Company Registration No. 01231087 (England and Wales)
HAEMONETICS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2017
PAGES FOR FILING WITH REGISTRAR
HAEMONETICS LIMITED
COMPANY INFORMATION
Directors
Mr A Casanova
(Appointed 24 October 2016)
Mr C L Graham
(Appointed 24 October 2016)
Mr W P Burke
(Appointed 24 October 2016)
Company number
01231087
Registered office
Lynwood House
373-375 Station Road
Harrow
Middlesex
HA1 2AW
Accountants
RDP Newmans LLP
Lynwood House
373-375 Station Road
Harrow
Middlesex
HA1 2AW
Business address
Business Innovation Centre
Harry Weston Road
Coventry
CV3 2TX
HAEMONETICS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
HAEMONETICS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2017
31 March 2017
- 1 -
2017
2016
Notes
£
£
£
£
Fixed assets
Goodwill
3
396,696
433,525
Tangible assets
4
1,277,844
1,593,428
1,674,540
2,026,953
Current assets
Stocks
135,576
135,018
Debtors
5
2,264,793
1,935,441
Cash at bank and in hand
2,219,319
592,667
4,619,688
2,663,126
Creditors: amounts falling due within one year
6
(3,200,090)
(2,110,958)
Net current assets
1,419,598
552,168
Total assets less current liabilities
3,094,138
2,579,121
Creditors: amounts falling due after more than one year
7
(31,533)
-
Provisions for liabilities
(137,389)
(133,882)
Net assets
2,925,216
2,445,239
Capital and reserves
Called up share capital
10
50,000
50,000
Profit and loss reserves
2,875,216
2,395,239
Total equity
2,925,216
2,445,239
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 March 2017 the company was entitled to exemption from audit under section 477 of the Companies Act 2006.
T
he directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime.
The financial statements were approved by the board of directors and authorised for issue on 16 January 2018 and are signed on its behalf by:
Mr A Casanova
Director
Company Registration No. 01231087
HAEMONETICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2017
- 2 -
1
Accounting policies
Company information
Haemonetics Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Lynwood House, 373-375 Station Road, Harrow, Middlesex, HA1 2AW.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods
and services
provided in the normal course of business , and is shown net of VAT and other sales related taxes. The fair
value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue 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 the goods
and acceptance from customer
), the amount of revenue can be
measured reliably, it is probable that the economic benefits associated with the transaction will flow to the
entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage
of completion when the stage of completion, costs incurred and costs to complete can be estimated
reliably. Where the outcome cannot be estimated
reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
1.3
Intangible fixed assets - goodwill
Acquired goodwill is written off in equal annual instalments over its estimated useful economic life of 9-11 years. It is reviewed for impairment at the end of the first financial year following acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Land and buildings freehold
Straight line over 30 to 50 years
Land and buildings leasehold
Straight line over 4 years
Plant & machinery
Straight line over 5 years
Fixtures, fittings & equipment
Straight line over 5 years
Computer equipment
Straight line over 5 years
HAEMONETICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
1
Accounting policies
(Continued)
- 3 -
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
HAEMONETICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
1
Accounting policies
(Continued)
- 4 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities. Trade creditors are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
HAEMONETICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
1
Accounting policies
(Continued)
- 5 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the
b
alance
s
heet.
1.13
Share-based payments
The
c
ompany
operates
a
group
Employee Stock Purchase Plan
(the "purchased plan") u
nder which common
stock of Haemonetics Corporation, the parent company,
may be purchased by
all full-time e
mployees.
The Purchase Plan provides for two “purchase periods” within each of our fiscal years, the first commencing on
N
ovember 1 of
each year and continuing through April 30 of the next calendar year, and the second commencing on May 1 of each year and
continuing through October 31 of such year. Shares are purchased through an accumulation of payroll deductions (of not less
than 2% or more than 15% of compensation, as defined) for the number of whole shares determined by dividing the balance in
the employee’s account on the last day of the purchase period by the purchase price per share for the stock determined under
the Purchase Plan. The purchase price for shares is the lower of 85% of the fair market value of the common stock at the
beginning of the purchase period, or 85% of such value at the end of the purchase period.
Although the company is part of this scheme, it is the parent company, Haemonetics Corporation, which operates the scheme. Therefore, the fair values of share options are calculated in their financial statements.
HAEMONETICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
1
Accounting policies
(Continued)
- 6 -
1.14
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
Rentals payable under operating leases,
including
any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.
1.15
Foreign exchange
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to the profit and loss account.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 29 (2016 - 34).
3
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2016 and 31 March 2017
3,169,582
Amortisation and impairment
At 1 April 2016
2,736,057
Amortisation charged for the year
36,829
At 31 March 2017
2,772,886
Carrying amount
At 31 March 2017
396,696
At 31 March 2016
433,525
HAEMONETICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
- 7 -
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 April 2016
1,871,443
2,726,054
4,597,497
Additions
-
150,753
150,753
Disposals
-
(351,208)
(351,208)
At 31 March 2017
1,871,443
2,525,599
4,397,042
Depreciation and impairment
At 1 April 2016
1,471,328
1,532,743
3,004,071
Depreciation charged in the year
33,690
318,251
351,941
Eliminated in respect of disposals
-
(236,814)
(236,814)
At 31 March 2017
1,505,018
1,614,180
3,119,198
Carrying amount
At 31 March 2017
366,425
911,419
1,277,844
At 31 March 2016
400,115
1,193,313
1,593,428
5
Debtors
2017
2016
Amounts falling due within one year:
£
£
Trade debtors
2,097,032
1,715,485
Amounts due from group undertakings
84,743
55,538
Other debtors
83,018
164,418
2,264,793
1,935,441
6
Creditors: amounts falling due within one year
2017
2016
£
£
Trade creditors
69,887
108,640
Amounts due to group undertakings
1,541,902
391,389
Corporation tax
100,077
119,026
Other taxation and social security
131,476
327,582
Other creditors
1,356,748
1,164,321
3,200,090
2,110,958
HAEMONETICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
- 8 -
7
Creditors: amounts falling due after more than one year
2017
2016
£
£
Other creditors
31,533
-
8
Deferred income
2017
2016
£
£
Arising from deferred income over one year
1,105,556
961,605
Current liabilities
1,074,023
961,605
Non-current liabilities
31,533
-
1,105,556
961,605
9
Share-based payment transactions
The
c
ompany
operates
a
group
Employee Stock Purchase Plan
(the "purchased plan") u
nder which common
stock of Haemonetics Corporation, the parent company,
may be purchased by
all full-time e
mployees.
The Purchase Plan provides for two “purchase periods” within each of our fiscal years, the first commencing on
N
ovember 1 of
each year and continuing through April 30 of the next calendar year, and the second commencing on May 1 of each year and
continuing through October 31 of such year. Shares are purchased through an accumulation of payroll deductions (of not less
than 2% or more than 15% of compensation, as defined) for the number of whole shares determined by dividing the balance in
the employee’s account on the last day of the purchase period by the purchase price per share for the stock determined under
the Purchase Plan. The purchase price for shares is the lower of 85% of the fair market value of the common stock at the
beginning of the purchase period, or 85% of such value at the end of the purchase period.
Although the company is part of this scheme, it is the parent company, Haemonetics Corporation, which operates the scheme. Therefore, the fair values of share options are calculated in their financial statements.
10
Called up share capital
2017
2016
£
£
Ordinary share capital
Issued and fully paid
50,000 Ordinary shares of £1 each
50,000
50,000
HAEMONETICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2017
- 9 -
11
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2017
2016
£
£
41,285
140,132
12
Parent company
The company is a subsidiary undertaking of Haemonetics Corporation incorporated in USA. The shares of Haemonetics Corporation are publicly traded on the New York Stock Exchange.
The largest and smallest group in which the results of Haemonetics Limited are consolidated is headed by Haemonetics Corporation. The consolidated financial statements are available to the public and may be obtained from Haemonetics Corporation, 400 Wood Road, Braintree, Massachusetts, USA.
13
Related party transactions
Transactions with related parties
The company has taken advantage of the exemption available in accordance with FRS 102 para 33.1A not to disclose transactions entered into between two or more members of a group, as the company is a wholly owned subsidiary undertaking of the group.