The directors present the strategic report for the year ended 31 December 2024.

AB Sciex UK Limited is a leading provider of high-end mass spectrometers. Our broad portfolio of scientific analytical tools include innovative instrument systems, intuitive software, pre-packaged methods and chemistry reagents - all of which are part of workflows that reduce complexity and accelerate results. These tools apply mass spectrometry technologies to enable scientists to conduct quantitative and qualitative analysis across a wide range of applications.

The Company acts as a non-exclusive distributor to purchase and distribute the products within the territory of the UK pursuant to the terms and conditions of the Group and provide related services as an Authorised Service Provider.

As is prevalent in the industry the Company continues to deal with the risk that products will become obsolete in a highly specialised market. However new product development by its suppliers continues to provide a strong competitive edge going forward into the future.

Competitive Risks

The Company operates in a competitive market but the directors feel there is minimal risk to the business. The application of the Danaher Business Systems approach ensures that the Company is able to respond quickly to changes in levels of activity or competitive pressures and in this the Company has significant advantages over competitors.

Legislative Risks

In a number of the areas in which the Company operates there are high levels of legislation. The Company has processes in place that ensure compliance with legislation.

Financial Risks

The business is currently in a strong financial position and is able to meet third party debts as they become due. The current economic difficulties are challenging but the directors are confident that as a result of the strong Balance Sheet and actions taken the business can withstand these pressures. Whilst the business is involved in many geographical areas, there are processes in place to ensure that the Company is not exposed to undue currency risks.

Exposure to Price, Credit, Liquidity and Cash flow risks

The Company's operations are exposed to financial risk including credit, currency fluctuation and liquidity risks. Credit risk exists as the Company sells its products on credit, but the Company only provides credit to organisations after sufficient credit procedures are performed. This is also reduced by sales with government funded institutions.

The Group treasury department maintains a six-quarter rolling cash forecast with regular updates provided by the Company. Treasury monitors the Company's liquidity needs on a daily basis. The Company's liquidity is supported by both inter-company loans and/or a third party line of credit.

The spread of different product lines and markets reduces the potential adverse impact of any of the above risks having an effect on the stability of the business. The directors believe that the Company has sufficient funds available to withstand any difficulties which may arise in the next 12 months.

The Company's key financial and other performance indicators were as follows:

The operating profit has reduced during the year due to reduced sales of the Company's product and services.

The directors anticipate future revenue growth that will enable continued growth in profits in the future.

Future developments

The directors expect the general level of activity to increase in the forthcoming financial year.

On behalf of the board

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

The profit for the year, after taxation, amounted to £1,972,000 (2023: £2,157,000).

No dividends will be distributed for the year 31 December 2024 (2023: £nil).

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

Going concern

The Company was impacted by the global geo-political environment and inflationary macro-economic pressures that have resulted in increased product and overhead costs. The directors have managed this through close cost management and mitigated as much as possible through sales price uplifts. To date, demand for the Company's products has not been adversely impacted and the level of trading experienced in 2024 is expected to continue in 2025 and the future periods. The directors have reflected this in forecasts for the going concern assessment period of 12 months from the approval of financial statements along with reasonable assumptions on the cost impact of inflation. Any downside scenarios against these forecasts would not have significant impact on the result and cash generation given the limited risk distribution model applied to the Company that results in a consistent level of profit on sales.

The Company generates cash through trading and is also a part of the Danaher UK group cash pool arrangement. All members of the cash pool have entered into unlimited cross guarantees in respect of bank borrowings based on cash balances within the cash pool accounts.

The Company as a limited risk distributor with pricing arrangements in place, is trading profitably as expected and also has a positive cash flow and a strong balance sheet throughout the going concern assessment period. The Group cash pool arrangement in the UK is also available if the Company requires immediate access to cash funds to meet its liabilities as they fall due. The cash position of the UK group as a whole is strong and therefore the Company has access to sufficient operating funds as necessary. After making due enquiries, considering the impact of the macro-economic environment and inflationary pressures, potential downside scenarios, cross guarantees with fellow members of the cash pool and strength of the ultimate parent undertakings, Danaher Corporation, the directors have a reasonable expectations that the Company has adequate resources to continue in operations, and meet liabilities as they fall due for the going concern assessment period of 12 month from approval of the financial statements. Accordingly, the financial statements have been prepared on a going concern basis.

Danaher Corporation has provided to all directors limited indemnities in respect of the cost of defending claims against them and third-party liabilities. These are all third-party indemnity provisions for the purpose of the Companies Act 2006 and are all currently in force.

In accordance with Companies Act 2006 Section 414C (11), the Company's Strategic Report contains certain disclosures required in the Directors' Report. The requirements are included within the Business review, Principal risks and uncertainties, Financial key performance indicators and Future developments section of the Strategic Report.

Each director in office at the date of approval of this annual report confirms that:

• so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

• the director has taken all the steps that he / she ought to have taken as a director in order to make himself / herself aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.

Ernst & Young LLP have expressed their willingness to continue in office as auditor and appropriate arrangements have been put in place for them to be deemed reappointed as auditor in the absence of an Annual General Meeting.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable United Kingdom 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 financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 101 Reduced Disclosure Framework (“FRS 101”). 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, 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;

• present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;

• provide additional disclosures when compliance with the specific requirements in FRS 101 is insufficient to enable users to understand the impact of particular transactions, other events and conditions on company financial position and financial performance;

• in respect of the financial statements, state whether applicable UK Accounting Standards, including FRS 101, 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 appropriate to presume that the Company will not 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.

Under applicable law and regulations, the directors are also responsible for preparing a strategic report and directors’ report, that comply with that law and those regulations. The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company’s website.

We have audited the financial statements of AB Sciex UK Limited for the year ended 31 December 2024 which comprise of the Profit and Loss Account, the Balance Sheet, the Statement of Changes in Equity and notes 1 to 25, including material accounting policy information. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 101 'Reduced Disclosure Framework' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of 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. However, because not all future events or conditions can be predicted, this statement is not a guarantee as the company's ability to continue as a going concern.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

• 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.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

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

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

• we have not received all the information and explanations we require for our audit.

As explained more fully in the directors' responsibilities statement, set out on page 5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect irregularities, including fraud. 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

• We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are FRS 101 "Reduced Disclosure Framework" (United Kingdom Generally Accepted Accounting Practice), the Companies Act 2006, and United Kingdom direct and indirect tax regulations. In addition, the company must comply with operational and employment laws and regulations including health and safety regulations, environmental regulations, Competition Law, anti-bribery and corruption regulations and General Data Protection Requirements.

• We understood how AB Sciex UK Limited is complying with those frameworks by holding enquiries with management and those charged with governance. We understand the potential incentive and ability to override controls, and employee access to guidance of how to report instances of non-compliance. We understood any controls put in place by wider group management to reduce the opportunities for fraudulent transactions.

• We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur by obtaining and reading group policies and holding enquiries of management and those charged with governance. Through these procedures we considered the risk of management override in relation to revenue recognition as the key area of focus. We determined there to be a risk of management override in relation to the posting of non-standard journals in respect of revenue. To address the risk of management override, we have used data analytics and obtained the entire population of journals for the year, and identified specific transactions for further investigation based on certain criteria. We understood the transactions identified for testing and agreed them to source documentation.

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved:

• Enquiry of management and those charged with governance as to any fraud identified or suspected in the period, any actual or potential litigation or claims or breaches of significant laws or regulations applicable to the company;

• Auditing the risk of management override of controls, through testing of a sample of journal entries and other adjustments for appropriateness;

• Enquiry of management, coupled with testing of journal entries, in order to identify and understand any significant transactions outside the normal course of business;

• Challenging the judgements made by management through corroborating the basis for those judgements and considering contradicting evidence; and

• Reading financial statement disclosures and testing to supporting documentation to assess compliance with applicable 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.

There were no items of comprehensive income or losses for the current or prior year.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

The notes on pages 12 to 32 form part of these financial statements.

The notes on pages 12 to 32 form part of these financial statements.

The notes on pages 12 to 32 form part of these financial statements.

AB Sciex UK Limited ('the Company') is a private company limited by shares incorporated in England and Wales. The registered office is Unit 4 Blythe Valley Innovation Centre, Central Boulevard, Blythe Valley Business Park, Solihull, United Kingdom, B90 8AJ.

The nature of the Company's operations and its principal activities are disclosed in the Strategic Report.

These financial statements are separate financial statements. The Company has taken advantage of the exemption under Section 401 of the Companies Act 2006 not to prepare group accounts as it is wholly owned by Danaher Corporation. The Group accounts of Danaher Corporation are available from 2200 Pennsylvania Avenue Suite 800 West, Washington DC 20037, USA.

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 101 'Reduced Disclosure Framework' and the Companies Act 2006.

The Company meets the definition of a qualifying entity under FRS 100 'Application of Financial Reporting Requirements' issued by the FRC. Accordingly, these financial statements were prepared in accordance with Financial Reporting Standard 101 'Reduced Disclosure Framework'

These financial statements are presented in pounds sterling and all values are rounded to the nearest thousand pounds (£000) except when otherwise indicated. It is the currency of the primary economic environment in which the Company operates.

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 paragraphs 91-99 of IFRS 13 Fair Value Measurement

• 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;

- paragraph 118(e) of IAS 38 Intangible Assets;

• the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134-136 of IAS 1 Presentation of Financial Statements

• the requirements of IAS 7 Statement of Cash Flows

• the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors

• the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures

• 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

• the requirements of paragraphs 130(f)(ii), 130(f)(iii), 134(d)-134(f) and 135(c)-135(e) of IAS 36 Impairment of Assets.

• the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.

This information is included in the consolidated financial statements of Danaher Corporation as at 31 December 2024 and these financial statements may be obtained from 2200 Pennsylvania Avenue Suite 800 West, Washington DC 20037, USA.

The trueCompany was impacted by the global geo-political environment and inflationary macro-economic pressures that have resulted in increased product and overhead costs. The directors have managed this through close cost management and mitigated as much as possible through sales price uplifts. To date, demand for the Company's products has not been adversely impacted and the level of trading experienced in 2024 is expected to continue in 2025 and the future periods. The directors have reflected this in forecasts for the going concern assessment period of 12 months from the approval of financial statements along with reasonable assumptions on the cost impact of inflation. Any downside scenarios against these forecasts would not have significant impact on the result and cash generation given the limited risk distribution model applied to the Company that results in a consistent level of profit on sales.

The Company generates cash through trading and is also a part of the Danaher UK group cash pool arrangement. All members of the cash pool have entered into unlimited cross guarantees in respect of bank borrowings based on cash balances within the cash pool accounts.

The Company as a limited risk distributor with pricing arrangements in place, is trading profitably as expected and also has a positive cash flow and a strong balance sheet throughout the going concern assessment period. The Group cash pool arrangement in the UK is also available if the Company requires immediate access to cash funds to meet its liabilities as they fall due. The cash position of the UK group as a whole is strong and therefore the Company has access to sufficient operating funds as necessary. After making due enquiries, considering the impact of the macro-economic environment and inflationary pressures, potential downside scenarios, cross guarantees with fellow members of the cash pool and strength of the ultimate parent undertakings, Danaher Corporation, the directors have a reasonable expectations that the Company has adequate resources to continue in operations, and meet liabilities as they fall due for the going concern assessment period of 12 month from approval of the financial statements. Accordingly, the financial statements have been prepared on a going concern basis.

Recognition

The Company earns revenue from sales to customers. This revenue is recognised in the accounting period when control of the product has been transferred, at an amount that reflects the consideration to which the entity expects to be entitled in exchange for fulfilling its performance obligations to customer which is deemed to be the fulfillment of the performance obligation to the customer.

The principles in IFRS 15 are applied to revenue recognition criteria using the following 5 step model:

1. Identify the contracts with the customer

2. Identify the performance obligations in the contract

3. Determine the transaction price

4. Allocate the transaction price to the performance obligations in the contract

5. Recognise revenue when or as the entity satisfies its performance obligations.

Fee arrangements

Below are details of fee arrangements and how these are measured and recognised, for revenue from the sale of products.

Revenue is recognised when control is transferred and performance obligations are met, usually on delivery of product to the customer. Terms of the fee arrangement are detailed in the terms and conditions attached to the invoice.

Performance obligations

Revenue from the sale of goods is recognised when control of the products has transferred, being when the products are delivered to the customer. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the trade customer has accepted the products in accordance with the sales contract, the acceptance provisions have lapsed, or the Company has objective evidence that all criteria for acceptance have been satisfied.

Transaction price

The transaction price is the fair value of the consideration received for the product less discounts /rebates and value added taxes.

Payment of the transaction price is due immediately when the customer purchases the goods and takes delivery.

A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

Rendering of services

Sales of services are recognised when the service has been performed and the receipt of payment is reasonably certain. Revenue on longer-term service contracts is recognised by reference to the stage of completion of the service, on a straight-line basis over the life of the contract.

Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, measured at acquisition date fair value and the amount of any non-controlling interest in the acquiree. The choice of measurement of non-controlling interest, either at fair value or at the proportionate share of the acquiree's identifiable net assets, is determined on a transaction by transaction basis. Acquisition costs incurred are expensed and included in administrative expenses.

The UK Companies Act requires goodwill to be reduced by provisions for depreciation on a systematic basis over a period chosen by the directors, its useful economic life. However, under IFRS 3 Business Combinations goodwill is not amortised. Consequently, the Company does not amortise goodwill, but reviews it for impairment on an annual basis or whenever there are indicators of impairment. The Company is therefore invoking a 'true and fair view override' to overcome the prohibition on the non-amortisation of goodwill in the Companies Act. The Company is not able to reliably estimate the impact on the financial statements of the true and fair override on the basis that the useful life of goodwill cannot be predicted with a satisfactory level of reliability, nor can the pattern in which goodwill diminishes be known.

Goodwill is initially measured at cost being the excess of the aggregate of the acquisition-date fair value of the consideration transferred and the amount recognised for the non-controlling interest over the net identifiable amounts of the assets acquired and the liabilities assumed in exchange for the business combination. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Company's cash-generating units (or groups of cash generating units) that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units. Each unit or group of units to which goodwill is allocated shall represent the lowest level within the entity at which the goodwill is monitored for internal management purposes and not be larger than an operating segment before aggregation.

Where goodwill forms part of a cash-generating unit and part of the operation within that unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed of in this circumstance is measured based on the relative values of the operation disposed of and the portion of the cash-generating unit retained.

When the Company acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. This includes the separation of embedded derivatives in host contracts by the acquiree.

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

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.

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Company makes an estimate of the asset's recoverable amount in order to determine the extent of the impairment loss. An asset's recoverable amount is the higher of an asset's or cash-generating unit's fair value loss costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. Impairment losses on continuing operations are recognised in the Profit and Loss Account in those expense categories consistent with the function of the impaired asset.

For assets where an impairment loss subsequently reverses, the carrying amount of the asset or cash generating unit is increased to the revised estimate of its recoverable amount, not to exceed the carrying amount that would have been determined, net of depreciation, had no impairment losses been recognised for the asset or cash generating unit in prior years. A reversal of impairment loss is recognised immediately in the Profit and Loss Account, unless the asset is carried at a revalued amount when it is treated as a revaluation increase.

Stocks are stated at the lower of cost and net realisable value. Cost includes all costs incurred in bringing each product to its present location and condition, as follows:

Raw materials and consumables - purchase cost on a first-in, first-out basis.

Work in progress and finished goods - cost of direct materials and labour plus attributable overheads based on a normal level of activity, excluding borrowing costs.

Cost of stock includes the transfer from equity of gains and losses on qualifying cash flow hedges in respect of the purchase of materials. Net realisable value is based on estimated selling price less any further costs expected to be incurred to completion and disposal. Provision is made for obsolete, slow-moving or defective items where appropriate.

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Financial asset - recognition and measurement

Financial assets are recognised when the entity becomes a party to the contract and, as a consequence, has a legal right to receive cash.

All financial assets are initially measured at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Purchases or sales of financial assets that require delivery of assets within a time-frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the Company commits to purchase or sell the asset.

All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of the financial assets.

The Company classifies its financial assets in the following categories: at fair value through profit or loss; and loans and receivables. The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition.

(a) Financial assets at fair value through profit or loss or at fair value through other comprehensive income. There are no instruments which have been classified under this category; and

(b) Financial assets at amortised cost

The Company classifies its financial assets as at amortised cost only if both of the following criteria are met:

• the asset is held with in a business model whose objective is to collect the contractual cash flows; and

• the contractual terms give rise to cash flows that are solely payments of principal and interest.

This category is the most relevant to the Company. After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the profit or loss. The losses arising from impairment are recognised in the profit or loss.

In accordance with IFRS 9, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the following financial assets and credit risk exposure:

a) Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities, deposits, trade receivables and bank balance.

b) Trade receivables or any contractual right to receive cash or another financial asset that result from transactions that are within the scope of IFRS 15.

For trade and other receivables, the Company applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables. To measure the expected credit losses and trade receivables have been grouped based on shared credit risk characteristics and the days past due.

Financial liabilities - recognition and measurement

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs.

The Company's financial liabilities comprise of trade creditors, amounts owed to group undertakings and bank overdrafts.

Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

(a) Financial liabilities at fair value through profit or loss

(b) Loans and borrowings

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term.

The Company does not have any financial liabilities which are subsequently re-measured at fair value through profit or loss.

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the profit and loss account.

De-recognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the profit and loss account.

Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.

Corporation tax payable is provided on taxable profits at the current rate, as reduced by group relief claimed or surrendered at nil cost. Deferred tax is measured on a non-discounted basis, at the average tax rates that are expected to apply in the periods in which the timing differences are expected to reverse.

Both current and deferred tax are measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date. A net deferred tax asset is regarded as recoverable and therefore recognised only when, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of underlying timing differences can be deducted.

The Organisation for Economic Co-operation and Development (OECD)/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) published the Pillar Two model rules. These are aimed at ensuring that large corporate groups are subject to a minimum taxation at a 15 percent rate in each jurisdiction where they operate. The Company is in the scope of the Pillar Two Model Rules and has adopted the amendments to IAS 12 (see note 10, tax on profit). It is unclear if the Pillar Two model rules create additional temporary differences, whether to remeasure deferred taxes for the Pillar Two model rules and which tax rate to use to measure deferred taxes. In response to this uncertainty, on 23 May 2023 and 27 June 2023, respectively, the IASB and AASB issued amendments to IAS 12 ‘Income taxes’ introducing a mandatory temporary exception to the requirements of IAS 12 under which a company does not recognise or disclose information about deferred tax assets and liabilities related to the proposed OECD/ G20 BEPS Pillar Two model rules.

The Company continues to apply the temporary exception at 31 December 2024.

A provision is recognised when the Company has a legal or contractual obligation as a result of a past event and it is probable that an outflow of economic benefits will be required to settle the obligation.

Provisions for the expected costs of maintenance under warranties are charged against profits when products have been invoiced. The effect of the time value of money is not material and therefore the provisions are not discounted. The Company periodically initiates restructuring activities to appropriately position the Company's cost base relative to prevailing economic conditions. Costs associated with restructuring actions can include one-time termination benefits, contract termination and other related activities. The Company records the cost of the restructuring activities when the associated liability is incurred.

The Company operates a defined contribution pension scheme. The amount charged to the profit and loss account represents contributions payable to the pension scheme in respect of the financial period. Differences between contributions payable in the period and contributions actually paid are shown as either accruals or prepayments in the Balance Sheet.

The Company as a lessee

The Company assesses whether a contract is or contains a lease, at inception of the contract. The Company recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or less) and leases of low value assets (such as tablets and personal computers, small items of office furniture and telephones). For these leases, the Company recognises the lease payments as an administrative expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed.

The Company did not make any such adjustments during the periods presented.

The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day, less any lease incentives received and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses.

Whenever the Company incurs an obligation for costs to dismantle and remove a leased asset, restore the site on which it is located or restore the underlying asset to the condition required by the terms and conditions of the lease, a provision is recognised and measured under IAS 37. To the extent that the costs relate to a right-of-use asset, the costs are included in the related right-of-use asset, unless those costs are incurred to produce inventories.

Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the Company expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease.

The right-of-use assets are presented within the Tangible fixed assets line in the Balance Sheet.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the lessee uses its incremental borrowing rate.

Lease payments included in the measurement of the lease liability comprise:

• Fixed lease payments (including in substance fixed payments), less any lease incentives receivable;

• Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date;

• The amount expected to be payable by the lessee under residual value guarantees;

• The exercise price of purchase options, if the lessee is reasonably certain to exercise the options;

• Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease.

The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made. The Company remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever:

• The lease term has changed or there is a significant event or change in circumstances resulting in a change in the assessment of exercise of a purchase option, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate.

• The lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value, in which cases the lease liability is remeasured by discounting the revised lease payments using an unchanged discount rate (unless the lease payments change is due to a change in a floating interest rate, in which case a revised discount rate is used).

• A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is remeasured based on the lease term of the modified lease by discounting the revised lease payments using a revised discount rate at the effective date of the modification.

The Company's financial statements are presented in sterling, which is also the Company's functional currency. Transactions in foreign currencies are initially recorded in the entity's functional currency by applying the spot exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency rate of exchange prevailing at the balance sheet date. All exchange differences are included in the Profit and Loss Account. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions.

Interest income

Interest income is recognised when it is probable that the economic benefits will flow to the company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset's net carrying amount on initial recognition.

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year However, the nature of estimation means that actual outcomes could differ from those estimates.

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

Management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies. Further details are contained in note 10.

The directors are required to estimate the level of provision required in respect of warranties, onerous leases and restructure costs. Should estimates require management judgement and adjustments are made when the assumptions underlying the calculations change. See note 21.

The directors are required to consider the need for impairment of goodwill and investments on an annual basis. This requires estimates of future cash flows of the Company and investment company. See note 11 and 13 for further details.

An analysis of turnover by class of business is as follows:

All turnover arose within the United Kingdom.

Depreciation of tangible fixed assets above includes depreciation right-of-use assets of £497,000 (2023: £453,000).

There were no non audit-fees paid to the Company's auditor in the current or prior year.

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

Staff costs were as follows:

None of the directors received emoluments from the Company during the current and prior year in respect of their services to the Company. None of the directors' emoluments paid by other group companies was allocated to the Company.

None of the directors were members of the pension scheme in the period and none received benefits under money purchase pension schemes.

No director received shares in respect of qualifying services or exercised share options in either the current or preceding period.

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 23.52%). The differences are explained below:         

Change in Corporation Tax rate

The current main rate of corporation tax in the UK is 25%.

The Company is part of the Danaher Corporation Group (the “Group”). Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions in which the Group operates.

Legislation was enacted in the UK on 11 July 2023 which introduced, as part of Finance (No 2) Act 2023:

• a Domestic minimum Top-up Tax (“DTT”) which is intended to be a Qualified Domestic Top-up Tax (“QDMTT”)

• an Income Inclusion Rule (“IIR”), known locally as the “multinational top-up tax”.

Both the UK DTT and the UK IIR apply for accounting periods beginning on or after 31 December 2023.

The Group has performed an assessment of the Group’s potential exposure to Pillar Two and it is not anticipated that the IIR will apply in the UK.

The UK satisfies the Transitional Country-by-Country Reporting Safe Harbor (“TCSH”) for financial year ending December 31, 2024 and as a consequence no QDMTT is due.

Goodwill acquired through business combinations has been allocated to one cash-generating unit (CGU), namely AB Sciex UK as a whole. This represents the lowest level at which goodwill is monitored for internal management purposes.

The recoverable amount of the CGU has been determined based on a value in use calculation using cash flow projections based on financial budgets approved by the Board covering a three-year period. Based on the analysis no impairment is required.

The net book value of owned and leased assets included as 'Tangible fixed assets' in the Balance Sheet is made up of tangible fixed assets owned amounting to £918,000 (2023: £947,000) and right-of-use tangible fixed assets valued at £1,575,000 (2023: £1,956,000).

Rent equipment costing £473,000 with accumulated depreciation of £428,000 has been reclassified from inventory in 2023 to tangible fixed assets in 2024 on the 1 January 2024. Depreciation had been charged year on year in line with the accounting policy and no impact to profit and loss due to the reclassification. Current depreciation charge for the year on rent equipment amounts to £35,000.

On 14 November 2016, the Company acquired 100% of the ordinary shares of Phenomenex Limited, a private company based in England. Phenomenex Limited's registered address is Melville House, Queens Avenue, Macclesfield, Cheshire, SK10 ZBN. The principal activity of the Company is to provide separation science consumables.

The estimated replacement cost of stock does not differ significantly from the above.

Included in amounts owed by fellow group undertakings above are amounts owed by AB Sciex LLC, intermediate parent company, of £8,000 (2023: £nil).

Amount owed by fellow group undertakings are unsecured and repayable on demand.

The Company participates in a cash pool with AB Sciex Finance B.V., a group company. Interest is received annually and is calculated based on the daily closing balance of the current account, multiplied by the applicable mid-Euro overnight deposit rate.

Amount owed to fellow group undertakings are unsecured, repayable on demand and interest free.

The Company does not face a significant liquidity risk with regard to its lease liabilities. Lease liabilities are monitored within the Group's treasury function.

The following table summarises the undiscounted lease payments receivable after the reporting date.

Warranty provision

The provision for product warranties relates to expected warranty claims on products sold in the period. It is expected that this expenditure will be incurred in the next financial year. Assumptions used to calculate the provision for warranties were based on current sales levels and current information available about returns based on the one year warranty period for all products sold.

Dilapidations provision

A dilapidation provision is recognised for the expected cost of returning the leasehold property to the state and condition required by the lease agreements at their termination.

Restructuring provision

During the prior year the Company charged £586,000 to the profit and loss account for the provision of a severance payment.

The Group operates a defined contribution pension scheme and makes contributions to a number of money purchase personal pension schemes on behalf of its employees and directors. The unpaid pension contribution as at year end was £87,000 (2023: £101,000).

The balance classified as equity share capital includes the total net proceeds (both nominal value and share premium) on issue of the Company's equity share capital, comprising £1 ordinary shares.

The profit and loss account represents cumulative profit and losses net of dividends paid and other adjustments.

In the opinion of the directors, the Company's immediate parent undertaking is Launchchange Operations Limited, a company incorporated in the United Kingdom.

The ultimate parent undertaking and controlling party is Danaher Corporation, a company incorporated in the USA.

The largest and smallest group in which the results of the Company are consolidated is Danaher Corporation, a company incorporated in the USA. The consolidated financial statements of this group are available to the public and may be obtained from 2200 Pennsylvania Avenue, Suite 800 West, Washington DC 20037, USA.