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Strategic Report, Report of the Directors and |
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Financial Statements for the Year Ended 31 December 2016 |
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IDEXX Technologies Limited |
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REGISTERED NUMBER:
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Strategic Report, Report of the Directors and |
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Financial Statements for the Year Ended 31 December 2016 |
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for |
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IDEXX Technologies Limited |
IDEXX Technologies Limited (Registered number: 03364828) |
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Contents of the Financial Statements |
for the Year Ended 31 December 2016 |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 3 |
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Statement of Directors' Responsibilities | 5 |
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Report of the Independent Auditors | 6 |
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Statement of Comprehensive Income | 8 |
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Statement of Financial Position | 9 |
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Statement of Changes in Equity | 10 |
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Notes to the Financial Statements | 11 |
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IDEXX Technologies Limited |
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Company Information |
for the Year Ended 31 December 2016 |
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DIRECTORS: |
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SECRETARIES: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Chartered Accountants |
& Statutory Auditor |
The Mill House |
Boundary Road |
Loudwater |
High Wycombe |
Bucks. |
HP10 9QN |
IDEXX Technologies Limited (Registered number: 03364828) |
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Strategic Report |
for the Year Ended 31 December 2016 |
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The directors present their strategic report for the year ended 31 December 2016. |
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IDEXX Technologies Ltd. ("the Company") is a fully owned subsidiary of IDEXX UK Acquisition Limited. The |
ultimate parent company is IDEXX Laboratories Inc. The Company's activities include manufacture, |
distribution, sales & marketing of water diagnostic products. |
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REVIEW OF BUSINESS |
Net sales for 2016 were £3,418,000, an increase of 6% over 2015. |
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Net profit (after tax) went down from £280,000 in 2015 to a net loss of £68,000 in 2016, which represents a |
2% decrease of turnover. This evolution can be explained by: |
- | the increase of the standard costs due to freight on foam that was expedited due to quality issue |
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the negative influence of the foams used (higher price due to smaller scale purchases) and the
depreciation of the GBP in the purchase in USD (Dynabeads). |
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The marketing and the sales expenses contributed to this trend: |
- | with an increased effort in value creation and entering in the hospital water market and; |
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shifted from using a central customer support to an inside sales/customer support model for sales that
partner with outside sales. |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The Directors have assessed the Company's price, credit and liquidity risks all of which are considered to be |
low. |
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FUTURE DEVELOPMENTS |
The Company has increased the number of personnel from 20 to 21. For coming years we expect to add |
personnel in selected areas while continuing to seek efficiency improvements to maintain expectations of |
continued business growth and leverage. |
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ON BEHALF OF THE BOARD: |
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IDEXX Technologies Limited (Registered number: 03364828) |
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Report of the Directors |
for the Year Ended 31 December 2016 |
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The directors present their report with the financial statements of the company for the year ended 31 December 2016. |
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DIVIDENDS |
Final dividends totalling £150,000 were distributed in the year ended 31 December 2016. |
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The loss for the year, after taxation, amounted to £67,931 (2015: profit £280,320). |
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RESEARCH AND DEVELOPMENT |
The company is committed to a continuing programme of research and development. |
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FUTURE DEVELOPMENTS |
The directors anticipate no significant change in the company's activities in the foreseeable future. There |
have been no events since the end of the year requiring comment by the directors. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2016 to the date of |
this report. |
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Other changes in directors holding office are as follows: |
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The company is a wholly owned subsidiary and the interests of the group directors are disclosed in the |
financial statements of the ultimate parent company. |
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FINANCIAL INSTRUMENTS |
Basic financial instruments, including trade and other receivables, cash and bank balances and investments |
in commercial paper, are initially recognised at transaction price, unless the arrangement constitutes a |
financing transaction, where the transaction is measured at the present value of future receipts discounted at |
a market rate of interest. |
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Such assets are subsequently carried at amortised cost using the effective interest method. |
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At the end of each reporting period financial assets measured at amortised cost are assessed for objective |
evidence of impairment., If an asset is impaired the impairment loss is the difference between the carrying |
amount and the present value of the estimated cash flows discounted at the asset's original effective interest |
rate. The impairment loss is recognised in profit or loss. |
IDEXX Technologies Limited (Registered number: 03364828) |
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Report of the Directors |
for the Year Ended 31 December 2016 |
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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 or she ought to have taken as a director in order to make himself or herself aware of any relevant |
audit information and to establish that the company's auditors are aware of that information. |
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ON BEHALF OF THE BOARD: |
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IDEXX Technologies Limited (Registered number: 03364828) |
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Statement of Directors' Responsibilities |
for the Year Ended 31 December 2016 |
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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. |
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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). 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: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable accounting standards have been followed, subject to any material departures
disclosed and explained in the financial statements; |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
company will continue in business. |
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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. |
Report of the Independent Auditors to the Members of |
IDEXX Technologies Limited |
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We have audited the financial statements of IDEXX Technologies Limited for the year ended |
31 December 2016 on pages eight to seventeen. The financial reporting framework that has been applied in |
their preparation is 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'. |
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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. |
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Respective responsibilities of directors and auditors |
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Scope of the audit of the financial statements |
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient |
to give reasonable assurance that the financial statements are free from material misstatement, whether |
caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to |
the company's circumstances and have been consistently applied and adequately disclosed; the |
reasonableness of significant accounting estimates made by the directors; and the overall presentation of the |
financial statements. In addition, we read all the financial and non-financial information in the Strategic Report |
and the Report of the Directors to identify material inconsistencies with the audited financial statements and to |
identify any information that is apparently materially incorrect based on, or materially inconsistent with, the |
knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material |
misstatements or inconsistencies we consider the implications for our report. |
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Opinion on financial statements |
In our opinion the financial statements: |
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give a true and fair view of the state of the company's affairs as at 31 December 2016 and of its loss for
the year then ended; |
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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. |
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Opinion on other matter prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of our 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 has been prepared in accordance with applicable legal |
requirements. In the light of the knowledge and understanding of the company and its environment, we have |
not identified any material misstatements in the Strategic Report or the Report of the Directors. |
Report of the Independent Auditors to the Members of |
IDEXX Technologies Limited |
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Matters on which we are required to report by exception |
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: |
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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. |
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for and on behalf of
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Chartered Accountants |
& Statutory Auditor |
The Mill House |
Boundary Road |
Loudwater |
High Wycombe |
Bucks. |
HP10 9QN |
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IDEXX Technologies Limited (Registered number: 03364828) |
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Statement of Comprehensive Income |
for the Year Ended 31 December 2016 |
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2016 | 2015 |
Notes | £ | £ |
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TURNOVER | 4 |
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Cost of sales |
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GROSS PROFIT |
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Administrative expenses |
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(107,576 | ) | 346,894 |
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Other operating income | ( |
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OPERATING (LOSS)/PROFIT | ( |
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Interest receivable and similar income |
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(107,879 | ) | 306,972 |
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Interest payable and similar expenses | 6 |
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(LOSS)/PROFIT BEFORE TAXATION | 7 | ( |
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Tax on (loss)/profit | 8 | ( |
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(LOSS)/PROFIT FOR THE FINANCIAL
YEAR |
( |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR |
( |
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IDEXX Technologies Limited (Registered number: 03364828) |
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Statement of Financial Position |
31 December 2016 |
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2016 | 2015 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
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CURRENT ASSETS |
Stocks | 11 |
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Debtors | 12 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 13 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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PROVISIONS FOR LIABILITIES | 15 |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 16 |
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Share premium | 17 |
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Retained earnings | 17 |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved by the Board of Directors on
its behalf by: |
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IDEXX Technologies Limited (Registered number: 03364828) |
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Statement of Changes in Equity |
for the Year Ended 31 December 2016 |
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Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
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Balance at 1 January 2015 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 31 December 2015 |
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Changes in equity |
Dividends | - | ( |
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Total comprehensive income | - | ( |
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Balance at 31 December 2016 |
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IDEXX Technologies Limited (Registered number: 03364828) |
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Notes to the Financial Statements |
for the Year Ended 31 December 2016 |
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1. | STATUTORY INFORMATION |
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IDEXX Technologies Limited is a
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Wales. The company's registered number and registered office address can be found on the Company |
Information page. |
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2. | STATEMENT OF COMPLIANCE |
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3. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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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": |
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• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of Section 33 Related Party Disclosures paragraph 33.7. |
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Preparation of consolidated financial statements |
The financial statements contain information about IDEXX Technologies Limited as an individual |
company and do not contain consolidated financial information as the parent of a group. The company |
has taken the option under Section 398 of the Companies Act 2006 not to prepare consolidated |
financial statements. |
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Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, |
rebates, value added tax and other sales taxes. |
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Tangible fixed assets |
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Short leasehold | - |
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Plant and machinery | - |
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Fixtures and fittings | - |
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Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for |
obsolete and slow moving items. |
IDEXX Technologies Limited (Registered number: 03364828) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2016 |
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3. | ACCOUNTING POLICIES - continued |
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Financial instruments |
Basic financial instruments, including trade and other receivables, cash and bank balances and |
investments in commercial paper, are initially recognised at transaction price, unless the arrangement |
constitutes a financing transaction, where the transaction is measured at the present value of future |
receipts discounted at a market rate of interest. |
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Such assets are subsequently carried at amortised cost using the effective interest method. |
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At the end of each reporting period financial assets measured at amortised cost are assessed for |
objective evidence of impairment., If an asset is impaired the impairment loss is the difference |
between the carrying amount and the present value of the estimated cash flows discounted at the |
asset's original effective interest rate. The impairment loss is recognised in profit or loss. |
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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of |
Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive |
income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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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 statement of financial position date. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at |
the statement of financial position date. |
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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. |
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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. |
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Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
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Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at |
the statement of financial position 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. |
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Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the |
period of the lease. |
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Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the |
company's pension scheme are charged to profit or loss in the period to which they relate. |
IDEXX Technologies Limited (Registered number: 03364828) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2016 |
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4. | TURNOVER |
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The turnover and loss (2015 - profit) before taxation are attributable to the one principal activity of the |
company. |
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An analysis of turnover by geographical market is given below: |
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2016 | 2015 |
£ | £ |
United Kingdom | 3,078,026 | 2,996,009 |
Overseas | 340,896 | 238,257 |
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5. | EMPLOYEES AND DIRECTORS |
2016 | 2015 |
£ | £ |
Wages and salaries |
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Social security costs |
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Other pension costs |
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The average monthly number of employees during the year was as follows: |
2016 | 2015 |
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Production staff |
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Administrative staff |
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2016 | 2015 |
£ | £ |
Directors' remuneration |
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6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2016 | 2015 |
£ | £ |
Interest on corporation tax |
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IDEXX Technologies Limited (Registered number: 03364828) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2016 |
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7. | (LOSS)/PROFIT BEFORE TAXATION |
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The loss (2015 - profit) is stated after charging: |
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2016 | 2015 |
£ | £ |
Hire of plant and machinery |
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Other operating leases |
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Depreciation - owned assets |
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Auditors' remuneration |
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Taxation compliance services |
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Foreign exchange differences |
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Vehicle leasing |
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Research and development expenditure written off |
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8. | TAXATION |
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Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
2016 | 2015 |
£ | £ |
Current tax: |
UK corporation tax | ( |
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Deferred tax | ( |
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Tax on (loss)/profit | ( |
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UK corporation tax has been charged at 20% (2015 - 20.25%). |
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Reconciliation of total tax (credit)/charge 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: |
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2016 | 2015 |
£ | £ |
(Loss)/profit before tax | ( |
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(Loss)/profit multiplied by the standard rate of corporation tax in the
UK of |
( |
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Effects of: |
Expenses not deductible for tax purposes |
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Depreciation in excess of capital allowances |
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Utilisation of tax losses |
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( |
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R&D enhanced expenditure |
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( |
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RDEC tax credit receivable | ( |
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Deferred tax | ( |
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Total tax (credit)/charge | (39,948 | ) | 25,169 |
IDEXX Technologies Limited (Registered number: 03364828) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2016 |
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8. | TAXATION - continued |
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The UK Government announced as part of the FInance (No 2) Act 2015, which received Royal Assent |
on 18 November 2015 that the main rate of corporation tax would be reduced from 20% to 19% from 1 |
April 2017. In addition as part of the Finance Act 2016, it was further reduced to 17% from 1 April |
2020. This will affect the rate at which future UK current tax will be payable. |
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9. | DIVIDENDS |
2016 | 2015 |
£ | £ |
Ordinary shares shares of £0.01 each |
Final |
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10. | TANGIBLE FIXED ASSETS |
Fixtures |
Short | Plant and | and |
leasehold | machinery | fittings | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2016 |
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Additions |
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At 31 December 2016 |
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DEPRECIATION |
At 1 January 2016 |
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Charge for year |
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At 31 December 2016 |
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NET BOOK VALUE |
At 31 December 2016 |
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At 31 December 2015 |
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11. | STOCKS |
2016 | 2015 |
£ | £ |
Finished goods |
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12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2016 | 2015 |
£ | £ |
Amounts owed by group undertakings |
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Other debtors |
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Corporation tax |
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Prepayments and accrued income |
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IDEXX Technologies Limited (Registered number: 03364828) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2016 |
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13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2016 | 2015 |
£ | £ |
Trade creditors |
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Amounts owed to group undertakings |
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Corporation tax |
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( |
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VAT |
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Other creditors |
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Accruals and deferred income |
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14. | LEASING AGREEMENTS |
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Minimum lease payments under non-cancellable operating leases fall due as follows: |
2016 | 2015 |
£ | £ |
Within one year |
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Between one and five years |
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15. | PROVISIONS FOR LIABILITIES |
2016 | 2015 |
£ | £ |
Deferred tax |
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Deferred |
tax |
£ |
Balance at 1 January 2016 |
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Profit and loss account |
movement arising during year | ( |
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Balance at 31 December 2016 |
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16. | CALLED UP SHARE CAPITAL |
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Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2016 | 2015 |
value: | £ | £ |
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Ordinary shares | £0.01 | 80 | 80 |
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Ordinary 1 shares | £0.01 | 1,000 | 1,000 |
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A Ordinary shares | £0.01 | 600 | 600 |
1,680 | 1,680 |
IDEXX Technologies Limited (Registered number: 03364828) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 December 2016 |
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17. | RESERVES |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
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At 1 January 2016 |
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5,826,435 |
Deficit for the year | ( |
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Dividends | ( |
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At 31 December 2016 |
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5,608,504 |
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18. | ULTIMATE PARENT COMPANY |
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The immediate holding company is IDEXX UK Acquisition Limited and the ultimate holding company is |
IDEXX Laboratories Inc, a company incorporated in the USA. Copies of the group accounts |
incorporating the results of the company are available from IDEXX Inc, One Idexx Drive, Westbrook, |
Maine 04092, USA. |
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19. | RELATED PARTY DISCLOSURES |
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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 and between wholly owned subsidiaries within the group. |