Company Registration No. 01159518 (England and Wales)
CHERWELL LABORATORIES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
CHERWELL LABORATORIES LIMITED
COMPANY INFORMATION
Directors
Mr A R Whittard
Mr R Biskupek
Company number
01159518
Registered office
7 & 8 Launton Business Centre
Murdock Road
Bicester
Oxon
OX26 4XB
Auditor
Shaw Gibbs (Audit) Limited
264 Banbury Road
Oxford
OX2 7DY
Bankers
Handelsbanken (Oxford Parkway)
Oxford Parkway Branch
Latimer House
Langford Business Park
Kidlington
OX5 1GG
CHERWELL LABORATORIES LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Independent auditor's report
3 - 5
Profit and loss account
6
Balance sheet
7
Statement of changes in equity
8
Statement of cash flows
9
Notes to the financial statements
10 - 23
CHERWELL LABORATORIES LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 1 -

The directors present the strategic report for the period ended 31 December 2024.

Review of the business

The period end date has been changed from 28th February to 31st December to align with the group's reporting structure. Consequently, the current reporting period ending on 31st December 2024, will be a shortened period of ten months.

The Directors report revenue of £8.320 million for the 10-month period ended 31 December 2024. When annualised, this reflects a 12% increase in revenue compared to the prior year, in line with management expectations.

Profit before tax for the ten months to 31 December 2024 increased significantly to £1.063 million (Prior year: £0.024 million). This growth was primarily driven by higher sales and the absence of one-off costs incurred in the prior year relating to sale transactions and a dilapidation provision.

Debtors as at 31st December 2024 increased to £4.700 million, up from £2.086 million at 28th February 2024. The rise is attributable to short-term loans extended to Group companies.

Principal risks and uncertainties

The Directors remain confident about the business’s future growth but continue to acknowledge the potential impact of rapid detection methods on the market. The Directors are also mindful of the current geo-political uncertainties caused by the ongoing war in Ukraine, Middle East unrest and the unpredictability within the US economy. Supply chain robustness will be a key factor through 2025 and beyond.

Key performance indicators

The Directors evaluate business performance using revenue and profit growth. The business also tracks various quality and operational KPIs.

Future Development

To reduce the risk associated with the ongoing development of rapid detection methods, the company has maintained its partnership with a provider of this technology and has obtained UK distribution rights.

As part of the Analytichem Group, the business has already benefited from cross-selling opportunities and improved market access. These are expected to continue supporting the company’s growth in the coming years.

On behalf of the board

Mr A R Whittard
Director
11 April 2025
CHERWELL LABORATORIES LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 2 -

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

Principal activities

The principal activities of the company during the year were the manufacture and supply of ready prepared microbiological media; the manufacture, distribution, repair and servicing of cleanroom monitoring equipment and accessories.

Results and dividends

The results for the period are set out on page 6.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the period and up to the date of signature of the financial statements were as follows:

Mr A R Whittard
Mr R Biskupek
Auditor

The auditor, Shaw Gibbs (Audit) Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

Statement of disclosure to auditor

So far as the directors are aware, there is no relevant audit information of which the company's auditor are unaware. Additionally, the directors have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company's auditors are aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr A R Whittard
Mr R Biskupek
Director
Director
11 April 2025
CHERWELL LABORATORIES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CHERWELL LABORATORIES LIMITED
- 3 -
Opinion

We have audited the financial statements of Cherwell Laboratories Limited (the 'company') for the period ended 31 December 2024 which comprise the profit and loss account, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

CHERWELL LABORATORIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CHERWELL LABORATORIES LIMITED
- 4 -
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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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.

 

  1. At the planning stage of the audit we gain an understanding of the laws and regulations which apply to the company and how the management seek to comply with those laws regulations. This helps us to plan appropriate risk assessments.

  2. During the audit we focused on relevant risk areas and review the compliance with the laws and regulations by making relevant enquiries and undertaking corroboration, for example by reviewing Board Minutes and other documentation.

     

  3. We assessed the risk of material misstatement in the financial statements including as a result of fraud and undertook procedures including:

    1. Reviewing the controls set in place by management

    2. Making enquiries of management as to whether they consider fraud or other irregularity may have taken place, or where such opportunity might exist

    3. Challenging management assumptions with regard to accounting estimates

    4. Identifying and testing journal entries, particularly those which appear to be unusual by size or nature

    5. Reviewing health and safety reports and obtaining BSI audit results to ensure that the company have complied with the appropriate requirements.

 

CHERWELL LABORATORIES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CHERWELL LABORATORIES LIMITED
- 5 -

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 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.

Stephen Howard Neal (Senior Statutory Auditor)
For and on behalf of Shaw Gibbs (Audit) Limited
11 April 2025
Chartered Certified Accountants
Statutory Auditor
264 Banbury Road
Oxford
OX2 7DY
CHERWELL LABORATORIES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 6 -
Period
Year
ended
ended
31
29
December 2024
February   2024
Notes
£
£
Turnover
3
8,320,878
8,912,550
Cost of sales
(4,404,012)
(5,465,188)
Gross profit
3,916,866
3,447,362
Administrative expenses
(3,208,821)
(3,525,315)
Operating profit/(loss)
4
708,045
(77,953)
Interest receivable and similar income
8
179,750
101,757
Profit before taxation
887,795
23,804
Tax on profit
9
(84,649)
(28,111)
Profit/(loss) for the financial period
803,146
(4,307)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

CHERWELL LABORATORIES LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 7 -
31 December 2024
29 February 2024
Notes
£
£
£
£
Fixed assets
Tangible assets
10
1,034,249
995,655
Current assets
Stocks
11
674,128
687,193
Debtors
12
4,647,151
2,086,813
Cash at bank and in hand
576,330
2,060,816
5,897,609
4,834,822
Creditors: amounts falling due within one year
13
(1,356,786)
(1,070,559)
Net current assets
4,540,823
3,764,263
Total assets less current liabilities
5,575,072
4,759,918
Provisions for liabilities
Provisions
14
609,844
609,844
Deferred tax liability
15
240,000
227,992
(849,844)
(837,836)
Net assets
4,725,228
3,922,082
Capital and reserves
Called up share capital
17
4,125
4,125
Share premium account
27,875
27,875
Profit and loss reserves
4,693,228
3,890,082
Total equity
4,725,228
3,922,082

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 11 April 2025 and are signed on its behalf by:
Mr A R Whittard
Mr R Biskupek
Director
Director
Company registration number 01159518 (England and Wales)
CHERWELL LABORATORIES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 8 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 March 2023
4,000
-
0
3,954,389
3,958,389
Year ended 29 February 2024:
Loss and total comprehensive income
-
-
(4,307)
(4,307)
Issue of share capital
17
125
27,875
-
28,000
Dividends
-
-
(60,000)
(60,000)
Balance at 29 February 2024
4,125
27,875
3,890,082
3,922,082
Period ended 31 December 2024:
Profit and total comprehensive income
-
-
803,146
803,146
Balance at 31 December 2024
4,125
27,875
4,693,228
4,725,228
CHERWELL LABORATORIES LIMITED
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 9 -
31 December 2024
28 February 2024
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
22
1,427,065
(102,713)
Income taxes paid
(71)
(130,875)
Net cash inflow/(outflow) from operating activities
1,426,994
(233,588)
Investing activities
Purchase of tangible fixed assets
(394,179)
(510,010)
Proceeds from disposal of tangible fixed assets
-
0
14,049
Loans made to group undertakings
(2,697,051)
-
0
Interest received
179,750
101,757
Net cash used in investing activities
(2,911,480)
(394,204)
Financing activities
Proceeds from issue of shares
-
0
125
Share issue costs
-
0
27,875
Dividends paid
-
0
(60,000)
Net cash used in financing activities
-
(32,000)
Net decrease in cash and cash equivalents
(1,484,486)
(659,792)
Cash and cash equivalents at beginning of period
2,060,816
2,720,608
Cash and cash equivalents at end of period
576,330
2,060,816
CHERWELL LABORATORIES LIMITED
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 10 -
1
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Useful economic life of non-current assets

The useful economic lives of non-current assets have been derived from the judgement of the directors, using their best estimate of the write-down period.

Dilapidations provision

The dilapidations provision with respect to the premises rented by the company is based on a professional dilapidations assessment that was carried out by a firm of Chartered Surveyors. The directors have used the professional assessment as a basis for estimating the value of the dilapidations provision and they have also applied their commercial judgement (by considering a number of variables such as the subsequent alterations made in the properties, the changes in the economy and the commercial properties market etc) to assess the need to revise upwards the relevant provision. The adequacy of the dilapidations provision and the necessity for an additional professional assessment is monitored by the directors on an annual basis. Adjustments are made as and when necessary to ensure the adequacy of the relevant provision.

Stock valuation and obsolescence

Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell. Costs comprise direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. Stock is valued using the FIFO method.

 

Estimated selling price less costs to complete and sell, includes, where necessary, provisions for slow moving and obsolete stocks. Calculation of these provisions requires estimates to be made, which include the forecasted customer demand, the promotional, competitive and economic environment as well as the ageing of stock and the discontinuation of certain product lines by the key suppliers. These variables are monitored by the directors and a provision is put in place where deemed reasonable to mitigate the relevant risks.

CHERWELL LABORATORIES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 11 -
2
Accounting policies
Company information

Cherwell Laboratories Limited is a private company limited by shares incorporated in England and Wales. The registered office is 7 & 8 Launton Business Centre, Murdock Road, Bicester, Oxon, OX26 4XB.

2.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.

2.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

2.3
Reporting period

The accounting reference date of the company has been changed from 28 February to 31 December, to align with other group companies. These financial statements cover the 10 month period ended 31 December 2024. The comparative period covers the year ended 28 February 2024. Therefore the figures presented in these financial statements will not be entirely comparable.

2.4
Turnover

The turnover shown in the profit and loss account represents amounts invoiced during the year, exclusive of Value Added Tax.

 

Income is recognised when goods are dispatched from the warehouse or at the point repair and service of equipment is completed.

2.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost 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:

Cleanroom
10% per annum
Leasehold improvements
10% per annum
Engineering & warehouse equipment
10% to 20% per annum
Office fixtures & equipment
10% to 33% per annum
Production equipment
10% to 20% per annum

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

CHERWELL LABORATORIES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
2
Accounting policies
(Continued)
- 12 -
2.6
Fixed asset investments

Fixed asset investments are measured at cost. 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.

2.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs incurred in bringing the stocks to their present location and condition. Stock is valued using the FIFO method.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

2.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

2.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

CHERWELL LABORATORIES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
2
Accounting policies
(Continued)
- 13 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

CHERWELL LABORATORIES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
2
Accounting policies
(Continued)
- 14 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

2.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

2.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

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 profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. 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.

2.12
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, 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 the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

CHERWELL LABORATORIES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
2
Accounting policies
(Continued)
- 15 -
2.13
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 stock or fixed assets.

 

Where material, the cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

2.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2.15
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

2.16
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. Gains and losses arising on translation in the period are included in profit or loss.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

December 2024
February   2024
£
£
Turnover analysed by geographical market
United Kingdom
7,229,013
7,786,519
Europe
1,006,800
1,020,075
Rest of World
85,065
105,956
8,320,878
8,912,550
December 2024
February   2024
£
£
Other revenue
Interest income
179,750
101,757
CHERWELL LABORATORIES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 16 -
4
Operating profit/(loss)
December 2024
February   2024
Operating profit/(loss) for the period is stated after charging/(crediting):
£
£
Exchange losses/(gains)
1,860
(374)
Research and development costs
-
14,430
Depreciation of owned tangible fixed assets
172,171
233,626
Loss on disposal of tangible fixed assets
183,414
-
Operating lease charges
388,511
350,905
5
Auditor's remuneration
December 2024
February   2024
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
13,900
12,425
6
Directors' remuneration
December 2024
February   2024
£
£
Remuneration for qualifying services
52,912
172,195
Company pension contributions to defined contribution schemes
48,361
59,113
101,273
231,308
The number of directors who exercised share options during the period was 0 (February 2024 - 1).
CHERWELL LABORATORIES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 17 -
7
Employees

The average monthly number of persons (including directors) employed by the company during the period was:

December 2024
February   2024
Number
Number
Directors
2
3
Administration
21
19
Production
67
69
Total
90
91

Their aggregate remuneration comprised:

December 2024
February   2024
£
£
Wages and salaries
2,850,572
3,417,927
Social security costs
106,673
143,339
Pension costs
81,621
90,780
3,038,866
3,652,046
8
Interest receivable and similar income
December 2024
February   2024
£
£
Interest income
Interest on bank deposits
20,640
101,757
Other interest income
159,110
-
0
Total income
179,750
101,757
CHERWELL LABORATORIES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 18 -
9
Taxation
December 2024
February   2024
£
£
Current tax
UK corporation tax on profits for the current period
19,760
-
0
Adjustments in respect of prior periods
52,881
(52,881)
Total current tax
72,641
(52,881)
Deferred tax
Origination and reversal of timing differences
12,008
80,992
Total tax charge
84,649
28,111

The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:

December 2024
February   2024
£
£
Profit before taxation
887,795
23,804
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (February   2024: 25.00%)
221,949
5,951
Tax effect of expenses that are not deductible in determining taxable profit
50,866
45,132
Tax effect of utilisation of tax losses not previously recognised
(115,996)
52,881
Group relief
(76,726)
-
0
Under/(over) provided in prior years
52,881
-
0
(Accelerated)/decelerated capital allowances
(60,333)
(75,853)
Deferred tax current year
12,008
-
0
Taxation charge for the period
84,649
28,111
CHERWELL LABORATORIES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 19 -
10
Tangible fixed assets
Cleanroom
Leasehold improvements
Production equipment
Office fixtures & equipment
Engineering & warehouse equipment
Total
£
£
£
£
£
£
Cost
At 1 March 2024
1,792,377
415,281
793,653
678,400
229,707
3,909,418
Additions
201,439
24,480
61,352
106,908
-
0
394,179
Disposals
(170,054)
(13,838)
-
0
-
0
-
0
(183,892)
At 31 December 2024
1,823,762
425,923
855,005
785,308
229,707
4,119,705
Depreciation and impairment
At 1 March 2024
1,452,976
195,059
608,523
470,214
186,991
2,913,763
Depreciation charged in the period
26,888
34,653
59,123
43,824
7,683
172,171
Eliminated in respect of disposals
-
0
(478)
-
0
-
0
-
0
(478)
At 31 December 2024
1,479,864
229,234
667,646
514,038
194,674
3,085,456
Carrying amount
At 31 December 2024
343,898
196,689
187,359
271,270
35,033
1,034,249
At 29 February 2024
339,401
220,222
185,130
208,186
42,716
995,655

Included within Cleanroom above is £171,233 relating to assets under construction at the period end.

 

Included within Engineering & warehouse equipment above is £98,209 relating to relating to assets under construction at the period end.

 

Neither of these assets have been depreciated during the financial period.

11
Stocks
December 2024
February   2024
£
£
Raw materials and consumables
367,081
404,766
Work in progress
6,368
41,245
Finished goods and goods for resale
300,679
241,182
674,128
687,193
CHERWELL LABORATORIES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 20 -
12
Debtors
December 2024
February   2024
Amounts falling due within one year:
£
£
Trade debtors
1,248,965
1,328,528
Corporation tax recoverable
-
0
52,881
Amounts owed by group undertakings
3,032,766
334,845
Prepayments and accrued income
365,420
370,559
4,647,151
2,086,813
13
Creditors: amounts falling due within one year
December 2024
February   2024
£
£
Trade creditors
630,858
582,400
Amounts owed to group undertakings
140,492
63,203
Corporation tax
19,689
-
0
Other taxation and social security
444,074
252,683
Accruals and deferred income
121,673
172,273
1,356,786
1,070,559
14
Provisions for liabilities
December 2024
February   2024
£
£
Provision
609,844
609,844
Movements on provisions:
Provision
£
At 1 March 2024 and 31 December 2024
609,844

The balance of provisions relates to property dilapidations of £609,844 (February 2024: £609,844) based on the cost estimated by an independent survey.

CHERWELL LABORATORIES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 21 -
15
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
December 2024
February   2024
Balances:
£
£
Accelerated capital allowances
240,000
227,992
December 2024
Movements in the period:
£
Liability at 1 March 2024
227,992
Charge to profit or loss
12,008
Liability at 31 December 2024
240,000
16
Retirement benefit schemes
December 2024
February   2024
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
81,621
90,780

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.

 

At the year end date, amounts payable to the pension scheme totaled £18,489 (February 2024: £20,716).

17
Share capital
December 2024
February   2024
December 2024
February   2024
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of 50p each
8,000
8,000
4,000
4,000
Ordinary B shares of 50p each
250
250
125
125
8,250
8,250
4,125
4,125

 

 

CHERWELL LABORATORIES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 22 -
18
Capital commitments

Amounts contracted for but not provided in the financial statements:

December 2024
February   2024
£
£
Acquisition of tangible fixed assets
160,808
-
19
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

December 2024
February   2024
£
£
Amount payable within one year
281,640
402,653
Between two and five years
5,809
688,948
In over five years
-
0
547,500
287,449
1,639,101
20
Related party transactions

The company has taken advantage of of the exemptions provided by Section 33 of FRS 102 not to disclose transactions and outstanding balances with other wholly owned members of the group headed by AnalytiChem Investment GmbH.

21
Ultimate controlling party

The immediate parent company is AnalytiChem Holding (UK) Limited, a company registered in England and Wales with a registered office, 7 & 8 Launton Business Centre Murdock Road, Murdock Road, Bicester, England, OX26 4XB.

The ultimate parent company is AnalytiChem Investment GmbH, a company incorporated in Germany with a registered office of Frankfurter Str. 80-82, 65760 Eschborn, Germany.

CHERWELL LABORATORIES LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2024
- 23 -
22
Cash generated from/(absorbed by) operations
December 2024
February   2024
£
£
Profit/(loss) after taxation
803,146
(4,307)
Adjustments for:
Taxation charged
84,649
28,111
Investment income
(179,750)
(101,757)
Loss on disposal of tangible fixed assets
183,414
-
Depreciation and impairment of tangible fixed assets
172,171
233,626
Increase in provisions
-
0
294,922
Movements in working capital:
Decrease in stocks
13,065
54,944
Decrease/(increase) in debtors
83,832
(678,168)
Increase in creditors
266,538
69,916
Cash generated from/(absorbed by) operations
1,427,065
(102,713)
23
Analysis of changes in net funds
1 March 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
2,060,816
(1,484,486)
576,330
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