Registered number: 03245537
Annual Report
For the year ended 31 December 2024
LYRA HEALTH INTERNATIONAL LIMITED
COMPANY INFORMATION
LYRA HEALTH INTERNATIONAL LIMITED
CONTENTS
LYRA HEALTH INTERNATIONAL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their Strategic Report of Lyra Health International Limited ('the Company') for the year ended 31 December 2024.
The size of the Global Employee Assistance Program (“EAP”) market during the year under review is estimated to be $10bn, with the 2025 global market expected to grow to $12bn, with the US market accounting for 40% of the global market share. The growth of the EAP market can be attributed to several key drivers, with the primary factor being the rising concerns over mental health issues in the workplace. According to the World Health Organization (“WHO”), depression and anxiety disorders cost the global economy approximately $1 trillion annually in lost productivity. With mental health disorders affecting a large portion of the workforce, businesses are increasingly adopting EAPs as a means to support employee wellbeing and reduce productivity losses.
The integration of EAPs with other employee wellness programs is an emerging trend and companies seek to provide comprehensive wellness solutions, covering physical health, nutrition and financial planning alongside mental health services.
There are significant opportunities in emerging economies, where awareness of workplace mental health is growing and there is demand for a robust EAP solution.
Technological advancements in Artificial Intelligence (“AI”) and Machine Learning (“ML”) are advancing the level of personalized mental care and presents new opportunities.
A global service operations company relies heavily on its people, technology, and ability to meet consistent service standards across multiple jurisdictions. The following risks represent the most significant uncertainties that could impact the Company's strategic objectives and financial performance.
1. Operational and Service Delivery Risk
1. Operational and Service Delivery Risk
Service companies are defined by their ability to meet contractual obligations. Failure to do so can lead to financial penalties and loss of clients.
Service Level Agreement (SLA) Failure: The risk that the company fails to meet performance targets defined in client contracts (e.g., response times, accuracy, or uptime), leading to contract termination or service credits.
Technological Infrastructure Resilience: As operations move to the cloud, the risk of regional or global outages in critical infrastructure (ISP, Cloud Providers, or VoIP) can paralyze service delivery across multiple time zones simultaneously.
Supply Chain and Third-Party Reliance: Reliance on vendors for critical infrastructure (cloud services, hardware, or specialized software) where a failure in their service directly disrupts the company's ability to serve its own clients.
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LYRA HEALTH INTERNATIONAL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
2. Geopolitical and Macroeconomic Risk
Operating across borders exposes the company to external shocks that can disrupt service continuity.
Digital Sovereignty and Data Residency: Increasing nationalistic regulations regarding where data is stored and processed (e.g., "local data" laws) may force costly architectural changes or limit the ability to provide centralized global services.
Geopolitical Instability: Civil unrest, war, or political shifts in key service delivery hubs (e.g., offshore centers) that could lead to sudden facility closures or the inability of staff to work.
Regulatory Fragmentation: The complexity of complying with differing labor laws, tax regimes, and trade restrictions in every country of operation.
3. Human Capital Risk
In service operations, the "product" is the people. Technology is shifting the skills required from these individuals.
Technological Skills Gap: The risk that the existing workforce lacks the digital literacy required to operate new platforms, AI tools, or automated workflows, leading to decreased productivity or the need for expensive external hiring.
Labor Shortages and Attrition: High turnover rates in competitive service markets can lead to increased recruitment and training costs, as well as a loss of institutional knowledge.
Shift in Work Patterns: The transition to hybrid or remote work models creates challenges in maintaining corporate culture, training quality, and operational oversight, often requiring significant investment in monitoring and collaboration technology.
4. Technological and Cybersecurity Risk
As service delivery becomes increasingly digital, the vulnerability to technology failure and obsolescence rises.
AI and Automation Strategy: The risk of failing to effectively integrate Generative AI and Robotic Process Automation (RPA). This could result in a higher cost-to-serve compared to competitors who have successfully automated manual service tasks.
Technical Debt and Legacy Systems: Reliance on aging, proprietary software that is difficult to maintain or integrate with modern client ecosystems. This "technical debt" can slow down innovation and increase the risk of system failure.
Cybersecurity Attacks and Data Privacy: Increasing threats of ransomware or phishing that could shut down global service centers. Failure to comply with global data regimes (like GDPR or POPIA) while handling sensitive client data can result in massive fines and loss of trust.
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LYRA HEALTH INTERNATIONAL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Principal risks and uncertainties (continued)
5. Financial and Currency Risk
Global service firms often face a mismatch between the currency of their revenue and the currency of their costs.
Foreign Exchange (FX) Volatility: The risk that a strengthening reporting currency reduces the value of international profits, or that local currency devaluations in delivery hubs significantly increase the cost of imported technology licenses.
Pricing and Margin Compression: Aggressive competition in the global bidding process for large-scale service contracts can lead to lower than anticipated pricing, resulting in thin margins that cannot absorb unexpected technological or labor cost increases.
6. ESG and Reputational Risk
Stakeholders are increasingly holding service providers accountable for their global footprint and ethical use of technology.
Ethical AI and Bias: The risk that automated decision-making or AI tools used in service delivery produce biased or unethical outcomes, leading to legal challenges and reputational damage.
Carbon Footprint of Digital Infrastructure: The energy consumption of data centers and the hardware lifecycle of global service staff are under increasing scrutiny as part of corporate net-zero commitments.
The Company's executive team’s understanding of the direction of the global EAP and mental health industry continues to shape the development of our strategy. This includes an ongoing assessment of the global EAP market, and customer trends. An up-to-date understanding of customer demands, new service offerings, pricing movements and regulatory changes is critical to current business planning and future market positioning. The global strategy for the Lyra International Group, headed by Lyra Health Inc., seeks to secure the business of large multinationals looking to procure a contemporary, compliant, standardized EAP service across all countries, continents, and territories at the most competitive price. Lyra Health International's executive team's understanding of the direction of the global EAP and mental health industry continues to shape the development of our strategy. This includes an ongoing assessment of the global EAP market, and customer trends. An up-to-date understanding of customer demands, new service offerings, pricing movements and regulatory changes is critical to current business planning and future market positioning.
To be recognised as a provider capable of servicing global multinational corporations, Lyra Health International needs to give clients, brokers and channel partners comfort that we are well represented in all relevant global locations (these include NA, LATAM, AMEA, MENA, APAC). To this end, we continue to invest in the growth and development of our global footprint through our own subsidiaries and select partnerships.
The role of digital services and online or mobile service delivery mechanisms continues to grow as demand for traditional (in person, face-to-face) services (such as one-on-one counselling, classroom style training and on-site engagement) has sharply declined. Technology has enabled and enhanced interpersonal connectivity and communication; facilitated remote working; and enabled health and stress management.
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LYRA HEALTH INTERNATIONAL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Strategy (continued)
With the continued increase in economic integration and interdependence among countries, the global EAP market has seen an associated increase in the globalisation of programmes with multinationals seeking uniform services, standards, protocols, processes, and monitoring across all geographies. However, the recent rise of nationalism and protectionist policies, people's discontent and anti-immigration policies, disputes over control of foreign investment, trade wars, and the slowdown in financial and investment flows, has started to influence the nature of RFPs issued by global multinationals. An increasing number of multinational organisations and their advisers are recognising the need for EAPs to accommodate local variances across several dimensions (such as local language, culture, religion, healthcare infrastructure, socio-economic conditions, legislation, etc) and adopt a more 'federal' approach. EAP provider organisations that are equipped and positioned to accommodate these differences at a local level - while still maintaining global standards and centralised oversight - will emerge as the most successful providers in the years to come. Critical to this success is not only agility and flexibility but also the ability to meet this need in a cost-effective way. This can only be achieved through an investment in enabling technology that dramatically lowers costs.
With the continued increase in economic integration and interdependence among countries, the global EAP market has seen an associated increase in the globalisation of programmes with multinationals seeking uniform services, standards, protocols, processes, and monitoring across all geographies. However, the recent rise of nationalism and protectionist policies, people's discontent and anti-immigration policies, disputes over control of foreign investment, trade wars, and the slowdown in financial and investment flows, has started to influence the nature of RFPs issued by global multinationals. An increasing number of multinational organisations and their advisers are recognising the need for EAPs to accommodate local variances across several dimensions (such as local language, culture, religion, healthcare infrastructure, socio-economic conditions, legislation, etc) and adopt a more 'federal' approach. EAP provider organisations that are equipped and positioned to accommodate these differences at a local level - while still maintaining global standards and centralised oversight - will emerge as the most successful providers in the years to come. Critical to this success is not only agility and flexibility but also the ability to meet this need in a cost-effective way. This can only be achieved through an investment in enabling technology that dramatically lowers costs.
When it comes to providing services to help organisations and their employees to manage their psycho-social challenges in this context, there is an expectation that service providers will have the digital tools to deliver a flexible suite of services - to a high clinical standard, virtually, on a global scale and in a location independent and cost-effective way - while at the same time accommodating local variances. Currently, the Company is able to meet these expectations. The Company has a comprehensive and well-established global provider network with the ability to deliver select services of a high clinical quality by traditional or virtual means on a global scale (e.g., counselling, and account management via telephone and online video; induction and training via online webinars; educational and promotional material via apps and digital multimedia; and reporting via online dashboards). These services will continue to develop and integrate more technology such as monitoring and tracking tools; self-help programmes; assessments, etc.) and, at the same time, reduce costs.
Global organisations, and those that lead them, are concerned for the welfare of their people and their organisations. Leaders need to carefully navigate their duty of care responsibility for the health of employees and balance this with the need to make the tough commercial decisions to repair the balance sheet and implement the necessary changes to survive and compete going forward. Services that accommodate the needs of a mobile, multigenerational and diverse workforce with an employee value proposition that enables them to thrive will be facilitated by a contemporary EAP with a proactive approach to health and wellbeing. The EAP of the future must incorporate a range of services appropriate and relevant to the differing wants and needs of a multigenerational, multinational workforce. It must leverage technology to proactively engage employees, enable choice and make the user experience a positive, simple, personalised and meaningful one. Digital platforms such as bespoke mobile and online EAP applications need to be included in the EAP offering and promoted as a convenient means of accessing the service, creating wellbeing awareness and proactively engaging employees in a broad range of health and wellbeing services. Smart technology will enable mobile and online EAP engagement to be personalised according to the needs of the individual employee. It will also support self-management and coping, educate employees, nudge them to make informed health choices, and accelerate recovery. This process will facilitate continuous engagement and sustained behavioural change.
The Company's EAP strategy and roadmap therefore supports a broader EAP service that proactively engages the employee and provides every individual with a personalised experience and a deeper, expanded range of services that enhances their sense of value, belonging and wellbeing. The Company's EAP of the future will be increasingly digitally enabled, easily accessible and tailored to the language and cultural requirements of the individual. Above all, it will be cost competitive. To realise its strategy, the organisation continues to improve on its digital optimisation of its core service. Developing a digitally enabled approach is critical to our strategy and our approach is increasingly focusing on making the EAP client experience more simple, accessible, interactive and impactful. Under the ownership of Lyra, we have modernized our approach to care. We have also configured our operations to support the highly sophisticated digital workforce mental health product of Lyra. This enables the organisation to support the frictionless access to in-depth clinical care provided by Lyra's premium global mental health product and to benefit from the proceeds of doing so.
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LYRA HEALTH INTERNATIONAL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Strategy (continued)
Recent global events, from regional conflicts to unstable macro-economic geopolitical events, have shown us the nature and size of the opportunities emerging from the 'next normal' as well as the gaps and opportunities in our business and operating model. Our challenge is to understand and embrace the rapidly changing cultural and behavioural shifts in customer and business behaviour that these events have introduced; address our gaps; reimagine our future and position ourselves to grasp the opportunities that lie before us. It is imperative to absorb lessons learned quickly and build sustainable changes into our business and operating models. We are confident that we have all that is necessary to drive our future growth.
Future developments
In addition to its investment in technology and a digital-first approach, the organisations' strategic focus will be on the following key areas:
1. Continued technological innovation: The Company will continue to expand and synergise its product offering to provide global parity in service and experience.
2. Ambitious organic and inorganic growth: The Company will continue to assess its global footprint in order to provide the best service and coverage in support of its current and future product mix, and exceeding customers' needs for local and regional
Future developments
In addition to its investment in technology and a digital-first approach, the organisations' strategic focus will be on the following key areas:
1. Continued technological innovation: The Company will continue to expand and synergise its product offering to provide global parity in service and experience.
2. Ambitious organic and inorganic growth: The Company will continue to assess its global footprint in order to provide the best service and coverage in support of its current and future product mix, and exceeding customers' needs for local and regional
coverage.
The Company's key financial performance indicators during the year/period were as follows:
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LYRA HEALTH INTERNATIONAL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
This report was approved by the board and signed on its behalf by:
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LYRA HEALTH INTERNATIONAL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their annual report and the audited financial statements for Lyra Health International Limited ('the Company') for the year ended 31 December 2024 .
The prior period presented results for the 15-month period ended 31 December 2023 (the 'period') and therefore is not directly comparable to the results presented for the year ended 31 December 2024.
The prior period presented results for the 15-month period ended 31 December 2023 (the 'period') and therefore is not directly comparable to the results presented for the year ended 31 December 2024.
The loss for the year, after taxation, amounted to £3,586k (15-month period ended 31 December 2023: loss of £5,406k.
The directors do not recommend payment of a dividend for the year ended 31 December 2024 (15-month period ended 31 December 2023: £nil).
The directors who served during the year and to the date of this report were:
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
∙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 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The Company has a branch in Dubai called Lyra Health International Limited (DMCC Branch) and a branch in South Africa called Lyra Health International Limited (SA Branch).
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LYRA HEALTH INTERNATIONAL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The financial statements are prepared on a going concern basis. The Company remains assured of the financial support by the parent company. The directors have received confirmation that the parent company will continue to support the Company and provide it with adequate funds when necessary to enable it to meet its debts as they fall due for at least twelve months from the date of signing these financial statements. On this basis, the directors consider it appropriate to prepare the financial statements on a going concern basis.
There have been no significant events affecting the Company since the year end.
The Company intends to undertake an audit tender process for the next financial year.
This report was approved by the board and signed on its behalf by:
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LYRA HEALTH INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LYRA HEALTH INTERNATIONAL LIMITED
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 101 “Reduced Disclosure Framework” (United Kingdom Generally Accepted Accounting Practice).
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Our audit procedures to evaluate the directors’ assessment of the company’s ability to continue to adopt the going concern basis of accounting included but were not limited to:
∙Undertaking an initial assessment at the planning stage of the audit to identify events or conditions that may cast significant doubt on the company’s ability to continue as a going concern;
∙Obtaining an understanding of the relevant controls relating to the directors’ going concern assessment;
∙Evaluating the directors’ method to assess the company’s ability to continue as a going concern;
∙Evaluating the key assumptions used and judgements applied by the directors in forming their conclusions on going concern; and
∙Reviewing the appropriateness of the directors’ disclosures in the financial statements
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LYRA HEALTH INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LYRA HEALTH INTERNATIONAL LIMITED
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.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Matters on which we are required to report by exception
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LYRA HEALTH INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LYRA HEALTH INTERNATIONAL LIMITED
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LYRA HEALTH INTERNATIONAL LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LYRA HEALTH INTERNATIONAL LIMITED
Use of the audit report
This report is made solely to the Company's members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members as a body for our audit work, for this report, or for the opinions we have formed.
for and on behalf of Forvis Mazars LLP
Chartered Accountants and Statutory Auditor
2nd Floor
6 Sutton Plaza
2nd Floor
6 Sutton Plaza
Sutton Court Road
Sutton
SM1 4FS
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LYRA HEALTH INTERNATIONAL LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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LYRA HEALTH INTERNATIONAL LIMITED
REGISTERED NUMBER: 03245537
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
The notes on pages 16 to 34 form part of these financial statements.
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LYRA HEALTH INTERNATIONAL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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LYRA HEALTH INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Lyra Health International Limited ('the Company') is a private company, limited by shares and incorporated in England and Wales. The Company's registered number is 03245537. The Company's registered office is at 85 Gresham Street, London, England, EC2V 7NQ.
The Company is primarily involved in the provision of counselling and advisory services to global clients under the trade name of Lyra International.
The prior period presented results for the 15-month period ended 31 December 2023 (the 'period') and therefore is not directly comparable to the results presented for the year ended 31 December 2024.
The Company is primarily involved in the provision of counselling and advisory services to global clients under the trade name of Lyra International.
The prior period presented results for the 15-month period ended 31 December 2023 (the 'period') and therefore is not directly comparable to the results presented for the year ended 31 December 2024.
2.Accounting policies
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.
The areas where judgements and estimates have been made in preparing the consolidated financial statements and their effects are disclosed in note 3.
The financial statements have been presented in Pound Sterling as this is the currency of the primary economic environment in which the Company operates and is rounded to the nearest thousand pounds.
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions under FRS 101:
∙the requirements of IFRS 7 Financial Instruments: Disclosures
∙the requirement in paragraph 38 of IAS 1 'Presentation of Financial Statements' to present comparative information in respect of:
- paragraph 73(e) of IAS 16 Property, Plant and Equipment;
∙the requirements of IAS 7 Statement of Cash Flows
∙the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures; and
∙the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member
This information is included in the consolidated financial statements of Lyra Health, Inc as at 31 December 2024 and these financial statements may be obtained from 270 East Lane, Burlingame, CA 94010.
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LYRA HEALTH INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Company does not adjust any of the transaction prices for the time value of money.
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LYRA HEALTH INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The main performance obligations in contracts consist of the provision of occupational health services such as musculoskeletal, proactive, occupational and psychological health/ESP. For all contracts the stage of completion and delivery of performance obligations are measured at the balance sheet date on the basis of time elapsed.
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LYRA HEALTH INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Exchange differences on monetary items are recognised in the Statement of Comprehensive Income in the period in which they arise except for:
∙Exchange differences on monetary items receivable from or payable to foreign operations for which settlement is neither planned nor likely to occur (therefore forming part of the net investment in the foreign operation), which are recognised initially in other comprehensive income and reclassified from equity to the Statement of Comprehensive Income on repayment of the monetary items.
For the purposes of presenting these financial statements, the assets and liabilities of the Company's foreign operations are translated into pounds using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuate significantly during that period, in which case the exchange rates at the dates of the transactions are used. Exchange differences arising, if any, are recognised in other comprehensive income and accumulated in equity.
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LYRA HEALTH INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
If significant parts of an item of tangible fixed assets have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. Any gain or loss on disposal of an item of property, plant and equipment is recognised in the Statement of Comprehensive Income. Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.
Depreciation is provided on all other items of property, plant and equipment so as to write off their carrying value over their expected useful economic lives.
Depreciation is provided on the following basis: straight-line
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.
Depreciation is charged to 'administrative expenses' in the Statement of Comprehensive Income.
Depreciation is charged to 'administrative expenses' in the Statement of Comprehensive Income.
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LYRA HEALTH INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The Company recognises financial instruments when it becomes a party to the contractual arrangements of the instrument. Financial instruments are de-recognised when they are discharged or when the contractual terms expire. The Company's accounting policies in respect of financial instruments transactions are explained below:
Financial assets and financial liabilities are initially measured at fair value.
Financial assets
Financial assets, which include other receivables and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment. If the arrangement constitutes a financing transaction, the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Fair value through profit or loss
Impairment of financial assets
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LYRA HEALTH INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
At amortised cost
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.
3.1 Critical judgements in applying the Company’s accounting policies
The critical judgements that the directors have made in the process of applying the Company’s accounting policies and that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below.
(i) Assessing indicators of impairment
In assessing whether there have been any indicators of impairment of assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. There have been no indicators of impairments identified during the current financial year.
3.2 Key sources of estimation uncertainty
The key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
(i) Recoverability of debtors
The Company establishes a provision for debts that are estimated not to be recoverable. When assessing recoverability the directors have considered factors such as the aging of the debts, past experience of recoverability, and the credit profile of individual or groups of customers.
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LYRA HEALTH INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Analysis of turnover by country of destination:
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LYRA HEALTH INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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LYRA HEALTH INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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LYRA HEALTH INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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LYRA HEALTH INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
10.Tax on loss (continued)
From 1 April 2023, the rate of corporation tax in the UK increased from 19% to 25%, resulting in a 'standard rate' of corporation tax in the above reconciliation of 25% for 2024. Deferred tax in the current and prior year is calculated at 25%.
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LYRA HEALTH INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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LYRA HEALTH INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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LYRA HEALTH INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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LYRA HEALTH INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
There have been no significant changes in the credit risk management policies and processes since the prior reporting period.
The Company's historical credit loss experience does not show significantly different loss patterns for different customer segments. The provision for credit losses is therefore based on past due status without disaggregating into further risk profiles. The loss allowance provision is determined as follows:
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LYRA HEALTH INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Page 32
LYRA HEALTH INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Share premium
Foreign exchange reserve
Retained earnings
The Company had no capital commitments at the year end.
Subsequent to the reporting date, the entity received a tax assessment from the relevant tax authorities amounting to approximately £1 million. The assessment relates to the operations of the Company in South Africa, and arises from matters in prior financial periods. The assessment is currently under dispute.
Based on management’s assessment, supported by advice from external tax advisers, it is considered more likely than not that the assessment will be successfully challenged. Accordingly, no provision has been recognised in the financial statements.
The matter remains subject to ongoing correspondence with the tax authorities in South Africa. The ultimate outcome cannot be determined with certainty at this stage.
Based on management’s assessment, supported by advice from external tax advisers, it is considered more likely than not that the assessment will be successfully challenged. Accordingly, no provision has been recognised in the financial statements.
The matter remains subject to ongoing correspondence with the tax authorities in South Africa. The ultimate outcome cannot be determined with certainty at this stage.
The Company operates two defined contributions pension schemes one in UK and one in South Africa. The assets of the schemes 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 £364,405 (2023: £547,000). Contributions totalling £nil (2023: £nil) were payable to the fund at the reporting date and are included in creditors.
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LYRA HEALTH INTERNATIONAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The immediate parent Company is Lyra International Holdings Limited , a Company incorporated in England and Wales. Its registered office address is 85 Gresham Street, London, England, EC2V 7NQ.
The ultimate controlling party isLyra Health Inc. , a company incorporated in the USA. Lyra Health Inc., is both the smallest and largest group into which the Company's financial statements are consolidated. These consolidated financial statements may be requested by contacting Lyra Health at 270 East Lane, Burlingame, CA 94010 or by emailing UKFS_Req@lyrahealth.com.
The ultimate controlling party is
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