Company registration number 09353226 (England and Wales)
NOVOGENE (UK) COMPANY LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
NOVOGENE (UK) COMPANY LIMITED
COMPANY INFORMATION
Directors
J Wu
T T Zhou
Company number
09353226
Registered office
2nd Floor
Bio-Innovation Centre
25 Cambridge Science Park
Milton Road
Cambridge
CB4 0FW
Auditor
Alliotts LLP
Manfield House
1 Southampton Street
London
WC2R 0LR
NOVOGENE (UK) COMPANY LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 6
Independent auditor's report
7 - 9
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 27
NOVOGENE (UK) COMPANY LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The directors prepare and present their strategic report for the year ended 31st December 2024 in accordance with section 414 of the companies act 2006 (Duty to prepare strategic report).

This strategic report sets out a review of the company’s business during the year, description of the principal risks and uncertainties relevant to the company, other matters that affect the business including environmental and employee matters as well as the performance and development of the company’s business during the financial year.

Principal activities

The company’s principal activities during the year were supply of the following sequencing services to its customers

Review of the business

During the year, the company announced extensive collaborations with leading academic institutions, hospitals, pharmaceutical companies, and agricultural enterprises to strengthen our market leadership position. Novogene continues to shape the future of genomic research and precision medicine. As a trusted genomics partner, we are committed to empowering researchers worldwide with the technology, expertise, and solutions needed to advance genomics and improve life.

To consolidate our position as a leading provider of the Next-Generation Sequencing (NGS) services, Proteomics, and Metabolomics services, the company continue its deployment and servicing of new technology platforms empowering researchers and organizations with cutting-edge multi-omics solutions.

Over the past two years, we have witnessed the deployment of NovaSeq X Plus 25B flow cell (FC) and Falcon II, an intelligent Next Generation Platform in our UK lab based in Cambridge. The X Plus is a state-of-the-art sequencing platform with unmatched throughput capabilities.

As well as the NovaSeq X Plus 25B flow cell (FC), the company continues to see improved performance from the deployment of Falcon II, an intelligent next-generation sequencing (NGS) platform that can automatically deliver multiple NGS services to our customers. These platforms represent the latest developments in our industry with periodic servicing and improvements to its functions. Our Cambridge Sequencing Centre continues to provide customers with improved services to meet their sequencing requirements across UK and Europe.

Novogene GmbH, a sister company to Novogene (UK) under the same ownership has started operations during the year with a high-tech lab based in Munich, Germany capitalising on the increasing demand for the NGS services in Europe. The lab in Munich is equipped with Falcon III, an intelligent NGS delivery platform becoming an Olink official certificate service provider.

Novogene group continue to build and harness the potentials of our highly skilled, interdisciplinary teams, with the majority holding advanced degrees from top global institutions. Our high-throughput sequencing and high-performance computing platforms are designed to efficiently handle large-scale genomic data, meeting the evolving demands of life sciences and medical research with secure data storage and powerful bioinformatics analysis.

.

NOVOGENE (UK) COMPANY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Principal risks and uncertainties

Directors have put in place a system of risk assessment including robust assessment of the emerging and principal risks facing the business and risks that would threaten and undermine our business model, strategy, solvency or liquidity and our business reputation.

Directors have put in place strategies that will manage risk to substantially reduce and mitigate the impact to levels that are not significant to the business. The following are considered to be the main risks to the business:

Financial Risks

The risks that the company could face financial difficulties in meeting its obligations contractual or otherwise. The senior management team continue to monitor the cash resources of the business and ensuring regular reviews of its strategic plans. If required support is at hand from the ultimate parent company, Novogene Co, Ltd in China.

Credit risks

Credit risk is the risk of loss as a result of failure of any party to abide by the terms and conditions of a financial contract, principally a failure to discharge contractual obligations. The company has a policy of assessing all current and potential customers before allowing for credit terms. We also review our customer credit limits and aging balances on a regular basis.

Competitive risks

The risk that our closest competitors could introduce new technologies and channels that would respond better to the rapidly evolving scientific and technological developments in our industry. The company continues to invest heavily in research and development from group level down to business entity level to respond to challenges of new technological advancements. The company continues to invest significantly in the recruitment of sales staff throughout Europe to maintain and improve on the market position.

Foreign exchange risks

The directors and senior management team acknowledge the existence of foreign exchange risk within our business and the volatility therein. We have transactions denominated in foreign currencies including most major currencies. Foreign exchange risk is managed within group treasury team based in Beijing, China.

Cash flow risks

Novogene (UK) company limited is exposed to foreign exchange rate risks for which to some extent is outside the control of our business, however the company maintains sufficient cash reserves that should mitigate any risk coming from exchange rate volatilities. The company does not use financial instruments for speculative or trading purposes.

Liquidity risks

The company maintains cash reserves that are sufficient for the day to day running of the business and for all investments within the business. Dividend payments to the parent company are agreed at group level.

Performance review

During the year to 31st December 2024, turnover fell by 6% to £36.3mil (2023: +23% to £38.5mil). Since our sister company starts its full operations in Germany during the year some of our European clients have moved to this new company (Novogene GmbH) marking a drop in sales turnover for the UK entity, however overall demand within UK and European markets remains strong. The two markets (UK and Europe) combined accounts for over 95% of total sales turnover. The profit for the year before taxation increased by 95% to £2.4mil (2023: -41% to £1.2mil). The increase in profit is a combination of 8% decrease in core operating cost and 28% increase in interest receivable and similar incomes compared to the year before.

As at 31 December 2024, the company had net current assets increased by 95% to £5.9mil (2023: -8% to £3mil). Total net assets have recorded an increase of 32% to £7.9mil (2023: 7% to £6mil)

Management have expressed their satisfaction with the results for the year and remain confident about the prospects of the company. Our drive and strategic focus on the UK and European markets will continue with investments in the latest technology that will consolidate and improve our market position and the Cambridge lab remains central to this strategy of growth.

NOVOGENE (UK) COMPANY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
Future Developments

Novogene remained at the forefront of innovation, delivering world-class services to advance discoveries in life sciences, healthcare, and beyond. With state-of-the-art laboratories and operations across the United States, the United Kingdom, Germany, China, Singapore, and Japan. Novogene has established a strong global presence to support scientific advancements worldwide. The business continues to invest in high-tech laboratory equipment in all our labs around the world including our Cambridge (UK) lab, this has been enhanced through collaborations with academia and pharmaceutical companies that is expected to empower our researchers in UK and in Europe.

Other performance indicators

Employee & gender diversity

Our employees remained our most important asset and as such management recognises the immense contributions from its workforce. The core values of the company are professionalism, innovation, integrity and partnership. Employees at all levels are encouraged to embrace innovation and partnerships which forms part of our growth strategy.

Over the years, we built a highly skilled, interdisciplinary teams, with the majority holding professional or advanced degrees from top global institutions, contributions from these teams forms key part of our customer focused strategy.

The company has shown great commitment to its workforce by organising regular staff training and development events, through annual staff recognition and award nights during kick-off gatherings. Management recognises the importance of team building and open communications within the organisation, business team have organised different team events notably kick-off meetings to have the entire staff get together to foster team building and internal collaborations. We have a recruitment policy based on diversity, gender equality and a fair and equal opportunity regardless of race, colour, religion, nationality, sex, age and disability. The company does not tolerate discrimination in any shape or form.

Business Environment & Trends

Genomics industry and life science sector continues to record significant growth and milestones within the UK and European markets. Novogene from group level recognises its role in this industry as one of the market leaders. During the year, our sister company Novogene GmbH started full operations strengthening and complementing the strategic role of Novogene UK. The Munich lab has been equipped with Falcon III, an intelligent NGS delivery platform that will add extra service layer to Falcon II and X-Plus Machine in the UK lab.

Our vision remains to be the global leader in providing genomic services and to be the chosen partner for our researchers and partners in the life science industry. Our high-throughput sequencing and high-performance computing platforms are designed to efficiently handle large-scale genomic data, meeting the evolving demands of life sciences and medical research with secure data storage and powerful bioinformatics analysis. We have a very competitive Turn-Around-Time (TAT) supported by experiment tracking from sample QC to data delivery on our Customer Service System (CSS) that our researchers can rely on.

NOVOGENE (UK) COMPANY LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
Development and Performance

The key performance indicators of the company for year ended 31st December 2024 were as follows:

 

2024 2023 Change

£’000 £’000

Turnover 36,341 38,526 -6%

Gross profit 12,960 14,453 -10%

Profit before taxation 2,225 1,221 +82%

Gross Assets 46,657 44,698 -5%

Net Assets 7,675 5,998 +28%

 

 

Section 172 (1) Statement

Under s172 of the Companies Act 2006 directors of UK companies have a duty to promote the success of their company for the benefit of the members as a whole and, in doing so, have regard to:

 

 

The Directors consider the following areas to be of key importance in his fulfilment of this duty:

 

On behalf of the board

J Wu
Director
28 August 2025
NOVOGENE (UK) COMPANY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -

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

Results and dividends

The results for the year are set out on page 10.

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

Directors

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

J Wu
T T Zhou
Energy and carbon report

The Directors consider the greenhouse gas emissions, energy consumption and energy efficiency action at a company level and therefore the below disclosure is on the company basis. The company is firmly committed to operating in a green and sustainable manner and takes its responsibilities in there areas extremely seriously.

2024
Energy consumption
kWh
Aggregate of energy consumption in the year
- Electricity purchased
184,813
184,813
2024
Emissions of CO2 equivalent
metric tonnes
Scope 1 - direct emissions
- Gas combustion
-
- Fuel consumed for owned transport
-
-
Scope 2 - indirect emissions
- Electricity purchased
38.25
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the company
-
Total gross emissions
38.25
Intensity ratio
Tonnes CO2e per employee
484.37
Quantification and reporting methodology

The company has followed the 2019 HM Government Environmental Reporting Guidelines. The company has also used the GHG Reporting Protocol – Corporate Standard and have used the 2024 UK Government’s Conversion Factors for Company Reporting

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e to employees, the recommended ratio for the sector.

NOVOGENE (UK) COMPANY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -
Measures taken to improve energy efficiency

The refurbishment of our office updated all heating and air-conditioning units to the latest standards. This included upgrading the lighting to the latest energy LED panels to maximise energy efficiency.

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 to disclose information regarding the future development opportunities for the company and financial instrument risk management policies in the strategic report rather than the directors' report.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually 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 auditor is aware of that information.

On behalf of the board
J Wu
Director
28 August 2025
NOVOGENE (UK) COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NOVOGENE (UK) COMPANY LIMITED
- 7 -
Opinion

We have audited the financial statements of Novogene (UK) Company 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, 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:

NOVOGENE (UK) COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NOVOGENE (UK) COMPANY LIMITED (CONTINUED)
- 8 -
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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

NOVOGENE (UK) COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NOVOGENE (UK) COMPANY LIMITED (CONTINUED)
- 9 -

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

Audit respsonse to risks identified

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Nicholas Nicolaou FCCA
Senior Statutory Auditor
For and on behalf of Alliotts LLP
28 August 2025
Chartered Accountant
Statutory Auditor
Manfield House
1 Southampton Street
London
WC2R 0LR
NOVOGENE (UK) COMPANY LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
36,340,657
38,526,103
Cost of sales
(23,380,565)
(24,073,049)
Gross profit
12,960,092
14,453,054
Administrative expenses
(12,192,158)
(14,370,410)
Operating profit
4
767,934
82,644
Interest receivable and similar income
7
1,457,753
1,138,527
Profit before taxation
2,225,687
1,221,171
Tax on profit
8
(555,773)
(298,827)
Profit for the financial year
1,669,914
922,344

The income statement has been prepared on the basis that all operations are continuing operations.

The notes on pages 14 to 27 form part of these financial statements.

NOVOGENE (UK) COMPANY LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2024
31 December 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
2,543,631
3,622,186
Current assets
Stocks
12
1,498,183
1,495,789
Debtors
13
4,990,354
3,877,856
Investments
14
34,559,111
30,522,862
Cash at bank and in hand
3,065,741
5,179,222
44,113,389
41,075,729
Creditors: amounts falling due within one year
15
(38,528,677)
(38,042,876)
Net current assets
5,584,712
3,032,853
Total assets less current liabilities
8,128,343
6,655,039
Provisions for liabilities
Deferred tax liability
16
460,709
657,319
(460,709)
(657,319)
Net assets
7,667,634
5,997,720
Capital and reserves
Called up share capital
18
2,959,315
2,959,315
Profit and loss reserves
4,708,319
3,038,405
Total equity
7,667,634
5,997,720

The notes on pages 14 to 27 form part of these financial statements.

The financial statements were approved by the board of directors and authorised for issue on 28 August 2025 and are signed on its behalf by:
J Wu
Director
Company registration number 09353226 (England and Wales)
NOVOGENE (UK) COMPANY LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
Share capital
Other Reserves
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2023
10,000
919
5,575,220
5,586,139
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
922,344
922,344
Issue of share capital
18
2,949,315
-
-
2,949,315
Dividends
9
-
-
(3,459,159)
(3,459,159)
Other movements
-
(919)
-
(919)
Balance at 31 December 2023
2,959,315
-
3,038,405
5,997,720
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
1,669,914
1,669,914
Other movements
19
-
-
-
-
Balance at 31 December 2024
2,959,315
-
4,708,319
7,667,634

The notes on pages 14 to 27 form part of these financial statements.

NOVOGENE (UK) COMPANY LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
22
915,631
(1,741,606)
Income taxes paid
(427,597)
(452,251)
Net cash inflow/(outflow) from operating activities
488,034
(2,193,857)
Investing activities
Purchase of tangible fixed assets
(56,267)
(1,943,321)
Proceeds from disposal of tangible fixed assets
33,248
5,559
Proceeds from disposal of investments
(4,036,249)
(30,522,862)
Interest received
214,604
21,636
Other income received from investments
1,243,149
1,116,891
Net cash used in investing activities
(2,601,515)
(31,322,097)
Financing activities
Proceeds from issue of shares
-
0
2,949,315
Dividends paid
-
0
(3,459,159)
Net cash used in financing activities
-
(509,844)
Net decrease in cash and cash equivalents
(2,113,481)
(34,025,798)
Cash and cash equivalents at beginning of year
5,179,222
39,205,020
Cash and cash equivalents at end of year
3,065,741
5,179,222

The notes on pages 14 to 27 form part of these financial statements.

NOVOGENE (UK) COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
1
Accounting policies
Company information

Novogene (UK) Company Limited is a private company limited by shares incorporated in England and Wales. The registered office is 2nd Floor, Bio-Innovation Centre, 25 Cambridge Science Park, Milton Road, Cambridge, CB4 0FW.

1.1
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 under the historical cost convention.The principal accounting policies adopted are set out below.

1.2
Going concern

The company meets its day-to-day working capital requirements through its cash at bank. The company's forecasts and projections show that the company will continue to make profits and have enough cash reserve to meet its liabilities. 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.

1.3
Turnover

Revenue is measured at the fair value of the consideration received or receivable and represents the amount receivable for services rendered, net of discounts and rebates allowed by the company and value added taxes. The following criteria must also be met before revenue is recognised:

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

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:

 

 

For performance obligations fulfilled at a certain point in time, the company recognises revenue at the point in time when the customer obtains control over the relevant goods or services. The timing of revenue recognition for major products is as follows:

 

Testing service: After completing the sequencing of each batch of samples, the company sends the sequencing analysis results, and obtains the customer confirmation, which indicates the number of related income that can be reliably measured, the relevant economic benefits are likely to flow up into the company, and the transaction has occurred and the incurred costs can be reliably measured, then the revenue will be recognised according to the service volume and service price provided in the contract.

NOVOGENE (UK) COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Cost includes the original purchase price, costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by the management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimate useful lives, using the straight-line method. All assets are considered to have a residual value of 5% of their original cost.

 

Depreciation is provided on the following basis:

Plant and equipment
5 years straight line
Computers
3 years straight line

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.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Stocks

Inventories are classified into: raw material and work in progress. Inventories are stated at the lower of cost and estimating selling price less costs to complete and sell. Inventories are recognised as an expense in the period in which the related revenue is recognised.

Cost is determined on the Weighted Average Cost (WAC) method. Cost includes the purchase price, taxes and transport, duties, and handling directly attributable to bringing the inventory to its present location and condition. The cost of work in progress includes raw materials, direct labour, other direct costs and related production overheads.

NOVOGENE (UK) COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -

At the end of each reporting period, inventories are assessed for impairment. If an item of inventory is impaired, an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is recognised, the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.

1.7
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.

1.8
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 statement of financial position 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.

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.

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.

NOVOGENE (UK) COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 17 -
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 and amounts owed by fellow group companies, 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.

 

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

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.

Derecognition of financial liabilities

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

1.9
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.

1.10
Taxation

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

Current tax

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

NOVOGENE (UK) COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
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 income statement, 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.

1.11
Retirement benefits

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

1.12
Share-based payments

Equity settled share awards are recognised as an expense based on their fair value at the date of grant. The fair value of the awards is expensed over the period between the date of grant and the estimated vesting date.

1.13
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.

NOVOGENE (UK) COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
2
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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Impairment of the company's tangible assets

Determine whether there are indicators of impairment of the company's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset, and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.

Impairment of obsolescence of stock

Determine whether there are indicators of impairment of obsolescence of stock. Factors taken into consideration in reaching such a decision include the trading environment, the expected future sales of the product and expiration dates.

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.

Recoverability of trade debtors

The recoverability of trade debtors is regularly reviewed in the light of available economic information specific to each debtor and specific provisions are recognised for balances considered to be irrecoverable.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Genomic sequencing services
36,340,657
38,526,103
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
11,090,358
11,906,863
Europe
24,788,106
26,572,418
Asia
423,930
40,813
Rest of world
38,263
6,009
36,340,657
38,526,103
NOVOGENE (UK) COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
3
Turnover and other revenue
(Continued)
- 20 -
2024
2023
£
£
Other revenue
Interest income
214,604
21,636
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
1,191,893
141,830
Depreciation of owned tangible fixed assets
1,104,126
1,097,049
Profit on disposal of tangible fixed assets
(2,552)
(18)
Share-based payments
-
(919)
Operating lease charges
137,298
133,433
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
31,770
31,000
6
Employees

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

2024
2023
Number
Number
79
86

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,724,892
3,489,292
Social security costs
345,215
344,552
Pension costs
60,816
67,903
4,130,923
3,901,747
NOVOGENE (UK) COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
160,646
21,636
Interest receivable from group companies
53,958
-
0
Total interest revenue
214,604
21,636
Income from fixed asset investments
Income from other fixed asset investments
1,243,149
1,116,891
Total income
1,457,753
1,138,527
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
214,604
21,636
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
752,383
125,198
Deferred tax
Origination and reversal of timing differences
(196,610)
173,629
Total tax charge
555,773
298,827
NOVOGENE (UK) COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
8
Taxation
(Continued)
- 22 -

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

2024
2023
£
£
Profit before taxation
2,225,687
1,221,171
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
556,422
287,219
Tax effect of expenses that are not deductible in determining taxable profit
286,080
330,857
Tax effect of income not taxable in determining taxable profit
(40,622)
-
0
Effect of change in corporation tax rate
-
0
(189)
Permanent capital allowances in excess of depreciation
(49,497)
(492,408)
Share based payment charge
-
0
(216)
Deferred tax
(196,610)
173,564
Taxation charge for the year
555,773
298,827
9
Dividends
2024
2023
£
£
Final paid
-
0
3,459,159
NOVOGENE (UK) COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
10
Tangible fixed assets
Plant and equipment
Computers
Total
£
£
£
Cost
At 1 January 2024
7,264,817
222,911
7,487,728
Additions
55,616
651
56,267
Disposals
(51,645)
-
0
(51,645)
At 31 December 2024
7,268,788
223,562
7,492,350
Depreciation and impairment
At 1 January 2024
3,688,818
176,724
3,865,542
Depreciation charged in the year
1,079,299
24,827
1,104,126
Eliminated in respect of disposals
(20,949)
-
0
(20,949)
At 31 December 2024
4,747,168
201,551
4,948,719
Carrying amount
At 31 December 2024
2,521,620
22,011
2,543,631
At 31 December 2023
3,575,999
46,187
3,622,186
11
Financial instruments
2024
2023
£
£
Carrying amount of financial assets include:
Instruments measured at fair value through profit or loss
34,559,111
30,522,862
12
Stocks
2024
2023
£
£
Raw materials and consumables
799,579
818,227
Work in progress
698,604
677,562
1,498,183
1,495,789
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,401,043
1,646,078
Corporation tax recoverable
-
0
233,252
Amounts owed by group undertakings
2,713,262
599,245
Other debtors
253,906
520,697
Prepayments and accrued income
622,143
878,584
4,990,354
3,877,856
NOVOGENE (UK) COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
13
Debtors
(Continued)
- 24 -

All amounts owed by group undertakings are unsecured, interest free and repayable on demand.

14
Current asset investments
2024
2023
£
£
Unlisted investments
34,559,111
30,522,862

The company’s investments comprise funds held within an asset management portfolio administered by a third-party asset management company. The funds are placed in the money market on a short-term basis. Related investment income arises primarily from interest received, with no fair value gains/losses applicable.

15
Creditors: amounts falling due within one year
2024
2023
£
£
Payments received on account
20,634,884
18,841,347
Trade creditors
1,197,509
1,260,264
Amounts owed to group undertakings
16,263,661
17,664,525
Corporation tax
91,534
-
0
Other creditors
286,108
234,314
Accruals and deferred income
54,981
42,426
38,528,677
38,042,876

All amounts owed to group undertakings are unsecured, interest free and payable on demand.

16
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
433,249
732,940
Other timing differences
27,460
(75,621)
460,709
657,319
NOVOGENE (UK) COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
16
Deferred taxation
(Continued)
- 25 -
2024
Movements in the year:
£
Liability at 1 January 2024
657,319
Credit to profit or loss
(196,610)
Liability at 31 December 2024
460,709

Short term timing differences set out above are expected to reverse within 12 months. Accelerated capital allowances are expected to reverse within 12 months to 60 months.

17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
60,816
67,903

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.

18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2,959,315
2,959,315
2,959,315
2,959,315

There is a single class of Ordinary shares, all of which have full rights in the company with respect to voting, dividends and capital distributions.

19
Operating lease commitments
Lessee

Minimum lease payments under non-cancellable operating leases fall due as follows:

2024
2023
£
£
Within one year
237,280
397,280
Between two and five years
-
0
237,280
237,280
634,560
NOVOGENE (UK) COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 26 -
20
Related party transactions
2024
2023
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
10,260,289
14,719,869
Other related parties
6,003,372
2,944,656

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
51,771
41,892
Other related parties
2,661,491
557,353
Other information

The company has taken advantage of the exemption under FRS 102, para 33.1A, stating that details need not be given in respect of transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly-owned by such a member.

21
Ultimate controlling party

The ultimate controlling party is R Li.

 

The company's immediate parent is Novogene (NL) International Holding B.V, a company incorporated in Netherlands.

 

The ultimate parent company is Novogene Co. Ltd, a company incorporated in P.R. China. The largest and smallest group into which the result of the company are consolidated is headed by Novogene Co. Ltd, the consolidated financial statements are available from: Building 301, Zone A10 Jiuxianqiao North Road, Chaoyang District, Beijing, P.R, China.

 

 

 

 

 

 

 

 

 

 

 

NOVOGENE (UK) COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 27 -
22
Cash generated from/(absorbed by) operations
2024
2023
£
£
Profit after taxation
1,669,914
922,344
Adjustments for:
Taxation charged
555,773
298,827
Investment income
(1,457,753)
(1,138,527)
Gain on disposal of tangible fixed assets
(2,552)
(18)
Depreciation and impairment of tangible fixed assets
1,104,126
1,097,049
Equity settled share based payment expense
-
(919)
Movements in working capital:
Increase in stocks
(2,394)
(63,768)
Increase in debtors
(1,345,750)
(1,259,530)
Increase/(decrease) in creditors
394,267
(1,597,064)
Cash generated from/(absorbed by) operations
915,631
(1,741,606)
23
Analysis of changes in net funds
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
5,179,222
(2,113,481)
3,065,741
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