wk-2024-12-28-ixbrl

Charles River Laboratories Edinburgh 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 to contract scientific research and consultancy on behalf of the

pharmaceutical, agrochemical and veterinary sectors. The company does not undertake standalone research

and development.

Business performance and future outlook

The turnover for the financial period was £135,388,000 (2023: £147,065,000). The profit for the period

amounted to £21,955,000 (2023 : £29,240,000). Interim dividends amounting to £23,000,000 (2023:

£12,000,000) were paid during the period. The directors do not recommend the payment of a final dividend in

respect of the period (2023: £nil).

During the period the Company's turnover decreased by 7.9% as the result of general market softening and

reduced client spend. Gross profit margins reduced from 37.2% to 33.8% and net profit margins decreased from

19.9% to 16.2% mainly due to changes in the sales mix. Employee numbers reduced from 1,377 to 1,359,

partially as a result of a workforce restructure (note 6), to align with the market conditions. At the end of the

period the Company maintained a strong net asset position.

The Company maintains a strong order book despite the market softening, and enters 2025 with a detailed plan

to consolidate both turnover and profit through its strategic partnerships and alliances with the leading global

customers in each of its business sectors. 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.

Section 172 statement

The directors have considered the requirements of section 172 (1) of the Companies Act 2006 and have set out

the key considerations below.

The directors of the Company must act in a way which they consider, in good faith, would be most likely to

promote the success of the Company, and in doing so have regard (amongst other matters) to:

a. The likely consequences of any decision in the long term,

b. The interest of the Company’s employees,

c. The need to foster the Company’s business relationships with suppliers, customers and others,

d. The impact of the Company’s operations on the community and the environment,

e. The desirability of the Company maintaining a reputation for high standards of business conduct, and

f. The need to act fairly between members of the Company.

The Company is a wholly owned subsidiary of Charles River Laboratories International, Inc. a company

incorporated in the United States of America and listed on the New York Stock Exchange (NYSE:CRL).

Long term decisions and strategy

Charles River is committed to advancing human health and creating healthier lives. This commitment drives the

long-term strategy of the business and is an underlying factor in our decision-making processes. We partner with

our clients to help them deliver innovative, safe, and effective medicines to patients as quickly and efficiently as

possible. To do this effectively, we have invested, and continue to invest in both our capabilities and

technologies, which enable us to maintain a competitive advantage working with our clients from early in the

research process all the way through drug approval and beyond.

Charles River Laboratories Edinburgh Limited

Strategic report (continued)

Interest of our employees

Our people are at the heart of who we are and the driving force in our collective purpose to create healthier lives.

And, it is our culture at Charles River that differentiates us. We create a work environment which gives every

person the ability to deliver on business commitments, while having purpose, being energised and continuously

learning, and focusing on quality outcomes. This environment is built on trust, inclusion, accountability, respect,

and well-being.

Relationship with suppliers, customers and others

At Charles River, we know that our internal organisation and Environmental, Health, Safety, and Sustainability

(EHS&S) performance is closely linked to our supply chain. We are dedicated to sustainable and responsible

supply chain management, as well as supplier diversity. We consider our suppliers, contractors, consultants, and

agents as a part of the Charles River team and we rely on them to help us accomplish both our business and

EHS&S objectives.

At Charles River, our purpose is clear, and our passion is strong: together, we support our clients’ research every

step of the way to create healthier lives. Our core mission is to utilise our scientific expertise, regulatory

leadership, and diverse portfolio to provide our clients with efficient, reliable, and scientific results on a cost-

effective basis. Our values: care, lead, own, and collaborate, are integral to everything we do at Charles River.

These values guide our business decisions and actions, representing the standards we hold ourselves to every

day.

Impact on the community and environment

At Charles River, our dedication to EHS&S is an integral part of our commitment to improve lives. Our vision is to

embed working safely and sustainably into everything we do and every decision we make. We firmly believe that

our care extends to the communities in which we live and work, promoting a program of investment in our local

community. During 2024, the Company directly supported not-for-profit organisations in our local areas through

financial donations. In addition to this, we enabled our employees, through workforce appeals, to donate to other

local charities such as food banks, nursing homes, and children’s charities.

Code of business conduct

The Charles River Code of Business Conduct and Ethics (Code) describes our values and outlines the

requirements and expected behaviour for all of us who work on behalf of the Company. We expect every

employee, including the members of our Board and executive leadership, to adhere to our Code. Our Code

outlines the laws and policies that apply to our business, such as anti-bribery and anti-corruption, anti-

harassment and anti-discrimination, conflicts of interest, intellectual property (IP), data privacy, and the protection

of confidential information.

The Charles River Code of Business Conduct and Ethics (Code) describes our values and outlines the

requirements and expected behaviour for all of us who work on behalf of the Company. We expect every

employee, including the members of our Board and executive leadership, to adhere to our Code. Our Code

outlines the laws and policies that apply to our business, such as anti-bribery and anti-corruption, anti-

harassment and anti-discrimination, conflicts of interest, intellectual property (IP), data privacy, and the protection

of confidential information.

Acting fairly between members

Ultimate governance and oversight responsibility for all Charles River group companies is held by the Board of

Charles River Laboratories International, Inc. which is the ultimate parent entity of the Company and its sole

member, Charles River Laboratories Montreal ULC. The Company, its sole member, and the ultimate parent

entity share common directors which ensures transparency, direct communications, and facilitates the sole

members involvement in the decision-making process.

Charles River Laboratories Edinburgh Limited

Strategic report (continued)

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.

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.

Charles River Laboratories Edinburgh Limited

Strategic report (continued)

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	99.62	106.80

Revenue per head is calculated by dividing turnover for the period by total average employees throughout the

period. Proportionately, there has been a decrease from the prior period which has been driven by the change in

turnover outweighing the change in staff levels.


	2024	2023
	%	%
Gross margin	33.8	37.2

The gross margin has deteriorated 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	36	49

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 28 March 2025, and signed on its behalf on 3 April 2025 by:

Brian Bathgate

B Bathgate

Director

Charles River Laboratories Edinburgh 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 SC091725.

Directors

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

as follows:

B Bathgate

R Heneghan

G Burns (appointed: 10 January 2024)

Dividends

Interim dividends amounting to £23,000,000 (2023: £12,000,000) were paid during the period. The directors do

not recommend the payment of a final dividend in respect of the period (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 13. The results for the period, future

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

pages 2 to 5.

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 strong performance throughout 2025 and beyond.

As at 28 December 2024, the Company had net current assets of £11,548,000 (2023 - £14,343,000) and a net

cash balance of £1,405,000 (2023 - £7,889,000).

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 5.

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 Laboratories Edinburgh Limited

Directors' report (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.

Streamlined energy and carbon reporting (SECR) disclosure

The SECR disclosure presents our carbon footprint within the United Kingdom for Scope 1, 2 and 3 emissions

based on SECR Legislation, an appropriate intensity metric, the total energy usage of electricity, gas and

transport fuel, and a summary of energy efficiency actions taken during the relevant financial period.


	Period ended 28 December 2024	Period ended 30 December 2023
Energy consumption used to calculate emissions (kwh)	51,964,415	51,304,288
Emissions from combustion of gases tCO2e (Scope 1)	6,447	6,464
Emissions from combustion of fuel for transport purposes tCO2e (Scope 1)	-	-
Emissions from business travel in rental cars or employee owned vehicles where company is responsible for purchasing the fuel tCO2e (Scope 3)	26	10
Emissions from purchased electricity tCO2e (Scope 2, location-based)	3,438	3,121
Total gross tCO2e based on above	9,911	9,595
Intensity ratio (tCO2e / floor space m2)	0.21415	0.19267

Energy efficiency action summary

During the period, the Company continued to achieve direct savings in energy and associated carbon emissions,

through operational and technological improvements, including;.

• Continued upgrade of fluorescent and LED lighting with new lower consumption LED lighting.

• Power-down of vacant rooms

• Increased recycling, and site-wide recycling education

• Reduced incinerator usage

Charles River Laboratories Edinburgh Limited

Directors' report (continued)

SECR disclosure methodology notes


Reporting period	31 December 2023– 28 December 2024
Boundary (consolidation approach)	Operational approach
Alignment with financial reporting	SECR disclosure has been prepared in line with Charles River Laboratories Edinburgh Limited ’s financial statements made up to the 28 December 2024
Reporting method	GHG Emissions reporting are in line with the Greenhouse Gas (GHG) Protocol Corporate Accounting and Reporting Standard
Emissions factor source	DEFRA, 2024 for all emissions factors https://www.gov.uk/government/publications/greenhouse-gas-reporting- conversion-factors-2024
Conversion factor source	Natural gas and gasoline: Federal Register EPA; 40 CFR Part 98; e-CFR, June 13, 2017 EPA GHG Emission Factors Hub Diesel: U. S. Energy Information Administration - British Thermal Unit Conversion Factors 2020
Calculation method	Activity Data x Emission Factor = GHG emissions Activity Data x Conversion Factor = kWh consumption
Other relevant information on calculation	Where applicable consumption was converted to kWh using conversion factors linked above, while emissions were calculated with the DEFRA emission factors. Transport data was calculated from mileage to kWh and GHG emissions using the method above. In the absence of the exact vehicle types average conversion factors were used to calculate emissions. Not having the exact vehicle types we have used the Vehicles statistics’ table VEH1103, issued by the Department for Transport. We used the statistics for the period of Q4 2023 to Q3 2024 as during the preparation of the report the Q3 and Q4 2024 figures were not published yet.
Reason for the intensity measurement choice	Following the recommendations of the SECR legislation and based on the nature of our business as we perform a wide range of activities, the floor space (tCO2e/floor space m2) gives the best overview on our efficiency performance on a longer scale.
Estimation	The report contains estimated data in Scope 1 natural gas (28%) and Scope 2 electric power (3%). For the estimation we used the average consumption of the months for which data was available.
Rounding	The total tCO2e expressed in the table above might have a slight difference compared to the absolute results due to rounding (no more than 1%).

Charles River Laboratories Edinburgh Limited

Directors' report (continued)

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.

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 28 March 2025, and signed on its behalf on 3 April 2025 by:

Brian Bathgate

B Bathgate

Director

Charles River Laboratories Edinburgh Limited

Independent auditors’ report to the

members of Charles River

Laboratories Edinburgh Limited

Report on the audit of the financial statements

Opinion

In our opinion, Charles River Laboratories Edinburgh 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, including 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.

Charles River Laboratories Edinburgh Limited

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 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 the 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 the Directors’ report

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

the Directors’ report for the 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 the 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 the UK Good Laboratory Practice Regulations, and we considered the extent to which

non-compliance might have a material effect on the financial statements. We also considered those laws and

regulations that have a direct impact on the financial statements such as compliance with tax legislation and the

Companies Act 2006. 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 Laboratories Edinburgh Limited

Audit procedures performed by the engagement team included:

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

noncompliance 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 Laboratories Edinburgh Limited

Profit and loss account


	Notes	Period ended 28 December 2024	Period ended 30 December 2023
		£'000	£'000
Turnover	5	135,388	147,065
Cost of sales		(89,642)	(92,326)
Gross profit		45,746	54,739
Administrative expenses		(33,011)	(31,121)
Other operating income		14,971	13,889
Operating profit	6	27,706	37,507
Interest receivable and similar income	9	899	593
Interest payable and similar expenses	9	-	(73)
Other financial income		462	1,027
Profit before taxation		29,067	39,054
Tax on profit	10	(7,112)	(9,814)
Profit for the financial period		21,955	29,240

Statement of comprehensive income


		Period ended 28 December 2024	Period ended 31 December 2023
		£'000	£'000
Profit for the financial period		21,955	29,240
Actuarial loss related to the pension scheme	17	(6,451)	(5,566)
Deferred tax on actuarial loss		1,613	1,392
Other comprehensive expense		(4,838)	(4,174)
Total comprehensive income for the financial period		17,117	25,066

The above results relate entirely to continuing activities.

The notes on pages 16 to 37 form part of these financial statements.

Charles River Laboratories Edinburgh Limited

Balance sheet


	Notes	As at 28 December 2024	As at 30 December 2023
		£'000	£'000
Fixed assets
Tangible assets	11	64,255	66,119
		64,255	66,119
Current assets
Inventories	12	2,923	3,722
Debtors	13	53,575	56,442
Cash at bank and in hand	14	1,405	7,889
		57,903	68,053

Creditors: amounts falling due within one year	15	(46,355)	(53,710)
Net current assets		11,548	14,343
Total assets less current liabilities		75,803	80,462
Post-employment benefits	17	25,083	28,049
Provisions for liabilities	18	(18,442)	(20,394)
Net assets		82,444	88,117

Capital and reserves
Called up share capital	19	275	275
Capital redemption reserve		325	325
Share premium account		1,059	1,059
Retained earnings		80,785	86,458
Total equity		82,444	88,117

The financial statements on pages 13 to 37 were authorised for issue by the Board of directors on 28 March 2025

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

Brian Bathgate

B Bathgate

Director

Charles River Laboratories Edinburgh Limited

Registered no. SC091725

Charles River Laboratories Edinburgh Limited

Statement of changes in equity

For the period ended 28 December 2024


	Share appropriation	Other	Total retained earnings	Share capital	Capital redemption reserve	Share premium account	Total
	£'000	£'000	£'000	£'000	£'000	£'000	£'000
Balance as at 1 January 2023	7,774	59,548	67,322	275	325	1,059	68,981
Profit for the financial period	-	29,240	29,240	-	-	-	29,240
Actuarial loss related to the pension scheme	-	(4,174)	(4,174)	-	-	-	(4,174)
Total comprehensive income for the period	-	25,066	25,066	-	-	-	25,066
Charge to equity for share- based payments	1,783	(1,938)	(155)	-	-	-	(155)
Dividends	-	(12,000)	(12,000)	-	-	-	(12,000)
Total transactions with owners, recognised directly in equity	1,783	(13,938)	(12,155)	-	-	-	(12,155)
Balance as at 30 December 2023	11,260	75,198	86,458	275	325	1,059	88,117
Profit for the financial period	-	21,955	21,955	-	-	-	21,955
Actuarial loss related to the pension scheme	-	(4,838)	(4,838)	-	-	-	(4,838)
Total comprehensive income for the period	-	17,117	17,117	-	-	-	17,117
Charge to equity for share- based payments	1,711	(1,501)	210	-	-	-	210
Dividends	-	(23,000)	(23,000)	-	-	-	(23,000)
Total transactions with owners, recognised directly in equity	1,711	(24,501)	(22,790)	-	-	-	(22,790)
Balance as at 28 December 2024	12,971	67,814	80,785	275	325	1,059	82,444

Charles River Laboratories Edinburgh Limited

Notes to the financial statements

Period ended 28 December 2024

1. General information

Charles River Laboratories Edinburgh Limited (the “Company”) is a private Company limited by shares and is

incorporated in the United Kingdom and registered in Scotland. The address of its registered office is Elphinstone

Research Centre, Tranent,Scotland, EH33 2NE.

The principal activity of the Company is conducting pharmaceutical research and early stage drug development.

2. Statement of compliance

The individual financial statements of Charles River Laboratories Edinburgh 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 Laboratories Edinburgh 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. 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 except where deferred in other comprehensive income as qualifying cash flow hedges.

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 Laboratories Edinburgh Limited

Notes to the financial statements

Period ended 28 December 2024

3. Summary of significant accounting policies (continued)

e. 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 pharmaceutical research services to its customers. This is primarily conducted on a fixed

price basis. In this case, turnover is recognised as work is performed using the percentage of completion method,

as measured by costs incurred to date compared to estimated total costs at completion. The Company also

receives milestone payments, these are recognised as revenue when achieved. In other cases, the Company

performs research services in exchange for a fee which is generally dependent on the resource dedicated to the

project and charged at a certain rate per full time equivalent (FTE) employee per year. Revenue on such

contracts is recognised as the services are rendered.

The timing of revenue recognition, billings and cash collections results in contract assets (unbilled revenue), and

contract liabilities (current and long-term deferred revenue and customer contract deposits) on the balance sheet.

A contract asset is recorded when a right to consideration in exchange for goods or services transferred to a

customer is conditioned other than passage of time. A contract liability is recorded when consideration is

received, or such consideration is unconditionally due, from a customer prior to transferring goods or services to

the customer under the terms of a contract. Contract liabilities are recognised as revenue after control of the

products or services is transferred to the customer and all revenue recognition criteria have been met.

f. Other income

Other income relates to income that is derived from costs recharged to other group companies. It is considered

to be part of normal recurring operating activities, but does not represent revenue (see accounting policy e.).

g. 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 benefit pension plan

The company operates a defined benefit plan for certain employees. A defined benefit plan defines the pension

benefit that the employee will receive on retirement, usually dependent upon several factors including age, length

of service and remuneration. A defined benefit plan is a plan that is not a defined contribution plan.

The liability recognised in the balance sheet in respect of the defined benefit plan is the present value of the

defined benefit obligation at the end of the reporting date less the fair value of the plan assets at the reporting

date.

The defined benefit obligation is calculated using the projected unit credit method. Annually the company

engages independent actuaries to calculate the obligation. The present value is determined by discounting the

estimated future payments using market yields on high quality corporate bonds that are denominated in sterling

and that have terms approximating the estimated period of the future payments (‘discount rate’).

The fair value of plan assets is measured in accordance with the FRS 102 fair value hierarchy and in accordance

with the company’s policy for similarly held assets. This includes the use of appropriate valuation techniques.

Charles River Laboratories Edinburgh Limited

Notes to the financial statements

Period ended 28 December 2024

3. Summary of significant accounting policies (continued)

g. Employee benefits (continued)

ii) Defined benefit pension plan (continued)

Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are

charged or credited to other comprehensive income. These amounts together with the return on plan assets, less

amounts included in net interest, are disclosed as ‘remeasurement of net defined benefit liability’.

The cost of the defined benefit plan, recognised in profit or loss as employee costs, except where included in the

cost of an asset, comprises:

• The increase in pension benefit liability arising from employee service during the period.

• The cost of plan introductions, benefit changes, curtailments and settlements.

The net interest income or cost is calculated by applying the discount rate to the net balance of the defined

benefit obligation and the fair value of plan assets. This is recognised in profit or loss as ‘Other financial income

or expense’.

When, at the reporting date, the present value of the defined benefit obligation is less than the fair value of the

plan assets, the plan has a surplus. Any surplus will be recognised only to the extent that it can be recovered

either through reduced contributions in the future or through refunds from the plan.

iii) 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.

iv) 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.

v) 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 Laboratories Edinburgh Limited

Notes to the financial statements

Period ended 28 December 2024

3. Summary of significant accounting policies (continued)

h. 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.

Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax

regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts

expected to be paid to the tax authorities.

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.

i. Research and development expenditure

Research and development expenditure is charged to the Profit and loss account as incurred.

j. Grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset

received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue

are recognised in income over the period in which the related costs are recognised. Grants relating to assets are

recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is

recognised as deferred income.

k. 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.

Charles River Laboratories Edinburgh Limited

Notes to the financial statements

Period ended 28 December 2024

3. Summary of significant accounting policies (continued)

k. Tangible assets (continued)

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

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

iii) 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:


Land and buildings	40 years
Plant and machinery	3 to 10 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.

l. 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.

m. 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.

Charles River Laboratories Edinburgh Limited

Notes to the financial statements

Period ended 28 December 2024

3. Summary of significant accounting policies (continued)

m. Leased assets (continued)

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.

n . 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.

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.

Slow moving inventory lines are written down based on future forecast sales.

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.

Charles River Laboratories Edinburgh Limited

Notes to the financial statements

Period ended 28 December 2024

3. Summary of significant accounting policies (continued)

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.

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.

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.

Charles River Laboratories Edinburgh Limited

Notes to the financial statements

Period ended 28 December 2024

3. Summary of significant accounting policies (continued)

r. Financial instruments (continued)

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.

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.

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.

Charles River Laboratories Edinburgh Limited

Notes to the financial statements

Period ended 28 December 2024

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.

ii) Recognition of pension asset

The Company considers that in accordance with the rules of the defined benefit pension plan, that it has an

unconditional right to a refund of surplus after all pension obligations have been fulfilled. As a result, the

Company has judged that the surplus due on final termination of the plan should be recognised as an asset.

(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) Actuarial estimates of pension scheme assets or liabilities

The net defined benefit pension asset or liability is an estimate based on actuarial assumptions and a standard

approach to the valuation, using the projected unit credit method. The Company relies on a report prepared by

an appointed independent qualified actuary. To prepare the valuation report, the actuary uses assumptions in a

forward looking financial and demographic model from a wide range of possibilities. The principal estimated

assumptions are life expectancy, rate of salary increase, rate of inflation, and the corporate bond discount rate.

See note 16 for detailed information regarding the assumptions used.

iii) Percentage of completion revenue recognition

Revenue on long term projects is estimated based on the percentage of completion method, applied to the overall

agreed contract value. If the estimates of the end result of a contract change, the sales and profits recognised

are adjusted in the period when the change first becomes known and can be evaluated.

Charles River Laboratories Edinburgh Limited

Notes to the financial statements

Period ended 28 December 2024

5. Turnover

The directors are of the opinion that the Company has only one class of business, namely contract scientific

research and consultancy. However, the Company provided its services to customers in a number of

geographical areas and its turnover can be summarised as follows:


	2024	2023
	£'000	£'000
United Kingdom	57,989	54,378
Rest of Europe	48,361	59,688
Rest of World	29,038	32,999
	135,388	147,065

6. Operating profit


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

Depreciation and amortisation for the period:
- Tangible fixed assets - owned	8,046	7,470
Operating lease rentals	592	598
Loss on sale of tangible fixed assets	226	114
Restructuring costs	2,121	-
Research and development tax credit	(12,687)	(10,177)
Expenses recharged to other group companies	(14,971)	(13,889)
Foreign exchange loss	21	126

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	238	280
Total audit fees	238	280

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 Laboratories Edinburgh 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:
Technical, research and development	1,231	1,080
Sales and administration	128	297
	1,359	1,377

	2024	2023
	£'000	£'000
Staff costs during the period
Wages and salaries	51,704	51,214
Social security costs	5,451	5,639
Other pension costs	3,826	3,671
Share option costs	1,711	1,783
	62,692	62,307

	2024	2023
	£'000	£'000
Directors’ remuneration
Aggregate emoluments	540	459
Pension scheme contributions	13	-
	553	459

	2024	2023
	£'000	£'000
Remuneration of highest paid director
Aggregate remuneration	366	459
	366	459

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

possible to identify the portion of time that the director dedicates to the Company. As a result, no recharge of any

costs for that directors services are made to the Company.

At the balance sheet date, one director (2023 - no 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 Laboratories Edinburgh 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

30 December 2023: 6.0 years).

The Company recognised total expenses of £1,711,000 related to Charles River Laboratories International, Inc.

equity-settled share-based payment transactions in the period ended 28 December 2024 (2023 - £1,783,000).

Charles River Laboratories Edinburgh Limited

Notes to the financial statements

Period ended 28 December 2024

9. Net interest receivable / payable

(a) Interest receivable and similar income


	2024	2023
	£'000	£'000

Bank interest receivable and similar income	178	374
Capitalised interest	33	219
Interest receivable from group undertakings	688	-
Total interest receivable and similar income	899	593

(b) Interest payable and similar expenses


	2024	2023
	£'000	£'000
Total interest payable and similar expenses	-	73

10. Tax on profit

(a) Analysis of charge for the period


	2024	2023
	£'000	£'000
Current tax:
UK corporation tax	7,615	7,547
Adjustment in respect of prior periods	(163)	23
	7,452	7,570
Deferred tax:
Origination and reversal of timing differences	(435)	1,061
Adjustment in respect of prior periods	95	1,116
Effect of rate changes	-	67
	(340)	2,244

Total tax charge for the period	7,112	9,814

Charles River Laboratories Edinburgh 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: different to) 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	29,067	39,054

Profit before tax at the standard rate of UK corporation tax of 25% (2023– 23.52%)	7,267	9,186
Expenses not deductible for tax purposes	245	56
Income not taxable	(225)	(398)
Effects of group relief/other relief surrendered but not yet paid for	-	(379)
Adjustment in respect of prior periods	(68)	1,139
Tax rate changes	-	67
Share options – permanent deduction	(107)	143
Total tax charge for the period	7,112	9,814

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 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 Laboratories Edinburgh Limited

Notes to the financial statements

Period ended 28 December 2024

11. Tangible assets


	Land and buildings	Plant and machinery	Assets under construction	Total
	£'000	£'000	£'000	£'000
Cost
At 31 December 2023	65,195	58,995	5,018	129,208
Additions	983	3,079	2,363	6,425
Transfers	3,797	1,221	(5,018)	-
Disposals	(532)	(199)	-	(731)

At 28 December 2024	69,443	63,096	2,363	134,902

Accumulated depreciation
At 31 December 2023	(23,987)	(39,102)	-	(63,089)
Charge for the period	(2,664)	(5,382)	-	(8,046)
Disposals	294	194	-	488

At 28 December 2024	(26,357)	(44,290)	-	(70,647)

Net book value
At 28 December 2024	43,086	18,806	2,363	64,255
At 30 December 2023	41,208	19,893	5,018	66,119

12. Inventories


	2024	2023
	£'000	£'000

Raw materials and work in progress	2,923	3,722
	2,923	3,722

The amount of stocks recognised as an expense during the period was £8,065,000 (2023: £8,748,000).

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

Charles River Laboratories Edinburgh Limited

Notes to the financial statements

Period ended 28 December 2024

13. Debtors


	2024	2023
	£'000	£'000
Amounts falling due within one year:
Trade debtors	13,525	19,652
Amounts owed by group undertakings	13,451	8,506
R&D expenditure credit	14,406	11,926
Prepayments and accrued income	12,193	16,358
	53,575	56,442

The amounts owed by group undertakings includes a balance of £6,632,000 (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.

14. Cash at bank and in hand

Cash at bank includes a restricted amount of £130,000 (2023: £130,000) held on guarantee in favour of HMRC.

All other cash at bank and in hand is freely disposable.

15. Creditors: amounts falling due within one year


	2024	2023
	£'000	£'000
Trade creditors	6,864	6,647
Amounts owed to group undertakings	2,426	3,025
Taxation and social security	2,139	1,022
Other creditors	263	770
Accruals and deferred income	34,663	42,246
	46,355	53,710

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

interest, and are repayable on demand.

Charles River Laboratories Edinburgh Limited

Notes to the financial statements

Period ended 28 December 2024

16. Deferred tax liabilities


		£'000
Movement in period:
At 31 December 2023		20,394
Adjustment in respect of prior years		95
Deferred tax charge to income statement for the period		(435)
Deferred tax charge in OCI for the period		(1,612)
At 28 December 2024		18,442

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	12,825	13,953
Short term timing differences (trading)	5,617	6,441
	18,442	20,394

Charles River Laboratories Edinburgh Limited

Notes to the financial statements

Period ended 28 December 2024

17. Post-employment benefits

The Company participates in a group defined benefit pension scheme with assets being held in a separate

trustee administered fund, and the related costs are assessed in accordance with the advice of professionally

qualified actuaries. This scheme was closed to new entrants on 1 January 2003 and was closed to future benefit

accrual on 30 November 2016. The former active members have retained their salary link, thus no curtailment

gain or loss was recognised in the prior period. The group also participates in a group defined contribution

scheme.

The total pension cost for the period in these financial statements amounted to £3,826,000 (2023: £3,671,000).

This cost comprised £nil (2023: £nil) in relation to the defined benefit scheme and £3,826,000 (2023: £3,671,000)

in relation to the defined contribution scheme. There are no prepaid or accrued contributions at either period end

in respect of the defined contribution scheme.

The pension scheme is actuarially valued every three years and the last valuation was at 1 January 2023 by

Mercer Limited. The main assumptions of the most recent valuation are as follows:


Discount rate
-Pre-retirement	4.11% per annum
-Post-retirement	4.11% per annum
RPI Inflation	3.58% per annum
Salary growth	3.58% per annum

Post retirement pension increases

-Pre April 2006	3.18% per annum
-Post April 2006	2.03% per annum

Results of validation

Market value of scheme assets	£151,300,000

Level of funding	104%

An allowance of 0.05% of the liabilities has been made for GMP equalisation.

During the period the Company made contributions of £3,000,000 (2023: £nil). Additional disclosures regarding

the group’s defined benefit pension scheme required under the provisions of Section 28 of FRS 102 are set out

below.

The actuarial valuation described above has been updated as at 28 December 2024 by Mercer Limited, a

qualified independent actuary using revised assumptions that are consistent with the requirements of Section 28

of FRS 102. Investments have been valued, for this purpose, at fair value and are disclosed at the end of this

note.


	2024	2023
Change in defined benefit obligation	£’000	£’000
Benefit obligation at end of prior period	123,941	119,582
Interest expense	5,835	5,887
Effect of changes in actuarial assumptions	(12,509)	(337)
Effects of experience adjustments	195	2,500
Benefits paid from plan assets	(4,762)	(3,691)

Benefit obligation at end of period	112,700	123,941

Charles River Laboratories Edinburgh Limited

Notes to the financial statements

Period ended 28 December 2024

17. Post-employment benefits (continued)


	2024	2023
Change in fair value of plan assets	£’000	£’000
Fair value of plan assets at end of prior period	151,990	151,596
Interest income	7,184	7,488
Actuarial return on plan assets	(18,765)	(3,403)
Employer contributions	3,000	-
Benefits paid from plan assets	(4,762)	(3,691)
Administrative expenses paid from plan assets	(864)	-
Fair value of plan assets at end of period	137,783	151,990


	2024	2023
Amounts recognised in the balance sheet	£’000	£’000
Defined benefit obligations	112,700	123,941
Fair value of plan assets	137,783	151,990
Net defined benefit asset	(25,083)	(28,049)


	2024	2023
Cost relating to defined benefit plans:	£'000	£'000
Net interest income	(1,349)	(1,601)
Administrative expenses and/or taxes (not reserved within DBO)	864	-
Income related to defined benefit plans included in the Profit and loss account	(485)	(1,601)

Re-measurements (recognised in other comprehensive income)	2024	2023
	£'000	£'000
Effects of changes in assumptions	(12,509)	(337)
Effect of experience adjustments	195	2,500
Return on plan assets (excluding interest income)	18,765	3,403
Total re-measurements included within Other comprehensive income	6,451	5,566

Total cost related to defined benefit plans recognised in Profit and loss account and Other comprehensive income	5,966	3,965

Plan assets	2024	2023
The asset allocations at the period end were as follows:	%	%
Equities	6.90%	5.50%
Bonds	73.40%	74.90%
Other*	18.30%	19.00%
Cash	1.40%	0.60%
Total	100.00%	100.00%

	2024	2023
	£’000	£’000
Actual return on plan assets	(11,581)	4,085

*Other consists of diversified growth funds (6.40%) and liability driven investments (11.90%).

There were no amounts invested in the Company’s own financial instruments.

Charles River Laboratories Edinburgh Limited

Notes to the financial statements

Period ended 28 December 2024

17. Post-employment benefits (continued)


Weighted average assumptions used to determine benefit obligations	2024	2023
Discount rate	5.6%	4.8%
Duration used to set the discount rate (in years)	15.00	16.00
Salary increase rate	3.2%	3.1%
Pensions-in-payment increase rate	3.0%	2.9%
Price inflation rate	3.2%	3.1%
Post retirement mortality assumption	111%/104% male/female (non- pensioners)/98 %/102% male/ female (pensioners) SAPS S3 CMI 2023 (sK=7) improvements with a 1.25% p.a. long-term rate and no initial adjustment parameter	111%/104% male/female (non- pensioners)/98 %/102% male/ female (pensioners) SAPS S3 CMI 2022 (sK=7) improvements with a 1.25% p.a. long-term rate and no initial adjustment parameter

Contributions

The Company expects to contribute £nil to its pension plan in 2025 (2024: £3,000,000).

Virgin Media case

The Company is monitoring the developments regarding the High Court Ruling in the case of Virgin Media v NTL

Pension Trustees, and has concluded that the most appropriate course of action is to await clarification from

subsequent court appeals or government intervention before undertaking any investigation into historic legal

documentation. Therefore, it is not possible to determine whether or not there will be any impact to the plan.

18. Provisions for liabilities


	Deferred tax (*note 16)	Total
	£'000	£'000

At 31 December 2023	20,394	20,394
Adjustment in respect of prior years	95	95
Deferred tax charge to income statement for the period	(435)	(435)
Deferred tax charge in OCI for the period	(1,612)	(1,612)
At 28 December 2024	18,442	18,442

Charles River Laboratories Edinburgh Limited

Notes to the financial statements

Period ended 28 December 2024

19. Called up share capital


	2024	2023
	£'000	£'000
Authorised
275,000 (2023 - 275,000) ordinary shares of £1 each	275	275
325,000 (2023 - 325,000) 10% redeemable preference shares of £1 each	325	325
	600	600

Alloted, issued and fully paid
275,000 (2023 - 275,000) ordinary shares of £1 each	275	275

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 £83.64 per share (2023: £43.64) totalling

£23,000,000 (2023: £12,000,000).

20. 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:


	Land and buildings
	2024	2023
	£'000	£'000
Operating lease commitments which expire:
Less than a year	639	518
Later than one year and not later than five years	1,874	1,619
Later than five years	641	-
	3,154	2,137

21. 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	971	1,754

22. 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.

23. Controlling parties

The immediate parent company is Charles River Laboratories Montreal ULC, a company registered in Canada.

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.

24. Events after the end of the reporting period

There were no significant events to note between the reporting date and the date of signing the financial

statements.


Contents	Page
Directors and advisers	1
Strategic report	2
Directors' report	6
Independent auditors' report to the members of Charles River Laboratories Edinburgh Limited	10
Profit and loss account	13
Statement of comprehensive income	13
Balance sheet	14
Statement of changes in equity	15
Notes to the financial statements	16