Ortho Solutions UK Limited - Limited company accounts 23.1

REGISTERED NUMBER: 09352164 (England and Wales)

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

FOR

ORTHO SOLUTIONS UK LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

R Hosking

E F Clare

C Fisher

SECRETARY:

E F Clare

REGISTERED OFFICE:

West Station Business Park

Spital Road

Maldon

Essex

CM9 6FF

REGISTERED NUMBER:

09352164 (England and Wales)

AUDITORS:

Xeinadin Audit Limited

Kingfisher House

11 Hoffmanns Way

Chelmsford

Essex

CM1 1GU

The directors present their strategic report for the year ended 31 December 2022.

REVIEW OF BUSINESS

Ortho Solutions has continued its strong growth following the impact of COVID-19 in 2020. Turnover grew by 25% from the previous year which had seen a 23% growth. This was achieved by combined growth in existing product markets and the impact of New Product launches in 2021. Combined with effective cost controls, operating profits of 10% were achieved.

Ortho Solutions continued to focus on both elective and trauma products. With the market share growth of the new product launched in 2021 Volition™ ankle fracture plating solution and existing product ranges.

The company also strengthened the team further in 2022 by increasing headcount by 4 heads. This investment was across the company to provide support the support for future growth plans.

A core pillar of the strategy remains New Product development and improvement, with further investment in expanding product range. During the year development work was completed with surgeon experts to meet the needs of patients and surgeon, to further advance foot and ankle care.

Development projects with surgeons continued in the year, to improve and develop products. This R&D investment has also enabled R&D Tax credit claims again from HMRC for 2022.

Ortho Solutions continued to invest in future growth with capital expenditure of £157k in instrumentation and systems.

In the year the board was expanded with the appointment of Colin Fisher as Financial Director to help meet the regulatory requirements and growth expectations.

At the balance sheet date, the company continues to have sufficient working capital to finance its operating activities. Total net assets have increased to £1.1m

PRINCIPAL RISKS AND UNCERTAINTIES

The directors firmly believe that opportunities offered in current overseas markets will help to safeguard the business from the risks of a single market focus in the longer term, with development of our product portfolio. Also reduce our exposure to foreign currency fluctuations. And are in strong position to respond to market demands as the increased waiting lists are dealt with.

ON BEHALF OF THE BOARD:

C Fisher - Director

28 September 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2022.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the supply of orthopaedic products.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2022.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report.

R Hosking

E F Clare

Other changes in directors holding office are as follows:

C Fisher - appointed 1 August 2022

CASHFLOW RISK

The Company has continued to manage its cash flows in the year. In order to maintain liquidity to ensure that sufficient funds are available, the Company regularly reviews any present obligations and prepares cash flow forecasts to consider any changes in operations.

CREDIT RISK

The Company's principal financial assets are tangible fixed assets, stock, cash and trade debtors. The directors consider there to be little or no risk in respect of balances with any third parties that would impact the availability of credit for the Company.

DISCLOSURE IN THE STRATEGIC REPORT

Items required under Sch. 7 to be disclosed in the directors’ report are set out in the strategic report in accordance with s.414C(11) CA 2006.

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

C Fisher - Director

28 September 2023

Opinion

We have audited the financial statements of Ortho Solutions UK Limited (the 'company') for the year ended 31 December 2022 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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 2022 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:

The objectives of our audit, in respect to irregularities, including fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; to respond appropriately to fraud or suspected fraud identified during the audit, to obtain audit evidence regarding compliance with provisions of applicable laws and regulations, and to respond appropriately to any non-compliance identified. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

In identifying and assessing risks of material misstatement in respect of irregularities including fraud and non-compliance with laws and regulations our approach was to consider the following:

- the nature of the industry or sector, control environment and business performance;

- the results of enquiries of management about their own identification and assessment of the risks of

irregularities;

- matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, employment law, tax legislation and health and safety.

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 may be fundamental to the company's ability to operate or to avoid a material penalty.

We assessed the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: recognition of income and value of stocks. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

Our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation;

- enquiring of management concerning actual and potential litigation and claims;

- reviewing material legal costs in the period;

- performing analytical procedures to identify unusual or unexpected relationships;

- reviewing correspondence with HMRC;

- testing the appropriateness of judgements made in making accounting estimates, journal entries and other adjustments made by management for indications of potential bias; and

- evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

The likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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.

Timothy Harbour BSc FCA (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

Kingfisher House

11 Hoffmanns Way

Chelmsford

Essex

CM1 1GU

28 September 2023

TURNOVER

9,103,844

7,252,789

Cost of sales

4,824,131

4,616,568

GROSS PROFIT

4,279,713

2,636,221

Administrative expenses

3,324,116

2,848,016

955,597

(211,795

)

Other operating income

4

-

36,390

OPERATING PROFIT/(LOSS)

955,597

(175,405

)

Interest receivable and similar income

1,573

43

957,170

(175,362

)

Interest payable and similar expenses

6

362,356

302,321

PROFIT/(LOSS) BEFORE TAXATION

7

594,814

(477,683

)

Tax on profit/(loss)

9

(293,721

)

(316,928

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

888,535

(160,755

)

PROFIT/(LOSS) FOR THE YEAR

888,535

(160,755

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR

888,535

(160,755

)

FIXED ASSETS

Tangible assets

10

160,554

96,728

CURRENT ASSETS

Stocks

11

3,364,417

3,010,526

Debtors

12

7,059,668

7,535,830

Cash at bank and in hand

13

1,133,673

331,888

11,557,758

10,878,244

CREDITORS

Amounts falling due within one year

14

5,761,239

5,744,161

NET CURRENT ASSETS

5,796,519

5,134,083

TOTAL ASSETS LESS CURRENT LIABILITIES

5,957,073

5,230,811

CREDITORS

Amounts falling due after more than one year

15

4,843,182

5,005,455

NET ASSETS

1,113,891

225,356

CAPITAL AND RESERVES

Called up share capital

19

4

4

Retained earnings

20

1,113,887

225,352

SHAREHOLDERS' FUNDS

1,113,891

225,356

The financial statements were approved by the Board of Directors and authorised for issue on 28 September 2023 and were signed on its behalf by:

C Fisher - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2021

4

386,107

386,111

Changes in equity

Total comprehensive loss

-

(160,755

)

(160,755

)

Balance at 31 December 2021

4

225,352

225,356

Changes in equity

Total comprehensive income

-

888,535

888,535

Balance at 31 December 2022

4

1,113,887

1,113,891

1.	STATUTORY INFORMATION

Ortho Solutions 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 company's functional and presentation currency is the Pound Sterling (£).

Amounts in these financial statements are rounded to the nearest Pound Sterling (£).

The financial statements contain information about Ortho Solutions UK Limited as an individual Company. Ortho Solutions UK Limited is a subsidiary of Ortho Solutions Holdings Limited, a Company registered in England and Wales.

2.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention.

Summary of significant accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Going concern

These financial statements have been prepared on a going concern basis which the directors consider to be appropriate for the Company.

The company has prepared forecasts for the next twelve months, which consider changes in trading conditions. The directors have considered the cashflow requirements of the Company for a period of twelve months from the date of approval of these financial statements and are satisfied that sufficient financial resources will continue to be made available.

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 33.7.

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.

Significant judgements and estimates

In applying the company's accounting policies, the directors are required to make judgements. estimates and assumptions in determining the carrying value of assets and liabilities. The directors' judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made and are based on historical experience and other factors that are considered applicable. Due to the inherent sensitivity involved in making judgements, estimates and assumptions, the actual results and outcomes may differ.

The estimates and underlying assumptions are reviewed on an ongoing basis. Any revisions to accounting estimates are recognised prospectively.

Stock provision

At each reporting date, stocks are assessed for impairment as a result of slow moving or obsolete stock.This assessment is prepared by reference to the last 12 months sales data and involves analysing stock items based on the expected sales value and quantity achieved in the period under assessment. From this analysis, impairments are calculated at the following rates:

- 100% provision for items with no sales in the period assessed

- 25% provision for items which quantity held exceeds sales data multiplied by 2

- 85% provision for items which quantity held exceeds sales data multiplied by 3

The above rates were agreed by the directors based on their experience of the industry and the nature of the company stock holdings in which some stock items can become obsolete.

The carrying amount of the above provision included against the value of stock at the balance sheet date is £1,782,790 (2021: £1,769,874)

Turnover

Turnover is measured at the fair value of the consideration received or receivable and represents the amount receivable for goods supplied and services rendered, net of returns, discounts and valued added taxes.

The company recognises revenue when the amount of revenue can be measured reliably, when it is probable that future economic benefits will flow to the entity and when specific criteria have been met.

The company supplies implants and instruments for surgical procedures. The sale of these goods is recognised under the following methods:

Direct orders

The sale of goods are recognised when the goods are physically delivered to the customer.

Goods on consignment

Due to the nature of the implants and instruments (systems) needed, the company distribute kits of systems to customers for use in surgical procedures on a consignment basis.

Under the consignment agreement, the customer must restock the system implants and instruments held on consignment. The company will invoice the customer to replenish the kits which is recognised within revenue when the goods are physically delivered to the customer.

In addition, when a consignment kit is returned the system items are reviewed. Anything found to be missing or non compliant is invoiced to the customer on receipt of the returned kit.

Goods on loan arrangements

Similar to goods on consignment the company also provide system kits under a loan agreement. When the kit is returned to the company, any items used are billed to the customer on receipt of the returned kit.

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

-

25% on cost

Plant and machinery

-

33% on cost and 25% on reducing balance

Kits

-

33% on cost

Computer equipment

-

33% on cost

Tangible fixed assets are initially measured at cost and subsequently measured at cost net of depreciation and any impairment losses. Depreciation of a tangible fixed assets begins when it is in the location and condition necessary available for the use intended.

Tangible fixed asset depreciation is included in administrative expenses in the Income Statement.

Government grants

Grants are accounted under the accruals method as permitted by FRS 102. Grants of a revenue nature are recognised in the income statement in the same period as the related expenditure.

Stocks

Stock is valued at the lower of cost and net realisable value. Cost is applied on a standard costing basis which is determined by the purchase price paid for the stock, net of value added tax. Net realisable value represents estimated selling price less costs to complete and sell. Provisions are made for slow moving, obsolete or damaged stock where the net realisable value is less than cost.

Some batch stock items have an expiry date applicable, the Company policy is to provide for the write off at the date of expiry and no separate provision is included at the balance sheet date.

Financial instruments

The company enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Debt instruments such as loans, accounts receivable and payable are initially measured at present value and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to paid or received.

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.

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 the Income Statement in the period to which they relate.

Impairment of non-financial assets

At each reporting date non-financial assets not carried at fair value, like plant, property and equipment, are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets, which is the higher of value in use and the fair value less cost to sell, is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in the Income Statement.

Stocks are also assessed for impairment at each reporting date. The carrying amount of each item of stock, or group of similar items, is compared with its selling price less costs to complete and sell. If an item of stock or group of similar items is impaired, its carrying amount is reduced to selling price less costs to complete and sell, and an impairment loss is recognised immediately in the Income Statement.

If an impairment loss is subsequently reversed, the carrying amount of the asset or group of related assets is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset or group of related assets in prior periods. A reversal of an impairment loss is recognised immediately in the Income Statement.

Borrowing costs

All borrowing costs are recognised in the Income Statement in the period in which they are incurred.

4.	OTHER OPERATING INCOME

2022

2021

£

£

Government grants

-

36,390

Under the package of support measures from the UK Government in response to the COVID-19 pandemic. The Coronavirus Job Retention Scheme was set up to support businesses who placed some or all of their workers on a temporary leave of absence, 'furlough'. Employers were entitled to claim a proportion of their 'furloughed workers' salaries from the Government.

The support measures also included the Recovery Loan Scheme, set up to support access to finance for UK businesses as they grow and recover from the disruption of the COVID-19 pandemic. The first 12 months' interest on these loans was payable by the Government.

The above grants received were made available by local Government to provide assistance to businesses during the pandemic.

5.	EMPLOYEES AND DIRECTORS

2022

2021

£

£

Wages and salaries

1,931,998

1,375,937

Social security costs

156,366

150,270

Other pension costs

168,585

92,738

2,256,949

1,618,945

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

2022

2021

Directors

3

2

Employees

30

27

33

29

2022

2021

£

£

Directors' remuneration

295,159

37,500

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

3

2

Information regarding the highest paid director for the year ended 31 December 2022 is as follows:

2022

£

Emoluments etc

175,000

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2022

2021

£

£

Bank loan interest

22,356

22,321

Other loan interest

340,000

280,000

362,356

302,321

7.	PROFIT/(LOSS) BEFORE TAXATION

The profit (2021 - loss) is stated after charging/(crediting):

2022

2021

£

£

Depreciation - owned assets

93,343

63,424

Foreign exchange differences

(715,427

)

(32,064

)

8.	AUDITORS' REMUNERATION

2022

2021

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

25,600

28,000

Auditors' remuneration for non audit work

3,970

5,585

9.

TAXATION

Analysis of the tax credit

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

2022

2021

£

£

Current tax:

Prior year tax

(293,721

)

(316,928

)

Tax on profit/(loss)

(293,721

)

(316,928

)

Reconciliation of total tax credit 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:

2022

2021

£

£

Profit/(loss) before tax

594,814

(477,683

)

Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 19% (2021 - 19%)

113,015

(90,760

)

Effects of:

Expenses not deductible for tax purposes

981

210

Utilisation of tax losses

(130,013

)

-

Research and development enhanced deductions prior year

(293,721

)

(316,928

)

Losses carried forward

-

92,742

Unprovided deferred tax

16,017

611

Super deduction allowance

-

(2,803

)

Total tax credit

(293,721

)

(316,928

)

10.	TANGIBLE FIXED ASSETS

Improvements

to

Plant and

Computer

property

machinery

Kits

equipment

Totals

£

£

£

£

£

COST

At 1 January 2022

216,357

144,432

189,894

247,818

798,501

Additions

-

19,800

121,188

16,181

157,169

Disposals

-

(76,572

)

-

-

(76,572

)

At 31 December 2022

216,357

87,660

311,082

263,999

879,098

DEPRECIATION

At 1 January 2022

216,357

137,966

99,632

247,818

701,773

Charge for year

-

3,903

87,660

1,780

93,343

Eliminated on disposal

-

(76,572

)

-

-

(76,572

)

At 31 December 2022

216,357

65,297

187,292

249,598

718,544

NET BOOK VALUE

At 31 December 2022

-

22,363

123,790

14,401

160,554

At 31 December 2021

-

6,466

90,262

-

96,728

The Company has a floating charge over the Group's assets, including tangible fixed assets, as security for the debenture agreed.

11.

STOCKS

2022

2021

£

£

Stocks

3,364,417

3,010,526

The Company has a floating charge over the Group's assets, including stocks, as security for the debenture agreed.

Stock is considered for impairment in the form of a slow moving and an obsolete provision. Details of this assessment are included within note 3 under significant judgements and estimates. The carrying amount of the provision included against the value of stock at the balance sheet date is £1,782,790 (2021: £1,769,874)

12.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

1,699,303

1,388,366

Amounts owed by group undertakings

4,863,390

5,648,830

Other debtors

28,881

21,586

Tax

304,388

326,064

Prepayments

163,706

150,984

7,059,668

7,535,830

The Company has a floating charge over the Group's assets, including debtors, as security for the debenture agreed.

13.	CASH AT BANK AND IN HAND

2022

2021

£

£

Current account

1,127,378

66,730

Dollar account

881

200

Euro account

4,176

99

Invoice finance account

660

264,302

Cash in hand

578

557

1,133,673

331,888

14.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Bank loans and overdrafts (see note 16)

127,273

127,273

Trade creditors

578,044

170,254

Amounts owed to group undertakings

1,791,810

1,791,810

Social security and other taxes

52,798

39,533

Pension

16,282

11,501

VAT

351,659

296,266

Other creditors

198,121

345,466

Wages control account

3,756

23,471

Directors' loan accounts

21,600

21,600

Accruals and deferred income

2,619,896

2,916,987

5,761,239

5,744,161