wk-2024-12-28-ixbrl

Charles River U.K. Limited

Strategic report

The directors present their strategic report on the Company for the 52 week period ended 28 December 2024.

Principal activities

The principal activity of the Company is the breeding and sale of research animals and services for use in

biomedical and scientific research.

Business performance and future outlook

The turnover for the financial period was £23,430,000 (2023: £21,133,000 ). The profit for the period amounted

to £15,320,000 (2023: £12,430,000). An interim dividend of £2,500,000 was paid during the period (2023:

£5,500,000). The directors do not recommend the payment of a final dividend in respect of the period (2023:

£nil).

During the period the Company increased turnover by 10.9% as the result of general business growth and

increased operations. Gross profit margins increased from 39.3% to 39.5% as explained in the key performance

indicators. Operating profit margins decreased from 8.6% to 4.2% mainly driven by increased overheads,

however, due to income received from group undertakings, net profit margins increased from 58.8% to 65.4%.

Employee numbers increased to 125 (2023: 124) reflecting the Company's ability to manage costs in a growing

market environment.. At the end of the period the Company had net current liabilities of £11,391,000 (2023:

£10,433,000) and a strong net assets position of £90,450,000 (2023: £77,297,000).

The Company commences 2025 with a detailed plan to challenge for growth in its mature market, through

consolidating its strategic partnerships and alliances with the leading commercial and academic customers. The

directors have carefully considered the impact to the business of current market conditions and through a tailored

approach, involving strategic investment, believe the business is best placed to take advantage of its position for

growth when the market strengthens. In reaching this conclusion, the directors have considered all available

information, including extensive analysis of the impact on the business during 2024, latest forecast results for

2025, overall expected impact to the market sector in which the Company operates, and the global economy in

general.

Principal risks and uncertainties

Economic and industry risk

The key economic and industrial risks facing the Company are considered to be the level of research and

development activity undertaken by existing and potential customers, as well as the outsourcing policies of these

customers. These risks are managed by working across the pharmaceutical sectors, as well as active sales

programs, client engagement and monitoring of concentration of turnover.

Financial risk management

The Company’s activities expose it to a number of financial risks including cash flow risk, credit risk, liquidity risk

and price risk. The Company does not currently use derivative financial instruments.

Cash flow risk

The Company’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates,

as the Company make sales in US Dollars and Euros. To manage this risk, the Company makes purchases in US

Dollars and Euros, where possible.

Credit risk

The Company’s principal financial assets are bank balances and cash and trade and other debtors and amounts

owed from group undertakings.

The Company’s credit risk is primarily attributable to its trade debtors. The amounts presented in the balance

sheet are net of provisions for doubtful debts. A provision for impairment is made where there is an identified loss

event which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows.

The credit risk on liquid funds and financial instruments is limited because the counterparties are banks with high

credit-ratings assigned by international credit-rating agencies.

The Company has no significant concentration of credit risk, with exposure spread over a large number of

counterparties and customers.

Charles River U.K. Limited

Strategic report (continued)

Liquidity risk

There is a level of uncertainty in the global market as a result of the current macroeconomic climate, which can

give rise to difficulty in accessing liquidity from third parties.

In order to maintain liquidity to ensure that sufficient funds are available for ongoing operations and future

developments, the Company uses a mixture of long-term and short-term inter-company finance.

Price risk

The Company is not exposed to any significant price risk.

Key performance indicators (“KPIs”)

The financial key performance indicators that the directors consider to be important in monitoring the success of

the business are as follows:


	2024	2023
	£’000	£’000
Revenue per head	187	170

Revenue per head is calculated against total average employees throughout the period. Proportionately, there

has been an increase from the prior period which has been driven by the change in turnover outweighing the

change in staff levels.


	2024	2023
	%	%
Gross margin	39.5	39.3

The gross margin improved from the prior period due to changes in the cost base and revenue mix. This is

calculated by dividing the gross profit by the turnover for the period.


	2024	2023
	Days	Days
Debtor days	35	42

Debtor days are calculated by considering the trade debtors balance at period end against the turnover for the

period. This is actively managed on a day to day basis. Debtor days have decreased compared to the prior

period, and there are no concerns over the recoverability of debtors held at the balance sheet date.

Approved by the Board on 31 March 2025 and signed on its behalf on 3 April 2025 by:

Colin Dunn

C Dunn

Director

Charles River U.K. Limited

Directors’ report for the period ended 28 December 2024

The directors present their report and the audited financial statements of the Company for the 52 week period

ended 28 December 2024. The comparative period is the 52 week period ended 30 December 2023. The

registered number of the Company is 00950184.

Directors

The directors who held office during the financial period and up to the date of signing the financial statements are

as follows:

S Price (Resigned 30 June 2024)

C Dunn

J Galli (Appointed 26 July 2024)

S Amini (Appointed 26 July 2024)

Dividends

An interim dividend of £0.23 per ordinary share (2023 - £0.51) amounting to £2,500,000 (2023 - £5,500,000) was

paid during the period. The directors do not recommend the payment of a final dividend in respect of the period

to the shareholder, Charles River Laboratories Holdings Limited (2023 - £nil).

Business performance, future outlook and principal risks and uncertainties

The results for the period are set out in the Profit and loss account on page 10. The results for the period, future

developments and principal risks and uncertainties have been discussed in the Strategic report presented on

pages 2 to 3.

Going concern

The directors have prepared a cash flow forecast which shows that they expect the Company to be able to meet

its operating obligations from available cash resources and the group's European cash pooling system as they

fall due.

The forecast includes a number of assumptions; however, based on the directors’ knowledge of the business,

they consider that the assumptions which underpin the forecast are realistic and achievable. As discussed in the

Strategic report, the business continues to forecast positive performance trends throughout 2025 and beyond.

As at 28 December 2024, the Company had net current liabilities of £11,391,000 (2023 - £10,433,000) and a

net cash balance of £nil (2023 - £1,952,000).

The parent entity's European cash pooling system clears the Company's primary bank account to nil balance on

a daily basis and replaces it with an intercompany receivable or payable. The Directors have received

confirmation from Charles River Laboratories International, Inc., the ultimate parent entity, that it will provide

financial support as required for the Company to meet its financial obligations as they fall due for at least twelve

months from the date of signing these financial statements.

Based on all of the available evidence, the directors have considered the intent and ability of Charles River

Laboratories International, Inc. to provide financial support as required, noting no issues, and consequently have

a reasonable expectation that the Company has adequate financial resources to continue in existence for the

foreseeable future. In conclusion, they continue to adopt the going concern basis in preparing these financial

statements.

Financial risk management

Financial risks and the management of these risks have been discussed in the Strategic report presented on

pages 2 to 3 .

Directors’ indemnities

The Company has made qualifying third-party indemnity provisions for the benefit of its directors which were

made during the period and remain in force at the date of this report.

Charles River U.K. Limited

Directors’ report for the period ended 28 December 2024 (continued)

Disabled employees

The Company is committed to employment policies which allow best practice, based on equal opportunities for all

employees, irrespective of sex, race, color, disability or marital status.

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the

applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their

employment with the group continues and that appropriate training is arranged. It is the policy of the group that

the training, career development and promotion of disabled persons should, as far as possible, be identical with

that of other employees.

Employee involvement

The Company remains committed to its quality management programme which involves all staff in seeking to

continuously improve the services offered to sponsors. Staff share in the success of the group through bonus

arrangements. Staff training and development have continued to be emphasised through the availability of

extensive in-house training courses and through performance appraisal systems.

The Company communicates with its employees on all matters relevant to them through a variety of media.

These include all hands meetings, departmental meetings and one to one feedback, as well as a dedicated

intranet site and message boards. The key information provided to staff includes financial performance of the

group and its ultimate parent company, regulatory and quality issues and performance improvement initiatives.

Statement of directors’ responsibilities

The directors are responsible for preparing the Annual report and financial statements in accordance with

applicable law and regulation.

Company law requires the directors to prepare financial statements for each financial period. Under that law the

directors have prepared the financial statements in accordance with United Kingdom Generally Accepted

Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting

Standard 102, “The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102)”.

Under company law the directors must not approve the financial statements unless they are satisfied that they

give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that

period. In preparing these financial statements, the directors are required to:

• Select suitable accounting policies and then apply them consistently.

• State whether applicable United Kingdom Accounting Standards, comprising FRS 102, have been

followed, subject to any material departures disclosed and explained in the financial statements.

• Make judgments and accounting estimates that are reasonable and prudent.

• Prepare the financial statements on the going concern basis unless it is inappropriate to presume that

the company will continue in business.

The directors are also responsible for safeguarding the assets of the Company and hence for taking reasonable

steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the

Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Company

and enable them to ensure that the financial statements comply with the Companies Act 2006.

Directors’ confirmations

In the case of each director in office at the date the Directors’ report is approved.

• So far as the director is aware, there is no relevant audit information of which the company’s auditors

are unaware.

• They have taken all the steps that they ought to have taken as a director in order to make themselves

aware of any relevant audit information and to establish that the company’s auditors are aware of that

information.

Charles River U.K. Limited

Directors’ report for the period ended 28 December 2024 (continued)

Independent auditors

The auditors, PricewaterhouseCoopers LLP have indicated their willingness to continue in office and a resolution

concerning their re-appointment will be proposed at the annual general meeting.

Approved by the Board on 31 March 2025 and signed on its behalf on 3 April 2025 by:

Colin Dunn

C Dunn

Director

Charles River U.K. Limited

Independent auditors’ report to the

members of Charles River U.K. Limited

Report on the audit of the financial statements

Opinion

In our opinion, Charles River U.K. Limited’s financial statements:

• give a true and fair view of the state of the company’s affairs as at 28 December 2024 and of its profit for the

52 week period then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice

(United Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in

the UK and Republic of Ireland”, and applicable law); and

• have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements, included within the Annual Report, which comprise: the Balance sheet

as at 28 December 2024 the Profit and loss account, Statement of comprehensive income and Statement of

changes in equity for the period then ended; and the notes to the financial statements, which include a

description of the significant accounting policies.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable

law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the

financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and

appropriate to provide a basis for our opinion.

Independence

We remained independent of the company in accordance with the ethical requirements that are relevant to our

audit of the financial statements in the UK, which includes the FRC’s Ethical Standard, and we have fulfilled our

other ethical responsibilities in accordance with these requirements.

Conclusions relating to going concern

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.

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.

However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to

the company's ability to continue as a going concern.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the

relevant sections of this report.

Reporting on other information

The other information comprises all of the information in the Annual Report other than the financial statements

and our auditors’ report thereon. The directors are responsible for the other information. Our opinion on the

financial statements does not cover the other information and, accordingly, we do not express an audit opinion or,

except to the extent otherwise explicitly stated in this report, any form of assurance thereon.

In connection with our audit of the financial statements, 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

Charles River U.K. Limited

knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent

material inconsistency or material misstatement, we are required to perform procedures to conclude whether

there is a material misstatement of the financial statements or a material misstatement of the other information. 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 based on these responsibilities.

With respect to the Strategic report and Directors' report, we also considered whether the disclosures required by

the UK Companies Act 2006 have been included.

Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report

certain opinions and matters as described below.

Strategic report and Directors' report

In our opinion, based on the work undertaken in the course of the audit, the information given in the Strategic

report and Directors' report for the period ended 28 December 2024 is consistent with the financial statements

and has been prepared in accordance with applicable legal requirements.

In light of the knowledge and understanding of the company and its environment obtained in the course of the

audit, we did not identify any material misstatements in the Strategic report and Directors' report.

Responsibilities for the financial statements and the audit

Responsibilities of the directors for the financial statements

As explained more fully in the Statement of directors’ responsibilities, the directors are responsible for the

preparation of the financial statements in accordance with the applicable framework and for being satisfied that

they give a true and fair view. The directors are also responsible for such internal control as they 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.

Auditors’ responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free

from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our

opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in

accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise

from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be

expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures

in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities,

including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is

detailed below.

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance

with laws and regulations related to tax legislation and the Companies Act 2006, and we considered the extent to

which non-compliance might have a material effect on the financial statements. We evaluated management’s

incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override

of controls), and determined that the principal risks were related to the posting of inappropriate journal entries in

order to improve reported performance.

Charles River U.K. Limited

Audit procedures performed by the engagement team included:

• Enquiries of management and individuals outside the finance function around known or suspected instances

of non- compliance with laws and regulations, claims and litigation and instances of fraud;

• Identifying and testing journal entries, including those with unexpected accounts combinations impacting

revenue;

• Understanding of managements controls designed to prevent and detect irregularities; and

• Challenged management on assumptions and judgements made in their accounting estimates

There are inherent limitations in the audit procedures described above. We are less likely to become aware of

instances of non-compliance with laws and regulations that are not closely related to events and transactions

reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher

than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for

example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s

website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.

Use of this report

This report, including the opinions, has been prepared for and only for the company’s members as a body in

accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving

these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report

is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Other required reporting

Companies Act 2006 exception reporting

Under the Companies Act 2006 we are required to report to you if, in our opinion:

• we have not obtained all the information and explanations we require for our audit; or

• adequate accounting records have not been kept by the company, or returns adequate for our audit have not

been received from branches not visited by us; or

• certain disclosures of directors’ remuneration specified by law are not made; or

• the financial statements are not in agreement with the accounting records and returns.

We have no exceptions to report arising from this responsibility.

Other matter

The company has passed a resolution in accordance with section 506 of the Companies Act 2006 that the senior

statutory auditor’s name should not be stated.

PricewaterhouseCoopers LLP

Chartered Accountants and Statutory Auditors

Edinburgh

3 April 2025

Charles River U.K. Limited

Profit and loss account


	Notes	Period ended 28 December 2024	Period ended 30 December 2023
		£'000	£'000
Turnover	5	23,430	21,133
Cost of sales		(14,174)	(12,836)
Gross profit		9,256	8,297
Administrative expenses		(8,792)	(7,289)
Other operating income		527	801
Operating profit	6	991	1,809
Income from shares in group undertakings	12	15,739	10,987
Profit before interest and taxation		16,730	12,796
Interest receivable and similar income	9	94	416
Interest payable and similar expenses	9	(163)	(191)
Profit before taxation		16,661	13,021
Tax on profit	10	(1,341)	(591)
Profit for the financial period		15,320	12,430

Statement of comprehensive income


	Period ended 28 December 2024	Period ended 30 December 2023
	£'000	£'000
Profit for the financial period	15,320	12,430
Other comprehensive income	-	-
Total comprehensive income for the financial period	15,320	12,430

The above results relate entirely to continuing activities.

The notes on pages 13 to 31 form part of these financial statements.

Charles River U.K. Limited

Balance sheet


	Notes	As at 28 December 2024	As at 30 December 2023
		£'000	£'000
Fixed assets
Tangible assets	11	3,048	2,703
Investments	12	98,793	89,212
		101,841	91,915
Current assets
Inventories	13	2,353	2,458
Debtors	14	5,654	2,974
Cash at bank and in hand	15	-	1,952
		8,007	7,384

Creditors: amounts falling due within one year	16	(19,398)	(17,817)
Net current liabilities		(11,391)	(10,433)
Total assets less current liabilities		90,450	81,482
Creditors: amounts falling due after more than one year	18	-	(4,107)
Provisions for liabilities	19	-	(78)
Net assets		90,450	77,297

Capital and reserves
Called-up share capital	20	10,749	10,749
Capital contribution		9,600	9,600
Retained earnings		70,101	56,948
Total equity		90,450	77,297

The financial statements on pages 10 to 31 were authorised for issue by the Board of directors on 31 March 2025

and were signed on its behalf on 3 April 2025 by:

Colin Dunn

C Dunn

Director

Charles River U.K. Limited

Registered no. 00950184

Charles River U.K. Limited

Statement of changes in equity

For the period ended 28 December 2024


	Called up share capital	Capital contribution	Retained earnings	Total
	£'000	£'000	£'000	£'000
Balance as at 1 January 2023	10,749	9,600	50,236	70,585
Profit for the financial period	-	-	12,430	12,430
Total comprehensive income for the period	-	-	12,430	12,430
Charge to equity for share-based payments	-	-	(218)	(218)
Dividends	-	-	(5,500)	(5,500)
Total transactions with owners, recognised directly in equity	-	-	(5,718)	(5,718)
Balance as at 30 December 2023	10,749	9,600	56,948	77,297
Profit for the financial period	-	-	15,320	15,320
Total comprehensive income for the period	-	-	15,320	15,320
Charge to equity for share-based payments	-	-	333	333
Dividends	-	-	(2,500)	(2,500)
Total transactions with owners, recognised directly in equity	-	-	(2,167)	(2,167)
Balance as at 28 December 2024	10,749	9,600	70,101	90,450

Charles River U.K. Limited

Notes to the financial statements

Period ended 28 December 2024

1. General information

Charles River U.K. Limited (the “Company”) is a private Company limited by shares and is incorporated in the

United Kingdom and registered in England. The address of its registered office is Manston Road, Margate , Kent,

CT9 4LT.

The principal activity of the Company is the breeding and sale of research animals and services for use in

biomedical and scientific research.

2. Statement of compliance

The individual financial statements of Charles River U.K. Limited have been prepared in compliance with United

Kingdom Accounting Standards, including Financial Reporting Standard 102, ‘‘The Financial Reporting Standard

applicable in the United Kingdom and the Republic of Ireland’’ (‘‘FRS 102’’) and the Companies Act 2006.

3. Summary of significant accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These

policies have been consistently applied to all the periods presented, unless otherwise stated. The Company has

adopted FRS 102 in these financial statements.

a. Basis of preparation

These financial statements cover the 52 week period beginning 31 December 2023 and ending 28 December

2024 . The comparative reporting period covered the 52 week period beginning 1 January 2023 and ending

30 December 2023.

These financial statements are prepared on the going concern basis, under the historical cost convention, as

modified by the revaluation of certain financial assets and liabilities measured at fair value throughout the profit

and loss account.

The preparation of financial statements in conformity with FRS 102 requires the use of certain critical accounting

estimates. It also requires management to exercise its judgement in the process of applying the Company’s

accounting policies. The areas involving a higher degree of judgement or complexity, or areas where

assumptions and estimates are significant to the financial statements are disclosed in note 4.

b. Going concern

The directors have prepared a cash flow forecast which shows that they expect the Company to be able to meet

its operating obligations from available cash resources and the group's European cash pooling system as they

fall due.

The forecast includes a number of assumptions; however, based on the directors’ knowledge of the business and

the Company’s track record of successfully achieving its targets, they consider that the assumptions which

underpin the forecast are realistic and achievable. As discussed in the Directors' report, the parent entity's

European cash pooling system clears the Company's primary bank account to nil balance on a daily basis and

replaces it with an intercompany receivable or payable. The Directors have received confirmation from Charles

River Laboratories International, Inc. it's ultimate parent entity, that it will provide financial support as required for

the Company to meet its financial obligations as they fall due for at least twelve months from the date of signing

these financial statements

Based on all of the available evidence, the directors have considered the intent and ability of Charles River

Laboratories International, Inc. to provide financial support as required, noting no issues, and consequently have

a reasonable expectation that the Company has adequate financial resources to continue in existence for the

foreseeable future. In conclusion, they continue to adopt the going concern basis in preparing these financial

statements.

Charles River U.K. Limited

Notes to the financial statements

Period ended 28 December 2024

3. Summary of significant accounting policies (continued)

c. Exemptions for qualifying entities under FRS 102

FRS 102 allows a qualifying entity certain disclosure exemptions, if certain conditions, have been complied with,

including notification of and no objection to, the use of exemptions by the Company’s shareholders. A qualifying

entity is defined as a member of a Group that prepares publicly available financial statements, which give a true

and fair view, in which that member is consolidated. The Company is a qualifying entity as its results are

consolidated into the financial statements of Charles River Laboratories International, Inc. which are publicly

available.

As a qualifying entity, the Company has taken advantage of the following exemptions in its separate financial

statements:

i) from the requirement to prepare a statement of cash flows as required by paragraph 3.17(d) of FRS 102;;

ii) from the requirement to present certain financial instrument disclosures, as required by sections 11 and 12 of

FRS 102;

iii) from disclosing share-based payment arrangements, required by paragraphs 26.18(b), 26.19 to 26.21 and

26.23 of FRS 102, concerning its own equity instruments;

iv) from the requirement to present a reconciliation of the number of shares outstanding at the beginning and

end of the period as required by paragraph 4.12(a)(iv) of FRS 102; and

v) from the requirement to disclose the key management personnel compensation in total as required by

paragraph 33.7 of FRS 102.

d. Consolidated financial statements

The Company is a wholly owned (indirect) subsidiary of Charles River Laboratories International, Inc. It is

included in the consolidated financial statements of Charles River Laboratories International, Inc. which are

publicly available. Therefore, the Company is exempt by virtue of section 401 of the Companies Act 2006 from

the requirement to prepare consolidated financial statements.

These financial statements are the Company’s separate financial statements.

e. Foreign currency

i) Functional and presentation currency

The Company’s functional and presentation currency is the pound sterling.

ii) Transactions and balances

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

dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items

measured at historical cost are translated using the exchange rate at the date of the transaction and non-

monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at

period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in

the profit and loss account.

Foreign exchange gains and losses that relate to borrowings are presented in the profit and loss account within

‘finance (expense) / income’. All other foreign exchange gains and losses are presented in the profit and loss

account within ‘other operating (losses) / gains’.

Charles River U.K. Limited

Notes to the financial statements

Period ended 28 December 2024

3. Summary of significant accounting policies (continued)

f. Revenue recognition

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 company recognises revenue when (a) the significant risks and rewards of ownership have been transferred

to the buyer, (b) the company retains no continuing involvement or control over the goods, (c) the amount of

revenue can be measured reliably, (d) it is probable that future economic benefits will flow to the entity and (e)

when the specific criteria relating to the each of company’s sales channels have been met, as described below.

i) Sale of services

The Company provides contract breeding and research services to its customers in exchange for a fee. Revenue

on such contracts is recognised as the services are rendered.

ii) Sale of goods

The revenue is generated from the breeding and sale of research animals for the use in biomedical research.

Revenue is recognised when the goods have been accepted by the customer and the right to consideration has

been earned. Delivery occurs when the goods have been accepted by the customer in accordance with the sales

contract.

g. Exceptional items

Exceptional items are disclosed separately in the financial statements where it is necessary to do so to provide

further understanding of the financial performance of the company. They are items that are material either

because of their size or their nature, and are considered non-recurring. These items are presented within the line

items to which they best relate and reported separately as exceptional items.

h. Employee benefits

The Company provides a range of benefits to employees, including annual bonus arrangements, paid holiday

arrangements and defined contribution pension plans.

i) Short term benefits

Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense

in the period in which the service is received.

ii) Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension

plan under which the company pays fixed contributions into a separate entity. Once the contributions have been

paid the company has no further payment obligations. The contributions are recognised as an expense when

they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held

separately from the company in independently administered funds.

iii) Annual bonus plan

The Company operates an annual bonus plan for eligible employees. An expense is recognised in the profit and

loss account when the Company has a legal or constructive obligation to make payments under the plan as a

result of past events and a reliable estimate of the obligation can be made.

Charles River U.K. Limited

Notes to the financial statements

Period ended 28 December 2024

3. Summary of significant accounting policies (continued)

h. Employee benefits (continued)

iii) Share-based payments

The Company participates in equity-settled, share-based compensation plans operated by Charles River

Laboratories International, Inc. (Note 8). The equity-settled arrangements are measured at fair value (excluding

the effect of non-market based vesting conditions) at the date of the grant. The fair value is expensed on a

straight-line basis over the vesting period. The amount recognised as an expense is adjusted to reflect the actual

number of shares or options that will vest.

The intrinsic value of options exercised during the period is invoiced to the Company by Charles River

Laboratories International, Inc. Any differences between the intrinsic value and the expense recognised in the

Profit and loss account for the period, are recognised as a debit or credit to the share-based payment reserve

within shareholders’ funds, and are shown in the statement of changes in equity.

National Insurance Contributions (NIC) payable by the Company on the exercise of share options, are provided

for based on the intrinsic value of these options and the prevailing rate of NIC at the balance sheet date.

i. Taxation

Taxation expense for the period comprises current and deferred tax recognised in the reporting period. Tax is

recognised in the profit and loss account, except to the extent that it relates to items recognised in other

comprehensive income or directly in equity. In this case tax is also recognised in other comprehensive income or

directly in equity respectively.

The Government enacted the R&D expenditure credit (“RDEC”) tax relief from 1 April 2013 and the Company

entered the scheme on this date. The Company has treated the RDEC as grant income within the financial

statements.

Current or deferred taxation assets and liabilities are not discounted.

i) Current tax

Current tax is the amount of income tax payable in respect of the taxable profit for the period or prior periods. Tax

is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the period

end.

ii) Deferred tax

Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive

income as stated in the financial statements. These timing differences arise from the inclusion of income and

expenses in tax assessments in periods different from those in which they are recognised in financial statements.

Deferred tax is recognised on all timing differences at the reporting date except for certain exceptions. Unrelieved

tax losses and other deferred tax assets are only recognised when it is probable that they will be recovered

against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using tax

rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply

to the reversal of the timing difference.

j. Tangible assets

Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost

includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its

intended use, dismantling and restoration costs and borrowing costs capitalised.

i) Short leasehold improvements

These include industrial premises and offices, and are stated at cost less accumulated depreciation and

accumulated impairment losses.

ii) Office equipment, fixtures and fittings, and laboratory equipment

These are stated at cost less accumulated depreciation and accumulated impairment losses.

ii i ) Depreciation and residual values

Land is not depreciated. Depreciation on other assets is calculated, using the straight-line method, to allocate the

cost to their residual values over their estimated useful lives, as follows:

Charles River U.K. Limited

Notes to the financial statements

Period ended 28 December 2024

3. Summary of significant accounting policies (continued)

j. Tangible assets (continued)


Freehold land and buildings	10 to 30 years
Motor vehicles	2 to 5 years
Plant and machinery	4 to 15 years

The assets’ residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each

reporting period. The effect of any change is accounted for prospectively.

iv) Subsequent additions and major components

Subsequent costs, including major inspections, are included in the assets carrying amount or recognised as a

separate asset, as appropriate, only when it is probable that economic benefits associated with the item will flow

to the company and the cost can be measured reliably.

The carrying amount of any replaced component is derecognised. Major components are treated as a separate

asset where they have significantly different patterns of consumption of economic benefits and are depreciated

separately over its useful life.

Repairs, maintenance and minor inspection costs are expensed as incurred.

v) Assets in the course of construction

Assets in the course of construction are stated at cost. These assets are not depreciated until they are available

for use and are reviewed for impairment at each reporting date.

vi) Derecognition

Tangible assets are derecognised on disposal or when no future economic benefits are expected. On disposal,

the difference between the net disposal proceeds and the carrying amount is recognised in the profit and loss

account.

k. Borrowing costs

General and specific borrowing costs directly attributable to the acquisition, construction or production of

qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their

intended use, are capitalised and added to the cost of those assets until such time as the assets are substantially

ready for their intended use. All other borrowing costs are recognised in the profit and loss account in the period

in which they are incurred.

Charles River U.K. Limited

Notes to the financial statements

Period ended 28 December 2024

3. Summary of significant accounting policies (continued)

l. Leased assets

At inception the Company assesses agreements that transfer the right to use assets. The assessment considers

whether the arrangement is, or contains, a lease based on the substance of the arrangement.

i) Finance leased assets

Leases of assets that transfer substantially all the risks and rewards incidental to ownership are classified as

finance leases.

Finance leases are capitalised at commencement of the lease as assets at the fair value of the leased asset or, if

lower, the present value of the minimum lease payments calculated using the interest rate implicit in the lease.

Where the implicit rate cannot be determined the company’s incremental borrowing rate is used.

Incremental direct costs, incurred in negotiating and arranging the lease, are included in the cost of the asset.

Assets are depreciated over the shorter of the lease term and the estimated useful life of the asset. Assets are

assessed for impairment at each reporting date.

The capital element of lease obligations is recorded as a liability on inception of the arrangement. Lease

payments are apportioned between capital repayment and finance charge, using the effective interest rate

method, to produce a constant rate of charge on the balance of the capital repayments outstanding.

ii) Operating leased assets

Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments

under operating leases are charged to the profit and loss account on a straight-line basis over the period of the

lease.

iii) Lease incentives

Incentives received to enter into a finance lease reduce the fair value of the asset and are included in the

calculation of present value of minimum lease payments.

Incentives received to enter into an operating lease are credited to the profit and loss account, to reduce the

lease expense, on a straight line basis over the period of the lease.

m. Impairment of non-financial assets

At each balance sheet date, non-financial assets not carried at fair value are assessed to determine whether

there is an indication that the asset may be impaired. If there is such an indication the recoverable amount of the

asset is compared to the carrying amount of the asset.

The recoverable amount of the asset is the higher of the fair value less costs to sell and value in use. Value in

use is defined as the present value of the future cash flows before interest and tax obtainable as a result of the

asset’s continued use. These cash flows are discounted using a pre-tax discount rate that represents the current

market risk-free rate and the risks inherent in the asset.

If the recoverable amount of the asset is estimated to be lower than the carrying amount, the carrying amount is

reduced to its recoverable amount. An impairment loss is recognised in the profit and loss account, unless the

asset has been revalued when the amount is recognised in other comprehensive income to the extent of any

previously recognised revaluation. Thereafter any excess is recognised in the profit and loss account.

If an impairment loss is subsequently reversed, the carrying amount of the asset is increased to the revised

estimate of its recoverable amount, but only to the extent that the revised carrying amount does not exceed the

carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised

in prior periods. A reversal of an impairment loss is recognised in the profit and loss account.

Charles River U.K. Limited

Notes to the financial statements

Period ended 28 December 2024

3. Summary of significant accounting policies (continued)

n . Investments

Investments in subsidiary undertakings are held at cost less accumulated impairment losses.

o. Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Inventories

are recognised as an expense in the period in which the related revenue is recognised.

Live-stock inventories are valued at the lower of cost and estimated selling price less costs to complete and sell

by applying an adjustment, relative to the type and age of stocks, to reflect any early deaths or future

obsolescence.

p. Cash and cash equivalents

Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short term highly liquid

investments with original maturities of three months or less and bank overdrafts. Bank overdrafts are shown

within borrowings in current liabilities.

q. Provisions and contingencies

i) Provisions

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past

events; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the

obligation can be estimated reliably.

Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is

determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of

an outflow with respect to any one item included in the same class of obligations may be small.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation

using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to

the obligation. The increase in the provision due to passage of time is recognised as a finance cost.

ii) Contingencies

Contingent liabilities are not recognised. Contingent liabilities arise as a result of past events when (i) it is not

probable that there will be an outflow of resources or that the amount cannot be reliably measured at the

reporting date or (ii) when the existence will be confirmed by the occurrence or non-occurrence of uncertain

future events not wholly within the Company’s control. Contingent liabilities are disclosed in the financial

statements unless the probability of an outflow of resources is remote.

Contingent assets are not recognised. Contingent assets are disclosed in the financial statements when an inflow

of economic benefits is probable.

Charles River U.K. Limited

Notes to the financial statements

Period ended 28 December 2024

3. Summary of significant accounting policies (continued)

r. Financial instruments

The Company has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments.

i) Financial assets

Basic financial assets, including trade and other receivables, cash and bank balances and investments in

commercial paper, are initially recognised at transaction price, 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.

Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective

evidence of impairment. 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 the profit and loss account.

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 the profit and loss account.

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.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are

settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party

or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the

asset to an unrelated third party without imposing additional restrictions.

ii) Financial liabilities

Basic financial liabilities, including trade and other creditors, bank loans and loans from fellow group

undertakings, 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 receipts 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. Accounts 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 payables are recognised initially at transaction

price and subsequently measured at amortised cost using the effective interest method.

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 they are included in a hedging arrangement.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is

discharged, cancelled or expires.

iii) Offsetting

Financial assets and liabilities are offset and 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.

Charles River U.K. Limited

Notes to the financial statements

Period ended 28 December 2024

3. Summary of significant accounting policies (continued)

s. Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary

shares or options are shown in equity as a deduction, net of tax, from the proceeds.

t. Distributions to equity holders

Dividends and other distributions to the Company’s shareholders are recognised as a liability in the financial

statements in the period in which the dividends and other distributions are approved by the Company’s

shareholders. These amounts are recognised in the statement of changes in equity.

u. Related party transactions

The Company discloses transactions with related parties which are not wholly owned with the same group. It

does not disclose transactions with its parent or with members of the same group that are wholly owned.

4. Critical accounting judgements and estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and

assumptions that affect the application of the accounting policies and the reported amounts of assets and

liabilities, revenue and expenses. Actual results may differ from these estimates.

Estimates and assumptions are continually evaluated and are based on historical experience and other factors,

including expectations of future events that are believed to be reasonable under the circumstances.

(a) Critical judgement in applying the entity’s accounting policies

The critical judgements, apart from those involving estimates, made by the directors, that had a significant effect

on the amounts recognised in the entity financial statements, are as set out below:

i) Recoverability of debtors

The Company makes a judgement as to whether trade and other debtor balances are recoverable, based on

available evidence such as the age of the debt, historical experience, and debtor correspondence. Any amounts

judged as not recoverable are written off to the profit and loss account in the period that the judgement is

determined. Any amounts previously provided for the impairment of the debt are released from the provision and

credited to the profit and loss account in the same period.

(b) Key accounting estimates and uncertainties

The directors make estimates and assumptions concerning the future in the process of preparing the entity

financial statements. The resulting accounting estimates will, by definition, seldom equal the related actual

results. The estimates and assumptions that have a significant risk of causing a material adjustment to the

carrying amounts of assets and liabilities within the next financial period are addressed below.

i) Useful economic lives of tangible fixed assets

The annual depreciation on tangible fixed assets is sensitive to changes in the estimated useful economic lives

and residual values of the assets. The useful economic lives and residual values are reviewed annually. They

are amended when necessary to reflect current estimates, based on technological advancement, future

investments, economic utilisation and the physical condition of the assets. See note 11 for the carrying amount of

the tangible fixed assets and note 3 for the useful economic lives for each class of tangible fixed assets.

ii) Carrying value of investments

Investments in subsidiary and associate undertakings are recognised at the historical purchase cost, which

consists of the cash consideration, or equivalent, agreed for acquiring the investment plus any directly attributable

expenses and cost of options to purchase the remaining minority shareholdings. Annually, the directors review

each investment and consider if there are any indicators of impairment present. If the review indicates that an

impairment may be necessary, then an assessment is conducted to determine the value in use and the fair value

less costs to sell. If the acquisition cost exceeds the lower of the value in use or the fair value less costs to sell,

an impairment of the investment value is recognised in the income statement, and the capitalised investment cost

is reduced accordingly. See note 12 for detailed information regarding the investments.

iii) Impairment of inventory

The Company analyses its inventory levels on a quarterly basis and writes down inventory that is determined to

be damaged, obsolete or otherwise unmarketable, with a corresponding charge to cost of products sold.

Charles River U.K. Limited

Notes to the financial statements

Period ended 28 December 2024

5. Turnover

The directors are of the opinion that the Company has two classes of business, namely the breeding and sale of

research animals and services for use in biomedical and scientific research. However, the Company provided its

services to customers in a number of geographical areas and its turnover can be summarised as follows:


	2024	2023
Analysis of turnover by geography	£'000	£'000
United Kingdom	20,976	18,949
Europe and Rest of the World	2,454	2,184
	23,430	21,133


	2024	2023*
Analysis of turnover by category	£'000	£'000
Sale of goods	17,602	15,519
Service revenue	5,828	5,614
	23,430	21,133

*2023 turnover has been re-presented to analyse between the different turnover categories. There is no change

to the total turnover presented.

6. Operating profit


	2024	2023
Operating profit is stated after charging/(crediting):	£'000	£'000

Depreciation and amortisation for the period:
- Tangible fixed assets - owned	471	479
Operating lease rentals	373	261
(Recovery of impairment)/Impairment of trade debtors	(12)	-
Loss/(profit) on disposal of tangible fixed assets	128	(2)
Expenses recharged to other group companies	(527)	(801)
Foreign currency exchange loss	-	2

The analysis of auditors’ remuneration is as follows:


	2024	2023
	£'000	£'000
Fees payable to the Company’s auditors for the audit of the Company’s financial statements	82	90
Total audit fees	82	90

Auditors' remuneration relates solely to fees payable for the audit of the company's financial statements. No non-

audit services were provided to the company by the auditors'.

Charles River U.K. Limited

Notes to the financial statements

Period ended 28 December 2024

7. Employee information


	2024	2023
	No.	No.
The average monthly number of employees was:
Production	84	84
Distribution, sales and administration	41	40
	125	124

	2024	2023
	£'000	£'000
Staff costs during the period
Wages and salaries	4,205	3,787
Social security costs	817	677
Other pension costs	388	360
Share option costs	1,260	1,391
	6,670	6,215

Directors' remuneration

The directors remuneration costs are recognised in the accounts of another group undertaking. It is not possible

to identify the portion of time that the directors dedicate to the Company. As a result, no recharge of any costs for

directors services are made to the Company.

At the balance sheet date, one director (2023 - two directors) was a member of a defined contribution pension

plan.

One director remunerated by the Company exercised share warrants in the period (2023 - one).

The Company has made arrangements for its staff to join a group personal pension plan should they wish. The

Company’s contribution to the scheme is fixed and the assets of the scheme are held separately in independently

administered funds. There were no outstanding or prepaid contributions at the balance sheet date.

Charles River U.K. Limited

Notes to the financial statements

Period ended 28 December 2024

8. Share-based payments and share options

The ultimate parent company Charles River Laboratories International, Inc. has stock-based compensation plans

under which employees are granted stock-based awards such as stock options, RSUs, and PSUs.

During the financial periods ended 28 December 2024 and 30 December 2023, the primary share-based awards

and their general terms and conditions are as follows:

• Stock options, which entitle the holder to purchase a specified number of shares of common stock at an

exercise price equal to the closing market price of common stock on the date of grant; typically vest over 4

years; and typically expire 5 or 10 years from date of grant.

• RSUs, which represent an unsecured promise to grant at no cost a set number of shares of common stock

upon the completion of the vesting schedule, and principally vest over 4 years. With respect to RSUs,

recipients are not entitled to cash dividends and have no voting rights on the stock during the vesting period.

• PSUs, which entitle the holder to receive at no cost, a specified number of shares of common stock within a

range of shares from zero to a specified maximum and typically vest over 3 years. Payout of this award is

contingent upon achievement of certain performance and market conditions.

The options are equity settled and the exercise price is the share price at the grant date. The Company accounts

for all share option schemes in accordance with Section 26 of FRS 102 (“Share-based payments”). The fair value

is expensed on a straight-line basis over the vesting period. The amount recognised as an expense is adjusted

to reflect the actual number of shares or options that will vest.

The volatility is based on a statistical analysis of daily share prices over a period equal to the vesting period of the

schemes ending on the day before the grant date for the schemes.


	2024	2023
Volatility	37%	36%
Risk free interest rates	4.40%	3.80%
Expected dividend yield	Nil	Nil
Weighted average remaining contractual life of options outstanding at end of period	6.0 years	6.0 years

The Company is unable to directly measure the fair value of employee services received. Instead, the fair value

of the share options granted during the period is determined using the Black-Scholes model. The model is

internationally recognised as being appropriate to value employee share option schemes similar to the Charles

River Laboratories International, Inc. schemes. In the fair value model it has been assumed that the expected

dividend yield for the share option plan is nil and the estimated life of the share options is 6.0 years (period ended

31 December 2023: 6.0 years).

The Company recognised total expenses of £1,260,000 related to Charles River Laboratories International, Inc.

equity-settled share-based payment transactions in the period ended 28 December 2024 (2023 - £1,391,000).

Charles River U.K. Limited

Notes to the financial statements

Period ended 28 December 2024

9. Net interest payable / receivable

(a) Interest receivable and similar income


	2024	2023
	£'000	£'000
Gains on derivative financial instruments	-	359
Interest receivable from group undertakings	87	57
Bank interest receivable	7	-
Total interest receivable and similar income	94	416

(b) Interest payable and similar expenses


	2024	2023
	£'000	£'000
Interest payable to group undertakings	163	191
Total interest payable and similar expenses	163	191

10. Tax on profit

(a) Analysis of charge for the period


	2024	2023
	£'000	£'000
Current tax:
UK corporation tax	584	11
Adjustment in respect of prior periods	455	-
Foreign tax relief	-	(11)
Foreign tax suffered	799	561
	1,838	561
Deferred tax:
Origination and reversal of timing differences	(359)	31
Adjustment in respect of prior periods	(138)	(3)
Effect of rate changes	-	2
	(497)	30

Total tax charge for the period	1,341	591

Charles River U.K. Limited

Notes to the financial statements

Period ended 28 December 2024

10. Tax on profit (continued)

(b) Factors affecting tax charge for the period

The tax assessed for the period is different to (2023: lower than) the standard rate of corporation tax in the UK of

25.00% (2023 – 23.52%). The differences are explained below:


	2024	2023
	£'000	£'000

Profit before tax	16,661	13,021

Profit before tax at the standard rate of UK corporation tax of 25% (2023– 23.52%)	4,165	3,063
Expenses not deductible for tax purposes	108	1,430
Income not taxable	(3,926)	(4,091)
Effects of group relief/other relief surrendered but not yet paid for	-	(316)
Effects of overseas tax rates	797	549
Adjustment in respect of prior periods	317	(3)
Tax rate changes	-	2
Share options – permanent deduction	(120)	(43)
Total tax charge for the period	1,341	591

In the Spring Budget 2021, the UK Government announced that from 1 April 2023 the corporation tax rate would

increase to 25% (rather than remaining at 19%, as previously enacted). This new law was substantively enacted

on 24 May 2021. There has been no change to corporation tax rates for the financial year ended 31 December

2024. For the financial period ended 28 December 2024, the current weighted average tax rate is 25% (30

December 2023 weighted average tax rate was 23.52%). Deferred taxes at the balance sheet date have been

measured using these enacted tax rates and reflected in these financial statements.

The Charles River Laboratories International, Inc. group falls within the scope of the OECD Pillar Two model

rules. Pillar Two was enacted in the UK via the UK Finance (No 2) Act 2023 on 11 July 2023. The Pillar Two

legislation was effective in the UK for accounting periods beginning on or after 31 December 2023. As the Pillar

Two legislation is effective at the reporting date, the company has estimated its related current tax exposure.

Under legislation, the company is liable to pay a top-up tax in the UK for the difference between the GloBE

effective tax rate for the UK and the 15% minimum rate. In addition, top-up taxes are payable locally where

qualifying domestic minimum top-up taxes have been legislated and are in effect.

The company has an estimated weighted average effective tax rate which falls below 15% in the UK at an entity

level. However at a UK jurisdictional level the Charles River UK Group has an estimated weighted average

effective tax rate that exceeds 15% in the UK, and as such applies the CbCR effective tax rate safe harbour

provisions in calculating this basis. No top-up taxes have therefore been accrued in the current reporting period.

The company applies the exception to recognising and disclosing information about deferred tax assets and

liabilities related to Pillar Two income taxes.

Charles River U.K. Limited

Notes to the financial statements

Period ended 28 December 2024

11. Tangible assets


	Freehold land and buildings	Motor vehicles	Plant and machinery	Total
	£'000	£'000	£'000	£'000
Cost
At 31 December 2023	4,079	16	9,304	13,399
Additions	373	-	571	944
Disposals	(1,564)	(12)	(1,536)	(3,112)

At 28 December 2024	2,888	4	8,339	11,231

Accumulated depreciation
At 31 December 2023	3,995	12	6,689	10,696
Charge for the period	244	1	226	471
Disposals	(1,518)	(12)	(1,454)	(2,984)

At 28 December 2024	2,721	1	5,461	8,183

Net book value
At 28 December 2024	167	3	2,878	3,048
At 30 December 2023	84	4	2,615	2,703

Charles River U.K. Limited

Notes to the financial statements

Period ended 28 December 2024

12. Investments


	Period ending 30 December 2024	Period ending 31 December 2023
	£'000	£'000
Opening balance	89,212	64,813
Additions in the period	9,581	24,399
Closing balance	98,793	89,212

In 2013 the Company acquired a 75% stake in Beijing Vital River Animal Technology Co. Ltd for $26.8m

(£16,685,000). A further 12% stake was acquired in 2017 for $10.8m (£8,159,000), 5% in 2019 for $7.9m

(£6,207,000), and 8% in 2023 for $24.4m (£19,156,000) inclusive of the option premium of £1,163,000 previously

recognised, bringing the total investment to 100%. These amounts were translated at the exchange rates at the

dates of purchase.

In 2019 the Company acquired an 80% stake in Hainan New Source Biotech Co. Ltd for $23.1m (£19,332,000).

During 2022 the Company acquired a further 10% stake for $15.0m (£12,028,000), and the remaining 10% was

acquired in 2024 for $12.0m (£9,581,000), bringing the total investment to 100%. These amounts were translated

at the exchange rates at the dates of purchase.

The contract relating to the acquisition of Hainan New Source Biotech Co. Ltd provided both the Company and

the seller rights to exercise options. At the date of acquisition these options were valued as a derivative liability of

£1,240,000. At the balance sheet date the option had been exercised. In the prior year a derivative financial

asset of £nil was recognised in relation to this.


The subsidiary undertakings of the Company at 28 December 2024 are:
Name of company	Country of incorporation and principal operations	Registered address	Principal activities during the period	Description of shares held	%
Beijing Vital River Animal Technology Co. Ltd	People's Republic of China	1184 Lin, Baishan Village, Changping District, Beijing, 102211, China.	Breeding and sales of laboratory animals and technical consulting services	RMB 1 ordinary shares	100
Hainan New Source Biotech Co. Ltd	People's Republic of China	Julong, Xianmin Village, Jiazi Town, Qiongshan District, Haikou City, Hainan Province, 570105, China.	Breeding and sales of laboratory animals	RMB 1 ordinary shares	100

During the period, the Company received dividends of £15,739,000 (2023: £10,987,000) from subsidiary

undertakings, and there were no indicators of impairment present.

13. Inventories


	2024	2023
	£'000	£'000
Raw materials and consumables	221	223
Livestock	2,132	2,235
	2,353	2,458

The amount of stocks recognised as an expense during the period was £2,069,000 (2023 : £2,206,000 ).

There is no material difference between the carrying amount of inventory and the replacement cost.

Charles River U.K. Limited

Notes to the financial statements

Period ended 28 December 2024

14. Debtors


	2024	2023
	£'000	£'000
Amounts falling due within one year:
Trade debtors	2,220	2,456
Amounts owed by group undertakings	2,200	445
Corporation tax	742	-
Deferred tax	419	-
Prepayments and accrued income	73	73
	5,654	2,974

The amounts owed by group undertakings includes a balance of £1,913,000 (2023: £nil) related to intercompany

cash pooling which bears interest at SONIA less 0.40%. The remainder represents trading balances, which are

unsecured, do not bear interest, and are repayable on demand.

The deferred tax balance falls due after more than one year.

15. Cash at bank and in hand

Cash at bank includes a restricted amount of £80,000 held on guarantee in favour of HMRC. All other cash at

bank and in hand is freely disposable.

16. Creditors: amounts falling due within one year


	2024	2023
	£'000	£'000
Trade creditors	609	412
Amounts owed to group undertakings	1,082	263
Taxation and social security	736	463
Other creditors	342	491
Accruals and deferred income	16,629	16,188
	19,398	17,817

The amounts owed to group undertakings represents trading balances, which are unsecured, do not bear

interest, and are repayable on demand.

17. Deferred tax liabilities


	2024	2023
	£'000	£'000
Movement in period:
At 31 December 2023 and 1 January 2023	78	48
Adjustment in respect of prior years	(138)	-
Deferred tax charge to profit and loss account for the period	(359)	30
At 28 December 2024 and 30 December 2023	(419)	78

At 28 December 2024 and 30 December 2023 the Company had deferred tax assets comprising the following:


	2024	2023
	£'000	£'000
Fixed asset timing differences	182	467
Short term timing differences (trading)	(601)	(389)
	(419)	78

Charles River U.K. Limited

Notes to the financial statements

Period ended 28 December 2024

18. Creditors: amounts falling due after more than one year


	2024	2023
	£'000	£'000
Amounts owed to group undertakings	-	4,100
Leases	-	7
	-	4,107

The amounts owed to group undertakings represented loans from Charles River Laboratories Holdings Limited

which bore interest at Libor +0.25% and were repayable within a period of five years from first utilisation, which

was 29 March and 17 December 2021. The loans were settled in full on 22 July 2024.

19. Provisions for liabilities


	Deferred tax (*note 17)	Total
	£'000	£'000
At 31 December 2023	(78)	(78)
Charged to profit and loss account	359	359
Adjustment in respect of prior years	138	138
Asset transferred to debtors	(419)	(419)
At 28 December 2024	-	-

20. Called up share capital


	2024	2023
	£'000	£'000
Issued, called-up and fully paid
10,749,268 (2023 - 10,749,268) ordinary shares of £ 1 each	10,749	10,749

There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the

repayment of capital. During the year, the Company paid dividends of £0.23 per share (2023: £0.51) totalling

£2,500,000 (2023: £5,500,000).

21. Financial commitments

At 28 December 2024 and 30 December 2023, the Company had the following future minimum lease payments

under non-cancellable operating leases for each of the following periods:


	2024	2023
	£'000	£'000
Operating lease commitments which expire:
Less than a year	110	114
Later than one year and not later than five years	165	165
	275	279

22. Capital commitments

Contracts placed for future capital expenditure not provided in the financial statements are as follows:


	2024	2023
	£'000	£'000
Contracted for but not provided for	172	-

Charles River U.K. Limited

Notes to the financial statements

Period ended 28 December 2024

23. Related party transactions

The Company has taken advantage of the exemption contained in paragraph 33.1A of FRS 102 “Related party

transactions” not to disclose transactions with other group companies (or investees of the group qualifying as

related parties) on the basis that it is a wholly-owned subsidiary of Charles River Laboratories International, Inc.

for which consolidated financial statements are publicly available.

24. Controlling parties

The immediate parent company is Charles River Laboratories Holdings Limited, a company registered in the

United Kingdom. The ultimate parent undertaking and controlling party for the whole period was Charles River

Laboratories International, Inc., a company registered in the United States of America, with registered office

address at 251 Ballardvale Street, Wilmington, MA 01887, which is the parent undertaking of the smallest and the

largest group into which the results of the Company are consolidated. Copies of the consolidated financial

statements of Charles River Laboratories International, Inc. can be obtained from its registered office, or the

website www.criver.com.

25. Acquistion during the period

On 18 March 2024 the Company entered an agreement to purchase the remaining minority shareholding in

Hainan New Source Biotech Co. Ltd., for USD $12.0m. The transaction was concluded on 12 April 2024 and was

financed through existing intercompany facilities.

26. Events after the end of the reporting period

In March 2025, the Company utilised an existing intercompany facility to fund the payment of an accrued liability

relating to share purchases legally completed but not yet cash settled at the balance sheet date.


Contents	Page
Directors and advisers	1
Strategic report	2
Directors' report	4
Independent auditors' report to the members of Charles River U.K. Limited	7
Profit and loss account	10
Statement of comprehensive income	10
Balance sheet	11
Statement of changes in equity	12
Notes to the financial statements	13