020, the UK subsidiary is on track to achieve this in 2025. Considering all of the above, the Directors do not foresee material changes to the current business model. The company’s risk management system includes risk identification, analysis, communication, and response. Key areas monitored include price fluctuations, liquidity, and payment risks. Operational teams work closely with management to coordinate mitigation strategies. Overall, BOWA's robust risk management framework, financial stability, and innovative product development provide a strong defence against identified risks.
Revenue, operating profit, and cash flow are key performance indicators. Performance is also measured against strategic objectives and BOWA values.
This report was approved by the board on 4 July 2025 and signed on its behalf.
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SRA DEVELOPMENTS 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.
The profit for the year, after taxation, amounted to £257,941 (2023: £299,145).
The directors do not recommend payment of a final dividend.
The directors who served during the year were:
Exposure to Price, Liquidity, and Cash Flow Risks
Price risk arises from suppliers and macroeconomic factors. The company maintains competitive pricing and monitors exchange rate risks at both company and group levels. Sales are made to a diverse customer base, including public sector organisations. Strong credit control processes help mitigate credit risk. The company maintains a healthy cash balance and benefits from ongoing group support. Accordingly, liquidity and cash flow risks are considered low.
R&D efforts continue in both the UK and Germany, focusing on the next generation of products to be designed and manufactured in the UK. The new UK facility, expected to be completed in Q3 2025, will support this expansion and enhance R&D capacity.
There have been no significant events afecting the Company since the year end.
The auditors, Bishop Fleming LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
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SRA DEVELOPMENTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
This report was approved by the board and signed on its behalf.
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SRA DEVELOPMENTS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
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 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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SRA DEVELOPMENTS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SRA DEVELOPMENTS LIMITED
We have audited the financial statements of SRA Developments 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, Statement of cashflows, Analysis of net debt and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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SRA DEVELOPMENTS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SRA DEVELOPMENTS LIMITED (CONTINUED)
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.
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.
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SRA DEVELOPMENTS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SRA DEVELOPMENTS LIMITED (CONTINUED)
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:
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non compliance with laws and regulations, we considered the following:
∙the nature of the industry and sector, control environment and business performance;
∙the results of our enquiries of management about their own identification and assessment of the risk of irregularities;
∙any matters we identified having obtained and reviewed the Company’s documentation of their policiesand procedures relating to: identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
∙detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
∙the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and
∙the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud, which included incorrect recognition of revenue and management override of controls using manual journal entries, and these were identified as the greatest potential area for fraud.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, FRS 102, and tax legislation. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company’s ability to operate or to avoid a material penalty. These included data protection regulations, health and safety regulations, employment legislation and quality management systems including ISO13485 safety and quality of medical devices. Our procedures to respond to risks identified included the following:
∙reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
∙reviewing the financial statement disclosures and testing to supporting documentation to assess the recognition of revenue;
∙audit procedures to gain assurance that these financial statements are materially correct in relation to the Company’s compliance with laws and regulations;
∙performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
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SRA DEVELOPMENTS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SRA DEVELOPMENTS LIMITED (CONTINUED)
∙reading minutes of meetings of those charged with governance; and
∙in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from an error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed 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.
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.
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 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
Brook House
Winslade Park
Manor Drive
Exeter
EX5 1GD
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SRA DEVELOPMENTS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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SRA DEVELOPMENTS LIMITED
REGISTERED NUMBER:01385171
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 15 to 28 form part of these financial statements.
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