The directors present the strategic report for the year ended 31 December 2024.
The results of the Company are set out in the attached financial statements. The profit before taxation is £18,020,000 (2023: £6,655,000) which includes profit on disposal of the Critical Care Unit as shown under Note 10 to the financial statements. Turnover has increased by over 15%, which was driven by strong sales growth across all business units.
Sales within the Transcatheter Heart Valve (THV) product line enjoyed further success with a large share of the UK and Ireland TAVI market.
Great strides have been taken in the Transcatheter Mitral and Tricuspid Therapies (TMTT) with continued adoption of the Pascal Precision Transcatheter Valve repair system, and the successful launch of the Transcatheter Tricuspid Replacement device, Evoque.
In our Surgical division, we saw greater Inspiris Resilia Aortic Valve technology adoption and a successful launch of the Mitris Resilia Mitral replacement device.
On 3 September 2024 the Critical Care and Vascular (CCVAS) was sold to BD (Becton, Dickinson and Company) in an all-cash transaction valued at $4.2 billion and the sales was facilitated at group level. In the UK this will have an impact on assets in this business including workforce reduction.
Our continued growth and success depend on our ability to innovate and develop new and differentiated products in a timely manner and effectively market these products.
The principal risk facing the UK company arises from the fact that most of the sales are made to the NHS and as a result are reliant on NHS purchasing activity and the on-going centralisation of its purchasing organisation. The company therefore operates in an environment where less costly products and treatments may be seen as an attractive way to save funds in the short term and so a highly innovative and specialised company such as Edwards must therefore demonstrate the importance of better outcomes and the longer-term benefits that our products bring.
It should also be noted that the impact on our business of the UK exiting the European Union at the start of 2021 was limited although we will continue to monitor the effects of key impact areas of Brexit such as changes to the UK healthcare product regulatory system and the cross-border movement of both people and products.
We believe that we are a leading global competitor in each of our product lines. In Transcatheter AorticValve Replacement, our primary competitors include Medtronic PLC, Abbott Laboratories (“Abbott”), and Boston Scientific Limited.
In Transcatheter Mitral and Tricuspid Therapies, our primary competitor is Abbott, and there are a considerable number of large and small companies with development efforts in these fields.
In Surgical Structural Heart, our primary competitors include Medtronic PLC, Abbott, and Artivion UK Limited.
In line with the above-mentioned success mentioned in KPI’s, including a high level of revenue and profit growth from launch of new technologies, the company's financial level at the end of 2024 was considered strong.
The primary KPI is gross revenue, which has increased this year. The other KPI is to comply with all relevant regulations and medical technology industry standards, commercialise new products to remain competitive in the cardiovascular medical technology industry.
Gross revenue increased by 15% in part driven by a greater mix of newer innovative devices across 4 business portfolios including successful roll outs of Evoque and Mitris valve replacement.
The medical technology industry is highly competitive. We compete with divisions of larger companies as well as smaller companies that offer competitive product lines in certain geographies in which we operate. We also compete with both established and newer technologies that target the patients served by our products. New product development and technological change characterize the areas in which we compete. Our present or future products could be rendered obsolete or uneconomical because of technological advances by one or more of our present or future competitors or by other therapies, including drug therapies. We believe we hold leadership positions because we develop and produce safe and effective therapies supported by rigorous clinical studies with extensive data and with innovative features that can enhance patient benefit and product performance and reliability, as well as benefit healthcare systems. The benefits associated with our products are in part due to the level of customer and clinical support we provide.
The cardiovascular segment of the medical technology industry is dynamic and subject to significant change due to cost-of-care considerations, regulatory reform, industry and customer consolidation, and evolving patient needs. The ability to provide products and technologies that demonstrate value and improve clinical outcomes is becoming increasingly important for medical technology manufacturers.
Edwards continues to monitor changes in the regulatory environment and adapts to any developments.
As required by Section 172 of the Companies Act 2006, the directors of the company are committed to upholding its duty to promote the long-term success of the company. In making key decisions, the directors take into account the interests of a wide range of stakeholders, including employees, customers, suppliers, the environment, and the wider community, while ensuring sustainable value creation for shareholder.
Stakeholder Considerations
The directors recognise that a successful business depends on strong relationships with all stakeholders. During the year, the company has engaged with the following stakeholder groups:
Employees
The well-being and development of our employees are fundamental to our success. We have continued to invest in training, personal development, and workplace safety initiatives. Employee engagement survey called myVoice, have been used to gather feedback, with actions taken to address areas of concern, ensuring a positive working environment.
Customers
The company strives to provide high-quality products and services that meet customer needs. Regular feedback mechanisms have been maintained to understand customer requirements better and drive innovation. Our customer-centric approach ensures long-term business relationships and mutual growth.
Suppliers
Edwards Group, of which the company forms part of, recognises the importance of sustainable and responsible supply chains. The ‘Group’ continues to foster partnerships with suppliers that align with our values of ethical business practices and environmental responsibility. We have improved transparency and communication to ensure resilience and reliability in our supply chains.
Community and Environment
As part of our commitment to corporate responsibility, the company has taken steps to minimise our environmental impact. We have set clear goals for reducing carbon emissions, waste, and water consumption, and we continue to explore new ways to integrate sustainable practices into our operations. In addition, we actively engage with local communities through charitable initiatives and support for social causes.
Shareholders
The directors are committed to delivering sustainable value to its parent company as well as to the parent company’s shareholders. The directors of the company and parent company maintain an open dialogue, ensuring transparency and trust. Regular updates are provided through annual general meetings, financial reports, and other communications, ensuring that the parent company and the parent company’s shareholders are kept informed of key decisions and company performance.
Long-term Impacts and Risk Management
In line with our responsibilities under Section 172, the directors carefully consider the long-term impact of its decisions on the company’s future performance. We ensure that all strategic decisions are made with a balance between immediate outcomes and future sustainability. Risk management processes have been strengthened to address both short- and long-term challenges, including market fluctuations, regulatory changes, and environmental concerns.
By considering the interests of all stakeholders, the company remains well-positioned to achieve sustainable growth and long-term success, whilst upholding its core values of responsibility, integrity, and innovation.
This statement reflects the company’s commitment to complying with Section 172 of the Companies Act and ensuring that all decisions are made with due regard to the interests of stakeholders and the long-term success of the business.
Energy and carbon report
Edwards Lifesciences Limited is committed to achieving Net Zero emissions by 2045. As we pursue our patient focused innovation strategy, Edwards understands the importance of addressing climate change and is committed to implement projects for decreasing our greenhouse gases (GHG) emissions until reaching Net Zero emissions. Edwards Lifesciences Limited’s business has grown by a compound annual rate of approximately 11% since 2019. As we continue to grow, we increase the number of employees, and the number of products that we place into the market. This results in an increase of our total emissions in absolute numbers.
Emissions that we can directly influence are decreasing whereas supply chain emissions are rising due to business growth. However, taking the growth into consideration, we are reducing our emissions on a per gross profit basis. Our office is supplied by fully renewable electricity with zero CO2 emissions and therefore, our electricity consumption related CO2 emissions are equal to zero (0). A report on the fuel mix of our supplier can be found on their website www.ecotricity.co.uk/our-green-energy/our-fuel-mix. Edwards' Scope 3 emissions in the category 9 Downstream transportation and distribution are equal to zero (0).
Edwards products are delivered directly to point of use/sale (hospitals) and are not transported between retail locations or distribution centres after sale. All outbound transportation and distribution services to point of use/sale are paid for by Edwards. In accordance with the GHG Protocol Corporate Value Chain Standard, all emissions from inbound and outbound transportation paid for by the reporting entity are excluded from the category 9 Downstream transportation and distribution and are instead included in the category 4 Upstream transportation and distribution.
Baseline emissions are a record of the greenhouse gases that have been produced in the past and were produced prior to the introduction of any strategies to reduce emissions. Baseline emissions are the reference point against which emissions reduction can be measured. On the basis that 2019 had the most accurate data for our emissions, this was chosen as our baseline year against which emissions reduction can be measured.
Energy consumption has been reported and recorded in accordance with Environmental management system based on ISO 14001:2015. To record and report Edwards related CO2 emissions we have used GHG Reporting Protocol corporate standard and the appropriate emission conversion factors for greenhouse gas company reporting from UK Government GHG Conversion Factors for Company Reporting. The breakdown of emissions is detailed below.
| 2024 | 2023 |
Total energy consumption (kWh) | 234,368.00 | 230,785.39 |
Emission from combustion of fuel for company vehicles and natural gas (Scope 1) (tCO2) | 55.20 | 52.61 |
Emissions for purchased electricity - Market based (Scope 2) (tCO2) | - | - |
Total CO2 Scope 1 + 2 (tCO2) | 55.20 | 52.61 |
Intensity ratio (tCO2/£M) | 0.29 | 0.29 |
Car (km) | 2024 | 2023 |
Plug in hybrids (km) | 860,000.00 | 778,400.00 |
EV (km) | 663,942.00 | 508,800.00 |
Diesel (km) | - | - |
Petrol (km) | - | - |
Energy in kWh | 209,238.00 | 218,730.40 |
|
|
|
Natural gas | 2024 | 2023 |
Consumption (m3) | 2,256.25 | 1,095.91 |
Energy used | 25,129.62 | 12,054.99 |
Emissions tCO2 | 4.60 | 2.2466 |
Emissions reduction targets
At Edwards Lifesciences Limited, a UK subsidiary of Edwards Lifesciences Corporation, we recognise that safe and
environmentally responsible operations bring shared value to our patients, our employees, our stakeholders, and
the communities in which we operate. Edwards Lifesciences Corporation has globally adopted a plan to achieve carbon neutrality by the year 2030 and 1.5°C science-based targets. Edwards has committed to set and achieve targets approved by the Science-based Targets Initiative (SBTi). This global environmental goal has a direct impact on the Edwards UK subsidiary, and it sets targets for decreasing its emissions to achieve Net Zero by 2045.
In order to continue our progress to achieving Net Zero, we have adopted the following carbon reduction targets and
we are working on the following projects:
We are committed that our car fleet will be zero emitters. We strive to achieve this goal by 2035. Our existing car policy is preferential to electric vehicles over classic petrol cars and prohibits the use of diesel engines. Close monitoring of fuel consumption per driver motivates our employees to reduce emissions. In the course of 2024, we have accomplished a reduction in car emissions by 5% compares to last year.
Our office is powered by 100% renewable electricity. The electricity we use is mainly produced by offshore and onshore wind and to lesser extent by solar power plant and hydropower plant. We are committed to keeping this approach and will verify the sources of energies with our supplier.
On average, 52% of the waste generated in our office is separated and recycled. Our objective for next years is to continue increase the recycled waste by 5% per year. Our employee engagement programme, as described in our Environmental Management System, focuses on motivating employees to contribute fully to this target. Some of our motivational activities include recycling competitions, local litter picks and an increase in informative communications to our staff encouraging them to recycle at the office.
A sustainable travel guide has been published to foster greater sustainability in business travel. The guideline promotes sustainable travel practices and outlines preferred modes of transportation. We are committed to decrease emissions from business travel by at least a normalised rate of 10% by 2030.
We are motivating employees via our benefits scheme to preferably use public transportation over personal vehicles. Sustainability/carbon reduction criteria are part of our employee benefits scheme selection, including motivation to reduce carbon dioxide and other greenhouse gases footprint. Commuting emissions decreased below our baseline level in 2024 indicating positive impact of employees’ awareness. Our target for 2025 is to continue decrease commuting emissions by a normalised 5%.
Since March 2023, we have been shipping approximately 40% of our total volume of products to the UK via alternative routes. This has directly impacted our scope 3 / Category 4, upstream transportation and distribution emissions.
Our regional supplier selection process describes sustainability/carbon reduction commitments as a significant criteria for our vendor selection and monitoring process. Our objective is to engage only with suppliers that follow Carbon Reduction Plans which commit to UK government net zero ambitions. We operate a UK Environmental Management System based on ISO 14001:2015 set up principles designed to engage and motivate all employees to be able to contribute toward and the achievement of Edwards’s global and local environmental objectives including those stated above. At the beginning of 2024 we successfully undergone a recertification audit.
Assuming we achieve the planned reduction in our emissions, we project that our carbon emissions will reduce to 632.5431 tCO2 by 2030. This represents a total reduction of at least 49% on a normalised basis.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2024.
Throughout the current and previous year the company operated a branch in the Republic of Ireland.
The results for the year are set out on page 12 -14
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
The company is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans.
The company’s principal foreign currency exposures arise from trading with overseas companies. The Ireland branch transacts in Euro but overall exchange risk remains immaterial.
All customers who wish to trade on credit terms are subject to credit verification procedures.
We believe in empowering our employees and providing avenues that enable their voices to be heard. We conduct a multilingual global employee survey, called myVoice, to gain employees' feedback in a confidential manner.
The CEO and Executive Leadership Team hold themselves accountable to consider and act on the results of the survey, and these results are reviewed by management with our Board of Directors. This initiative helps us gain insights on various topics including patient focus, diversity, inclusion and belonging, quality, innovation, engagement, as well as a sense of support at all levels of the organization.
Speak-Up is a resource available to all employees to bring forth compliance related concerns; a key element of our compliance program is that each employee is accountable for maintaining ethical business practices. In addition, during each quarterly townhall meeting, our CEO answers questions that have been submitted to him by employees. Answers to questions that are not covered in the townhall meeting are posted online internally.
At Edwards we seek to foster strong relationships with customers. We maintain regular face to face contact with customers through our territory account manager and clinical specialist teams. We continually seek to build strong relationships across our supplier network by paying on time, communicating on a regular basis, and conducting a rigorous supplier program as part of our procurement activity.
The directors propose an interim dividend of £21,000,000, payable to Edwards Lifesciences Corporation, the parent company. The dividend is scheduled for payment on 30 July 2025.
The Directors expect Edwards Lifesciences Limited to continue focusing on structural heart therapies following the disposal of its Critical Care business unit, completed on 3 September 2024. This strategic shift aligns with the Group’s global priorities and strengthens the Company’s core operations in the UK and Ireland. Future plans include continued investment in clinical education, R&D, and regulatory compliance, particularly in adapting to the UK’s post-Brexit medical device framework. The Company will also pursue digital supply chain enhancements and maintain strong relationships with key partners such as the NHS Supply Chain.
Despite ongoing economic and regulatory challenges, the Directors believe the Company is well-positioned for stable growth, supported by its strong financial position and Group backing.
In preparing the financial statements, the directors have considered the ability of the company to continue as a going concern and are actively monitoring the continued impact of Brexit on its financial condition, liquidity, operations and workforce to inform their decisions. The company made a profit before tax for the year ended 31 December 2024 of £18,020,000 (2023: £6,655,000) and at the balance sheet date had net current assets of £35,994,000 (2023: £22,472,000) and net assets of £36,200,000 (2023: £22,728,000).
The directors have reviewed the latest financial information and prepared cash flow forecasts identifying all
known contractual cash commitments for a period including the twelve months from the date of approval of
the financial statements and compared this to current cash holdings. The directors have concluded that there are no material uncertainties that lead to significant doubt upon the company’s ability to continue as a going concern and therefore the directors believe that it remains appropriate to prepare the financial statements on the going concern basis.
The auditor, Craufurd Hale Audit Services Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
We have audited the financial statements of Edwards Lifesciences Limited (the 'company') for the year ended 31 December 2024 which comprise the income statement, the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Fraud and breaches of laws and regulations - ability to detect
Identifying and responding to risks of material misstatement due to fraud
To identify risks of material misstatement due to fraud ("fraud risks") we assessed events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures included:
- Enquiry of management and those charged with governance around actual and potential litigation and claims.
- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Using analytical procedures to identify any unusual or unexpected relationships.
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
- Detailed reviews of the company's bank statements, testing all transactions deemed unusual and a sample of large material bank transactions.
We communicated identified fraud risks throughout the audit team and remained alert to any indications of fraud throughout the audit.
As required by auditing standards, and taking into account our overall knowledge of the control environment, we perform procedures to address the risk of management override of controls, in particular the risk that management may be in a position to make in appropriate accounting entries.
We did not identify any additional fraud risks.
We performed procedures including identifying journal entries to test based on risk criteria and comparing identified entries to supporting documentation. These included those posted to unrelated accounts, those posted containing key words, and those posted to an account linked to a fraud risk.
Identifying and responding to risks of material misstatement due to non-compliance with laws and regulations
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience, and through discussions with the directors and other management (as required by auditing standards), and from inspection of the Company's regulatory and legal correspondence and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations.
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.
The Company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation) and tax legislation, and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
We did not identify any others where the consequences of non-compliance alone could have a material effect on amounts or disclosures in the financial statements.
Context of the ability of the audit to detect fraud or breaches of law or regulation
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.
In addition, as with any audit, there remained a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Edwards Lifesciences Limited is a private company limited by shares incorporated in England and Wales. The registered office is Cannon Place, 78 Cannon Street, London, EC4N 6AF.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £'000.
The following principal accounting policies have been applied:
The company has taken advantage of the following disclosure exemptions in preparing these financial statements as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
The requirements of Section 7 Statement of Cash Flows
The requirements of Section 33 Related Party Disclosure paragraph 33.7 - refer to note 21
The information is included in the consolidated financial statements of Edwards Lifesciences Corporation as at 31 December 2024 and those financial statements maybe obtained from Edwards.com
Statement of Cash flow
The directors has taken advantage of the exemption in FRS 102 from including a statement of cash flow in the financial statements on the grounds that the company is wholly owned and its parent publishes group financial statements.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
Basic financial assets, which include trade and other receivables and cash and bank balances, are measured at transaction price.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities are classified according to the substance of the contractual arrangements entered into. Apart from its Ordinary shares, the company has no equity instruments.
Basic financial liabilities, including trade and other payables, are recognised at transaction price.
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
The only equity instruments are the Ordinary shares. Dividends payable are recognised as liabilities once they are no longer at the discretion of the company.
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of liabilities that are not readily apparent from other sources. These are based on historical experience and other relevant factors, with actual results potentially differing from those estimates.
Key areas of judgement include the recoverability of debtors, depreciation of fixed assets, bonus accruals, and rebate provisions. Trade debtors, primarily arising from direct and consignment sales with terms of 30 to 90 days, are assessed for impairment based on customer history, ageing, economic conditions, and historical loss trends. Irrecoverable amounts are written off to the profit and loss account.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
The company offers volume rebates to certain customers based upon targeted sales levels. The provision for volume rebates is estimated based upon customers’ contracted rebate programs, projected sales levels, and historical experience of rebates paid. The company periodically monitors its customer rebate programs to ensure that the allowance and liability for accrued rebates is fairly stated.
The majority of the company’s accounts receivable arise from direct product sales and sales of product under consignment arrangements, and have payment terms that generally require payment within 30 to 90 days. The company provides reserves against accounts receivable for estimated losses that may result from a customer’s inability to pay based on customer-specific analysis and general matters such as current assessments of past due balances, economic conditions and forecasts, and historical credit loss activity. Amounts determined to be uncollectible are written-off to the profit and loss.
An analysis of the company's turnover is as follows:
The average monthly number of persons (including directors) employed by the company during the year was:
Their aggregate remuneration comprised:
The total key management remuneration paid in the period totalled £220,000 (2023: £187,000).
Directors remuneration has been borne by the parent undertaking, Edwards Lifesciences Corporation. These directors are also directors or officers of a number of other companies within the Edwards Lifesciences group. The directors services to the company do not occupy a significant amount of their time. As such these directors do not consider that they have received any remuneration for their incidental services to the company for the years ended 31 December 2024 and 31 December 2023.
When they change, UK tax rates change on 1 April each year. In what follows, the average rate for each year has been calculated.
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
As part of the sale of the Critical Care business unit completed on 3 September 2024, all hospital equipment previously held under fixed assets was disposed of. The disposal formed part of the overall transaction and is reflected within the gain on disposal of the Critical Care business, which resulted in a profit of £10,333,000, as disclosed in Note 10 to the financial statements.
No hospital equipment remains on the balance sheet at year-end in relation to the disposed Critical Care business.
Trade debtors are non-interest bearing and are typically settled on terms of 30 to 60 days.
Amounts owed by group undertakings arise in the ordinary course of business and are interest-bearing, with interest receivable quarterly.
Prepayments represent amounts paid in advance of the related expense being recognised in the income statement.
Accrued income relates to unbilled contracted receivables for goods or services provided but not yet invoiced.
Trade creditors are non-interest bearing and are typically settled within 30 to 60 days.
Amounts owed to group undertakings arise in the ordinary course of business and are interest-bearing, with interest payable quarterly.
Accruals represent contracted costs recognised in the income statement prior to invoice receipt.
Deferred income comprises amounts received in advance for goods or services where revenue recognition criteria have not yet been met. These amounts are held on the balance sheet and recognised in the income statement when earned.
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
The company contributes to a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
The European Commission (the “Commission”) is investigating certain business practices of the Edwards 'Group' in which the company forms part of, including its unilateral pro-innovation (anti-copycat) policy and patent practices. The Group is cooperating with the Commission and believes its business practices support healthy competition. The Group cannot predict the outcome of the investigation or the potential impact on the financial statements.
Operating lease payments represent rentals payable by the company for its properties and for vehicle leases.
As at 31 December 2024, the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
The company is a wholly owned subsidiary of Edwards Lifesciences Corporation. Accordingly, the company has taken advantage of the exemption under FRS 102 section 33 not to disclose transactions with other group companies which meet the criteria that all subsidiary undertakings which are party to transactions are wholly owned by the ultimate controlling parent. There were no other related party transactions during the year.
The directors propose an interim dividend of £21,000,000, payable to Edwards Lifesciences Corporation, the parent company. The dividend is scheduled for payment on 30 July 2025.
The ultimate parent company is Edwards Lifesciences Corporation which is incorporated in the USA, and is the largest group of undertakings for which group accounts are drawn, Edwards Lifesciences Corporations registered office is at One Edwards Way, Irvine, California 92614. Copies of the consolidated accounts can be obtained from that address and are available online at edwards.com.