Formpipe Life Science Limited - Limited company accounts 18.2

REGISTERED NUMBER: 05797675

Report of the Director and

Financial Statements

for the Year Ended 31 December 2017

for

Formpipe Life Science Limited

Page

Company Information

1

Report of the Director

2

Report of the Independent Auditors

3

Statement of Comprehensive Income

5

Balance Sheet

6

Statement of Changes in Equity

7

Notes to the Financial Statements

8

DIRECTOR:

C C Q Sundin

SECRETARY:

C C Q Sundin

REGISTERED OFFICE:

13 Poplars Court

Lenton Lane

Nottingham

Nottinghamshire

NG7 2PW

REGISTERED NUMBER:

05797675

AUDITORS:

Clayton & Brewill

Statutory Auditors and

Chartered Accountants

Cawley House

149-155 Canal Street

Nottingham

Nottinghamshire

NG1 7HR

The director presents his report with the financial statements of the company for the year ended 31 December 2017.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of software supply and

consultancy.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2017.

RESEARCH AND DEVELOPMENT

The company continues to invest in research and development activities.

DIRECTOR

C C Q Sundin held office during the whole of the period from 1 January 2017 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Report of the Director and the 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 United Kingdom Generally

Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 of the profit or loss of the company for that period. In

preparing these financial statements, the director is required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	state whether applicable 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 company 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 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 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 director is 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 he 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, Clayton & Brewill, will be proposed for re-appointment at the forthcoming Annual General

Meeting.

ON BEHALF OF THE BOARD:

C C Q Sundin - Director

13 August 2018

Opinion

We have audited the financial statements of Formpipe Life Science Limited (the 'company') for the year

ended 31 December 2017 which comprise the Statement of 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 101

'Reduced Disclosure Framework' (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 2017 and of its loss 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require

us to report to you where:

-	the director's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the director has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The director is responsible for the other information. The other information comprises the information in

the Report of the Director, 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 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,

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.

Opinion 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 Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Director has 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 Report of the Director.

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 director's remuneration specified by law are not made; or

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

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page two, the director is

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 director determines 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 director is 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 director either intends to liquidate the company or to cease

operations, or has 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.

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.

Neil South BA FCA (Senior Statutory Auditor)

for and on behalf of Clayton & Brewill

Statutory Auditors and

Chartered Accountants

Cawley House

149-155 Canal Street

Nottingham

Nottinghamshire

NG1 7HR

13 August 2018

TURNOVER

736,235

620,068

Cost of sales

745,688

627,005

GROSS LOSS

(9,453

)

(6,937

)

Distribution costs

(14,361

)

1,503

Administrative expenses

339,649

491,515

325,288

493,018

(334,741

)

(499,955

)

Other operating income

1,246

2,141

OPERATING LOSS

(333,495

)

(497,814

)

Income from shares in group undertakings

-

31,111

Interest receivable and similar income

-

2,084

-

33,195

(333,495

)

(464,619

)

Amounts written off investments

4

-

31,111

(333,495

)

(495,730

)

Interest payable and similar expenses

5

35,752

28,083

LOSS BEFORE TAXATION

6

(369,247

)

(523,813

)

Tax on loss

8

-

-

LOSS FOR THE FINANCIAL YEAR

(369,247

)

(523,813

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(369,247

)

(523,813

)

FIXED ASSETS

Intangible assets

9

275,313

362,292

Tangible assets

10

14,139

27,660

289,452

389,952

CURRENT ASSETS

Stocks

11

-

180

Debtors

12

229,185

155,329

Cash at bank

81,522

53,769

310,707

209,278

CREDITORS

Amounts falling due within one year

13

1,593,465

1,223,289

NET CURRENT LIABILITIES

(1,282,758

)

(1,014,011

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(993,306

)

(624,059

)

CAPITAL AND RESERVES

Called up share capital

15

13,143

13,143

Share premium

16

214,712

214,712

Retained earnings

16

(1,221,161

)

(851,914

)

SHAREHOLDERS' FUNDS

(993,306

)

(624,059

)

The financial statements were approved by the director on 13 August 2018 and were signed by:

C C Q Sundin - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2016

13,143

(328,101

)

214,712

(100,246

)

Changes in equity

Total comprehensive income

-

(523,813

)

-

(523,813

)

Balance at 31 December 2016

13,143

(851,914

)

214,712

(624,059

)

Changes in equity

Total comprehensive income

-

(369,247

)

-

(369,247

)

Balance at 31 December 2017

13,143

(1,221,161

)

214,712

(993,306

)

1.	STATUTORY INFORMATION

Formpipe Life Science Limited is a private company, limited by shares, registered in England and

Wales. The company's registered number and registered office can be found on the Company

Information page.

2.	ACCOUNTING POLICIES

Basis of preparation

These financial statements have been prepared in accordance with Financial Reporting Standard

101 "Reduced Disclosure Framework" and the Companies Act 2006. The financial statements have

been prepared under the historical cost convention.

At 31 December 2017 the company has net current liabilities of £1,282,758 (2016: £1,014,011)

and net liabilities of £993,306 (2016: 624,059). The accounts have been prepared on a going

concern basis due to the continued financial support from the parent company.

The company has taken advantage of the following disclosure exemptions in preparing these

financial statements, as permitted by FRS 101 "Reduced Disclosure Framework":

•

the requirements of paragraphs 45(b) and 46 to 52 of IFRS 2 Share-based Payment;

•

the requirements of paragraphs 62, B64(d), B64(e), B64(g), B64(h), B64(j) to B64(m), B64(n)(ii), B64(o)(ii), B64(p), B64(q)(ii), B66 and B67 of IFRS 3 Business Combinations;

•

the requirements of paragraph 33(c) of IFRS 5 Non Current Assets Held for Sale and Discontinued Operations;

•

the requirements of IFRS 7 Financial Instruments: Disclosures;

•

the requirements of paragraphs 91 to 99 of IFRS 13 Fair Value Measurement;

•

the requirement in paragraph 38 of IAS 1 Presentation of Financial Statements to present comparative information in respect of:

-

paragraph 79(a)(iv) of IAS 1;

-

paragraph 73(e) of IAS 16 Property, Plant and Equipment;

-

paragraph 118(e) of IAS 38 Intangible Assets;

-

paragraphs 76 and 79(d) of IAS 40 Investment Property; and

-

paragraph 50 of IAS 41 Agriculture;

•

the requirements of paragraphs 10(d), 10)(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D and 111 of IAS 1 Presentation of Financial Statements;

•

the requirements of paragraphs 134 to 136 of IAS 1 Presentation of Financial Statements;

•

the requirements of IAS 7 Statement of Cash Flows;

•

the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors;

•

the requirements of paragraphs 17 and 18A of IAS 24 Related Party Disclosures;

•

the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group;

•

the requirements of paragraphs 134(d) to 134(f) and 135(c) to 135(e) of IAS 36 Impairments of Assets.

Development costs

Development costs that are directly attributable to development and testing of identifiable and

unique software products under the companies control , are recognised as an intangible asset

when the following criteria are met.

- Its is technically feasible to complete the software so it is available for use.

- The company intends to complete the software and to use or sell it

- Conditions are present to use or sell the software

- It can be demonstrated how the software will generate probable future economic benefits

- Adequate terminological, financial, and other resources are available to complete development

and to use or sell the software

- The expenses directly attributable to the software, during its development can be reliably

measured.

Directly attributable expenses that are capitalised as part of the software development include staff

costs and an reasonable proportion of the indirect cost. Other development costs that do not meet

these criteria are charged as they arise.

Development costs for software recognised as an asset are depreciated over its estimated useful

life, which does not exceed five years.

Tangible fixed assets

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

Fixtures and fittings

-

25% on cost and Straight line over term of lease

Computer equipment

-

33% on cost

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for

obsolete and slow moving items.

Taxation

Current taxes are based on the results shown in the financial statements and are calculated

according to local tax rules, using tax rates enacted or substantially enacted by the balance sheet

date.

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.

Hire purchase and leasing commitments

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

the period of the lease.

Employee benefit costs

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.

3.	EMPLOYEES AND DIRECTORS

2017

2016

£

£

Wages and salaries

488,152

451,737

Social security costs

60,127

63,286

Other pension costs

37,231

37,780

585,510

552,803

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

2017

2016

Admin salaries

11

11

2017

2016

£

£

Director's remuneration

-

-

4.

AMOUNTS WRITTEN OFF INVESTMENTS

2017

2016

£

£

Write off investments

-

31,111

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2017

2016

£

£

Intercompany loan interest

35,752

25,814

Loan

-

2,269

35,752

28,083

6.	LOSS BEFORE TAXATION

The loss before taxation is stated after charging/(crediting):

2017

2016

£

£

Cost of inventories recognised as expense

745,688

627,005

Other operating leases

23,161

22,404

Depreciation - owned assets

14,520

15,523

(Profit)/loss on disposal of fixed assets

(14,361

)

1,503

Development costs amortisation

55,199

44,411

Foreign exchange differences

12,543

103,996

7.	AUDITORS' REMUNERATION

2017

2016

£

£

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

7,408

8,850

8.

TAXATION

Analysis of tax expense

No liability to UK corporation tax arose for the year ended 31 December 2017 nor for the year

ended 31 December 2016.

Factors affecting the tax expense

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The

difference is explained below:

2017

2016

£

£

Loss before income tax

(369,247

)

(523,813

)

Loss multiplied by the standard rate of corporation tax in the UK of 19.250% (2016 - 20%)

(71,080

)

(104,763

)

Effects of:

Losses carried forward

79,821

126,721

Development costs

(16,478

)

(32,400

)

(Profit)/Loss on disposal of assets

(2,764

)

301

Depreciation charge in excess of capital allowances

10,501

10,141

Tax expense

-

-

A deferred tax asset of £101,180 (2016: £224,522) in respect of trading losses of £532,526

(2016: £1,181,693) has not been recognised due to uncertainty over future profits against which

to offset.

Previous tax losses of £635,690 were surrendered to a fellow UK subsidiary during the year.

9.	INTANGIBLE FIXED ASSETS

Development

costs

£

COST

At 1 January 2017

406,703

Additions

85,600

Disposals

(129,088

)

At 31 December 2017

363,215

AMORTISATION

At 1 January 2017

44,411

Amortisation for year

55,199

Eliminated on disposal

(11,708

)

At 31 December 2017

87,902

NET BOOK VALUE

At 31 December 2017

275,313

At 31 December 2016

362,292

10.	TANGIBLE FIXED ASSETS

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 January 2017

43,456

79,761

123,217

Additions

-

999

999

At 31 December 2017

43,456

80,760

124,216

DEPRECIATION

At 1 January 2017

28,994

66,563

95,557

Charge for year

5,779

8,741

14,520

At 31 December 2017

34,773

75,304

110,077

NET BOOK VALUE

At 31 December 2017

8,683

5,456

14,139

At 31 December 2016

14,462

13,198

27,660

11.

STOCKS

2017

2016

£

£

Finished goods

-

180

12.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade debtors

147,642

69,747

Amounts owed by group undertakings

10,853

68,511

Prepayments and accrued income

70,690

17,071

229,185

155,329

13.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2017

2016

£

£

Trade creditors

31,539

23,262

Amounts owed to group undertakings

1,433,019

1,116,447

Social security and other taxes

17,710

18,264

VAT

10,751

5,437

Other creditors

3,853

4,026

Accrued expenses

96,593

55,853

1,593,465

1,223,289

14.	LEASING AGREEMENTS

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

2017

2016

£

£

Within one year

22,404

22,404

Between one and five years

3,734

26,138

26,138

48,542

15.	CALLED UP SHARE CAPITAL

Allotted and issued:

Number:

Class:

Nominal

2017

2016

value:

£

£

13,143

Ordinary

£1

13,143

13,143

16.

RESERVES

Retained

Share

earnings

premium

Totals

£

£

£

At 1 January 2017

(851,914

)

214,712

(637,202

)

Deficit for the year

(369,247

)

(369,247

)

At 31 December 2017

(1,221,161

)

214,712

(1,006,449

)

17.	PENSION COMMITMENTS

The company operates a contributory pension scheme. It is a defined contribution scheme and

contributions are charged in the profit and loss account as they accrue. The charge for the period

was £37,231 (2016: £37,780).

18.	ULTIMATE PARENT COMPANY

Formpipe Software AB (incorporated in Sweden ) is regarded by the director as being the

company's ultimate parent company.

19.	ULTIMATE CONTROLLING PARTY

The controlling party and the ultimate controlling party are not known.