MKS Instruments UK Limited - Limited company accounts 20.1

REGISTERED NUMBER: 06391618 (England and Wales)

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

FOR

MKS INSTRUMENTS UK LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Income and Retained Earnings

8

Balance Sheet

9

Notes to the Financial Statements

10

DIRECTORS:

S H Bagshaw

K F Burke

SECRETARY:

K F Burke

REGISTERED OFFICE:

Units 3-4 Cowley Way

Weston Road

Crewe

Cheshire

CW1 6AG

REGISTERED NUMBER:

06391618 (England and Wales)

INDEPENDENT AUDITORS:

Barringtons Limited

570-572 Etruria Road

Basford

Newcastle

Staffordshire

ST5 0SU

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

REVIEW OF BUSINESS

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.

The results for the year and financial position of the company are as shown in the annexed financial statements.

These show a pre-tax profit of £10,776,877 (2020 - £6,369,361). The company has net current assets of £21,589,093 (2020 - £14,742,539) and shareholders' funds of £31,437,233 (2020 - £25,822,695).

We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover, gross margin and return on capital employed.

Turnover has increased by 6% (2020 - decreased by 3%) during the year under review and forecasts are anticipated to be at similar levels of turnover for 2022.

Gross profit margin has increase to 42% (2020 - 35%).

As for many businesses of our size, the business environment in which we operate continues to be challenging and the market for our products is highly competitive. Principal competition factors include:

- Historical customer relationships;

- Product quality, performance and price;

- Breadth of product line;

- Manufacturing capabilities; and

- Customer service and support.

With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside of our control.

PRINCIPAL RISKS AND UNCERTAINTIES

As for many businesses of our size, the business environment in which we operate continues to be challenging and the market for our products is highly competitive. Principal competition factors include:

- Historical customer relationships;

- Product quality, performance and price;

- Breadth of product line;

- Manufacturing capabilities; and

- Customer service and support.

With these risks and uncertainties in mind, we are aware that any plans for the future development of the business may be subject to unforeseen future events outside of our control.

ON BEHALF OF THE BOARD:

S H Bagshaw - Director

22 December 2022

The directors present their report with the financial statements of the company for the year ended 31 December 2021.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of manufacture of mass spectrometers, import and distribution of measurement and analytical instruments, precision engineering and software design.

DIVIDENDS

An interim dividend of 0.446904 per share was paid on 9 March 2021. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 December 2021 will be £ 4,200,000 .

RESEARCH AND DEVELOPMENT

The nature of the company's business requires continued research and development activity in respect of new and existing products within the principal activities described above.

FUTURE DEVELOPMENTS

We are looking forward to 2022 and we will continue to execute the long term strategies which have been our focus:

To grow faster than the semiconductor industry by improving the productivity of our customers and by gaining market share with both new and existing customers.

To leverage our investments to expand and diversify into other advanced, high growth markets which also depend on the critical process control our technologies provide.

To maintain sound financial controls to support growth in the future and deliver excellent financial results.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2021 to the date of this report.

S H Bagshaw

K F Burke

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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;

-	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 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

S H Bagshaw - Director

22 December 2022

Opinion

We have audited the financial statements of MKS Instruments UK Limited (the 'company') for the year ended 31 December 2021 which comprise the Statement of Income and Retained Earnings, Balance Sheet and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2021 and of its profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that it is sufficient and appropriate to provide a basis for our opinion.

We would respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with those charge with governance of the entity and the management. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

- the nature of the industry and any laws and regulations central to the business.

- the company's own assessment of the risks that irregularities of fraud may occur as a result of fraud or error, by way of discussion with management.

- including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.

- identify and testing journal entries, paying particular attention to adjustments that might be susceptible to management bias.

- challenging assumptions and judgements made by management in their significant accounting estimates and judgements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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.

Nicholas Cooper FCA (Senior Statutory Auditor)

for and on behalf of Barringtons Limited

570-572 Etruria Road

Basford

Newcastle

Staffordshire

ST5 0SU

22 December 2022

TURNOVER

4

42,630,047

40,226,035

Cost of sales

24,325,524

26,246,381

GROSS PROFIT

18,304,523

13,979,654

Administrative expenses

7,527,646

7,619,323

10,776,877

6,360,331

Other operating income

-

9,030

OPERATING PROFIT and

PROFIT BEFORE TAXATION

10,776,877

6,369,361

Tax on profit

7

962,339

813,472

PROFIT FOR THE FINANCIAL YEAR

9,814,538

5,555,889

Retained earnings at beginning of year

8,932,695

13,376,806

Dividends

8

(4,200,000

)

(10,000,000

)

RETAINED EARNINGS AT END OF YEAR

14,547,233

8,932,695

FIXED ASSETS

Intangible assets

9

7,722,620

9,009,724

Tangible assets

10

228,692

173,604

Investments

11

1,896,828

1,896,828

9,848,140

11,080,156

CURRENT ASSETS

Stocks

12

5,763,703

5,764,403

Debtors

13

12,062,779

5,980,964

Cash at bank and in hand

7,738,446

7,441,665

25,564,928

19,187,032

CREDITORS

Amounts falling due within one year

14

3,975,835

4,444,493

NET CURRENT ASSETS

21,589,093

14,742,539

TOTAL ASSETS LESS CURRENT LIABILITIES

31,437,233

25,822,695

CAPITAL AND RESERVES

Called up share capital

16

9,398,000

9,398,000

Share premium

17

7,492,000

7,492,000

Retained earnings

17

14,547,233

8,932,695

SHAREHOLDERS' FUNDS

31,437,233

25,822,695

The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on 22 December 2022 and were signed on its behalf by:

S H Bagshaw - Director

1.	STATUTORY INFORMATION

MKS Instruments UK Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of paragraph 3.17(d);

•

the requirement of paragraph 33.7.

Preparation of consolidated financial statements

The financial statements contain information about MKS Instruments UK Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 401 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, MKS Instruments Inc, .

A copy of the financial statements can be obtained by writing to MKS Instruments Inc, 2 Tech Drive, Suite 201, Andover, MA 01810, USA or by downloading from http://investor.mksinst.com/financials.cfm

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover and revenue recognition

The company recognises revenue when (a) the significant risks and rewards of ownership have been transferred to the buyer; (b) the company retains no continuing involvement or control over the goods; (c) the amount of revenue can be measured reliably; (d) it is probable that future economic benefits will flow to the entity and (e) when the specific criteria relating to each of the company's sales channels have been met. Revenue represents the net invoiced sales for goods and services excluding value added tax and export duties.

The company bases its estimate of returns on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement.

Where the consideration receivable in cash or cash equivalents is deferred, and the arrangement constitutes a financing transaction, the fair value of the consideration is measured as the present value of all future receipts using the imputed rate of interest.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2008, is being amortised evenly over its estimated useful life of fourteen years.

Amortisation period of goodwill

Upon acquisition of a business in 2008, goodwill is being amortised over its useful economic life of fourteen years. This was selected by management in 2013 as being the remaining period of twenty years, where goodwill was not being amortised for the first six years (as previously permitted). When estimating the life of goodwill, management considered the continued and sustained generation of positive cash flows and the growth of the business. There is a degree of estimation uncertainty and judgement which management encountered in estimating this and any changes to this estimate could have a material effect on the carrying amount of goodwill. Any changes to accounting estimates are applied prospectively, affecting the current and future accounting periods.

For details of the carrying amount of goodwill, refer to note 9.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Licences are being amortised evenly over their estimated useful life of three years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to property

-

equally over the lease term

Plant and machinery

-

12.5% on cost

Fixtures and fittings

-

12.5% on cost

Office equipment

-

12.5% on cost

Computer equipment

-

25% on cost

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Government grants

Grants are accounted for under the accruals model. 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 recognised in the profit and loss in the same period as the related expenditure. This includes the Government Coronavirus Job Retention Scheme ('Furlough').

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads.

Stock obsolescence provisions

The company maintains a level of component stock which is used in production together with stock of finished goods. As a result, it is necessary to consider the recoverability of the stock and the associated provision required. When calculating the provision, management considers the level of historical activity of each line of stock within the past two years and estimated future use to determine the useability of the stock and, subsequently, whether a provision is required.

For details of the carrying amount of stocks, refer to note 12..

Financial instruments

The company has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments.

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities such as trade and other debtors and creditors, loans to and from related parties and investments in non-puttable ordinary shares.

(i)Financial assets

Basic financial assets, including trade and other receivables, cash and bank balances and investments in commercial paper, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

If there is decrease in the impairment loss arising from an event occurring after the impairment was recognised the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

(ii) Financial liabilities

Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Current taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development

Expenditure on research and development is written off in the year in which it is incurred.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

The company's functional and presentational currency is the pound sterling.

Operating leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Incentives received to enter into a finance lease reduce the fair value of the asset and are included in the calculation of present value of minimum lease payments.

Incentives received to enter into an operating lease are credited to the profit and loss account, to reduce the lease expense, on a straight-line basis over the period of the lease.

The company has taken advantage of the exemption in respect of lease incentives on leases in existence on the date of transition to FRS 102 (1 January 2014) and continues to credit such lease incentives to the profit and loss account over the period to the first review date on which the rent is adjusted to market rates.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Product guarantees

Costs of rectification and service arising under warranty are charged against profit in the period in which they are incurred or identified.

Computer equipment/software

Expenditure on replacement computer equipment and upgrading of software is written off against profits in the year in which it is incurred.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company's accounting policies, management is 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.

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2021

2020

£

£

CVS division

927,684

6,974,691

UK division

15,322,310

15,139,447

Spectra division

26,380,053

18,111,897

42,630,047

40,226,035

An analysis of turnover by geographical market is given below:

2021

2020

£

£

United Kingdom

11,580,789

17,853,272

Europe

3,857,234

3,103,255

United States of America

7,237,052

5,106,003

Asia

19,954,972

14,163,505

42,630,047

40,226,035

5.	EMPLOYEES AND DIRECTORS

2021

2020

£

£

Wages and salaries

4,316,463

5,090,142

Social security costs

514,323

584,203

Other pension costs

191,980

316,149

5,022,766

5,990,494

The average number of employees during the year was as follows:

2021

2020

Administration and production

88

124

2021

2020

£

£

Directors' remuneration

-

-

6.	OPERATING PROFIT

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

2021

2020

£

£

Hire of plant and machinery

-

22,227

Other operating leases

252,399

271,582

Depreciation - owned assets

48,227

94,479

(Profit)/loss on disposal of fixed assets

(121,875

)

442,000

Goodwill amortisation

1,287,104

1,287,104

Auditors' remuneration

41,150

21,790

Foreign exchange differences

582,141

295,666

Restructuring costs

1,641,956

913,996

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2021

2020

£

£

Current tax:

UK corporation tax

1,030,102

836,797

Corporation Tax over provision

prior year

(67,763

)

-

Total current tax

962,339

836,797

Deferred tax

-

(23,325

)

Tax on profit

962,339

813,472

UK corporation tax has been charged at 19% .

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2021

2020

£

£

Profit before tax

10,776,877

6,369,361

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2020 - 19%)

2,047,607

1,210,179

Effects of:

Adjustments to tax charge in respect of previous periods

(67,763

)

-

tax

Disallowed expenditure

177,410

148,267

Excess of depreciation over capital allowances

(24,437

)

(6,145

)

Research & Development enhancement

(104,320

)

(227,836

)

Amortisation

244,550

244,550

Deferred tax

-

(23,325

)

Patent box deduction

(475,000

)

(532,000

)

Profit/Loss on asset disposals

(23,156

)

-

Structures and buildings allowance

(238

)

(218

)

Group relief

(812,314

)

-

Total tax charge

962,339

813,472

8.

DIVIDENDS

2021

2020

£

£

Ordinary shares of 1 each

Interim

4,200,000

10,000,000

9.	INTANGIBLE FIXED ASSETS

Goodwill

Licences

Totals

£

£

£

COST

At 1 January 2021

and 31 December 2021

18,019,451

33,551

18,053,002

AMORTISATION

At 1 January 2021

9,009,727

33,551

9,043,278

Amortisation for year

1,287,104

-

1,287,104

At 31 December 2021

10,296,831

33,551

10,330,382

NET BOOK VALUE

At 31 December 2021

7,722,620

-

7,722,620

At 31 December 2020

9,009,724

-

9,009,724

10.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

property

machinery

fittings

£

£

£

COST

At 1 January 2021

555,299

563,084

4,702

Additions

12,242

81,151

-

Disposals

-

(11,400

)

-

At 31 December 2021

567,541

632,835

4,702

DEPRECIATION

At 1 January 2021

549,511

431,416

4,083

Charge for year

2,064

26,792

171

Eliminated on disposal

-

(3,815

)

-

At 31 December 2021

551,575

454,393

4,254

NET BOOK VALUE

At 31 December 2021

15,966

178,442

448

At 31 December 2020

5,788

131,668

619

Office

Computer

equipment

equipment

Totals

£

£

£

COST

At 1 January 2021

109,286

357,144

1,589,515

Additions

-

17,507

110,900

Disposals

-

-

(11,400

)

At 31 December 2021

109,286

374,651

1,689,015

DEPRECIATION

At 1 January 2021

106,169

324,732

1,415,911

Charge for year

11,755

7,445

48,227

Eliminated on disposal

-

-

(3,815

)

At 31 December 2021

117,924

332,177

1,460,323

NET BOOK VALUE

At 31 December 2021

(8,638

)

42,474

228,692

At 31 December 2020

3,117

32,412

173,604