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Registered number:
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Systagenix Wound Management Manufacturing Limited
Company Information
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Systagenix Wound Management Manufacturing Limited
Contents
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Systagenix Wound Management Manufacturing Limited
Strategic Report
For the Year Ended 31 December 2024
The directors present the audited annual report and accounts for the period ending 31 December 2024.
Systagenix Wound Management Manufacturing Limited (“the Company”) is a 100% wholly owned subsidiary of First Water Limited, which is part of Mativ Holdings Inc. The principal activity of the Company is the manufacture of professional wound care products, as a contract manufacturer. In addition, the Company provides certain research and development services. There have not been any significant changes in the Company's principal activities in the period under review and the directors are not aware, at the date of this report, of any likely major changes in the next financial year.
Redundancy costs of £1,314k were incurred during the year (2023: £nil) relating to a programme to reduce the cost base. These costs have been classified as exceptional due to their nature and size. Review of developments and performance during the period Revenue for the 12 months was £42,334k (2023: £41,358k), this is an increase of 2.4% for the period. Gross margin increased to 21.3% (2023: 13.2%). The Company delivered an operating profit totalling £2,315k (2023: £430k). These figures are seen as the key performance indicators of the business. On behalf of the Company, the directors would like to thank all employees for their tremendous commitment, determination and dedication that enables the Company to maintain positive momentum. Review of position at 31 December 2024 As at 31 December 2024, the Company had net assets of £29,558k (2023: £29,865k) and net cash and cash equivalents of £1,920k (2023: £365k). Future developments During the period the Company strategy was to position itself to react quickly to change and take advantage of opportunities as they emerge to maximise profit margin and cash flow. The directors are confident the future prospects of the Company are positive and believe that the Company is well placed to meet challenging external economic conditions. The management team continues to address the requirement to become ever more competitive and efficient whilst focusing on strong cash management, with inflationary pressures being addressed via price increases.
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Systagenix Wound Management Manufacturing Limited
Strategic Report (continued)
For the Year Ended 31 December 2024
As a wholly owned subsidiary of Mativ Holdings Inc (NYSE: MATV), the directors of Mativ Holdings Inc. manage the Group's risks at a Group level, rather than at an individual subsidiary level. The principal risks and uncertainties of Mativ Holdings Inc, which include those of the Company, are discussed in the business review in the Group’s annual report which does not form part of this report.
The key risks identified for the Company are: Economic and political risk: The Company’s activities expose it to political and economic uncertainty, eg Covid and trade relations, which affects market and financial stability. This is managed by; Regular risk assessments competed on macro-economic impact on key business areas, e.g. Supply Chain, Tax & People, Regulatory & Compliance requirements. The Company holds ISO 13485 accreditation to the European Medical Device Directive and all products manufactured on site are classified as such. Foreign exchange risk: The Company’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates. The net exposure is reduced as some sales and purchasing transactions are in foreign currency where appropriate. Credit risk: The Company’s principal financial assets are bank balances and trade and other receivables. The Company’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheets are net of allowances for doubtful receivables. The Company performs regular credit checks and monitoring on all significant customers. Liquidity risk: In order to maintain liquidity and to ensure that sufficient funds are available for ongoing operations and future developments, the Company uses inter group borrowings. Loss of major customer: The Company operates in a competitive market which is a continuing risk to the Company and could result in the loss of sales to its competitors. The Company manages this risk by providing a high standard of service to its customers, responding quickly to customers’ requirements and maintaining strong relationships with them. The principal risks facing the Company arise from the potential of a significant decline in demand due to local or global market conditions. This is mitigated because the Company supplies its clients who distribute globally with no one single region or country dominant in terms of value or volume. On 30 September 2023, the Company signed a new multi-year supply agreement with its largest customer, ensuring risks around loss of business are mitigated and setting a strong platform for growth. Raw material pricing: The risk of increasing raw material prices and commodity market rises are a continuing risk to the Company and could impact on gross margins in the future. The Company seeks to minimise the impact of increasing prices by utilising the Group’s global supply chain function and using multi sourcing arrangements for its key materials.
No non-financial KPIs have been presented as there are none monitored at the Systagenix Wound Management Manufacturing Limited level. Non-financial KPIs are only monitored on a Group basis.
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Systagenix Wound Management Manufacturing Limited
Strategic Report (continued)
For the Year Ended 31 December 2024
The directors take their duties and responsibilities seriously when managing the Company. The way in which their duties and responsibilities are applied is covered, in part, within the Director’s Report on page 6 of these financial statements.
The following highlights how the directors have delivered against the requirements of Section 172 in the application of their duties: S172(1)(A) “The likely consequences on any decision in the long term” The Company is a wholly owned subsidiary of Mativ Holdings Inc. and all decisions of the Company are aligned to the strategic priority of the Group which is ‘Finding ways to improve everyday life’. All decisions of the Company are taken in line with our written policies, our Code of Conduct and Mativ Holdings' guiding principles which require that directors and employees demonstrate trust, respect and integrity in all that we do. S172(1)(B) “The Interests of the Company’s employees” Employees are a key stakeholder in the operations of the Company and this is reflected in the Mativ Values which each and every employee is tasked to drive and uphold: Prioritise Safety We place the Health and Wellbeing of people and communities before everything else. Be Curious We approach every day with an open mind to learn, improve and grow. Have a Voice We speak up, openly debate in a respectful way and align on a path forward. Win with Customers We go above and beyond to exceed the expectations of our customers. Make it Happen We think big, act with intent and get results. We harness direct engagement with our employees through a “culture of conversation” which encourages honest conversations, diversity of thought, teamwork, creativity and innovation. A range of communication channels are used to keep employees informed of business performance, policy changes and people news including our company intranet, regular “Town Hall” communications, social media, webinars, informal discussions together with videos and open question channels from the Group CEO. S172(1)(C) “The need to foster the Company’s business relationships with suppliers, customers and others” Customers Whether it is through technology, manufacturing or global capabilities, we are committed to connecting our strengths to those of our customers. We do this through direct engagement with our customers on a regular basis to understand their particular challenges and how we may be able to solve them. Also, as a Group, we conduct customer satisfaction surveys to understand our customers’ perceptions of how we are meeting their needs, together with attendance at trade shows and the development of specialised services to support business needs and partnerships. Suppliers Our key suppliers are an essential element of our supply chain and we have a Procurement function devoted to our engagement with suppliers, ensuring that we maintain direct engagement. Our attendance at Trade shows harnesses these relationships and we utilise questionnaires on materials and adherence to the Group’s Code for Responsible Procurement.
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Systagenix Wound Management Manufacturing Limited
Strategic Report (continued)
For the Year Ended 31 December 2024
Ultimate Parent
The Company’s ultimate parent company was Mativ Holdings Inc. which is listed on the New York Stock Exchange (MATV). The interests of the Mativ Holdings Inc.’s stockholders is paramount and our parent company has an Investor Relations function which communicates regularly with stockholders to keep them informed of progress. Government The Company undertakes meetings and engagement with local officials as required and ensures compliance with policy issues that impact our business and the community in which we operate. S172(1)(D) “The impact of the Company’s operations on the community and the environment” Community We are committed to building positive relationships with the communities in which we operate. The Company liaises with the Community and Parish Council as part of any planning permission for any new facility build and partnerships with the Environment Agency, River Aire Trust, Wild Trout Trust, Angling Society and local neighbours regarding the weir removal for the waterway which crosses the Company manufacturing site. The Company also supports several local charitable events. The Group has several relationships with global organisations, such as the Planet Water Foundation. Sustainability The Group has a long-standing commitment to environmental stewardship and sustainability, and we are committed to further integrating environmental principles into our strategies. The Company holds the ISO14001 Environmental Standard.
S172(1)(E) “The desirability of the Company maintaining a reputation for high standards of business conduct”
It is recognised by the directors that doing business the right way is key to long term success for the Company and the Company uses a number of measures to ensure compliance. The Group operates under a Code of Conduct which is Mativ Holdings Group’s guide to ethics and responsibilities in the workplace and outlines the requirements of every director and employee. Ethics are fundamental to all aspects of our business, both internally and externally, and it is the role of all employees, managers and leaders to apply these requirements to their jobs and for reporting any suspected violations of law or the Code. Regular updates and reminders of compliance requirements in the form of global emails are issued together with regular training updates. The Group also operates a whistleblowing policy which allows any individual to report any form of non-compliance anonymously. S172(1)(F) “The need to act fairly as between members of the Company” The Company is held directly by a single member and has one ultimate parent company, Mativ Holdings Inc., headquartered in the USA and listed on the New York Stock Exchange. The directors consider courses of action that enable delivery of our strategic priorities taking into account the impact on the Mativ Holdings group of companies globally.
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Systagenix Wound Management Manufacturing Limited
Strategic Report (continued)
For the Year Ended 31 December 2024
This report was approved by the board and signed on its behalf.
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Systagenix Wound Management Manufacturing Limited
Directors' Report
For the Year Ended 31 December 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’. 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;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The loss for the year, after taxation, amounted to £307k (2023 - loss £2,299k).
Dividends paid during the year amounted to £Nil (2023: £Nil).
The directors who served during the year were:
Please see the paragraph included in the Strategic Report.
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Systagenix Wound Management Manufacturing Limited
Directors' Report (continued)
For the Year Ended 31 December 2024
The Health and Safety of our employees continues to be the utmost priority for the business alongside the protection of the environment in which we work.
This philosophy extends to everyone who may be affected by our activities. The Company's senior managers, supported by the Corporate Sustainability function, ensure that adequate resources are available to successfully deploy and measure operational health, safety and environmental improvement plans. EHS Programs and Performance
∙Use of Mativ EHS Software to monitor and manage risk for the business.
∙Implementation of Leadership Learning Engagements (LLEs) to encourage leadership at all sites to engage in day to day safety conversations with all levels of employees, identifying those practices and concerns and helping to prevent accidents before they happen.
∙Continued management of waste programme to ensure we minimise our impact on the planet by reusing, recycling and reducing wherever possible to fulfil our commitments to zero landfill.
∙Certification to ISO 14001 (Environmental), ISO450001 Health and Safety and ISO50001 (Energy).
∙Ensure EHS plays a central part of the Mativ Group culture through employee and other stakeholder engagement; and setting Prioritising Safety as the primary Mativ Corporate Value.
Greenhouse gas emissions, energy consumption and energy efficiency action
What the Group has done on reducing Green House Gases emissions to date:
∙There is an active Climate Change Agreement in place which sets defined sector reduction targets
∙Tracking of energy, waste and water usage as a KPI for the business and a site specific reduction target.
∙Large scale project to replace lighting for new LED fittings.
∙Procurement policy to only purchase energy efficient equipment.
∙Investment in sub metering to gain a better understanding of energy usage – which has yielded a number of projects targeting including scaled back usage of energy intense equipment on site such as the planned investment in variable speed motors for the heating, ventilation and air conditioning systems, as well as office consolidations.
What the Group plans to do on further Green House Gases reductions:
∙Implementation of science based energy targets.
∙Review energy purchasing and tariffs for consideration of green energy procurement.
∙Energy transformation project to assess low carbon options such as photovoltaics and CHP (combined heat and power).
∙Project to review energy infrastructure including upgrades to existing transformers.
∙Completion of Energy Saving Opportunity Scheme (ESOS) phase 3.
The Group continues to assess opportunities to further reduce Green House Gases.
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Systagenix Wound Management Manufacturing Limited
Directors' Report (continued)
For the Year Ended 31 December 2024
The following assumptions, methodologies, definitions and data validation processes have been used to report the Group’s key environmental performance indicators in 2024. The reporting data complies with the Streamlined Energy and Carbon Reporting requirement:
∙Boundary Scope: data from all locations which the Company has operational control is collected and measured.
∙Primary data sources: these include billing, invoices and other systems provided by the supplier of the energy to communicate energy consumption.
∙Secondary data sources: These include the Company’s internal systems used to record and report the consumption data.
∙Internal data validation: The process used to review and compare primary data with secondary data.
∙Conversion factors: the 2024 Government GHG Conversion Factors for Company Reporting, published by the UK Department for Environment, Food & Rural Affairs (DEFRA), are used when converting gross emissions.
∙Intensity metrics: total Carbon emissions per £m of revenue is used to calculate the Company’s intensity metrics.
The Group’s greenhouse gas emissions and energy consumption are as follows:
The site opportunistically pursues energy reduction projects and, due to our energy mix, when we reduce energy we also reduce greenhouse gas emissions. We continue to drive energy savings through a combination of office relocations, LED lighting changes, efficiency initiatives to improve yield and OEE. We are moving towards automation and consolidation of assets to reduce the number of processes to a minimum.
The site also undergoes periodic energy assessments to identify new opportunities. Exclusions: No Mandatory emissions have been excluded from this report. Emission factors applied: DESNZ 2024
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Systagenix Wound Management Manufacturing Limited
Directors' Report (continued)
For the Year Ended 31 December 2024
Greenhouse gas emissions, energy consumption and energy efficiency action continued
Methodology: this report is aligned with GHG protocol and Environmental Reporting Guidelines including Streamlined Energy and Carbon Reporting guidance. Estimations: 0.0% of the energy data (kWh) and 0.0% of the emissions data (tCO2e) are based on extrapolated values. Scope of emissions included in the report: Electricity, Natural Gas, White Diesel and Indirect Transport.
There have been no post balance sheet events.
The auditors, Hurst Accountants Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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Systagenix Wound Management Manufacturing Limited
Independent Auditors' Report to the Members of Systagenix Wound Management Manufacturing Limited
We have audited the financial statements of Systagenix Wound Management Manufacturing Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of 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 101 ‘Reduced Disclosure Framework’ (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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Systagenix Wound Management Manufacturing Limited
Independent Auditors' Report to the Members of Systagenix Wound Management Manufacturing Limited (continued)
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 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.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
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Systagenix Wound Management Manufacturing Limited
Independent Auditors' Report to the Members of Systagenix Wound Management Manufacturing Limited (continued)
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:
Identifying and assessing potential risks related to irregularities In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
∙The nature of the industry and sector, control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets;
∙The outcome of enquiries of local management and parent company management including whether management was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud.
∙Supporting documentation relating to the Company's policies and procedures for:
−Identifying, evaluating and complying with laws and regulations
−Detecting and responding to the risks of fraud
∙The internal controls established to mitigate risks relate to fraud or non-compliance with laws and regulations.
∙The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud;
∙The legal and regulatory framework in which the Company operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or that had a fundamental effect on the operations of the Company, including General Data Protection requirements, Anti bribery and corruption policy.
Audit response to risks identified
Our procedures to respond to the risk identified included the following:
∙Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
∙Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;
∙Evaluation of the operating effectiveness of management's controls designed to prevent and detect irregularities;
∙Enquiring of management about any actual and potential litigation and claims;
∙Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
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Systagenix Wound Management Manufacturing Limited
Independent Auditors' Report to the Members of Systagenix Wound Management Manufacturing Limited (continued)
We have also considered the risks of fraud through management override of controls:
∙Testing the appropriateness of journal entries and other adjustments. We have used data analytics software to identify accounting transactions which may pose a heightened risk of material misstatement, whether due to fraud or error;
∙Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in asking accounting estimates are indicative of a potential bias; and
∙Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. 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 Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 Auditors' 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
3 Stockport Exchange
Stockport
Cheshire
SK1 3GG
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Systagenix Wound Management Manufacturing Limited
Statement of Comprehensive Income
For the Year Ended 31 December 2024
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Systagenix Wound Management Manufacturing Limited
Registered number: 06682392
Balance Sheet
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 17 to 32 form part of these financial statements.
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Systagenix Wound Management Manufacturing Limited
Statement of Changes in Equity
For the Year Ended 31 December 2024
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Systagenix Wound Management Manufacturing Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
Systagenix Wound Management Manufacturing Limited is a private company limited by share capital incorporated in England and Wales under the Companies Act. The company's registered number is 06682392. The address of its registered office is 997 Manchester Road, Ashton Under Lyne, Greater Manchester, OL7 0ED.
The principal activity of the Company is the manufacture of professional wound care products, as a contract manufacturer. In addition the Company provides certain research and development services.
2.Accounting policies
The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions under FRS 101:
∙the requirements of IFRS 7 Financial Instruments: Disclosures
∙the requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115, 118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with Customers
∙the requirement in paragraph 38 of IAS 1 'Presentation of Financial Statements' to present comparative information in respect of:
- paragraph 79(a)(iv) of IAS 1;
- paragraph 73(e) of IAS 16 Property, Plant and Equipment;
∙the requirements of IAS 7 Statement of Cash Flows
∙the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member
This information is included in the consolidated financial statements of Mativ Holdings, Inc. as at 31 December 2024 and these financial statements may be obtained from the Company Secretary, Mativ Holdings Inc., 100 Kimball Place, Suite 600 Alpharetta, Georgia, 30009, USA.
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Systagenix Wound Management Manufacturing Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
The following new standards and amendments are effective for the period beginning 1 January 2024:
• Classification of Liabilities as Current or Non-current (Amendments to IAS 1) • Non-current Liabilities with Covenants (Amendments to IAS 1) • Lease Liability in a Sale and Leaseback (Amendments to IFRS 16) • Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7) None of these amendments had any impact on the Company.
At 31 December 2024 the Company had net current assets of £36,441k (2023: £6,762k) and made a loss before tax for the year of £1,099k (2023 : £1,459k loss).
The directors are satisfied that the business remains resilient and has adapted to the current economic climate. The directors have prepared cash flow forecasts and are satisfied that the Company will continue to be able to pay its debts as they fall due. Accordingly, the directors have prepared these financial statements on the fundamental assumption that the Company is a going concern.
Functional and presentation currency
Transactions and balances
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Systagenix Wound Management Manufacturing Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
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Systagenix Wound Management Manufacturing Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
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Systagenix Wound Management Manufacturing Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
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Systagenix Wound Management Manufacturing Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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Systagenix Wound Management Manufacturing Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The Company recognises financial instruments when it becomes a party to the contractual arrangements of the instrument. Financial instruments are de-recognised when they are discharged or when the contractual terms expire. The Company's accounting policies in respect of financial instruments transactions are explained below:
Financial assets and financial liabilities are initially measured at fair value.
Financial assets
All recognised financial assets are subsequently measured in their entirety at either fair value or amortised cost, depending on the classification of the financial assets.
Fair value through profit or loss
Impairment of financial assets
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Systagenix Wound Management Manufacturing Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
2.Accounting policies (continued)
Financial liabilities
Fair value through profit or loss Financial liabilities are classified as at fair value through profit or loss, when the financial liability is held for trading, or is designated as at fair value through profit or loss. This designation may be made if such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise arise, or the financial liability forms part of a group of financial instruments which is managed and its performance is evaluated on a fair value basis, or the financial liability forms part of a contract containing one or more embedded derivatives, and IFRS 9 permits the entire combined contract to be designated as at fair value through profit or loss. Any gains or losses arising on changes in fair value are recognised in profit or loss to the extent that they are not part of a designated hedging relationship. At amortised cost Financial liabilities which are neither contingent consideration of an acquirer in a business combination, held for trading, nor designated as at fair value through profit or loss are subsequently measured at amortised cost using the effective interest method. This is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial liability, or where appropriate a shorter period, to the amortised cost of a financial liability. Critical judgements in applying the Company's accounting policies In the process of applying the Company's accounting policies, which are described above, the directors have noted no critical judgements or key sources of estimation uncertainty in the preparation of these accounts.
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Systagenix Wound Management Manufacturing Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
Analysis of turnover by country of destination:
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Systagenix Wound Management Manufacturing Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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Systagenix Wound Management Manufacturing Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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Systagenix Wound Management Manufacturing Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
10.Taxation (continued)
There were no factors that may affect future tax charges.
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Systagenix Wound Management Manufacturing Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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Systagenix Wound Management Manufacturing Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
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Systagenix Wound Management Manufacturing Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
Share premium account
The share premium account is an equity account that represents the additional amount shareholders paid for the issued shares that were in excess of the par value. Profit and loss account The profit and loss reserve represent cumulative profits and losses, net of dividends.
Capital contribution reserve
The company is under investigation from the Health and Safety Executive which is seeking prosecution following the death of an employee on the company's premises. Following a Coroner's Court inquiry in 2023, it was determined that the death was accidental.
In the event that the Company is found to be liable, the directors have been advised that the compensation payable could be an unlimited fine. The directors note that in the event of an unfavourable judgement, the Company would not be able to recoup the loss from another party.
At 31 December 2024, the Company had capital commitments, which were contracted for but not provided for in these financial statements of £8,257k (2023: £1,068k).
The Company operates a defined contributions pension scheme. The pension cost charge represents contributions payable by the Company to the fund and amounted to £890k (2023: £735k). Contributions totalling £Nil (2023: £Nil) were payable to the fund at the balance sheet date.
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Systagenix Wound Management Manufacturing Limited
Notes to the Financial Statements
For the Year Ended 31 December 2024
The Company's immediate parent company is First Water Limited, a company incorporated in England and Wales registration number 04421197.
The ultimate parent undertaking and controlling party is Mativ Holdings Inc., which is the parent undertaking of the smallest and largest group to consolidate these financial statements. Copies of the consolidated financial statements of Mativ Holdings Inc. may be obtained from its registered office, from the Company Secretary, Mativ Holdings Inc., 100 Kimball Place, Suite 600 Alpharetta, Georgia, 30009, USA.
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