ACCOUNTS - Final Accounts
ACCOUNTS - Final Accounts
|
Registered number:
FOR THE YEAR ENDED 31 AUGUST 2022
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
COMPANY INFORMATION
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
CONTENTS
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2022
The directors present the strategic report and financial statements for the period ended 31 August 2022.
In January 2022 a reorganisation of entities owned by the shareholder was effected, creating a Group structure.
The principal activity of the company during the year was to act as the ultimate parent company for the BMG (British Medical Group) Limited, group of companies which are research & development and medical device manufacturing companies, where expert scientists create new technologies. Our mission is to advance science in practical applications and licence technologies to allow them to achieve their potential. We invent, test and supply medical device innovations and have developed breakthrough antimicrobial technology, for example in our X111 dye which we have licenced to Hartalega for use in their medical examination gloves (AMG). The Company has made substantial investment into the research and development of medical products and devices. The Company intends to continue to reinvest its profits to ensure that it can continue to support investment in the medical world; to help make a difference and to positively impact health, safety, protection and wellbeing of the population. The Company recognises that this is a sizable challenge and is prepared to consider joint ventures with appropriate parties if the relevant project and opportunity is presented. During this period the Group returned its focus to innovation and research & development from other revenue streams. Royalties received from AMG were lower this year as global demand for personal protective equipment decreased as a result of increased pressure in the global markets due to overproduction and stockpiling during the pandemic. This has resulted in a decrease in royalties during this period. In this financial year revenues remained steady in regards to our X111 dye and development continues on applying our technologies to other personal protective equipment. Further and other applications have been developed during this period including some patents granted. In addition, the contract testing laboratory (a) has expanded and implemented various processes and procedures to maintain the quality of its products and its services; and (b) is increasing its external commercial work and progressing towards UKAS accreditation. BMG provides management services to its subsidiaries including the provision of premises, employment and administrative duties.
The principal risks and uncertainties facing the Group are discussed below:
Financial risk management Credit risk The Group is exposed to credit risk from credit sales. It is our intention to enhance the assessment of the credit risk of customers and to factor the information from this assessment into future dealings with those customers, therefore mitigating the risk. The Group is concerned that the economy may expose it to various challenges, including the collection of monies on sales. As part of this, it will look to enhance its credit control procedures. Liquidity risk The Group actively manages its finances by reviewing cash flows, performance against budget and the availability of working capital to ensure that it has sufficient available funds for its operations.
Page 1
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022
Interest rate risk The Group monitors all interest bearing assets and liabilities and their financial impact. Foreign exchange risk The Group is exposed to foreign exchange fluctuation risk through expanding activities with overseas customers. Where possible, the group mitigates these risks by denominating contracts in stable currencies, monitoring foreign exchange movements and planning accordingly. Operational risk management Project risk During the COVID-19 pandemic, project and financial risk to the Group was extremely high. There were significant challenges, including the sourcing, procurement and distribution of supplies (in competition with others seeking the same supplies) where there was substantial shortages. However, the current position has changed and no exceptional project risks were identified in this period. The Group continues to introduce innovations into highly regulated commercial environments. Commercial and / or regulatory acceptance of such innovations can never be guaranteed. The Group proactively manages such risks and evaluates opportunities and compliance. Management and staff risk All employees within the Group have transferred from a subsidiary entity during this period. BMG has increased employee numbers helping to mitigate the risks inherent in a rapidly growing business and reduce reliance on a few key individuals. We have also reviewed our employee benefit scheme in order to improve staff retention to provide further longer term resilience. 
Page 2
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022
The entities within the Group have performed robustly and have strong momentum going into 2023 from new contract wins and further scientific developments.
The Director of the company has a duty to promote the success of the company. The director of the company must act in the way they consider, in good faith, to promote the success of the company for the benefit of its members, and in doing so have regard (amongst other matters) to:
∙the likely consequences of any decision in the long term;
∙the interests of the Group's employees;
∙the need to foster the Group's business relationships with suppliers, customers and others;
∙the impact of the Group's operations on the community and the environment;
∙the desirability of the Group to maintain a reputation for high standards of business conduct; and
∙the need to act fairly between members of the Group.
The Director is committed to developing and maintaining a governance framework that is appropriate to the business and supports effective decision making coupled with robust oversight of risks and internal controls.
We describe how the director considers these factors in their decision making below:
Employees
∙Our employees help maintain a competitive advantage and meet the changing demands of the industry. We seek to actively engage to ensure that we are fostering an environment that they are happy to work in. The Director and the managers maintain open communications with the team and engage in monthly catchup meetings with direct reports where any issues can be raised.
Suppliers
∙Our suppliers are fundamental to the quality of the service provided and to ensure that the Group meets the high standard of conduct required. We engage regularly with our suppliers and also make sure we are constantly reviewing their performance to make sure they remain competitive, so that this in turn can be passed on to our customers.
Customers
∙Our customers generate value and a positive reputation in the business. We build strong lines of communications with our customers in order to understand their needs and we arrange regular catchups with key personnel in order to maintain that line of communication and allow a forum for them to raise any queries or concerns. .
Long term consequences of actions
Where possible the director considers the possible long-term consequences of any proposed course of action, including safety and financial impacts and reputation with all stakeholders. The interests of the Group’s employees We have been delighted by the positive way in which our team has responded to our growth opportunities, the challenges they bring, and the level of engagement they have demonstrated.
Page 3
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022
Relationships with suppliers and customers The Group specialises in working with regulated contractors. The Group enjoys constructive relationships with its customers based largely on the values that have long been part of who we are. We aim to have multiple points of contact with each client to ensure that we remain aligned with their expectations. Our independence as a business allows us to prioritise senior relationship-building, making sure that we are accessible, and committed to doing what we say. Our supplier base is wide and includes frameworks negotiated by our clients as well as ourselves. As with our customers, many relationships are long-standing, and we recognise the importance of our supply chain to the success of the business. We aim to treat all suppliers equally, and most importantly to pay them in line with contractual terms. Impact on the community and the environment Our business is developing novel technologies and producing products that impact not just the healthcare industry, but the wider community as a whole by minimizing the spread of viruses. Our business model as a whole has very little impact on the environment. The Group continues to expand operations at our technical facility in Daresbury, Cheshire. Daresbury is in the borough of Halton, which is in the bottom 10% of deprived local authority areas in England. In this period we have increased our Daresbury headcount to five and will continue to provide further employment opportunities there. Business conduct As outlined in the statements above, the director of the company places a high value on the reputation of the business. Acting fairly between members The business has a sole shareholder who is also the sole director. This individual makes decisions regarding the running of the business.
This report was approved by the board and signed on its behalf by:
Page 4
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 AUGUST 2022
The director presents his report and the financial statements for the year ended 31 August 2022.
The loss for the year, after taxation, amounted to £1,822,684 (2021 - profit £24,724,888).
During the year dividends amounting to £2,000,000 (2021 - £NIL) were paid. No dividends have been declared subsequent to the year end.
The director who served during the year was:
The director is responsible for preparing the Group Strategic Report, the Director's Report and the consolidated financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the director is required to:
∙select suitable accounting policies for the Group's financial statements 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;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The director is 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 the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Page 5
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022
As the Group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
The company has chosen in accordance with Companies Act 2006, s.414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of principal risks and uncertainties, key performance indicators, future developments, stakeholder engagement and employee and other stakeholder engagements.
There have been no significant events affecting the Group since the year end.
The auditors, Peters Elworthy & Moore, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf by:
Page 6
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BMG (BRITISH MEDICAL GROUP) LIMITED
We have audited the financial statements of BMG (British Medical Group) Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 August 2022, which comprise the Group Profit and Loss Account, the Group and Company Balance Sheets, the Group Statement of Cash Flows, the Group and Company Statement of Changes in Equity and the related notes, 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).
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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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.
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 or the 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 director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The director is 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.
Page 7
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BMG (BRITISH MEDICAL GROUP) LIMITED (CONTINUED)
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group Strategic Report and the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Director's Report.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Page 8
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BMG (BRITISH MEDICAL GROUP) LIMITED (CONTINUED)
Our approach to identifying and assessing the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the senior statutory auditor ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
∙we identified the laws and regulations applicable to the Group through discussions with the director and other management, and from our knowledge and experience of the sector;
∙we obtained an understanding of the legal and regulatory framework applicable to the Group and how the Group is complying with that framework;
∙we obtained an understanding of the Group’s policies and procedures on compliance with laws and regulations, including documentation of any instances of non-compliance;
∙we identified which laws and regulations were significant in the context of the Group. The Laws and regulations we considered in this context were Companies Act 2006 and taxation legislation. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items;
∙in addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the Group’s ability to operate or to avoid material penalty; and
∙identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the Group’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
∙making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
∙considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we;
∙tested journal entries to identify unusual transactions;
∙assessed whether judgements and assumptions made in determining the accounting estimates set out in the accounting policy were indicative of potential bias; and
∙investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
∙agreeing financial statement disclosures to underlying supporting documentation; and
∙enquiring of management as to actual and potential litigation and claims.
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.
Page 9
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BMG (BRITISH MEDICAL GROUP) LIMITED (CONTINUED)
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 Auditors' Report.
The financial statements of BMG (British Medical Group) Limited and its subsidiaries, Sanitas Healthcare Limited, Virologica Limited and Groslands Limited which are consolidated into these financial statements were unaudited for the period ended 31 December 2021 as the Companies were small and eligible for audit exemption. Accordingly the comparative information related to these entities were not subject to audit.
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 Auditors' 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
Chartered Accountants
Statutory Auditors
Salisbury House
Station Road
CB1 2LA
Page 10
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2022
Page 11
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
REGISTERED NUMBER: 12788382
CONSOLIDATED BALANCE SHEET
AS AT 31 AUGUST 2022
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 20 to 39 form part of these financial statements.
Page 12
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
REGISTERED NUMBER: 12788382
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 AUGUST 2022
Page 13
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
REGISTERED NUMBER: 12788382
COMPANY BALANCE SHEET
AS AT 31 AUGUST 2022
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 20 to 39 form part of these financial statements.
Page 14
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2022
Page 15
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2022
Page 16
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2022
Page 17
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022
Page 18
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 AUGUST 2022
Page 19
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022
BMG (British Medical Group) Limited is a private company limited by shares and incorporated in England and Wales. Its registered office is Part First Floor, Bateman House, 82-88 Hills Road, Cambridge CB2 1LQ.
The Company's principal activities and nature of its operations are disclosed in the Director's report.
2.ACCOUNTING POLICIES
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and Loss Account in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the merger accounting basis. The results of subsidiary undertakings disposed of during the year are excluded from the Statement of Comprehensive Income from the date of disposal. The results of subsidiary undertakings are adjusted, if required, to conform to Group accounting policies. Merger accounting - combination with subsidiary entities On 25 January 2022, BMG (British Medical Group) Limited undertook a common control combination, through the issue of new ordinary shares in exchange for 100% of the Ordinary shares in Chemical Intelligence Limited, Sanitas Healthcare Limited, Virologica Limited and Groslands Limited. The director considered the business combination to be a common control combination, as the combining entities were utlimately controlled by the same parties both before and after the combination and the common control was not transitory. As a common control combination, the transaction was outside the scope of FRS 102 Section 19 ("Business Combinations and Goodwill") and the director therefore considered that given the nature of the transaction, the merger accounting method would be most appropriate for preparing these financial statements. The merger accounting method results in presentation of the consolidated financial information for the Group as if the current structure had always existed, including comparative information for prior period. This method involves accounting for the assets and liabilities of the acquired businesses using existing carrying values rather than at fair values and as a result, no goodwill arises on the combination. The use of the merger accounting method also gives rise to a "merger reserve", which represents the share premium of the subsidiaries on consolidation.
Page 20
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022
2.ACCOUNTING POLICIES (CONTINUED)
Functional and presentation currency
Transactions and balances
Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of goods), the amount of the revenure can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred in respect of the transaction can be measured reliably. Royalty income is recognised on an accruals basis and is presented within turnover. If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
Page 21
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022
2.ACCOUNTING POLICIES (CONTINUED)
Page 22
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022
2.ACCOUNTING POLICIES (CONTINUED)
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
The estimated useful lives range as follows:
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Page 23
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022
2.ACCOUNTING POLICIES (CONTINUED)
Page 24
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisons 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 period where the revision affects both current and future periods. Key sources of estimation uncertainty relating to these financial statements are: Investment property - Properties are revalued to their fair value at the reporting date by management, with the fair value based on professional advice received.
Analysis of turnover by country of destination:
Page 25
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022
Page 26
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022
Page 27
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022
Page 28
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022
12.TAXATION (CONTINUED)
The Group has tax losses amounting to £553,891 (2021 - £296,306) that are available to be offset against future taxable profits. A deferred tax asset has not been included in relation to these losses.
Page 29
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022
Page 30
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022
Page 31
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022
15.TANGIBLE FIXED ASSETS (CONTINUED)
Page 32
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022
Page 33
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022
Page 34
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022
The 2022 valuations were made by management based on professional advice received, on an open market value for existing use basis.
Page 35
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022
Page 36
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022
Page 37
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022
On 25 January 2022, BMG (British Medical Group) Limited issued 99 shares of £1 each, for a total consideration of £56,648,037 which was settled via a share-for-share exchange for the entire ordinary share capital of Chemical Intelligence Limted, Sanitas Healthcare Limited, Virologica Limited and Groslands Limited.
Merger Reserve
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £12,893 (2021 - £5,894) . Contributions totalling £3,763 (2021 - £1,397) were payable to the fund at the balance sheet date and are included in creditors.
Page 38
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
BMG (BRITISH MEDICAL GROUP) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022
Page 39
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||