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Registered number: 02716221


 








SOUTHERN GROUP LABORATORY LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

 
SOUTHERN GROUP LABORATORY LIMITED
 
 
COMPANY INFORMATION


Directors
Mr B Shakespeare 
Dr M J Shakespeare 
Mrs L A Shakespeare 




Company secretary
Ms A K Androsiuk



Registered number
02716221



Registered office
E - H Cavendish Courtyard
Sallow Road

Weldon North Industrial Estate

Corby

NN17 5JX




Independent auditor
MHA
Chartered Accountants & Statutory Auditor

1 The Forum

Minerva Business Park

Lynch Wood

Peterborough

PE2 6FT





 
SOUTHERN GROUP LABORATORY LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditor's Report
 
5 - 8
Statement of Comprehensive Income
 
9
Balance Sheet
 
10
Statement of Changes in Equity
 
11
Statement of Cash Flows
 
12 - 13
Analysis of Net Debt
 
14
Notes to the Financial Statements
 
15 - 29


 
SOUTHERN GROUP LABORATORY LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025

Introduction
 
The Directors present their strategic report for the year ended 31 March 2025.
 
The principal activities of Southern Group Laboratory Limited ("the Company") during the year were those of manufacture of pre-poured culture media and associated products for microbiology. As well as chemical test kits and reagents.

Business review
 
The year was a continuation of the previous one in that it was again a challenging market for delivering new profitable sales revenue. By necessity the business maintained its focus on tight control of costs, efficiencies and dynamic purchasing, both to maximise margin on existing business, and ensure new business brought on is profitable long term. The business did however, achieve growth and delivered over its budget. Overall, sales were 10% up on budget, and 16% up year on year. Media sales were 7% up year on year, and sales of reagents and test kits returned to good levels after a low year previously.

Labour costs were again higher due to the minimum wage and national insurance contribution increase. The business raised all non-managerial staff wages by 15% to combat the cost of living, and to ensure we remain competitive in the local employment market. The business full time count remained stable. There were no major operational issues. The cash position remains strong.

A large solar installation due for completion in the summer of 2025 should go some way to offsetting high energy costs. Dynamic purchasing of materials and inventory management allowed continued progress in profitability.

Principal risks and uncertainties
 
The Directors have identified the following principal risks and uncertainties affecting the company:

i) 
Price risk
 Wherever possible we look to pass on any increases in costs. When an increase can be foreseen,    consideration to bulk buying ahead at favourable prices is considered.

ii) 
Credit risk
 The principal credit risk for the Company arises from its trade debtors. To ensure this risk is managed    effectively the directors set limits for customers based on a combination of payment history and third-   party credit reference. Credit limits are reviewed by the financial controller on a regular basis in     conjunction with debt aging and collection history.

iii) 
Liquidity risk
 The Company seeks to manage financial risk by ensuring sufficient liquidity is available to meet its    foreseeable needs.

Financial key performance indicators
 
The Directors believe the Company’s financial key performance indicators are those that demonstrate the financial and operational strength of the Company, these being sales, gross profit and profit after tax.

Page 1

 
SOUTHERN GROUP LABORATORY LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025

2025
2024
        £
        £
Sales

6,809,578

5,866,714
 
Gross profit (£)

2,235,621

1,582,972
 
Profit after tax

533,230

234,032
 

Future developments

The company intends to further develop its production operations, focusing on developments that improve product quality and manufacturing efficiency. It will pursue reduction in costs via energy reduction projects, recycling and waste management.

Research and development

Research and development activity for the year consisted of; new product development and product quality improvements, improvements in laboratory and testing practices, manufacturing process improvements and efficiencies, raw material sourcing and analysis.


This report was approved by the board and signed on its behalf.



................................................
Mr B Shakespeare
Director

Date: 11 December 2025

Page 2

 
SOUTHERN GROUP LABORATORY LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025

The Directors present their report and the financial statements for the year ended 31 March 2025.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 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 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 for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £533,230 (2024: £234,032).

Dividends of £252,496 (2024: £319,536) were declared during the year.

Directors

The directors who served during the year were:

Mr B Shakespeare 
Dr M J Shakespeare 
Mrs L A Shakespeare 

Matters covered in the Strategic Report

Information on the principal activity, business review, KPI's, principal risks and uncertainties, research and development and future developments have been included within the Strategic Report.

Page 3

 
SOUTHERN GROUP LABORATORY LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed 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 ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Auditor

The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, MacIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP.

MHA will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.  

This report was approved by the board and signed on its behalf.
 





................................................
Mr B Shakespeare
Director

Date: 11 December 2025

E - H Cavendish Courtyard
Sallow Road
Weldon North Industrial Estate
Corby
NN17 5JX

Page 4

 
SOUTHERN GROUP LABORATORY LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SOUTHERN GROUP LABORATORY LIMITED
 

Opinion


We have audited the financial statements of Southern Group Laboratory Limited (the 'Company') for the year ended 31 March 2025, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 March 2025 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.


Page 5

 
SOUTHERN GROUP LABORATORY LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SOUTHERN GROUP LABORATORY LIMITED (CONTINUED)


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 ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

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; 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.

 
Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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.


Page 6

 
SOUTHERN GROUP LABORATORY LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SOUTHERN GROUP LABORATORY LIMITED (CONTINUED)


Auditor's responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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 material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

• Enquiry of management and those charged with governance around actual and potential litigation and                     claims;  
• Enquiry of entity staff to identify any instances of non-compliance with laws and regulations;  
• Performing audit work over the risk of management override of controls, including testing of journal   entries and other adjustments for appropriateness, and reviewing accounting estimates for bias;
• Reviewing minutes of meetings of those charged with governance;  
• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance                                with applicable laws and regulations.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditor's Report.


Page 7

 
SOUTHERN GROUP LABORATORY LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SOUTHERN GROUP LABORATORY LIMITED (CONTINUED)


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 2006Our 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.





Ian Jacobs BA FCA (Senior Statutory Auditor)
For and on behalf of MHA, Statutory Auditor
Peterborough, United Kingdom

Date: 
 
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542).
12 December 2025
Page 8

 
SOUTHERN GROUP LABORATORY LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025

2025
2024
Note
£
£

  

Turnover
 4 
6,809,578
5,866,714

Cost of sales
  
(4,573,957)
(4,283,742)

Gross profit
  
2,235,621
1,582,972

Distribution costs
  
(321,191)
(242,945)

Administrative expenses
  
(1,295,040)
(1,207,612)

Other operating income
 5 
6,000
6,000

Operating profit
 6 
625,390
138,415

Interest receivable and similar income
 10 
58,519
60,757

Interest payable and similar expenses
 11 
-
(10,615)

Profit before tax
  
683,909
188,557

Tax on profit
 12 
(150,679)
45,475

Profit for the financial year
  
533,230
234,032

There were no recognised gains and losses for 2025 or 2024 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2025 (2024:£NIL).

The notes on pages 15 to 29 form part of these financial statements.

Page 9

 
SOUTHERN GROUP LABORATORY LIMITED
REGISTERED NUMBER: 02716221

BALANCE SHEET
AS AT 31 MARCH 2025

2025
2024
Note
£
£

Fixed assets
  

Tangible assets
 14 
969,508
1,035,147

Current assets
  

Stocks
 15 
608,569
795,129

Debtors: amounts falling due after more than one year
 16 
154,197
186,839

Debtors: amounts falling due within one year
 16 
1,657,563
1,249,107

Cash at bank and in hand
 17 
2,415,223
1,938,408

  
4,835,552
4,169,483

Creditors: amounts falling due within one year
 18 
(756,114)
(472,043)

Net current assets
  
 
 
4,079,438
 
 
3,697,440

Total assets less current liabilities
  
5,048,946
4,732,587

Provisions for liabilities
  

Deferred tax
 19 
(165,539)
(129,914)

Net assets
  
4,883,407
4,602,673


Capital and reserves
  

Called up share capital 
 20 
6,000
6,000

Profit and loss account
 21 
4,877,407
4,596,673

  
4,883,407
4,602,673


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
Dr M J Shakespeare
Director

Date: 11 December 2025

The notes on pages 15 to 29 form part of these financial statements.

Page 10

 
SOUTHERN GROUP LABORATORY LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 April 2023
6,000
4,682,177
4,688,177


Comprehensive income for the year

Profit for the year
-
234,032
234,032

Dividends: declared
-
(319,536)
(319,536)



At 1 April 2024
6,000
4,596,673
4,602,673


Comprehensive income for the year

Profit for the year
-
533,230
533,230

Dividends: declared
-
(252,496)
(252,496)


At 31 March 2025
6,000
4,877,407
4,883,407


The notes on pages 15 to 29 form part of these financial statements.

Page 11

 
SOUTHERN GROUP LABORATORY LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2025

2025
2024
£
£

Cash flows from operating activities

Profit for the financial year
533,230
234,032

Adjustments for:

Depreciation of tangible assets
369,887
357,742

Interest paid
-
10,615

Interest received
(58,519)
(60,757)

Taxation charge
150,679
(45,475)

Decrease/(increase) in stocks
186,560
(111,798)

(Increase)/decrease in debtors
(408,456)
1,581,078

Decrease in amounts owed by associated entities
32,642
24,574

Increase/(decrease) in creditors
171,206
(376,392)

Corporation tax paid
(2,189)
(146,980)

Net cash generated from operating activities

975,040
1,466,639


Cash flows from investing activities

Purchase of tangible fixed assets
(304,248)
(184,352)

Interest received
58,519
60,757

Net cash from investing activities

(245,729)
(123,595)
Page 12

 
SOUTHERN GROUP LABORATORY LIMITED
 

STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025


2025
2024

£
£


Cash flows from financing activities

Dividends paid
(252,496)
(319,536)

Interest paid
-
(10,615)

Net cash used in financing activities
(252,496)
(330,151)

Net increase in cash and cash equivalents
476,815
1,012,893

Cash and cash equivalents at beginning of year
1,938,408
925,515

Cash and cash equivalents at the end of year
2,415,223
1,938,408


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,415,223
1,938,408

2,415,223
1,938,408


The notes on pages 15 to 29 form part of these financial statements.

Page 13

 
SOUTHERN GROUP LABORATORY LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2025




At 1 April 2024
Cash flows
At 31 March 2025
£

£

£

Cash at bank and in hand

1,938,408

476,815

2,415,223


1,938,408
476,815
2,415,223

The notes on pages 15 to 29 form part of these financial statements.

Page 14

 
SOUTHERN GROUP LABORATORY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

1.


General information

Southern Group Laboratory Limited ("the Company) is a private company limited by shares, incorporated in England and Wales under the Companies Act.

The registered number and address of the registered office are given in the Company information.

The nature of the Company's operations and its principal activities are set out in the Strategic report on page 1.

The function and presentational currency of the Company is pounds sterling (£) and rounded to the nearest whole pound.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

The financial statements have been prepared on a going concern basis which assumes that the Company will continue in operational existence for the foreseeable future. The Directors have considered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment. 
 
Based on these assessments and having regards to the resources available to the entity, the Directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and accounts.

Page 15

 
SOUTHERN GROUP LABORATORY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

 
2.4

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses are presented in the Statement of Comprehensive Income within administrative expenses.

 
2.5

Research and development

Research and development expenditure is written off in the year in which it is incurred.

 
2.6

Government grants

Grants are accounted for under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.

Page 16

 
SOUTHERN GROUP LABORATORY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount.

 
2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in other creditors as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


Page 17

 
SOUTHERN GROUP LABORATORY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

 
2.11

Tangible fixed assets

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.

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.

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.

The estimated useful lives range as follows:

Long-term leasehold property
-
10% Straight-line basis
Plant and machinery
-
25% Straight-line basis
Motor vehicles
-
33% Straight-line basis
Office & Laboratory equipment
-
15 - 25% Straight-line 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.

 
2.12

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.13

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Page 18

 
SOUTHERN GROUP LABORATORY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)

 
2.15

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.16

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

 
2.17

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Company's Balance Sheet when the Company 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 Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

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. 

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.

Page 19

 
SOUTHERN GROUP LABORATORY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

2.Accounting policies (continued)


2.17
Financial instruments (continued)

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 Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans 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.

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 Company 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 Company 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 Company's contractual obligations expire or are discharged or cancelled.

 
2.18

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 20

 
SOUTHERN GROUP LABORATORY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In the application of the Company's accounting policies, which are described in note 2, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods. The directors do not consider there to be any material estimates. 

Critical judgements in applying accounting policies

There are no critical judgements, apart from those involving estimations that the directors have made in the process of applying the Company's accounting policies and that may have significant effect on the amounts recognised in the financial statements. 

Key source of estimation uncertainty

The key assumptions concerning the future, and other key sources of estimation uncertainty at the statement of financial position date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial period are discussed below.  

Determining residual values and useful economic lives of tangible fixed assets
 
The Company depreciates tangible assets over their estimated useful lives. The estimation of the useful lives  of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes. 

Judgment is applied by management when determining the residual values for tangible fixed assets. When determining the residual value, management aim to assess the amount that the Company would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life. Where possible this is done with reference to external market prices.

Indirect standard cost rate

When budgeting the standard indirect costs to be attributed to finished goods, we include all indirect costs directly attributable to the manufacture of the product including supervision, quality, supply chain and facilities. As both UK sites are classified as manufacturing facilities, costs such as rates, utilities and insurance are deemed to be materially related to the production of products and are wholly included in the rate. Other more indirect supervision has been deemed too remote to be included in the calculation. 

Page 21

 
SOUTHERN GROUP LABORATORY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

4.


Turnover

The whole of the turnover is attributable to the principal business activity.

2025
2024
£
£

United Kingdom
6,143,220
5,228,749

Rest of Europe
571,018
546,883

Rest of the World
95,340
91,082

6,809,578
5,866,714



5.


Other operating income

2025
2024
£
£

Government grants receivable
6,000
6,000



6.


Operating profit

The operating profit is stated after charging/(crediting):

2025
2024
£
£

Exchange differences
(9,236)
(13,985)

Impairment of trade receivables
948
-


7.


Auditor's remuneration

During the year, the Company obtained the following services from the Company's auditor:


2025
2024
£
£

Fees payable to the Company's auditor for the audit of the Company's financial statements
25,500
19,500

Fees payable to the Company's auditor in respect of:

Corporation tax services
8,000
7,825

All non-audit services not included above
14,706
7,274
Page 22

 
SOUTHERN GROUP LABORATORY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

8.


Employees

Staff costs, including Directors' remuneration, were as follows:


2025
2024
£
£

Wages and salaries
1,829,302
1,725,872

Social security costs
166,586
153,702

Cost of defined contribution scheme
218,228
208,321

2,214,116
2,087,895


The average monthly number of employees, including the Directors, during the year was as follows:


        2025
        2024
            No.
            No.







Management
12
11



Administration
5
5



Production
39
37



Distribution
9
8

65
61

The directors are the company's key management personnel and their remuneration is disclosed in the Directors' Remuneration note.


9.


Directors' remuneration

2025
2024
£
£

Directors' emoluments
45,204
40,710

Company contributions to defined contribution pension schemes
120,000
120,000

165,204
160,710


During the year retirement benefits were accruing to 2 Directors (2024 - 2) in respect of defined contribution pension schemes.

Page 23

 
SOUTHERN GROUP LABORATORY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

10.


Interest receivable

2025
2024
£
£


Other interest receivable
58,519
60,757


11.


Interest payable and similar expenses

2025
2024
£
£


Other loan interest payable
-
10,615


12.


Taxation


2025
2024
£
£

Corporation tax


Current tax on profits for the year
115,054
2,190

Adjustments in respect of previous periods
-
(1,708)


Total current tax
115,054
482

Deferred tax


Origination and reversal of timing differences
35,625
(45,957)


Tax on profit
150,679
(45,475)
Page 24

 
SOUTHERN GROUP LABORATORY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2024 - lower than) the standard rate of corporation tax in the UK of 25% (2024 - 25%). The differences are explained below:

2025
2024
£
£


Profit on ordinary activities before tax
683,909
188,557


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)
171,004
47,139

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
836
5,416

Depreciation for year in excess of capital allowances
18,477
36,445

Adjustments to tax charge in respect of prior periods
-
(1,708)

Non-taxable income
-
(302)

R&D expenditure
(75,263)
(86,508)

Movement in deferred tax provision for the year
35,625
(45,957)

Total tax charge for the year
150,679
(45,475)


13.


Dividends

2025
2024
£
£

Ordinary


Dividends declared
252,496
319,536

Page 25

 
SOUTHERN GROUP LABORATORY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

14.


Tangible fixed assets





Long-term leasehold property
Plant and machinery
Motor vehicles
Office & Laboratory equipment
Total

£
£
£
£
£



Cost


At 1 April 2024
2,151,589
54,211
231,489
2,504,949
4,942,238


Additions
4,950
33,204
-
266,094
304,248



At 31 March 2025

2,156,539
87,415
231,489
2,771,043
5,246,486



Depreciation


At 1 April 2024
1,465,564
36,840
154,298
2,250,389
3,907,091


Charge for the year on owned assets
182,791
10,970
56,055
120,071
369,887



At 31 March 2025

1,648,355
47,810
210,353
2,370,460
4,276,978



Net book value



At 31 March 2025
508,184
39,605
21,136
400,583
969,508



At 31 March 2024
686,025
17,371
77,191
254,560
1,035,147


15.


Stocks

2025
2024
£
£

Raw materials
462,386
543,074

Finished goods
146,183
252,055

608,569
795,129


Page 26

 
SOUTHERN GROUP LABORATORY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

16.


Debtors

2025
2024
£
£

Due after more than one year

Amounts owed by associated entities
154,197
186,839


2025
2024
£
£

Due within one year

Trade debtors
1,485,550
1,114,010

Amounts owed by associated entities
32,642
28,609

Other debtors
60,638
52,985

Prepayments and accrued income
78,733
53,503

1,657,563
1,249,107


Amounts owed to associated entities are unsecured, interest free and repayable on demand.


17.


Cash and cash equivalents

2025
2024
£
£

Cash at bank and in hand
2,415,223
1,938,408



18.


Creditors: Amounts falling due within one year

2025
2024
£
£

Trade creditors
276,732
227,135

Corporation tax
115,055
2,190

Other taxation and social security
279,556
153,462

Accruals and deferred income
84,771
89,256

756,114
472,043


Included within accruals and deferred income is £1,500 (2024: £7,500) relating to deferred government grants. Such deferred income is credited to the statement of Comprehensive Income at the same rate as depreciation on the assets to which the grant relates, being over 10 years. See note 2.5 for the full accounting policy covering Government grants.

Page 27

 
SOUTHERN GROUP LABORATORY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

19.


Deferred taxation




2025
2024


£

£






At beginning of year
129,914
175,871


Charged/(credited) to profit or loss
35,625
(45,957)



At end of year
165,539
129,914

The provision for deferred taxation is made up as follows:

2025
2024
£
£


Accelerated capital allowances
170,382
129,914

Short-term timing differences
(4,843)
-

165,539
129,914


20.


Share capital

2025
2024
£
£
Allotted, called up and fully paid



3,060 (2024 - 6,000) Ordinary shares of £1.00 each
3,060
6,000
1,200 (2024 - Nil) Ordinary A shares of £1.00 each
1,200
-
1,140 (2024 - Nil) Ordinary B shares of £1.00 each
1,140
-
600 (2024 - Nil) Ordinary C shares of £1.00 each
600
-

6,000

6,000

The company has four classes of ordinary shares.

Each ordinary share has equal voting and distribution rights, including repayment of capital in the event of winding up.



21.


Reserves

Profit and loss account

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

Page 28

 
SOUTHERN GROUP LABORATORY LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025

22.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £218,228 (2024: £208,321). Contributions totalling £11,013 (2024: £11,005) were payable to the fund at the balance sheet date and are included in creditors.


23.


Transactions with directors

During the year a Director was advanced £63,917 (2024: £21,351) by the Company and repaid £60,425 (2024: £105,000). Interest at 2.25% totalling £1,419 (2024: £1,636) has been charged on this loan.The amount owed by the Director to the Company at the Balance sheet date totalled £46,578 (2024: £41,667) and is included within other debtors. This balance is unsecured and repayable on demand.

During the year a Director was advanced £400 (2024: £4,315) by the Company and repaid £Nil (2024: £9,400). Interest at 2.25% totalling £Nil (2024: £78) has been charged on this loan. The amount owed by the Director to the Company at the Balance sheet date totalled £4,790 (2024: £4,390). This amount is included within other debtors. This balance is unsecured and repayable on demand.


24.


Related party transactions

During the year rent of £242,944 (2024: £208,630) was paid to Southern Group Laboratory Limited Pension Scheme, an entity in which two of the Company directors are members. 

Included in debtors is a loan of £186,839 (2024: £215,448) receivable from Southern Group Laboratory Limited Pension Scheme. Of this amount £32,642 (2024: £28,609) is due for repayment within one year and £154,197 (2024: £186,839) is due for repayment in more than one year. The Company received repayments of the capital of £28,609 (2024: £24,574) during the year. Interest of £20,672 (2024: £24,707) has been charged on the loan. The loan is unsecured, repayable by monthly installments and due for final repayment in 2029.

 
Page 29