The directors present the strategic report for the year ended 31 March 2025.
Results
The results for the year are set out on page 17.
The directors are satisfied with the trading performance of Eakin Healthcare. FY25 saw continued revenue growth supported by a strong profit performance. The group continued to see strong demand for its products both domestically and internationally. This demand along with effective cost control has allowed the group face an uncertain global economic environment and exit the year with a strong growth in profits. The Group continues to reinvest heavily in capital projects to support capacity programs and product development.
Our revenue growth of 10% was surpassed by an operating profit growth of 25%. This was achieved by a continued focus on UK and International markets and an effective management of our cost base. The directors remained committed to delivering strong results into the future and continued investment in the business.
The directors express their appreciation to all staff members across the business for their contribution during the year in ensuring production was maintained, supply chains secured and customer needs serviced.
The Healthcare Group has performed satisfactorily over many years and it is expected that this will continue over the medium term. In recent times the market has been shaped by increased competition, downward pressure on pricing, inflation, geopolitical instability and interest rate increases. These factors have heightened uncertainty and increased pressure on our profitability.
The directors have determined that the following key performance indicators (KPIs) covering financial performance are the most effective measure of progress towards achieving the Healthcare Group's objectives: revenue and revenue growth; operating profit and operating profit growth; and cash flow. Non‑financial KPIs are managed through quality reviews which incorporate production, post production, employee, environmental and supplier standard reviews. Healthcare Group companies submit to regular external audits covering quality and environmental standards.
| 2025 | 2024 | Movement |
| £ | £ |
|
Revenue | 144,320,430 | 131,220,275 | 10.0% |
Gross margin | 46.5% | 47.0% | (0.5)% |
Operating Profit | 18,539,793 | 14,790,583 | 25.4% |
Cashflow | 5,960,202 | 3,261,946 | 82.7% |
|
|
|
|
The Healthcare Group continues to focus on its core markets in developed geographical territories. As the Healthcare Group expands, there is an objective of reducing dependence on any one product category or any one geographical market, satisfying a key objective of the Healthcare Group. The directors expect that turnover, profit, market share and expansion of product ranges and markets will increase in the medium term based on the Healthcare Group's business plans. A major focus will continue to be new product development and innovation and increased automation to protect the Healthcare Group from increased competitive forces and downward pressure on pricing.
The Healthcare Group continues to demonstrate a strong commitment to strategic growth and innovation. Major capital investments have been made in its production facilities located in Comber, Cardiff, and Coleraine, as well as in the Ostomy Centre of Excellence at its International Headquarters in Comber, Co. Down. These initiatives are designed to enhance innovation and agility, helping the Group maintain a competitive advantage while meeting the complex needs of its global customer base.
Our success is driven by the combination of high-quality products, outstanding customer service, and the dedication of our workforce. We are committed to supporting our employees and strengthening our relationships with both distributors and customers. Further information on our employee engagement efforts and business partnerships is available in the Employee Engagement and Business Relationship Statements included in the Directors’ Report.
We operate in the ostomy, surgial and respiratory therapeutic areas, where research and development is fundamental to our success. Our strong track record in product innovation includes the development of world-leading solutions such as Eakin Cohesive® and Amsorb®, as well as ModaVi. These achievements reflect the expertise and dedication of our highly respected staff, who consistently deliver to world-class standards. Continued investment in R&D ensures we remain at the forefront of clinical and technological advancements in our specialist fields.
Despite industry-wide delays in transitioning to the new Medical Device Regulations (MDR), Eakin Healthcare made significant progress toward certification in 2024/25. Eakin Surgical closed all findings following a final technical documentation review and was recommended for certification well ahead of the 2028 deadline. Armstrong Medical completed two on-site MDR audits in April and August 2024, with technical documentation review now being scheduled. Full certification for Eakin Surgical is expected in 2025/26, with Armstrong Medical advancing toward its final certification steps.
As with any business, we face various risks and uncertainties that could potentially hinder the company's pursuit of its objectives. Risk is an inherent aspect of conducting business, and the responsibility for managing risks and internal controls rests with the directors. The list below outlines the most substantial risks identified by the company that could affect the attainment of its business objectives. It's important to note that this list is not exhaustive, and not listed in any particular order of significance.
Competition
The market we operate in is intensely competitive. Although there have been significant advances in medical technology and surgical techniques, the Healthcare Group expects the global markets in which it primarily operates to remain stable and sustainable over the medium to long term. Ongoing competition drives the Group to consistently uphold high product quality and intensify marketing efforts to strengthen brand performance. Additionally, substantial investments in research and development have been made to support a robust pipeline of innovative products. At the same time, the business is enhancing its production capabilities to improve cost efficiency and better navigate market challenges.
Economic Risk
Concerns persist regarding the global economy's trajectory, fuelled by global tariffs and inflationary pressures. Additionally, the Central Banks monetary policy responses, particularly interest rate adjustments, are closely monitored in response to these inflationary trends. Emphasis on the economic risk is heightened and The Board remains vigilant in monitoring these risks and potential policy responses.
People
The Healthcare Group's performance is intricately linked to its workforce. Our People Strategy’s aim is to create a Great Place to Work which has a focus on four main areas: strategic people planning, developing our people, engaging our people and reward and recognition. Within these areas we have a robust Talent Management strategy which includes Talent Forums to assess talent and skills and develop appropriate development and succession plans as a result. We continue to develop initiatives such as Executive Leadership and 360 reviews, Early Talent programs for employees under the age of 30 and Women’s leadership development. We have introduced a number of skills based progression skills, career pathways and an ‘I Can Be’ program for early talent. We have recently become accredited with Diversity Mark and have a number of actions underway that focus on both gender diversity and neurodiversity in the workplace. We were delighted to become accredited for a second year as a Great Place to Work in a recent survey.
The labour market remains a significant concern due to rising costs from Employers NIC, minimum wage and cost of living adjustments. Labour and skill shortages further exacerbate wage pressures increasing challenges in maintaining competitiveness.
Supply chain
Our supply chain is exposed to various risks, including product availability and fluctuations in the cost of raw materials and consumables. To manage these risks, the business continually monitors supply security, regularly assessing critical factors such as suppliers’ financial stability, product quality, and service performance. Ongoing evaluation of market prices also helps mitigate the potential negative effects of raw material price volatility.
IT Risks
The business is exposed to various IT-related risks that could affect both financial performance and operational continuity. These include cybersecurity threats such as data breaches and ransomware attacks, system outages caused by hardware or software failures, and vulnerabilities linked to third-party service providers. Dependence on legacy systems may hinder scalability and the ability to adapt to changing market demands. Furthermore, new challenges are emerging with the rise of artificial intelligence and evolving regulatory requirements. To address these risks, the company actively monitors its IT landscape and invests in cybersecurity measures, regulatory compliance, disaster recovery planning, and ongoing technology upgrades to minimize potential disruptions and avoid regulatory consequences.
Eakin Healthcare’s five-year sustainability strategy was launched in 2022 with the ambition to move from "protecting value" to delivering "purpose driven value creation" over time. This strategy was developed based on a materiality assessment completed in line with the requirements of the Global Reporting Initiative (GRI). Therefore, this strategy encompasses material topics spanning the complete Environmental, Social & Governance (ESG) spectrum with a pillared structure covering Planet, Product, People, and Integrity. This strategy is endorsed by the Board, managed by senior leadership and delivered via a cross-functional Sustainability Lead Team.
The Healthcare Group aims to recruit, invest, nurture and retain our employees for their valued contribution in meeting the Healthcare Group's business objectives. The Healthcare Group proactively ensures compliance with all employee protection legislation and ensures no discrimination on the grounds of race, religion, gender, sexual orientation, disability or age. Further disclosures are made in the Employee Engagement Statement in the Directors’ Report.
The directors of Eakin Healthcare Group Limited seek to promote the long term success of the Healthcare Group for the benefit of stakeholders as a whole. In doing so, the directors have regard to:
(a) The likely consequences of any decision in the long term
(b) The interests of the company’s employees
(c) The need to foster the company’s business relationship with customers, suppliers and others
(d) The impact of the company’s operations on the community and the environment
(e) The desirability of the company maintaining a reputation for high standards of business conduct
(f) The need to act fairly as between members of the company
The directors regularly review the performance of the Healthcare Group and the impact on the Healthcare Group’s longer term strategy. The Healthcare Group prepares an annual budget, which is approved by the Board in the context of the Healthcare Group’s longer term strategy.
The directors aim to engage with employees and ensure a meaningful two way dialogue that influences the policies, procedures and decision making of the Healthcare Group. For more information, please see the Employee Engagement Statement in the Directors’ Report. The directors also aim to engage with customers and suppliers on a regular basis to foster the Healthcare Group’s business relationships. For more information, please see the Business Relationships Statement in the Directors’ Report.
Corporate social responsibility (CSR) groups are in place across the Healthcare Group which, among other things, encourage employees to participate in fundraising and volunteering efforts. There have also been charity matching initiatives supported by the Board. Environment initiatives have been noted in the Environment strategy section of the Strategic Report.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 March 2025.
The results for the year are set out on page 17.
The company saw revenue of £144m in FY25 showing a year-on-year growth of 10%. Operating profit for the group grew 25% to £18.5m.
Continued reinvestment in the company has meant that the company has again not declared a dividend (FY25 Dividend £0; FY24 Dividend £0).
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The Role of the Board
The Board is chaired by an independent non-executive, with membership comprising of two other independent nonexecutive, family non-executives and senior executives. The Board's primary responsibility is to promote the long term success of the business so that it fulfils its purpose, creates sustainable shareholder value and makes a lasting contribution to society. The Board seeks to achieve this by setting out its strategy, monitoring performance against its strategic objectives, and reviewing Executive Leadership Team's implementation of the strategy.
A formal schedule of matters reserved for Board approval is maintained and reviewed regularly. This includes a determination of the Healthcare Group's strategy and long-term direction, approval of budgets, capital expenditure, organisational changes (including new business ventures and the acquisition or disposal of assets) and changes in key policies. The Board also monitors the effectiveness of the systems of internal control, governance and risk management.
The Board delegates authority for all day-to-day management of the Healthcare Group's affairs to the Executive Leadership Team led by the Chief Executive. The Executive Leadership Team consists of individuals responsible for the strategic business units and key business functions. In addition, the Board operates a Remuneration Committee chaired by an independent non-executive director. This determines remuneration policy and set remuneration for senior executives at a level aligned with shareholder interests.
Credit Risk:
Credit risk arises on trade debtors. The Healthcare Group policy is aimed at minimising such risk and requires that credit and other terms are only granted to customers who demonstrate an appropriate payment history and satisfy credit worthiness procedures. Individual exposures are monitored with customers subject to credit terms to ensure that the subsidiary companies' and Healthcare Group exposure to bad debts is managed.
Liquidity Risk and Cash Flow Risk:
The Healthcare Group's liquidity risk is managed by the directors through daily assessment by all Healthcare Group companies of required cash balances and resultant utilisation of various available facilities including overdrafts (where necessary), letters of credit and guarantees. Cash flow risk is managed through regular and timely internal reports covering sales, production and finance.
Foreign Currency Risk:
The Healthcare Group has revenues and purchases spread between a number of different currencies. Risk on foreign currencies is minimised by using an internal foreign exchange market and forward exchange contracts if considered appropriate and, where possible, managing sales and purchases in the same currency. This has been a successful policy in the management of currency risk. All Healthcare Group companies comply with the Healthcare Group Treasury Policy.
Business Performance Risk:
Business performance risk is the risk that the Company may not perform as expected due to a combination of internal and external factors, including disruption to the business, or due to competitive pressures in the markets in which the Company operates. This risk is managed through a number of measures which include regular meetings with the Board of Directors; ensuring that the appropriate senior management team is in place; approval of the annual business plan and financial budget; monthly reporting against plan and prior year; effective documented financial controls; business continuity, disruption and response planning; measurement and reporting of financial and non financial key performance indicators; and regular sales and business forecasting.
Inflation Risk:
The Healthcare Group manages inflationary risk by entering into long term contracts with suppliers and bulk purchasing. Stock levels and raw materials are regularly monitored by the directors.
Interest Rate Risk:
The risks arising from changes in interest rates are kept under review by the directors in accordance with Healthcare Group Treasury Policy.
Regulatory Risk, including Price Risk:
The main risks faced by the Company relate to restrictions imposed by the relevant regulatory and reimbursement bodies in the UK and export markets.
Health & Safety Risk:
The Healthcare Group is committed to ensuring a safe working environment. The health and safety risks are closely managed by the Healthcare Group through the strong promotion of a health and safety culture and defined health and safety policies.
Health and Safety
We prioritise the health and safety of our employees, customers, and communities. We have a full time, business wide team, that are responsible for this function. This team have developed and rolled out a ‘Zero Harm’ campaign. Here is an overview of our commitment.
Health and Safety Management System:
Comprehensive policies and procedures;
Regular risk assessments and controls;
Ongoing training and awareness.
Occupational Health:
Wellness programs and support services;
Ergonomic considerations for workstations.
Contractor and Supplier Engagement:
Expectation of compliance with high standards
Performance Monitoring and Continuous Improvement:
Regular Monitoring and KPIs for progress;
Focus on Continuous Improvement.
Managing our risks
Effective risk and opportunity management is at the heart of good corporate governance. Our approach to risk management is both top-down from the Board and bottom-up from Executive Leadership Team which is supported by a cross-functional Enterprise Risk Management Committee. Strategic risks, and how they are managed, are reported to the Board on a regular basis.
Directors’ and officers’ indemnities and insurance
The Company's Articles of Association provide for the indemnification of its directors and the Company Secretary to the extent permitted by the Companies Act 2006 and other applicable legislation, out of the assets of the Company, in the event that they incur certain expenses in connection with the execution of their duties. In addition, and in common with many other companies, the Company has directors' and officers' liability insurance, in respect of certain losses or liabilities to which officers of the Company may be exposed in the discharge of their duties.
Articles of Association
The Company's Articles of Association may be amended by a special resolution of the Company's shareholders. The current Articles were adopted by shareholders on 3 July 2014.
Employee Engagement Statement
The Healthcare Group's People Strategy aims to build a Great Place to Work for our employees. We have four main pillars that our strategy focuses on: People Planning, Developing our People, Engaging our People and Rewarding and Recognizing our People. From an employee perspective we have a few key areas of activity including:
Internal communication
Diversity and Inclusion
Health and Wellbeing
Corporate social engagement including creating a sense of belonging and involvement with our communities.
We measure our employee engagement through a Great Place to Work survey and are delighted that we have maintained our accreditation as a Great Place to Work for the second year in a row. This is a major achievement and we believe is a strong indicator of the success of our engagement initiatives and culture. We are now in the process of following up on the results and building action plans to deliver improvements based upon our results. We have also been awarded a Great Place to Work in Healthcare and for Women.
We continue to drive improvements in our internal communications with our internal website 'ERIC’, a bi-monthly CEO newsletter, a quarterly ‘All Hands’ call for all employees with a varied range of topics and twice yearly employee roadshows. We also have online webinars on a range of topics for example sustainability.
We continue to develop our Diversity and Inclusion strategy and have recently achieved accreditation from Diversity Mark. We have two main areas of focus – gender and neurodiversity. In support of our work in this area we have membership with Women in Business and this year launched a Women in our Workplace program which we are going to follow with an Allyship program. We will continue with our gender pay reporting and analysis this year. Applications for employment by disabled persons are always fully considered, taking into account the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort will be made to ensure that their employment can continue and appropriate training will be undertaken as required. This year we have become involved with the Opening Doors campaign with Business in the Community to ensure equality of access.
From an employee health and wellbeing perspective, we launched a new initiative called ‘Strive’ and have an employee group, who plan events each month around particular topics such as Small Steps September, Heartfelt February and Mindful May to name a few. We continue to provide financial wellbeing support through Kith n Kin and have reviewed our Employee Assistance offering.
We relaunched our Belong group in this past year and refocused this group onto employee events that will create a sense of fun and belonging across the various work locations.
Over the past year we have renewed our focus on community. We have renewed our membership with Business in the Community and have become Business Backers of Young Enterprise as well as supporting our employees with volunteering opportunities with Young Enterprise. We also launched our Improving Lives Fund and provided over £5,000 in funding to over 15 groups that our employees are involved in within their local communities across NI, Ireland, England, Wales and Europe. These ranged from foodbanks to sporting clubs.
Eakin Healthcare aims to have remuneration policies which are fair and transparent, and consistently applied to all employees. The structure and level of remuneration is set to enable the business to attract and retain staff in line with company values. During the past year we have completed a Job Grading project and have completed harmonising terms and conditions across the UK as part of delivering on our ‘One Eakin’ culture. We have also been working on improving our benefit offering to our international employees.
Business Relationships Statement
The Healthcare Group directors aim to engage with customers and suppliers on a regular basis to foster the Healthcare Group's business relationships.
The commercial team continue to develop and maintain the knowledge required to meet the specific needs of customers and distributors who are integral to generating and preserving the value of the Healthcare Group.
The procurement department manage the relationships with key suppliers, They work with operations and commercial teams in reviewing demand and production schedules.
The directors and senior managers are in regular contact with customers and suppliers to assess the impact of, and responses to, external macro-economic factors.
The directors regard to the need to foster the company's business relationships with customers and suppliers
was considered when making principal decisions throughout the year. This has been outlined within the Section 172 statement disclosed in the Strategic Report.
Strategic Report
The Strategic Report is set out on pages 1 to 4 and sets out information in respect of the results for the year; business review, including development and performance and key performance indicators; the key risks and uncertainties affecting the business; environment strategy; employment strategy and statement of compliance in accordance with section 172 (1) of the Companies Act 2006.
Our research and development activities consist of endeavouring to achieve scientific and technological advances in our chosen areas of principal activity.
Statement of compliance with the Modern Slavery Act 2015
Introduction:
The Healthcare Group (consisting of Eakin Healthcare Group Limited and its subsidiary companies) is committed to ensuring that exploitation with regards to any form of slavery or human trafficking is eliminated from society. As well as adopting responsible and ethical practices throughout our business units, we have also made a conscious commitment to ensuring that our business, including the wider supply chains, are investigated to address previously unidentified concerns with respect to the requirements of The Modern Slavery Act 2015.
Organisation’s Structure:
The Healthcare Group consists of several wholly owned subsidiaries engaged in the manufacturing and distribution of medical and surgical appliances and instruments. Dunrogan Limited is the ultimate parent company of TG Eakin Limited, Pelican Healthcare Limited, Respond Healthcare Limited, Eakin R&D Limited, Eakin Surgical Limited (and its subsidiary Single Use Surgical Inc), Eakin Japan KK, Eakin BV, Eakin France SAS, Eakin Healthcare GmbH, Armstrong Medical Limited, Alphamédis SA and Medexia Sàrl and this corporate statement of compliance is valid and effective for all wholly owned subsidiaries of the parent company. The Healthcare Group operates inside and outside of the United Kingdom. The companies within the Healthcare Group have a combined annual turnover in excess of £140m.
Our Business:
Our business is organised into a number of principal business areas: Ostomy and Wound Care; Surgical and Respiratory.
Our Supply Chain:
Our supply chains include the sourcing of raw materials, subcontracted manufacturing activities and distribution networks related to the manufacture of medical appliances and surgical instruments. A significant proportion of our manufacturing is carried out in house under direct management control.
Our Policy on Slavery and Human Trafficking:
The Healthcare Group is endeavouring to ensure that there is no slavery or human trafficking in our supply chains or in any part of our business. Our policy reflects our commitment to acting ethically and with integrity in all our business relationships and to implementing and enforcing effective systems and controls to ensure slavery and human trafficking are not taking place anywhere in our businesses or in our supply chains.
Steps taken to manage risks on Slavery and Human Trafficking:
The steps that have been taken during the financial year to ensure that slavery and human trafficking are not taking place in any of the Healthcare Group's supply chains, or in any part of its business include:
We continue to monitor our business units and supply chains to identify any potential areas of non- compliance or exposure.
We have designated personnel in Human Resources, Quality and Procurement in Healthcare Group who oversee the Regulatory function to verify that adequate controls are in place and enforced.
We have ensured that all Healthcare Group companies operate strict recruitment, selection and employment practices with fair, ethical, and non-discriminatory employee practices regulated by our Human Resources department.
We have verified that all Healthcare Group employees are eligible to work within their region of employment and that they are paid standardised wage rates and our appropriate benefits package with full access to grievance procedures. The Healthcare Group does not operate any zero hour contracts.
We have set out clear our expectations in our Supplier Code of Conduct of business behaviours, with regards to national and international supply chains, and we have indicated that we expect our suppliers to have suitable anti-slavery and human trafficking policies and processes.
We have continued the process of obtaining formal confirmation of compliance to the requirements of The Modern Slavery Act 2015 from all suppliers, contractors and subcontractors including confirmation that they can find no evidence of concerns within their business or supply chains. At the end of May 2025 over 96% of our direct suppliers confirmed this.
Supplier adherence to our values:
The Healthcare Group does not tolerate slavery and human trafficking. We expect all parties in our supply chain to comply with our values as specified within our Supplier Code of Conduct. We actively seek confirmation from our supply chain third parties (UK and overseas) to ensure that they comply with local labour laws and regulations and at 31 March 2025 over 98% of our direct suppliers confirmed this. We have continued the process of reviewing and revising our terms and conditions of supply within the supply chains. We have completed a number of supplier audits covering the ethical considerations of procurement strategy for the business and we have included detailed compliance questions on the onsite supplier audit checklists. Any new Supplier to the Healthcare Group has to confirm adherence to our Code of Conduct.
Training
All Procurement Staff are trained on the content of our Eakin Supplier Code of Conduct and the importance of suppliers adhering to the core principles outlined. Our internal HR policies covering Modern Slavery also form part of new employee induction.
KPIs / Reporting
On a quarterly basis the following KPI’s are presented to Management:
Compliance of suppliers with Modern Slavery;
Compliance of suppliers with Code of Conduct
Any red flags identified through the platform for assessing suppliers.
Board of Directors’ Responsibilities:
The Board of Directors understands its responsibilities and Healthcare Group employees receive instructions and guidance, as needed, to fully understand their responsibility to be alert to the risks in our business and in the wider supply chains. Staff are instructed to report concerns, with management being tasked with the expectation of the Board of Directors that they take appropriate action. We have put in place appropriate frameworks to encourage the reporting of concerns and to ensure the protection of whistle blowers.
Endorsement:
This Statement is made in compliance with section 54(1) of the Modern Slavery Act 2015 and constitutes the Healthcare Group's slavery and human trafficking statement for the financial year ending 31 March 2025. Statement of compliance with the Modern Slavery Act 2015.
Signed on behalf of the Board of Directors on 25 June 2025:
______________________ ______________________
T G Eakin P W Dempsey
The directors aim to address management objectives; execute business strategies; and adopt effective policies which will promote the future growth and development of the Healthcare Group.
In accordance with 'The Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018' and accompanying governance guidance 'Environmental Reporting Guidelines: including streamlined energy and carbon reporting guidance March 2019', the Healthcare Group presents details of its carbon and energy usage.
Methodology & boundary
This assessment is compliant with the GHG Protocol Corporate Standard and includes Scope 1, Scope 2, and the business travel component of Scope 3 emission calculations across the primary entities of Eakin Healthcare. The operational control boundary remains consistent with all previous reporting years. Eakin Healthcare has re-assessed its fixed base year as part of our application for Science Based Targets and has selected 1st April 2023 – 31st March 2024 as the new base year for comparative purposes going forward.
Energy and Emissions report
Eakin Healthcare’s sustainability strategy is embedded within our five-year sustainability plan, launched in 2022. The plan is structured around sustainability topics material to both Eakin Healthcare and our stakeholders. Our strategy is built on four pillars: Planet, Product, People, and Integrity.
In the first two years, our focus areas were waste, energy, and packaging. Moving into years 3-5 we have expanded the scope to include our supply chain and product design. Eakin Healthcare has committed to the Science Based Targets initiative (SBTi) and is actively working to submit our targets for approval.
Target
To achieve net-zero emissions by 2045.
Through our current sustainability action plan Eakin Healthcare have continued to invest in energy & carbon reduction measures, including onsite solar PV systems, LED lighting & controls, voltage optimisation, heat recovery and green electricity purchase agreements.
Scope 1 & Fossil fuels – While overall energy consumption decreased between FY24 and FY25, emissions increased slightly due to refrigerant top-ups within our systems.
Scope 2 & Electricity – Production increases led to higher electricity consumption; however, emissions dropped to zero in FY25 due to our transition to 100% green energy across all operations. We continue efforts to enhance energy efficiency and increase onsite renewable electricity generation.
Scope 3 & Transport – Improved data granularity and a reduction in business travel company wide have contributed to a decrease in Scope 3 emissions compared to the previous year.
We have audited the financial statements of Eakin Healthcare Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
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. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the Company and management. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulation in the United Kingdom;
understood how the Company is complying with those frameworks by making enquiries of management to understand how the Company maintains and communicates its policies and procedures in these areas;
assessed the vulnerability of the Company’s financial statements to material misstatement, including how fraud might occur by considering the risk of management override and by assuming revenue recognition to be a fraud risk; and
based on this understanding our audit procedures were designed to identify non-compliance with such laws and regulations.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by;
Identification of related parties;
Making enquiries of management regarding where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
Considering the internal controls in place within the company to mitigate the risk of fraud and non-compliance with laws and regulations
To address the risk of fraud, override of controls and non-compliance with laws and regulations, we performed analytical procedures to identify any unusual or unexpected related party relationships, tested journal entries to identity unusual transactions, investigated any significant or unusual transactions and assessed whether judgements and assumptions made in determining the accounting estimates were suggestive of potential bias.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
The purpose of our audit work and to whom we owe our responsibilities
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £14,453,517 (2024 - £12,151,066 profit).
Eakin Healthcare Group Ltd (“the company”) is a private limited company domiciled and incorporated in Northern Ireland. The registered office is 15 Ballystockart Road, Comber, Co Down, BT23 5QY.
The group consists of Eakin Healthcare Group Ltd and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The Financial Statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies. The principal accounting policies adopted are set out below.
The consolidated group financial statements consist of the financial statements of the parent company Eakin Healthcare Group Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 March 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Turnover comprises revenue recognised by the Company when the goods are dispatched and to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, exclusive of value added tax, rebates and trade discounts. The following criteria must also be met before turnover is recognised:
Sale of goods
Turnover 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.
Research and development expenditure is written off to the Profit and Loss Account in the year in which it is incurred. Costs associated with development activities are capitalised as an intangible asset if, and only if, the company can demonstrate the following criteria:
The technical feasibility of completing the intangible asset so that it will be available for use or sale.
The company has the intention to complete the intangible asset and use or sell it.
The ability of the company to use or sell the intangible asset.
How the intangible asset will generate probable future economic benefits for the company. Among other things, the company should have the ability to demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or, if it is to be used internally, the usefulness of the intangible asset.
The company has adequate technical, financial and other resources to complete the development and to use or sell the intangible asset.
The company’s ability to measure reliably the expenditure attributable to the intangible asset during its development.
If there are indicators that the residual value or useful life of an intangible asset has changed since the most recent annual reporting period previous estimates shall be reviewed and, if current expectations differ, the residual value, amortisation method or useful life shall be amended. Changes in the expected useful life or the expected pattern of consumption of benefit shall be accounted for as a change in accounting estimate.
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 the Statement of comprehensive income.
Investments in subsidiaries are measured at cost less accumulated provision for impairment.
Investments in unlisted company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on re measurement are recognised in the Profit and Loss Account for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.
Investments in listed company shares are remeasured to market value at each balance sheet date. Gains and losses on re measurement are recognised in the Profit and Loss Account for the period.
Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash generating unit (CGU) to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.
The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non puttable ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.
Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.
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.
The tax expense for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, 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.
The Group operates a number of defined contribution plans for its employees. A defined contribution plan is a pension plan under which a Group 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 the Profit and Loss Account when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
Rentals paid under operating leases are charged to the Profit and Loss Account on a straight line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Grants are accounted under the accruals model as permitted by FRS 102.
Capital grants relating to expenditure on tangible fixed assets are credited to the Profit and Loss Account 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.
Grants of a revenue nature are recognised in the Profit and Loss Account in the same period as the related expenditure.
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions and the month exchange rates at month end preceding the date of the transaction.
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 resulting from the settlement of transactions and from the translation at period end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Profit and Loss Account.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Determine whether there are indicators of impairment of the Company’s tangible and intangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash generating unit, the viability and expected future performance of that unit. Judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Development expenditure is capitalised in accordance with the accounting policy given above. Initial capitalization of costs is based on management’s judgment that technical and economic feasibility is confirmed, usually when a product development project has reached a defined milestone according to an established project management model. In determining the amounts to be capitalized management makes assumptions regarding the expected future cash generation of the assets, discount rates to be applied and the expected period of benefits.
Determine whether leases entered into by the Company either as a lessor or a lessee are operating lease or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Tangible fixed assets (see note 14) are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. Estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Intangible assets including licences, customer databases, brands, trade names and regulatory approvals have been valued based on estimations of the future performance of the relevant companies acquired which gave rise to these intangibles, estimated future tax rates and estimated royalty rates. These intangible assets will be reviewed for indicators of impairment annually.
Where there are indicators of impairment of individual assets, the company performs impairment tests based on fair value less costs to sell or a value in use calculation. The fair value less costs to sell calculation is based on available data from binding sales transactions in an arm’s length transaction on similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a discounted cash flow model. The cash flows are derived from the forecasts for the next five years and do not include restructuring activities that the company is not yet committed to or significant future investments that will enhance the asset’s performance of the cash generating unit being tested. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well as the expected future cash flows and the growth rate used for extrapolation purposes.
Taxation: The company establishes provisions based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective countries in which it operates. The amounts of such provisions are based on various factors, such as experience with previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority. Management estimation is required to determine the amount of deferred tax assets that can be recognised, based upon likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies. Further details are contained in note 10.
The Group was involved in legal proceedings in the High Court of England and Wales (Patents Court)
concerning a claim brought by Salts Healthcare Limited against Pelican Healthcare Limited, relating to alleged
infringement of Patent GB2569212 for an ostomy appliance. The Court ruled in favour of Pelican, concluding
that the ModaVi bag does not infringe the patent. Salts have appealed the decision. The Group is defending
the appeal and continues to believe the claim is without merit. At this stage, no provision has been made in
the financial statements, as the outcome of the appeal remains uncertain. Legal costs associated with this
case have amounted to £494,821 in the current financial year and have been disclosed separately as a
material item.
To enhance the internal reporting function within the Group, the decision has been made to reallocate sales salaries costs from Distribution costs to Administration costs within the Profit and Loss Account. The amount reallocated in prior year was £1,332,706. This classification amendment has had no impact on the profit for the previous financial year or on the financial position (net assets) of the Group as reported.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.
More information on impairment movements in the year is given in note 13.
On 2 February 2024, the group acquired 100% of the issued share capital of Alpamdedis and Medexia. Part of the consideration was deferred until June 2024 and was dependent on the net cash balance at that date. This resulted in a write off the intangible asset by £301,870.
The carrying value of land and buildings comprises:
More information on impairment movements in the year is given in note 13.
The fair value of the investment property has been arrived at on the basis of a valuation carried out by Tim Martin, Belfast, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
On 2nd Feb 2024, the Group acquired 100% of the issued share capital of Alphamedis and Medexia. Part of the consideration was deferred until June 2024 and was dependent on the cash balance at that time. The amount paid reduced by £87,619.
Details of the company's subsidiaries at 31 March 2025 are as follows:
Financial assets comprise of trade debtors, other debtors and amounts owed by other group companies.
Financial liabilities comprise of trade creditors, other creditors, accruals and amounts due to group companies.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.
The deferred tax liability set out above is expected to reverse within the short and medium term and relates to accelerated capital allowances that are expected to mature within the same period.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
Reserve for the purchase of the company's own shares.
Other reserves
Merger relief created on a group reorganisation.
Foreign exchange reserve
Reserve for exchange differences arising on the translation of foreign currency subsidiary balance sheets
to sterling when they are consolidated into the Group results.
Profit and loss account
Includes all current and prior year retained profits and losses.
Hedging reserve
Accounting for the hedging instrument by taking the fair value movements on the hedging instrument to the
hedging reserve.
The Group was involved in legal proceedings in the High Court of England and Wales (Patents Court) concerning a claim brought by Salts Healthcare Limited against Pelican Healthcare Limited, relating to alleged infringement of Patent GB2569212 for an ostomy appliance. The Court ruled in favour of Pelican, concluding that the ModaVi bag does not infringe the patent. Salts have appealed the decision. The Group is defending the appeal and continues to believe the claim is without merit. At this stage, no provision has been made in the financial statements, as the outcome of the appeal remains uncertain.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Amounts contracted for but not provided in the financial statements: