REGISTERED NUMBER: 03809900 (England and Wales) |
GUIDED ULTRASONICS LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JULY 2023 |
REGISTERED NUMBER: 03809900 (England and Wales) |
GUIDED ULTRASONICS LIMITED |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JULY 2023 |
GUIDED ULTRASONICS LIMITED (REGISTERED NUMBER: 03809900) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JULY 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Consolidated Income Statement | 13 |
Consolidated Other Comprehensive Income | 14 |
Consolidated Balance Sheet | 15 |
Company Balance Sheet | 17 |
Consolidated Statement of Changes in Equity | 19 |
Company Statement of Changes in Equity | 20 |
Consolidated Cash Flow Statement | 21 |
Notes to the Consolidated Cash Flow Statement | 22 |
Notes to the Consolidated Financial Statements | 24 |
GUIDED ULTRASONICS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 JULY 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
and Statutory Auditors |
7 St John Street |
Mansfield |
Nottinghamshire |
NG18 1QH |
BANKERS: | HSBC |
1 Lemming Street |
Mansfield |
Nottinghamshire |
NG18 1LU |
GUIDED ULTRASONICS LIMITED (REGISTERED NUMBER: 03809900) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 JULY 2023 |
The directors present their strategic report of the company and the group for the year ended 31 July 2023. |
REVIEW OF BUSINESS |
Guided Ultrasonics Limited and its subsidiaries in the USA and Malaysia, can report improved performance over the past financial year, to 31 July 2023, with turnover increasing by 13% compared to the previous period. |
The group considers its key performance indicators to be Turnover and Operating Profit: |
Turnover: 2023: £9.5m 2022: £8.4m |
Operating Profit: 2023: £1.5m 2022: £1.35m |
Both measures have improved during the year end 31 July 2023, satisfactorily. |
The Group continues to invest and develop its technologies and spend was sustained in the year at £1.26m compared to £1.36m (2022). |
The Group believes this level of investment continues to be far beyond most in the industry and demonstrates the commitment to innovation and advancement in the sector as a recognised market leader. |
The Group takes pride in its development of its people and a key measure of this is staff retention. The board |
are pleased to confirm its staff retention percentage remained comparable for the year ended 31 July 2023 at 81% (48 out of 59 still employed) compared to 87% (45 out of 52 still employed) for the year ended 31 July 2022. The Group seeks to understand the reason for any leavers and respond accordingly. |
The Group's cash position fell slightly at year end, after considering its continued R&D expenditure and financial support to its subsidiaries. The Group has continued to support expansion into the |
Asia Pacific and Americas markets. Although both subsidiaries have made accumulated losses, this is to be expected with the investment in local resources, longer term strategic aims and performance is continually monitored by the Board. |
GUIDED ULTRASONICS LIMITED (REGISTERED NUMBER: 03809900) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 JULY 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The Group continues to invest in new technologies and bringing new products to market along with investments in sales resources, with two experienced hires in the prior year in the USA in post for the full year to 31 July 2023. This has improved GUL’s opportunities in both new customers and market segments. |
A key risk to the Group is that market share lost by lack of innovation. As noted above the Group continues to invest in Research & Development activity and the commitment was further shown by the Board by maintaining levels for the year ended 31 July 2023, similar to the previous year. It should be noted that the Group have invested in excess of £1.25m in Research & Development activity in each of the past three years, to ensure GUL’s place as a market leader developing ‘Technology you can trust’. |
Inflationary pressures have been challenging over recent years and the board is frequently reviewing product costings to ensure sale prices are appropriate, along with the changes in sales mix impacting gross margins. Where possible to mitigate inflationary pressures, the Group maintains excellent supply chain management with strong relationships built on years of trading. Paying suppliers on time is important to keeping these relationships and assists the Group in forward orders, trying to achieve costs savings through volumes and buying 'well ahead' against forecast, mitigating both the risk of price increases and disruptions to production scheduling through non-availability of componentry. The Group is pleased to report the supply chain disruptions experienced in 2021 and 2022 have significantly reduced. The Group maintains excellent long-standing relationships with customers, being a highly respected figure in the NDT community and bringing new product developments to enhance the outputs and insights gained, for the benefit of its users. |
The company has a long-standing experienced team with a history of trading globally. The Group works with |
trusted partners around the world to ensure it is compliant in financial and non-financial matters in local |
jurisdictions. Senior management are present at the Group's hubs in the UK, USA and Malaysia and a |
collaborative Group-wide ERP system ensures consistency of both operational and financial, planning and |
reporting. The group was aware of the ongoing sanctions being in place throughout the world and the market risk this placed on the group. The Directors continued to instil training and promote awareness from the Senior Management team as well as staff delivering services to customers. The group followed government guidance and acted to be compliant with UK, US and Malaysian legislation. |
Risks |
The Group acknowledges two further principal risks: |
Liquidity Risk |
The Directors ensure the Group maintains cash reserves sufficient to meet its trading obligations and continue |
its investment in new technologies. The Directors are comfortable that available funds on 31 July 2023 are |
adequate to meet its commitments. |
Foreign Exchange Risk |
GUIDED ULTRASONICS LIMITED (REGISTERED NUMBER: 03809900) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 JULY 2023 |
The Group engages clients overseas with customer debts received and supplier payments made in several |
currencies, including US Dollars, which helps to mitigate a degree of foreign exchange risk. However, the |
Directors maintain most of the Group's cash reserves in GBP which it believes to be prudent given most of the Group's operating costs are in GBP. |
FUTURE DEVELOPMENTS |
The Group has ambitious financial targets for the year ended 31 July 2024 supported by its strong sales |
presence from the UK, USA and Asia Pacific offices. The Board is pleased to report that the new products to market mentioned in this report last year have been well received by the marketplace and the Board are excited at the ongoing commercial opportunities this brings in new market sectors and regions. |
ON BEHALF OF THE BOARD: |
GUIDED ULTRASONICS LIMITED (REGISTERED NUMBER: 03809900) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 JULY 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 July 2023. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 July 2023 was £1,450,000 |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 August 2022 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
GUIDED ULTRASONICS LIMITED (REGISTERED NUMBER: 03809900) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 JULY 2023 |
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 group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, APC Accountants Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GUIDED ULTRASONICS LIMITED |
Opinion |
We have audited the financial statements of Guided Ultrasonics Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 31 July 2023 and of the group's 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GUIDED ULTRASONICS LIMITED |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. 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. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group 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 |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GUIDED ULTRASONICS LIMITED |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GUIDED ULTRASONICS LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Extent to which the audit was considered capable of detecting irregularities, including fraud |
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis of our opinion. |
Identifying and assessing potential risks related to irregularities |
As detailed above we carried out our audit in line with the appropriate guidance. In regards to our procedures during the initial planning, remote working and final review stages we assessed our audit plan against the changing environments and updated wherever appropriate. |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered and carried out a background information assessment on the company and looked at all of the appropriate laws and regulations that the company must abide with. These included Coronavirus regulations, but also GDPR and Health & Safety in regards of production as well as in the general office |
The group has a risk register for monitoring its risks and mitigations in place. The company also monitors all of its internal policies and procedures and carries out annual updates for those policies, or such as Covid19, regular reviews when Government guidance has changed. This is then communicated to staff on all levels to ensure updates in policies and procedures are known throughout the workforce. |
The significant laws and regulations in regards to the business include Companies Act, Employment Law, Pensions legislation, Tax legislation, Health & Safety, Covid19 Regulations and GDPR are regularly reviewed by the companies management team and updated to ensure compliance. |
We reviewed the group's risk assessments for its business in the significant laws and regulations, carried out reviews on board minutes including discussions with company officials and review of any legal cases and costs. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GUIDED ULTRASONICS LIMITED |
Audit response to risks identified |
As a result of performing the above, we identified the group's revenue recognition in respect of the timing of when goods are sold and transfered to customer as well as services are provided such as training courses, as a key audit matter related to the potential risk of fraud. Our specific procedures in this regards are as follows:- |
- Review of accrued and deferred income. |
- Cut-off testing around the year end. |
- Review of gross margins. |
- Discussions with management. |
In addition to the above, our procedures to respond to risks identified included the following: |
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations, which have a direct effect on the financial statements; |
- making enquiries of management, including legal experts concerning actual or potential litigation and claims; |
- On our review of journal entries nothing unusual or unexpected had been identified from our sample testing of journal adjustments carried out by the company to its accounting system. |
- We used limited analytical review procedures during our audit work and placed more reliance up on our transactional and detailed audit testing. Our analytical review for highlighting trends were then reviewed and assessed against our detailed testing work. |
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 or misrepresentation. |
Our audit team had regular updates and meetings within the team including all members of the team, including the RI to ensure that our audit work was being carried out appropriately and to ensure that our assessments have constantly been updated during our audit, as part of these meetings all team members remaining alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
GUIDED ULTRASONICS LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants |
and Statutory Auditors |
7 St John Street |
Mansfield |
Nottinghamshire |
NG18 1QH |
GUIDED ULTRASONICS LIMITED (REGISTERED NUMBER: 03809900) |
CONSOLIDATED |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 JULY 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 9,535,993 | 8,403,379 |
Cost of sales | (3,316,894 | ) | (2,710,702 | ) |
GROSS PROFIT | 6,219,099 | 5,692,677 |
Administrative expenses | (4,771,025 | ) | (4,341,940 | ) |
OPERATING PROFIT | 5 | 1,448,074 | 1,350,737 |
Interest receivable and similar income | 52,962 | 1,603 |
Interest payable and similar expenses | 6 | (4,567 | ) | (6,242 | ) |
PROFIT BEFORE TAXATION | 1,496,469 | 1,346,098 |
Tax on profit | 7 | 187,983 | 273,060 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,684,452 | 1,619,158 |
GUIDED ULTRASONICS LIMITED (REGISTERED NUMBER: 03809900) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 JULY 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,684,452 | 1,619,158 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,684,452 |
1,619,158 |
Total comprehensive income attributable to: |
Owners of the parent | 1,684,452 | 1,619,158 |
GUIDED ULTRASONICS LIMITED (REGISTERED NUMBER: 03809900) |
CONSOLIDATED BALANCE SHEET |
31 JULY 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | 3,436,742 | 3,180,781 |
Tangible assets | 11 | 1,839,646 | 1,880,660 |
Investments | 12 | - | - |
5,276,388 | 5,061,441 |
CURRENT ASSETS |
Stocks | 13 | 2,177,463 | 1,400,263 |
Debtors | 14 | 2,445,414 | 2,233,996 |
Cash at bank and in hand | 5,206,334 | 5,600,585 |
9,829,211 | 9,234,844 |
CREDITORS |
Amounts falling due within one year | 15 | 1,631,748 | 1,106,997 |
NET CURRENT ASSETS | 8,197,463 | 8,127,847 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
13,473,851 |
13,189,288 |
CREDITORS |
Amounts falling due after more than one year |
16 |
(39,825 |
) |
(66,958 |
) |
PROVISIONS FOR LIABILITIES | 18 | (97,752 | ) | (20,508 | ) |
NET ASSETS | 13,336,274 | 13,101,822 |
GUIDED ULTRASONICS LIMITED (REGISTERED NUMBER: 03809900) |
CONSOLIDATED BALANCE SHEET - continued |
31 JULY 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
CAPITAL AND RESERVES |
Called up share capital | 19 | 8,052 | 8,052 |
Capital redemption reserve | 1,500 | 1,500 |
Retained earnings | 13,326,722 | 13,092,270 |
SHAREHOLDERS' FUNDS | 13,336,274 | 13,101,822 |
The financial statements were approved by the Board of Directors and authorised for issue on 29 April 2024 and were signed on its behalf by: |
Dr D Alleyne - Director |
GUIDED ULTRASONICS LIMITED (REGISTERED NUMBER: 03809900) |
COMPANY BALANCE SHEET |
31 JULY 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Stocks | 13 |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 18 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Capital redemption reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,814,559 | 2,190,761 |
GUIDED ULTRASONICS LIMITED (REGISTERED NUMBER: 03809900) |
COMPANY BALANCE SHEET - continued |
31 JULY 2023 |
The financial statements were approved by the Board of Directors and authorised for issue on |
GUIDED ULTRASONICS LIMITED (REGISTERED NUMBER: 03809900) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 JULY 2023 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 August 2021 | 8,052 | 12,560,612 | 1,500 | 12,570,164 |
Changes in equity |
Dividends | - | (1,087,500 | ) | - | (1,087,500 | ) |
Total comprehensive income | - | 1,619,158 | - | 1,619,158 |
Balance at 31 July 2022 | 8,052 | 13,092,270 | 1,500 | 13,101,822 |
Changes in equity |
Dividends | - | (1,450,000 | ) | - | (1,450,000 | ) |
Total comprehensive income | - | 1,684,452 | - | 1,684,452 |
Balance at 31 July 2023 | 8,052 | 13,326,722 | 1,500 | 13,336,274 |
GUIDED ULTRASONICS LIMITED (REGISTERED NUMBER: 03809900) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 JULY 2023 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 August 2021 |
Changes in equity |
Total comprehensive income | - |
Dividends | - | ( |
) | - | ( |
) |
Balance at 31 July 2022 |
Changes in equity |
Total comprehensive income | - |
Dividends | - | ( |
) | - | ( |
) |
Balance at 31 July 2023 |
GUIDED ULTRASONICS LIMITED (REGISTERED NUMBER: 03809900) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 JULY 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,050,610 | 2,714,249 |
Interest paid | (4,567 | ) | (6,242 | ) |
Tax paid | - | (3,102 | ) |
Taxation refund | 317,988 | 651,524 |
Net cash from operating activities | 2,364,031 | 3,356,429 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (1,261,343 | ) | (1,356,813 | ) |
Purchase of tangible fixed assets | (72,193 | ) | (78,348 | ) |
Interest received | 52,962 | 1,603 |
Net cash from investing activities | (1,280,574 | ) | (1,433,558 | ) |
Cash flows from financing activities |
Capital repayments in year | (27,708 | ) | (12,000 | ) |
Equity dividends paid | (1,450,000 | ) | (1,087,500 | ) |
Net cash from financing activities | (1,477,708 | ) | (1,099,500 | ) |
(Decrease)/increase in cash and cash equivalents | (394,251 | ) | 823,371 |
Cash and cash equivalents at beginning of year |
2 |
5,600,585 |
4,777,214 |
Cash and cash equivalents at end of year |
2 |
5,206,334 |
5,600,585 |
GUIDED ULTRASONICS LIMITED (REGISTERED NUMBER: 03809900) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 JULY 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 1,496,469 | 1,346,098 |
Depreciation charges | 1,118,589 | 1,369,967 |
Finance costs | 4,567 | 6,242 |
Finance income | (52,962 | ) | (1,603 | ) |
2,566,663 | 2,720,704 |
Increase in stocks | (777,200 | ) | (163,062 | ) |
(Increase)/decrease in trade and other debtors | (264,179 | ) | 126,237 |
Increase in trade and other creditors | 525,326 | 30,370 |
Cash generated from operations | 2,050,610 | 2,714,249 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 July 2023 |
31/7/23 | 1/8/22 |
£ | £ |
Cash and cash equivalents | 5,206,334 | 5,600,585 |
Year ended 31 July 2022 |
31/7/22 | 1/8/21 |
£ | £ |
Cash and cash equivalents | 5,600,585 | 4,777,214 |
GUIDED ULTRASONICS LIMITED (REGISTERED NUMBER: 03809900) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 JULY 2023 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/8/22 | Cash flow | At 31/7/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 5,600,585 | (394,251 | ) | 5,206,334 |
5,600,585 | (394,251 | ) | 5,206,334 |
Debt |
Finance leases | (88,593 | ) | 27,708 | (60,885 | ) |
(88,593 | ) | 27,708 | (60,885 | ) |
Total | 5,511,992 | (366,543 | ) | 5,145,449 |
GUIDED ULTRASONICS LIMITED (REGISTERED NUMBER: 03809900) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JULY 2023 |
1. | STATUTORY INFORMATION |
Guided Ultrasonics Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover represents the value excluding Value Added Tax of pipe testing equipment sales, rental and training services provided to customers during the year. |
In respect of all goods and services provided to customers; the income is charged to profit and loss at the point when the goods or services are provided to the customer. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Freehold property | - |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Computer equipment | - |
GUIDED ULTRASONICS LIMITED (REGISTERED NUMBER: 03809900) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2023 |
3. | ACCOUNTING POLICIES - continued |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
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 balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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. |
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. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
GUIDED ULTRASONICS LIMITED (REGISTERED NUMBER: 03809900) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2023 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
Financial instruments 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 entity after deducting all of its financial liabilities. |
Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. |
Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity. |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 2,460,648 | 2,053,471 |
Social security costs | 163,291 | 144,245 |
Other pension costs | 139,145 | 144,783 |
2,763,084 | 2,342,499 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Production and Development | 34 | 31 |
Administration | 10 | 10 |
Training | 2 | 2 |
Management | 4 | 4 |
Sales | 8 | 7 |
The average number of employees by undertakings that were proportionately consolidated during the year was 58 (2022 - 54 ) . |
GUIDED ULTRASONICS LIMITED (REGISTERED NUMBER: 03809900) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
2023 | 2022 |
£ | £ |
Directors' remuneration | 325,357 | 509,038 |
Directors' pension contributions to money purchase schemes | 38,682 | 36,981 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 156,637 | 148,755 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets | 113,207 | 111,040 |
Development costs amortisation | 1,005,382 | 1,258,927 |
Auditors' remuneration | 905 | 922 |
Audit of financial statements | 21,275 | 21,275 |
Foreign exchange differences | (14,509 | ) | 11,581 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Other interest paid | 4,567 | 6,242 |
GUIDED ULTRASONICS LIMITED (REGISTERED NUMBER: 03809900) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2023 |
7. | TAXATION |
Analysis of the tax credit |
The tax credit on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | (265,227 | ) | (293,568 | ) |
Deferred tax | 77,244 | 20,508 |
Tax on profit | (187,983 | ) | (273,060 | ) |
Reconciliation of total tax credit 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: |
2023 | 2022 |
£ | £ |
Profit before tax | 1,496,469 | 1,346,098 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
284,329 |
255,759 |
Effects of: |
Depreciation in excess of capital allowances | 193,653 | 235,131 |
Effect of foreign subsidiary losses | 34,563 | 117,937 |
Enhanced development expenditure | (900,223 | ) | (997,871 | ) |
Cash in of research and development credits | 122,451 | 95,726 |
Deferred tax movements | 77,244 | 20,258 |
Total tax credit | (187,983 | ) | (273,060 | ) |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
GUIDED ULTRASONICS LIMITED (REGISTERED NUMBER: 03809900) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2023 |
9. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of 1p each |
Final | 1,450,000 | 1,087,500 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Development |
costs |
£ |
COST |
At 1 August 2022 | 10,678,096 |
Additions | 1,261,343 |
At 31 July 2023 | 11,939,439 |
AMORTISATION |
At 1 August 2022 | 7,497,315 |
Amortisation for year | 1,005,382 |
At 31 July 2023 | 8,502,697 |
NET BOOK VALUE |
At 31 July 2023 | 3,436,742 |
At 31 July 2022 | 3,180,781 |
GUIDED ULTRASONICS LIMITED (REGISTERED NUMBER: 03809900) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2023 |
10. | INTANGIBLE FIXED ASSETS - continued |
Company |
Development |
costs |
£ |
COST |
At 1 August 2022 |
Additions |
At 31 July 2023 |
AMORTISATION |
At 1 August 2022 |
Amortisation for year |
At 31 July 2023 |
NET BOOK VALUE |
At 31 July 2023 |
At 31 July 2022 |
GUIDED ULTRASONICS LIMITED (REGISTERED NUMBER: 03809900) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2023 |
11. | TANGIBLE FIXED ASSETS |
Group |
Improvements |
Freehold | Short | to |
property | leasehold | property |
£ | £ | £ |
COST |
At 1 August 2022 | 1,612,305 | 120,444 | 523,290 |
Additions | - | - | - |
At 31 July 2023 | 1,612,305 | 120,444 | 523,290 |
DEPRECIATION |
At 1 August 2022 | 94,639 | 46,828 | 463,203 |
Charge for year | 31,546 | 20,125 | 7,400 |
At 31 July 2023 | 126,185 | 66,953 | 470,603 |
NET BOOK VALUE |
At 31 July 2023 | 1,486,120 | 53,491 | 52,687 |
At 31 July 2022 | 1,517,666 | 73,616 | 60,087 |
GUIDED ULTRASONICS LIMITED (REGISTERED NUMBER: 03809900) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2023 |
11. | TANGIBLE FIXED ASSETS - continued |
Group |
Fixtures |
Plant and | and | Computer |
machinery | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 August 2022 | 445,196 | 166,863 | 455,757 | 3,323,855 |
Additions | - | 33,781 | 38,412 | 72,193 |
At 31 July 2023 | 445,196 | 200,644 | 494,169 | 3,396,048 |
DEPRECIATION |
At 1 August 2022 | 365,390 | 97,394 | 375,741 | 1,443,195 |
Charge for year | 2,908 | 13,261 | 37,967 | 113,207 |
At 31 July 2023 | 368,298 | 110,655 | 413,708 | 1,556,402 |
NET BOOK VALUE |
At 31 July 2023 | 76,898 | 89,989 | 80,461 | 1,839,646 |
At 31 July 2022 | 79,806 | 69,469 | 80,016 | 1,880,660 |
GUIDED ULTRASONICS LIMITED (REGISTERED NUMBER: 03809900) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2023 |
11. | TANGIBLE FIXED ASSETS - continued |
Company |
Improvements |
Freehold | to | Plant and |
property | property | machinery |
£ | £ | £ |
COST |
At 1 August 2022 |
Additions |
At 31 July 2023 |
DEPRECIATION |
At 1 August 2022 |
Charge for year |
At 31 July 2023 |
NET BOOK VALUE |
At 31 July 2023 |
At 31 July 2022 |
GUIDED ULTRASONICS LIMITED (REGISTERED NUMBER: 03809900) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2023 |
11. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixtures |
and | Computer |
fittings | equipment | Totals |
£ | £ | £ |
COST |
At 1 August 2022 |
Additions |
At 31 July 2023 |
DEPRECIATION |
At 1 August 2022 |
Charge for year |
At 31 July 2023 |
NET BOOK VALUE |
At 31 July 2023 |
At 31 July 2022 |
Included within freehold property is land purchased of the value of £35,000 (2022: £35,000) which has not been depreciated. |
GUIDED ULTRASONICS LIMITED (REGISTERED NUMBER: 03809900) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2023 |
12. | FIXED ASSET INVESTMENTS |
Company |
Other |
investments |
£ |
COST |
At 1 August 2022 |
and 31 July 2023 |
NET BOOK VALUE |
At 31 July 2023 |
At 31 July 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: 27-3, Jalan Medan Setia 1, Bukit Damansara, 50490 Kuala Lumpur, Malaysia |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Loss for the year | ( |
) | ( |
) |
GUIDED ULTRASONICS LIMITED (REGISTERED NUMBER: 03809900) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2023 |
12. | FIXED ASSET INVESTMENTS - continued |
Registered office: 1416 N Sam Houston Pkwy E Suite 100, Houston TX, 77032, United Sates of America |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Profit/(loss) for the year | ( |
) |
13. | STOCKS |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Stocks | 2,177,463 | 1,400,263 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 1,815,678 | 1,559,700 |
Amounts owed by group undertakings | - | - |
Other debtors | 247,912 | 300,673 |
VAT | 102,810 | 114,267 |
Prepayments and accrued income | 279,014 | 259,356 |
2,445,414 | 2,233,996 |
GUIDED ULTRASONICS LIMITED (REGISTERED NUMBER: 03809900) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2023 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Hire purchase contracts (see note 17) | 21,060 | 21,635 |
Trade creditors | 444,884 | 143,611 |
Social security and other taxes | 65,851 | 70,712 |
Other creditors | 49,385 | 61,010 |
Accruals and deferred income | 1,050,568 | 810,029 |
1,631,748 | 1,106,997 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Hire purchase contracts (see note 17) | 39,825 | 66,958 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase | contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | 21,060 | 21,635 |
Between one and five years | 39,825 | 66,958 |
60,885 | 88,593 |
GUIDED ULTRASONICS LIMITED (REGISTERED NUMBER: 03809900) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2023 |
17. | LEASING AGREEMENTS - continued |
Group |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year | 21,387 | - |
Between one and five years | 81,698 | - |
103,085 | - |
Company |
Non-cancellable | operating leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
18. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax |
Accelerated capital allowances | 35,168 | 6,067 |
Tax losses carried forward | (796,602 | ) | (4,157 | ) | ( |
) | ( |
) |
Accelerated development cost |
expenditure | 859,186 | 18,598 | 859,186 | 18,598 |
97,752 | 20,508 | 97,752 | 20,508 |
GUIDED ULTRASONICS LIMITED (REGISTERED NUMBER: 03809900) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2023 |
18. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1 August 2022 | 20,508 |
Provided during year | 77,244 |
Balance at 31 July 2023 | 97,752 |
Company |
Deferred |
tax |
£ |
Balance at 1 August 2022 |
Provided during year |
Balance at 31 July 2023 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | 1p | 7,250 | 7,250 |
Allotted and issued: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary A | 1p | 802 | 802 |
GUIDED ULTRASONICS LIMITED (REGISTERED NUMBER: 03809900) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JULY 2023 |
20. | RELATED PARTY DISCLOSURES |
The following amounts of directors remuneration (including employers national insurance) are split as follows: |
2023 | 2022 |
£ | £ |
Bonus pool capitalisation | 27,371 | 28,272 |
Bonus pool | 55,569 | 50,262 |
Income statement | 325,357 | 509,038 |
Capitalised wages costs | 199,005 | 198,819 |
Directors pension contributions | 38,650 | 38,437 |
645,952 | 824,828 |
Key management personnel remuneration in the year totalled £574,688. (2022: £521,125.) |
21. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is Dr D Alleyne and Dr B Pavlakovic. |