Registration number:
Medisave (UK) Limited
for the Year Ended 31 December 2022
Medisave (UK) Limited
Contents
Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account |
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Statement of Comprehensive Income |
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Balance Sheet |
|
Statement of Changes in Equity |
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Statement of Cash Flows |
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Notes to the Financial Statements |
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Detailed Profit and Loss Account |
Medisave (UK) Limited
Company Information
Directors |
Mrs Melissa Helen Denton-Benson Mr Graham Andrew Wright Mr Matthew James Denton Mrs Nicola Jane Wright Mr Nathan Castle Mrs Emily Bush |
Company secretary |
Mr Graham Andrew Wright |
Registered office |
|
Business address |
Medisave House, |
Accountants |
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Auditors |
|
Medisave (UK) Limited
Strategic Report for the Year Ended 31 December 2022
The directors present their strategic report for the year ended 31 December 2022.
Principal activity
The principal activity of the company is the sale of medical products. During the year the company focused on the sale of Covid 19, PPE and associated covid products
Fair review of the business, development and performance
Medisave (UK) Limited derives income from the sale of Covid related medical equipment and PPE to the UK and non-uk markets.Non UK market sales make up less than 0.03% of the total. There is also the company's share of profit from the Medisave UK partnership. In addition the company holds the Pharmaceutical Licence that the partnership requires to sell pharmaceutical products. A licence fee is paid by the partnership to the company. There is also a small amount received from renting to the partnership the plant and equipment owned by the company.
The year's results for the company, set out on page 9, show a profit before tax of £1,342,392 compared with a profit before tax of £3,584,066 for the year ended 31 December 2021.
The company's key financial and other performance indicators during the year were as follows:
Financial KPIs |
Unit |
2022 |
2021 |
Profit for the year |
£ |
1,342,392 |
3,584,066 |
Gross assets |
£ |
15,006,213 |
14,139,643 |
Net assets |
£ |
12,291,600 |
11,207,475 |
Current ratio |
2 |
1 |
Principal risks and uncertainties
The company's principal financial instruments comprise cash at bank, stock, receivables and payables and the main purpose of these instruments is to finance the company's operations. The policy of the company is to ensure that credit risk and cash flow risks are minimised. Credit and cash flow risk is mitigated by proactive credit management policies of all receivables. Liquidity risk in respect of payables is managed by ensuring sufficient funds are available to meet amounts due. As a result of these objectives and policies, the directors' consider that the company's overall exposure to financial risk is low.
Approved and authorised by the
......................................... |
Medisave (UK) Limited
Directors' Report for the Year Ended 31 December 2022
The directors present their report and the financial statements for the year ended 31 December 2022.
Directors of the company
The directors who held office during the year were as follows:
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Reappointment of auditors
In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Scott Vevers Ltd as auditors of the company is to be proposed at a General Meeting.
Approved and authorised by the
......................................... |
Medisave (UK) Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report 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). 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 apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
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.
Medisave (UK) Limited
Independent Auditor's Report to the Members of Medisave (UK) Limited
Opinion
We have audited the financial statements of Medisave (UK) Limited (the 'company') for the year ended 31 December 2022, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, 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 auditor 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.
Other matter
The financial statements of the company for the year ended 31 December 2021 did not require an audit and therefore the corresponding figures are unaudited.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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.
Medisave (UK) Limited
Independent Auditor's Report to the Members of Medisave (UK) Limited
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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Directors' Report.
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 4], 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 is 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.
Medisave (UK) Limited
Independent Auditor's Report to the Members of Medisave (UK) Limited
Auditor 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 an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities, and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the company sector;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, taxation legislation and data protection, employment and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected, and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims.
Medisave (UK) Limited
Independent Auditor's Report to the Members of Medisave (UK) Limited
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation.
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 auditor’s report.
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 an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
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For and on behalf of
65 East Street
Dorset
DT6 3LB
Medisave (UK) Limited
Profit and Loss Account for the Year Ended 31 December 2022
Note |
2022 |
2021 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Operating profit |
1,371,144 |
3,584,066 |
|
Interest payable and similar expenses |
( |
- |
|
Profit before tax |
|
|
|
Tax on profit |
( |
( |
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
Medisave (UK) Limited
Statement of Comprehensive Income for the Year Ended 31 December 2022
2022 |
2021 |
|
Profit for the year |
|
|
Total comprehensive income for the year |
|
|
Medisave (UK) Limited
(Registration number: 04088271)
Balance Sheet as at 31 December 2022
Note |
2022 |
2021 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Investments |
11,712,384 |
11,971,578 |
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets/(liabilities) |
|
( |
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
- |
|
Provisions for liabilities |
( |
- |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
100 |
100 |
|
Retained earnings |
12,291,500 |
11,207,375 |
|
Shareholders' funds |
12,291,600 |
11,207,475 |
Approved and authorised by the
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Medisave (UK) Limited
Statement of Changes in Equity for the Year Ended 31 December 2022
Share capital |
Retained earnings |
Total |
|
At 1 January 2022 |
|
|
|
Profit for the year |
- |
|
|
At 31 December 2022 |
|
|
|
Share capital |
Retained earnings |
Total |
|
At 1 January 2021 |
|
|
|
Profit for the year |
- |
|
|
At 31 December 2021 |
|
|
|
Medisave (UK) Limited
Statement of Cash Flows for the Year Ended 31 December 2022
Note |
2022 |
2021 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Change in fair value of investments |
|
( |
|
|
( |
||
Working capital adjustments |
|||
(Increase)/decrease in stocks |
( |
|
|
(Increase)/decrease in debtors |
( |
|
|
Decrease in creditors |
( |
( |
|
Increase in provisions |
|
- |
|
Net cash flow from operating activities |
- |
- |
|
Net increase/(decrease) in cash and cash equivalents |
- |
- |
|
Cash and cash equivalents at 1 January |
- |
- |
|
Cash and cash equivalents at 31 December |
- |
- |
Medisave (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
General information |
The company is a private company limited by share capital, incorporated in England.
The address of its registered office is:
United Kingdom
The principal place of business is:
Medisave House,
Mercery Rd,
Weymouth
Dorset
DT3 5FA
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
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.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
These financial statements for the year ended 31 December 2022 are the first financial statements of Medisave (UK) Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 January 2021. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Going concern
At the time of approving the financial statements, the directors have a more than reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Medisave (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets over their estimated useful lives as follows:
Asset class |
Depreciation method and rate |
Plant and equipment |
15% reducing balance |
Medisave (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
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 earned 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.
Investments
Investments are held at cost less accumulated impairment losses.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the weighted average method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Medisave (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
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.
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.
Basic financial assets
Basic financial assets, which include debtors and cash end bank balances, ore 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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 payments 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. Amounts 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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair valueon the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.
Medisave (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
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.
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.
Basic financial assets
Basic financial assets, which include debtors and cash end bank balances, ore 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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 payments 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. Amounts 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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair valueon the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Medisave (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
Judgements and key sources of estimation uncertainty
In the application of the company's accounting policies, the directors' are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Medisave (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
2b Prior period errors
Corrections of prior period errors
Prior period errors are omissions from, and misstatements in, an entity's financial statements for one or more prior periods arising from a failure to use, or misuse of, reliable information that:
(a) was available when financial statements for those periods were authorised for issue; and
(b) could reasonably be expected to have been obtained and taken into account in the preparation and presentation of those financial statements.
Such errors include the effects of mathematical mistakes, mistakes in applying accounting policies, oversights or misinterpretations of facts, and fraud.
To the extent practicable, an entity shall correct a material prior period error retrospectively in the first financial statements authorised for issue after its discovery by:
(a) restating the comparative amounts for the prior period(s) presented in which the error occurred; or
(b) if the error occurred before the earliest prior period presented, restating the opening balances of assets, liabilities, and equity for the earliest prior period presented.
When it is impracticable to determine the period-specific effects of a material error on comparative information for one or more prior periods presented the entity shall restate the opening balances of assets, liabilities, and equity for the earliest period for which retrospective restatement is practicable
Disclosure of prior period errors
An entity shall disclose the following about material prior period errors:
(a) the nature of the prior period error;
(b) for each prior period presented, to the extent practicable, the amount of the correction for each financial statement line item affected;
(c) to the extent practicable, the amount of the correction at the beginning of the earliest prior period presented; and
(d) an explanation if it is impracticable to determine the amounts to be disclosed in (b) or (c) above.
Notes 10 and 13 to these accounts refer.
Medisave (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
Revenue |
The analysis of the company's revenue for the year from continuing operations is as follows:
2022 |
2021 |
|
Sale of goods |
|
|
|
|
|
The analysis of the company's turnover for the year by market is as follows: |
||
UK |
12,882,824 |
15,410,821 |
Europe |
2,334 |
2,938 |
Rest of the world |
27,996 |
38,055 |
12,913,154 |
15,451,814 |
Operating profit |
Arrived at after charging/(crediting)
2022 |
2021 |
|
Depreciation expense |
|
|
Foreign exchange gains |
( |
( |
Auditors' remuneration |
|
- |
Operating lease expense - plant and machinery |
|
|
Operating lease expense - other |
14,944 |
22,810 |
Interest payable and similar expenses |
2022 |
2021 |
|
Interest expense on other finance liabilities |
|
- |
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2022 |
2021 |
|
Wages and salaries |
|
|
Social security costs |
|
- |
Pension costs, defined contribution scheme |
|
- |
|
|
Medisave (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
2022 |
2021 |
|
Production |
|
|
Administration and support |
|
|
Research and development |
|
|
Sales |
|
|
Marketing |
|
|
Distribution |
|
|
Other departments |
|
|
|
|
There were no directors to whom retirement benefits under money purchase schemes were accruing.
Directors' remuneration |
The directors' remuneration for the year was as follows:
2022 |
2021 |
|
Remuneration |
|
|
Taxation |
Tax charged/(credited) in the income statement
2022 |
2021 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
( |
- |
241,156 |
695,901 |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
- |
Tax expense in the income statement |
|
|
Medisave (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
Tangible assets |
Plant and equipment |
Total |
|
Cost or valuation |
||
At 1 January 2022 |
|
|
At 31 December 2022 |
|
|
Depreciation |
||
At 1 January 2022 |
|
|
Charge for the year |
|
|
At 31 December 2022 |
|
|
Carrying amount |
||
At 31 December 2022 |
|
|
At 31 December 2021 |
|
|
Medisave (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
Investments |
Investment in the Medisave UK Partnership |
Total |
|
Cost or valuation |
||
At 1 January 2022 - as restated |
11,971,578 |
11,971,578 |
Movement in year |
(259,194) |
(259,194) |
At 31 December 2022 |
11,712,384 |
11,712,384 |
As well as its own trading activities, the company is a partner in the in the Medisave UK Partnership. The investment represents the company's current and capital accounts as shown in the Partnership accounts. As a partner the company provides security for partnership loans which appear in the partnership accounts. Details of the security given are shown in Note 16 of these accounts.
Prior period adjustment
The accounts have been restated to incorporate the impact of a misstatement of trade creditors and investments in the year ended 31 December 2021. As a result of omitting a decimal point the entry affecting Trade creditors and Investment in the Partnership was to show £128,616 rather than £1,286,160. This means Trade creditors (credit balance) and Investment in Partnership (debit balance) were understated by the difference between the two figures. This amounts to a disclosure error; the Balance sheet net assets were not affected. The Profit and Loss account and corporation tax liability were also not affected.
Stocks |
2022 |
2021 |
|
Finished goods |
|
|
Debtors |
Current |
2022 |
2021 |
Trade debtors |
|
|
Medisave (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
Creditors |
Note |
2022 |
as restated |
|
Due within one year |
|||
Loans and borrowings |
|
|
|
Trade creditors |
|
|
|
Amounts due to related parties |
- |
|
|
Social security and other taxes |
|
- |
|
Accrued expenses |
|
|
|
Corporation tax liability |
350,065 |
838,116 |
|
|
|
||
Due after one year |
|||
Loans and borrowings |
|
- |
Trade creditors - prior period adjustment
The accounts have been restated to incorporate the impact of a misstatement of trade creditors and investments in the year ended 31 December 2021. As a result of omitting a decimal point the entry affecting Trade creditors and Investment in the Partnership was to show £128,616 rather than £1,286,160. This means Trade creditors (credit balance) and Investment in Partnership (debit balance) were understated by the difference between the two figures. This amounts to a disclosure error; the Balance sheet net assets were not affected. The Profit and Loss account and corporation tax liability were also not affected.
Provisions for liabilities |
Deferred tax |
Total |
|
Increase (decrease) in existing provisions |
|
|
At 31 December 2022 |
|
|
|
Share capital |
Allotted, called up and fully paid shares
2022 |
2021 |
|||
No. |
£ |
No. |
£ |
|
|
|
100 |
|
100 |
Medisave (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
Loans and borrowings |
2022 |
2021 |
|
Non-current loans and borrowings |
||
Bank borrowings |
|
- |
2022 |
2021 |
|
Current loans and borrowings |
||
Bank borrowings |
|
- |
Other borrowings |
- |
|
|
|
Charges given in support of bank borrowings
In respect of a mortgage with HSBC PLC, a charge created 12 August 2019 for "all that freehold property known as Unit 5, Weymouth Gateway, Weymouth , DT3 5HJ. The Debt which is secured on the Property is all money and liabilities whatever, whenever and however incurred, and whether now or in the future due, or becoming due, from the Borrower to the Bank including but not limited to
|
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
2022 |
|
Not later than one year |
|
Later than one year and not later than five years |
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Medisave (UK) Limited
Notes to the Financial Statements for the Year Ended 31 December 2022
Related party transactions |
Summary of transactions with entities with joint control or significant interest
Medisave (UK) supplies goods and for 2022 totalled £2,042. The outstanding amount owed by Medisave US LLP at 31 December 2022 was £14,619
Stethoscope Canada - an entity under common control.
Medisave (UK) supplies goods and for 2022 totalled £984. The outstanding amount owed by Medisave US LLP at 31 December 2022 was £6,272
Medisave Australasia - an entity under significant influence.
Medisave (UK) supplies goods and for 2022 totalled £26,981. The outstanding amount owed by Medisave Australasia at 31 December 2022 was £28,503
Melcombe Consulting Ltd - an entity under significant influence.
Medisave (UK) Ltd purchases services and for 2022 totalled £61,997. The outstanding amount owed to Melcombe Consulting Ltd at 31 December 2022 was £66,721
Network H Ltd - an entity under significant influence
Medisave (UK) Ltd purchases services and for 2022 totalled £32,162. The outstanding amount owed to Network H Ltd at 31 December 2022 was £10,146
POD Technical Ltd - an entity under common control.
Medisave (UK) Ltd purchases goods and for 2022 totalled £40,417. The outstanding amount owed by POD Technical Ltd at 31 December 2022 was £14,361
Wessex Equity Partnership - an entity under significant influence
Medisave (UK) Ltd purchases services and for 2022 totalled £228,686. The outstanding amount owed by Wessex Equity Partnership at 31 December 2022 was £223
Medscope Limited - an entity under common control.
Medisave (UK) Ltd supplies goods and for 2022 totalled £368,073. The outstanding amount owed by Medscope Ltd at 31 December 2022 was £349,443.
Medipro Medical Products Limited - an entity under common control.
Medisave (UK) Ltd supplies goods and for 2022 totalled £285,095. The outstanding amount owed by Medipro Medical Products Limited at 31 December 2022 was £2,474.
Wykeside Technologies Limited - an entity under significant influence.
Medisave (UK) Ltd supplies goods and for 2022 totalled £16,098. The outstanding amount owed by Wykeside Technologies Limited at 31 December 2022 was £Nil
Medisave (UK) Limited
Detailed Profit and Loss Account for the Year Ended 31 December 2022
2022 |
2021 |
|
Turnover (analysed below) |
12,913,154 |
15,451,814 |
Cost of sales (analysed below) |
(9,582,189) |
(9,906,121) |
Gross profit |
3,330,965 |
5,545,693 |
Gross profit (%) |
25.8% |
35.89% |
Administrative expenses |
||
Employment costs (analysed below) |
(919,914) |
(831,424) |
Establishment costs (analysed below) |
(24,380) |
(25,645) |
General administrative expenses (analysed below) |
(1,015,527) |
(1,104,558) |
(1,959,821) |
(1,961,627) |
|
Operating profit |
1,371,144 |
3,584,066 |
Interest payable and similar charges (analysed below) |
(28,752) |
- |
Profit before tax |
1,342,392 |
3,584,066 |
Medisave (UK) Limited
Detailed Profit and Loss Account for the Year Ended 31 December 2022
2022 |
2021 |
Turnover |
||
Share of partnership profit |
191,053 |
817,484 |
Licence fee |
191,230 |
855,755 |
Sale of goods |
12,229,075 |
13,444,362 |
Carriage |
275,620 |
296,819 |
Equipment hire |
26,176 |
37,394 |
12,913,154 |
15,451,814 |
Cost of sales |
||
Opening stock |
1,632,272 |
2,596,813 |
Purchases and other direct costs |
9,349,523 |
8,144,724 |
Discounts receivable |
(34,246) |
- |
Closing stock |
(2,289,744) |
(1,632,272) |
Packaging material |
61,270 |
45,525 |
Freight and carriage |
863,114 |
751,331 |
9,582,189 |
9,906,121 |
Employment costs |
||
Wages and salaries (excluding directors) |
820,770 |
818,474 |
Staff NIC (Employers) |
70,509 |
- |
Directors remuneration |
12,950 |
12,950 |
Staff pensions (Defined contribution) |
15,685 |
- |
919,914 |
831,424 |
Establishment costs |
||
Rates |
7,525 |
18,535 |
Water rates |
669 |
651 |
Light, heat and power |
16,186 |
6,459 |
24,380 |
25,645 |
General administrative expenses |
||
Agency staff and other human resources |
29,263 |
18,074 |
Staff training |
4,817 |
1,995 |
Insurance |
4,292 |
8,294 |
Property & equipment repairs,renewals & maintenance |
16,061 |
10,893 |
Telephone |
8,664 |
8,096 |
Website and computer costs |
177,728 |
191,538 |
Printing, postage and stationery |
2,102 |
5,095 |
Subscriptions and licences |
2,053 |
1,127 |
Medisave (UK) Limited
Detailed Profit and Loss Account for the Year Ended 31 December 2022
2022 |
2021 |
Charitable donations |
187 |
2 |
Auditor's remuneration |
30,000 |
- |
Hire of plant and machinery (Operating leases) |
5,302 |
5,822 |
Lease of motor vehicles (Operating leases) |
14,944 |
22,810 |
Hire of other assets (Spot hire) |
10,890 |
5,059 |
Sundry expenses and staff refreshments |
5,362 |
1,845 |
Waste collection and disposal |
7,856 |
7,120 |
Motor expenses |
7,549 |
9,534 |
Travel and subsistence |
2,391 |
368 |
Advertising |
489,669 |
640,346 |
Staff entertaining (allowable for tax) |
8,477 |
4,028 |
Customer entertaining (disallowable for tax) |
50 |
239 |
Accountancy fees |
1,615 |
4,964 |
Legal and regulatory fees |
20,096 |
10,281 |
Bad debts written off |
29,425 |
255 |
Bank charges |
12,942 |
17,743 |
Euro bank charges |
3 |
71 |
Credit card merchant fees |
109,730 |
135,124 |
Foreign currency (gains) |
(1,833) |
(24,862) |
Depreciation of plant and equipment (owned) |
15,892 |
18,697 |
1,015,527 |
1,104,558 |
Interest payable and similar expenses |
||
Other interest payable |
28,752 |
- |