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Registered number:
FOR THE YEAR ENDED 31 DECEMBER 2024
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ENNOGEN HOLDINGS LIMITED
COMPANY INFORMATION
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ENNOGEN HOLDINGS LIMITED
CONTENTS
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ENNOGEN HOLDINGS LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The Director presents his strategic report for the year ended 31 December 2024.
The principal activity of the Company during the year was that of a holding company of a group of companies involved in the innovation, manufacture and distribution of pharmaceutical products and medical devices. There have been no significant changes in the Company's principal activities during the year and the director is not aware at the date of this report of any likely changes in the Company's activities in the forthcoming year.
The Group completed three product acquisitions during the year.
Under the terms of an Asset purchase agreement dated 14 August 2024, the Group acquired from Omega Pharma Innovation and Development NV the UK rights to Alphosyl 2 in 1 medicated shampoo for £2.15m. Under the terms of an asset purchase agreement dated 20 September 2024, the Group acquired from Teva UK the rights to Otomize for £15m. Otomize is a prescription only Otoloryngological product licensed in the UK. Under the same agreement the Group also acquired from Teva UK the rights to Stanek for £1m, a product prescribed for the treatment of Parkinsons and licensed in the UK. Revenue of £56,102,862 (2023: £35,914,372) increased 56% due to continuing growth in volumes of existing products, price benchmarking, the full year impact of the DHC acquisition in 2023, and the impact of acquisitions completed later in 2024. Consequently, gross profits for the year increased to £41,688,717 (2023: £24,708,509). As well as additional revenues, it is anticipated that the acquisitions will also provide diversification to the Ennogen product portfolio. Administrative expenses of £17,177,564 (2023: £12,034,071) include an increase in amortisation expense of £2,940,017 to £7,940,820 (2023: £5,000,803) following acquisitions made in both 2023 and 2024. Consequently adjusted EBITDA of £30,495,162 (2023:15,472,880) increased by £15,022,282, 97%. On completion of a refinancing by the Group with Santander UK plc on 16 April 2024, the Group repaid its’ existing borrowings of £7,750,000 and drew down £8,125,000 from the revolving credit facility. A further £7,000,000 was drawn in September to fund the acquisitions during the year bringing total borrowings from bank loans to £15,125,000 (2023: £7,750,000). Despite the increase in borrowings, cashflow from operations of £19,773,641 (2023: 9,680,257) ensured that net debt was reduced by £176,469 to £3,198,261 (2023: £3,374,730). Risk management and internal control The Team acknowledge responsibility for the Company's system of internal control and for reviewing its effectiveness. The Company's system of internal control is designed to manage any potential operational or financial risks. The Company adopts internal controls appropriate to its business activities and geographical spread and has in place clearly defined lines of responsibility and limits of delegated authority. Comprehensive procedures provide for the appraisal, approval, control, and review of capital expenditure. These procedures also enable the Company to effectively mitigate operational risk by deploying a system of business processes and checks-and-balances to support increased control and efficiency.
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ENNOGEN HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The management of the business and the execution of the Company's strategy are subject to several risks. The Company is subject to management processes applicable to the entire Group. The Group's risk management programme seeks to limit the adverse effects of these factors on the financial performance of group companies. Information on how the risks specific to the Company arise are set out below, as are the objectives, policies and processes for their management and the methods used to measure each risk.
The Company is subject to risk factors relating to the business and operations of the Group in the healthcare industry. The success of the Group depends on its ability to engage in appropriate product selection and to attract sufficient funding to successfully develop these products. The key business risks and uncertainties affecting the Company include: Organisational Risk The Company is dependent on the experience and skills of the Group's executive director and the management team to successfully execute its strategy. The loss of such key contributors would present a risk to the business. The ability to continue to attract and retain employees with the appropriate expertise and skills cannot be guaranteed. Competition Risk The biotechnology and pharmaceutical industries are very competitive. The Group's competitors include major multinational pharmaceutical companies, biotechnology companies and research institutions. Many of its competitors have substantially greater financial, technical and other resources, such as larger research and development staff. The Group's competitors may succeed in developing, acquiring or licensing drug product candidates that are earlier to market, more effective or less costly than any product candidate which the Group is currently developing or which it may develop and this may have a material adverse impact on the Group. Funding Risk Significant funds are required to continue the development of the Group's product portfolio. There is also no certainty that it will be possible to raise any additional funds on acceptable terms. Debt financing may place restrictions on the financial operating activities of the Group. The Company's working capital position could also be affected by the timing of contract cash flows where the timing of receipts from customers may not necessarily match the timing of payments made to suppliers. The availability of short-term and long-term financing may be required to meet obligations as they fall due. Adequate bank and borrowing facilities are already in place should they be required. Geographic risk The Group has business activities in overseas countries, each with specific political, economic and social characteristics which can give rise to various risks and uncertainties that can, on occasion, adversely impact project execution and financial performance, including but not limited to:
∙Economic instability
∙Legal, fiscal and regulatory uncertainty and change;
∙Supply disruption
∙Export controls
∙Civil or political unrest; including war; and
∙Regime change
Country or regional risks are identified and evaluated before and during Group operations in such markets. Appropriate risk responses are developed and implemented to mitigate the likelihood and impact of identified risks. The Company adopts a protective and rigorous approach to assessing and mitigating these risks.
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ENNOGEN HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The following KPIs summarise the Group’s performance.
2024 2023 £’000 £’000 Turnover 56,103 35,914 Gross profit 41,689 24,709 Gross profit percentage 74.3% 68.8% EBITDA 30,495 15,473
Director's statutory responsibilities
The director and the Management Team (collectively referred to as The Team) are aware of the duties and responsibilities placed upon them by the Companies Acts and therefore they carry out their duties in a way that they consider would be most likely to promote the success of the Group for the benefit of its members, and in doing so have regard to a range of matters when making decisions for the short and long term. They adhere to the overall group policies laid out by the members and to those relating specifically to the Company. Their main responsibilities are:- 1. Setting the values used to guide the affairs of the Company. This includes the Company's commitment to achieving its health and safety goals and the Group's adherence to the highest ethical standards in all its operations worldwide. 2. Integrating environmental improvement into business plans and strategies and seeking to plant sustainability into the Company's business processes. 3. Overseeing the Company's compliance with its statutory and regulatory obligations and ensuring that systems and processes are in place to enable these obligations to be met. 4. Setting the strategy and targets of the Company. 5. Overseeing the Company's compliance with financial reporting and disclosure obligations. 6. Overseeing the risk management of the Company. 7. Ensuring the effective corporate governance of the Company.
Research and development
The director considers that in order to improve the operational performance of the Company it is essential to continue to invest in research and development to enhance the efficacy of its pharmaceutical products and the benefits they offer to the consumers. Regulatory and Reporting Bodies The group continues to be regulated by various medical authorities including MHRA. The Group has effective procedures and resources in place to comply with all the relevant rules and regulations and works closely with the regulatory bodies. In the opinion of the director the Company is well placed to successfully manage the principal risks and uncertainties.
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ENNOGEN HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
This report was approved by the board on 25 September 2025 and signed on its behalf.
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ENNOGEN HOLDINGS 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 profit for the year, after taxation, amounted to £16,469,205 (2023: £7,349,160).
During the year dividends of £70,000 (2023: £95,000) have been declared.
The Director who served during the year was:
The Group continues to invest in its Regulatory and Quality functions so that it is well placed to manage and stay ahead of ongoing changes in the regulatory environment. The Group also invested £1,169,232 (2023: £939,164) in R&D to ensure that there is resilience in the supply chain and continued evolution of the product pipeline.
Going forward, the Group aims to continue growing in the UK and internationally. This will be achieved organically with existing products, through innovation and product developments, and through acquisitions. With a dedicated team in place, we have confidence we will adapt to rapid changes in the marketplace.
These financial statements have been prepared on a going concern basis which assumes that the Group is able to realise its assets and discharge its liabilities in the normal course of business. At the reporting date the Group has net assets of £55m (2023 - £39m) and future projections show sufficient headroom to weather any future impacts of global uncertainties.
The Directors therefore consider it appropriate to prepare the financial statements on a going concern basis.
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ENNOGEN HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Acquisitions:
On 18 June 2025 the Group acquired from Teva UK, the ownership and marketing authorities to Capsaicin 0.075% (Axsain) and 0.025% (Zacin) cream for £31.5m including an upfront payment of £21.5m and contingent consideration of £10m which is expected to be paid on the delivery of certain milestones over the next 18 months. To fund the acquisition the group drew down an additional £10m in funding from the revolving credit facility with Santander UK plc. The product is not expected to accrete profits for Ennogen until 2026. Borrowings: On 17 July 2025 the Group agreed a £150m finance facility in a syndicated agreement with three banks including Santander UK plc, Barclays Bank plc, and HSBC UK plc. The financing agreement comprises of capacity to borrow up to £50m through a term loan facility and up to £100m from a revolving credit facility. This is a three year agreement with an option to extend by one year at any time. The facility is for the purpose of acquisitions, R&D, and working capital. On completion, the Group repaid existing borrowings of £25.1m to Santander UK plc and drew down £27m of borrowings from the new term loan.
The auditors, Forvis Mazars LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on
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ENNOGEN HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
The Directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the Directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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ENNOGEN HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ENNOGEN HOLDINGS LIMITED
We have audited the financial statements of Ennogen Holdings Limited (the ‘parent company’) and its subsidiaries (the ‘group’) for the year ended 31 December 2024 which comprise Consolidated Statement of Comprehensive Income, the Consolidated and Company Statement of Financial Positions, the Consolidated and Company Statement of Changes in Equity, the Consolidated Statement of Cash Flows and notes to the financial statements, 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 FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
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 Group's or the Parent 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.
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ENNOGEN HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ENNOGEN HOLDINGS LIMITED (CONTINUED)
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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group 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 Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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ENNOGEN HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ENNOGEN HOLDINGS 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 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 the financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
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.
Based on our understanding of the Group and the Parent Company and their industry, we considered that noncompliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation, anti-money laundering regulation. To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
∙Inquiring of management and, where appropriate, those charged with governance, as to whether the group and the parent company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
∙Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
∙Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
∙Considering the risk of acts by the group and the parent company which were contrary to applicable laws and regulations, including fraud.
We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice), tax legislation, pension legislation, the Companies Act 2006. In addition, we evaluated the Directors' and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in
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ENNOGEN HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ENNOGEN HOLDINGS LIMITED (CONTINUED)
relation to revenue recognition (which we pinpointed to the cut off assertion), and significant one-off or unusual transactions.
Our audit procedures in relation to fraud included but were not limited to:
∙Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
∙Gaining an understanding of the internal controls established to mitigate risks related to fraud;
∙Discussing amongst the engagement team the risks of fraud; and
∙Addressing the risks of fraud through management override of controls by performing journal entry testing.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
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
One St Peter's square
Manchester
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ENNOGEN HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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ENNOGEN HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
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ENNOGEN HOLDINGS LIMITED
REGISTERED NUMBER: 13115586
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2024
The notes on page 20 - 42 form part of these financial statements.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 25 September 2025.
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ENNOGEN HOLDINGS LIMITED
REGISTERED NUMBER: 13115586
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
The notes on page 20 - 42 form part of these financial statements.
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The profit after tax of the Parent Company for the year was £22,868 (2023: £15,418). The financial statements were approved and authorised for issue by the board and were signed on its behalf on
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ENNOGEN HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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ENNOGEN HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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ENNOGEN HOLDINGS LIMITED
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ENNOGEN HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CASHFLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
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ENNOGEN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The company is a private company limited by shares, registered in England & Wales. The address of the registered office is Unit G4 Riverside Industrial Estate, Riverside way, Dartford, Kent, DA1 5BS.
The principal activity of the Group during the year was that of the wholesale of pharmaceutical products. The functional currency of the Company is GBP (£).
2.Accounting policies
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 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
Under section 479A of the Companies Act 2006, the following subsiduaries are exempt from the requirement of the Act relating to the audit of the individual financial statements:
Ennogen Pharma Ltd (Company Number - 07751819) Ennogen Investments Ltd (Company Number - 13266253) Vitame Ltd (Company Number - 08871470) Ennogen Holdings Limited has guaranteed the liabilities of the above named entities.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies.
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
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ENNOGEN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
These financial statements have been prepared on a going concern basis which assumes that the Group is able to realise its assets and discharge its liabilities in the normal course of business. At the reporting date the Group has net assets of £55m (2023 - £39m) and future projections show sufficient headroom to weather any future impacts of global uncertainties.
The Directors therefore consider it appropriate to prepare the financial statements on a going concern basis.
Functional and presentation currency
Transactions and balances
Page 21
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ENNOGEN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
Page 22
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ENNOGEN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Group keeping the scheme open or the employee maintaining any contributions required by the scheme). Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period. Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.
Page 23
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ENNOGEN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Goodwill
Other intangible assets
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Amortisation is provided on the following bases:
Page 24
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ENNOGEN HOLDINGS 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.
Page 25
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ENNOGEN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Group's Statement of Financial Position when the Group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
Page 26
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ENNOGEN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Basic financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Other financial instruments
Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
Page 27
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ENNOGEN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
The consolidated financial statements incorporate the financial statements of the combining entities or businesses in which the common control combination occurs as if they had been combined from the date when the combining entities or businesses first came under the control of the controlling party.
The net assets of the combining entities or businesses are combined using the existing book values from the controlling parties’ perspective. No amount is recognised in consideration for goodwill or excess of acquirers’ interest in the net fair value of acquiree’s identifiable assets, liabilities and contingent liabilities over cost at the time of common control combination, to the extent of the continuation of the controlling party’s interest. The consolidated income statement includes the results of each of the combining entities or businesses from the earliest date presented or since the date when the combining entities or businesses first came under the common control, where there is a shorter period, regardless of the date of the common control combination. The comparative amounts in the consolidated financial statements are presented as if the entities or businesses had been combined at the previous balance sheet date or when they first came under common control, whichever is shorter.
Page 28
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ENNOGEN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges. Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Page 29
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ENNOGEN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 30
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ENNOGEN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 31
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ENNOGEN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 32
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ENNOGEN HOLDINGS 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.
Page 33
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ENNOGEN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 34
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ENNOGEN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 35
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ENNOGEN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 36
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ENNOGEN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 37
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ENNOGEN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 38
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ENNOGEN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 39
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ENNOGEN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Foreign currency translation gains/losses
Share based payment reserve
Profit and loss account
Page 40
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ENNOGEN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £145,485 (2023 - £142,274).
Contributions totalling £897 (2023 - £13,811) were payable to the fund at the reporting date and are included in creditors.
Page 41
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ENNOGEN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
On 18 June 2025 the Group acquired from Teva UK, the ownership and marketing authorities to Capsaicin 0.075% (Axsain) and 0.025% (Zacin) cream for £31.5m including an upfront payment of £21.5m and contingent consideration of £10m which is expected to be paid on the delivery of certain milestones over the next 18 months. To fund the acquisition the group drew down an additional £10m in funding from the revolving credit facility with Santander UK plc. The product is not expected to accrete profits for Ennogen until 2026. Borrowings: On 17 July 2025 the Group agreed a £150m finance facility in a syndicated agreement with three banks including Santander UK plc, Barclays Bank plc, and HSBC UK plc. The financing agreement comprises of capacity to borrow up to £50m through a term loan facility and up to £100m from a revolving credit facility. This is a three year agreement with an option to extend by one year at any time. The facility is for the purpose of acquisitions, R&D, and working capital. On completion, the Group repaid existing borrowings of £25.1m to Santander UK plc and drew down £27m of borrowings from the new term loan.
The ultimate controlling party is Mr Gurdev Singh Ruprai.
Page 42
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