Innovative Trials Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 07181523 (England and Wales)

Report of the Directors and

Unaudited Financial Statements

for the Year Ended 31 May 2021

for

INNOVATIVE TRIALS LIMITED

Page

Company Information

1

Report of the Directors

2

Balance Sheet

3

Notes to the Financial Statements

5

Directors:

Ms K Shaw

Mr D Watkins

Registered office:

Innovative House

Avenue One

Letchworth Garden City

Hertfordshire

SG6 2WW

Registered number:

07181523 (England and Wales)

Accountants:

Haines Watts

Chartered Accountants

3rd Floor

Marlborough House

298 Regents Park Road

Finchley

London

N3 2SZ

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

Principal activity

The principal activity of the company in the year under review was that of the provision of patient recruitment services to the pharmaceutical industry.

Review of business

2020 - 2021 was Innovative Trials Limited's 12th year in business and saw sales turnover grow to £9.7m, an increase of 52%. Gross profit grew by £1.8m or 42% representing improved efficiency in delivery of our services. This growth in both sales and gross profits has enabled us to further increase our clinical trial service offering and has resulted in an increase in employed staff numbers by 75% compared to last year, as we further develop our international footprint. As we have grown, we have continued to invest in first class internal systems to enhance our ability to provide improved efficiency and capability on behalf of our clients, and this is reflected in net profits before taxation growing by 30% versus 2020. Net assets grew to £6.454m, an increase of 27% over 2020. We have extended our patient recruitment services to a number of new clients and we are delighted to enable them to meet their patient recruitment goals. We continue to manage the Covid pandemic very well, with continued rapid response to government advice, best practice and business needs. Our business has not been significantly disrupted and has managed to ensure remote working, social distancing and other measures have been adopted appropriately and fully. Our goals for the coming financial year are challenging, but achievable as we continue to aim to deliver on our long term goals. Again we are looking to grow turnover and net profit, and at the same time further invest in people and systems as part of our ongoing strategy.

We were delighted to be awarded the Queen's Award for Enterprise in the category of International Trade. The Queen's Award for Enterprise is seen as the most prestigious British business award and recognises the ongoing success of the company.

Directors

The directors shown below have held office during the whole of the period from 1 June 2020 to the date of this report.

Ms K Shaw

Mr D Watkins

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

On behalf of the board:

Ms K Shaw - Director

30 November 2021

Fixed assets

Intangible assets

4

-

-

Tangible assets

5

656,989

795,013

656,989

795,013

Current assets

Debtors

6

4,026,972

3,399,023

Cash at bank and in hand

2,884,687

1,615,685

6,911,659

5,014,708

Creditors

Amounts falling due within one year

7

1,094,919

717,441

Net current assets

5,816,740

4,297,267

Total assets less current liabilities

6,473,729

5,092,280

Provisions for liabilities

18,990

13,556

Net assets

6,454,739

5,078,724

Capital and reserves

Called up share capital

9

120

120

Share premium

488,380

488,380

Retained earnings

5,966,239

4,590,224

Shareholders' funds

6,454,739

5,078,724

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 May 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 May 2021 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 30 November 2021 and were signed on its behalf by:

Ms K Shaw - Director

Mr D Watkins - Director

1.	Statutory information

Innovative Trials 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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Key source of estimation, uncertainty and judgement

The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgement that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period.

There is estimation uncertainty in calculating depreciation. A full line by line review of fixed assets is carried out by management regularly. Whilst every attempt is made to ensure that the depreciation policy is as accurate as possible, there remains a risk that the policy does not match the useful life of the assets.

There is estimation uncertainty in calculating deferred tax. A full line by line review of deferred tax is carried out by management regularly. Whilst every attempt is made to ensure that the deferred tax is accurate as possible, there remains a risk that the provisions do not match the actual tax liability when asset is disposed off.

There is estimation uncertainty in calculating bad debt provisions. A full line by line review of trade debtors is carried out at the end of each month. Whilst every attempt is made to ensure that the bad debt provisions are as accurate as possible, there remains a risk that the provisions do not match the level of debts which ultimately prove to be uncollectable.

There is estimation uncertainty in calculating amortisation of intangible assets. A full line by line review of intangible assets is carried out by management regularly. Whilst every attempt is made to ensure that the amortisation policy is as accurate as possible, there remains a risk that the policy does not match the useful life of the intangible assets.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

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.

Development costs 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

-

over the length of the lease

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

25% on reducing balance

Computer equipment

-

25% on reducing balance

Financial instruments

Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument.

Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company will not be able to collect all amounts due.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts which are integral part of the company’s cash management.

Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, 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.

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.

3.	Employees and directors

The average number of employees during the year was 63 (2020 - 36 ) .

4.	Intangible fixed assets

Development

costs

£

Cost

At 1 June 2020

and 31 May 2021

7,200

Amortisation

At 1 June 2020

and 31 May 2021

7,200

Net book value

At 31 May 2021

-

At 31 May 2020

-

5.	Tangible fixed assets

Fixtures

Improvements

Plant and

and

Computer

to property

machinery

fittings

equipment

Totals

£

£

£

£

£

Cost

At 1 June 2020

723,665

52,971

36,152

51,417

864,205

Additions

3,650

-

18,638

35,795

58,083

At 31 May 2021

727,315

52,971

54,790

87,212

922,288

Depreciation

At 1 June 2020

-

29,653

20,774

18,765

69,192

Charge for year

170,273

5,829

6,538

13,467

196,107

At 31 May 2021

170,273

35,482

27,312

32,232

265,299

Net book value

At 31 May 2021

557,042

17,489

27,478

54,980

656,989

At 31 May 2020

723,665

23,318

15,378

32,652

795,013

6.

Debtors: amounts falling due within one year

2021

2020

£

£

Trade debtors

2,598,160

1,838,056

Other debtors

1,428,812

1,560,967

4,026,972

3,399,023

7.

Creditors: amounts falling due within one year

2021

2020

£

£

Trade creditors

263,819

239,712

Taxation and social security

580,479

91,994

Other creditors

250,621

385,735

1,094,919

717,441

8.	Leasing agreements

Minimum lease payments under non-cancellable operating leases fall due as follows:

2021

2020

£

£

Within one year

130,000

130,000

Between one and five years

292,500

455,000

422,500

585,000

9.	Called up share capital

Allotted, issued and fully paid:

Number:

Class:

Nominal

2021

2020

value:

£

£

50

Ordinary A

£1

50

50

50

Ordinary B

£1

50

50

20

Ordinary C

£1

20

20

120

120

10.	Directors' advances, credits and guarantees

The following advances and credits to directors subsisted during the years ended 31 May 2021 and 31 May 2020:

2021

2020

£

£

Ms K Shaw and Mr D Watkins

Balance outstanding at start of year

(244,764

)

644,598

Amounts advanced

703,446

6,074

Amounts repaid

(458,800

)

(895,436

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

(118

)

(244,764

)

11.	Related party disclosures

Included above in Other debtors is an amount of £1,272,398 (2020 : £1,393,898) owed to a related company.

Both the companies are related by virtue of having common directors and shareholders.