Company registration number:
for the Year Ended
Propath (UK) Limited
(Registration number: 03224075)
Balance Sheet as at 30 June 2022
Note |
2022 |
(As restated) |
|
Fixed assets |
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Tangible assets |
|
|
|
Trade and other receivables |
4,055 |
16,530 |
|
Other financial assets |
93,168 |
114,271 |
|
|
|
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Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
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Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Provisions for liabilities |
|||
Deferred tax liabilities |
(192,359) |
(118,240) |
|
Net assets |
|
|
|
Capital and reserves |
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Called up share capital |
|
|
|
Capital redemption reserve |
|
|
|
Fair value reserve |
3,460 |
24,563 |
|
Profit and loss account |
|
|
|
Total equity |
|
|
These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006. The option not to file the profit and loss account and directors’ report has been taken.
Approved and authorised by the
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Propath (UK) Limited
Notes to the Financial Statements
for the Year Ended 30 June 2022
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
United Kingdom
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 have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).
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.
These financial statements are presented in Sterling (£).
Going concern
The financial statements have been prepared on a going concern basis.
Turnover recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
Other operating income
Other operating income relates to income receivable in relation to research and development tax credits and governments grants which are recognised in the period to which they relate.
Propath (UK) Limited
Notes to the Financial Statements
for the Year Ended 30 June 2022
Government grants
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Profit and Loss Account in the same period as the related expenditure.
During the year the company has recognised £11,958 (2021: £58,726 ) in relation to the Coronavirus Job Retention Scheme. The amount is recognised within cost of sales. The company also received £nil (2021: £10,000) in relation to the Covid-19 business grant which is included within other operating income.
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 the profit and loss account, 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 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 balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
• The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
• Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Propath (UK) Limited
Notes to the Financial Statements
for the Year Ended 30 June 2022
Tangible assets
Tangible assets are stated at cost, less accumulated depreciation and accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation of tangible assets
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Plant and machinery |
20% reducing balance |
Investments
Investments in unlisted company shares, whose market value can be reliably determined, are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in the Profit and Loss Account for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.
Investments in listed company shares are remeasured to market value at each Balance Sheet date. Gains and losses on remeasurement are recognised in the Profit and Loss Account for the period.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
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 first-in, first-out (FIFO) 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.
Propath (UK) Limited
Notes to the Financial Statements
for the Year Ended 30 June 2022
Creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors 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.
Reserves
Called up share capital represents the nominal value of shares that have been issued.
Profit and loss account includes all current and prior period profits and losses.
Capital redemption reserve records the nominal value of shares repurchased by the company.
Revaluation reserve is the surplus or deficit arising on the revaluation of an asset of a company.
Fair value reserve is the surplus or deficit arising on the valuation of investments to fair value.
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
The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations.
The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.
Staff numbers |
The average number of persons employed by the company (including the director) during the year was
Propath (UK) Limited
Notes to the Financial Statements
for the Year Ended 30 June 2022
Tangible assets |
Plant and machinery |
|
Cost or valuation |
|
At 1 July 2021 |
|
Additions |
|
At 30 June 2022 |
|
Depreciation |
|
At 1 July 2021 |
|
Charge for the year |
|
At 30 June 2022 |
|
Carrying amount |
|
At 30 June 2022 |
|
At 30 June 2021 |
|
Propath (UK) Limited
Notes to the Financial Statements
for the Year Ended 30 June 2022
Other financial assets (current and non-current) |
Financial assets at fair value through profit and loss |
Total |
|
Non-current financial assets |
||
Cost or valuation |
||
At 1 July 2021 |
114,271 |
114,271 |
Fair value adjustments |
(21,103) |
(21,103) |
At 30 June 2022 |
93,168 |
93,168 |
Carrying amount |
||
At 30 June 2022 |
|
93,168 |
Stocks |
2022 |
2021 |
|
Work in progress |
|
|
Other stocks |
|
|
|
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Debtors |
Current |
2022 |
(As restated) |
Trade debtors |
|
|
Prepayments |
|
|
Other debtors |
|
|
|
|
Non-current |
2022 |
2021 |
Other debtors |
|
|
Propath (UK) Limited
Notes to the Financial Statements
for the Year Ended 30 June 2022
Creditors |
Creditors: amounts falling due within one year
2022 |
(As restated) |
|
Trade creditors |
|
|
Taxation and social security |
|
|
Corporation tax |
40,843 |
- |
Other creditors |
|
|
|
|
Reserves reconciliation |
Capital redemption reserve |
Fair value reserve |
|
At 1 July 2021 |
|
|
Movement in year : |
||
Transfer of fair value adjustment from profit & loss |
- |
(21,103) |
At 30 June 2022 |
|
|
Capital redemption reserve |
Fair value reserve |
|
At 1 July 2020 |
|
|
Movement in year : |
||
Transfer of fair value adjustment from profit & loss |
- |
11,161 |
At 30 June 2021 |
|
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Propath (UK) Limited
Notes to the Financial Statements
for the Year Ended 30 June 2022
Related party transactions |
Propath Group Holdings Limited is the immediate and ultimate parent company. The registered office of Propath Group Holdings Limited is Willow Court, Netherwood Road, Hereford, United Kingdom, HR2 6JU.
The company maintains interest free loan accounts with companies controlled by the director which are unsecured and repayable on demand. At the year end the company was owed £2,535,028 (2021: £732,293) from companies controlled by the director.
The company maintains an interest free loan account with the director which is unsecured and repayable on demand. At the balance sheet date £nil (2021 - £20,235) was owed to the director.
Prior year liability |
It has come to the director's attention that a liability crystallised in 2019. It is also the director's belief that the company will be fully compensated for this liability, yet full compensation was not requested until after 30 June 2022. The opening balance sheet as at 1 July 2020 has been adjusted to recognise a net liability of £33,534, with a grossing up of both debtors and creditors.
Audit Report |