Company Registration No. 04292847 (England and Wales)
Molecular Vision Limited
Annual Report And Financial Statements
For The Year Ended 30 June 2021
MOLECULAR VISION LIMITED
Molecular Vision Limited
COMPANY INFORMATION
Director
Mrs M Ross
(Appointed 20 April 2021)
Secretary
Mr S A Page
Company number
04292847
Registered office
York Biotech Campus
Sand Hutton
York
YO41 1LZ
Auditor
BDO LLP
6th Floor
1 City Square
Leeds
LS1 2DP
MOLECULAR VISION LIMITED
Molecular Vision Limited
CONTENTS
Page
Director's report
1
Director's responsibilities statement
2
Independent auditor's report
3 - 5
Statement of comprehensive income
6
Statement of financial position
7
Statement of changes in equity
8
Notes to the financial statements
9 - 20
MOLECULAR VISION LIMITED
Molecular Vision Limited
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 JUNE 2021
- 1 -
The director presents his annual report and financial statements for the year ended 30 June 2021.
Principal activities
The principal activity of the company continued to be that of research and experimental development on natural sciences and engineering
.
The company has taken the exemption conferred by S414(B) of the Companies Act 2006 which permits it to not present a strategic report on the grounds that it would qualify as small apart from being a member of an ineligible group.
The company has taken the exemption conferred by S415(A) of the Companies Act 2006 permitting it to prepare a directors report in accordance with the small companies regime on the grounds that it would qualify as small but for being a member of an ineligible group.
Results and dividends
The results for the year are set out on page 6.
No ordinary dividends were paid (2020 - £nil). The director does not recommend payment of a final dividend.
No preference dividends were paid (2020 - £nil).
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Dr C W Hand
(Resigned 20 April 2021)
Mrs M Ross
(Appointed 20 April 2021)
Auditor
BDO LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Energy and carbon report
As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s
auditor
is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s
auditor
is aware of that information.
On behalf of the board
Mrs M Ross
Director
18 March 2022
MOLECULAR VISION LIMITED
Molecular Vision Limited
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2021
- 2 -
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is 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. He is 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.
MOLECULAR VISION LIMITED
Molecular Vision Limited
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF MOLECULAR VISION LIMITED
- 3 -
Opinion
In our opinion:
-
the financial statements give a true and fair view of the state of the Company’s affairs as at 30 June 2021 and its loss for the year then ended;
-
the financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”; and
-
the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements of Molecular Vision Limited (the ‘Company’) for the year ended 30 June 2021 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, 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).
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’s responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
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.
Material uncertainty
relating to going concern
We draw attention to note 1.2 to the financial statements which indicates the directors considerations over going concern. The parent company, Abingdon Health Plc, is dependent on recovery of a large
receivable
which is currently being pursued through the dispute resolution process in the Contract and this has an impact on the cashflows across the group. As stated in note 1.2, these events or conditions, along with other matters as set out in note 1.2, indicate that a material uncertainty exists that may cast significant doubt on the Company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.
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.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.
The directors are responsible for the other information. The other information comprises the information included in the Annual Report and Financial Statements, 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. 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 course of 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.
MOLECULAR VISION LIMITED
Molecular Vision Limited
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF MOLECULAR VISION LIMITED
- 4 -
Other C
ompanies Act 2006
reporting
In our opinion, based on the work undertaken in the course of the audit:
-
the information given in the Strategic report and the Directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
-
the Strategic report and the Directors’ report have been prepared in accordance with applicable legal requirements.
In the light of the 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 or the Directors’ report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept by the 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.
Responsibilities of director
As explained more fully in the Statement of directors’ responsibilities, 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.
Auditor's 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.
Extent to which the audit was capable of detecting irregularities, including fraud
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:
As part of the audit we gained an understanding of the legal and regulatory framework applicable to the Company and the industries in which it operates, and considered the risk of acts by the Company that were contrary to applicable laws and regulations, including fraud. We considered the Company’s compliance with laws and regulations that have a significant impact on the financial statements to be UK company law, UK tax legislation, the accounting framework and ISO security standards, and we considered the extent to which noncompliance might have a material effect on the Company financial statements.
MOLECULAR VISION LIMITED
Molecular Vision Limited
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF MOLECULAR VISION LIMITED
- 5 -
Based on our understanding we designed our audit procedures to identify instances of non-compliance with such laws and regulations. Our procedures included inquiries of management and of the Directors, reviewing the financial statement disclosures agreeing to underlying supporting documentation where necessary, review of Board meeting minutes and review of any applicable correspondence with legal counsel or tax authorities.
Our assessment of the susceptibility of the financial statements to fraud was through management override of controls and inappropriate revenue recognition. We addressed the risk of management override of internal controls, including testing journal entries processed during and subsequent to the year, testing of significant estimates and evaluating whether there was evidence of bias in the financial statements by the Directors that represented a risk of material misstatement due to fraud. We addressed the risk of inappropriate revenue recognition, including testing year end cut off and testing a sample of sales transactions across the year to ensure these are not considered to be fictitious sales.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
This report is made solely to the Parent 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 Parent 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.
Mark Langford (Senior Statutory Auditor)
For and on behalf of BDO LLP, Statutory Auditor
21 March 2022
Leeds
United Kingdom
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
MOLECULAR VISION LIMITED
Molecular Vision Limited
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2021
- 6 -
2021
2020
unaudited
Notes
£
£
Administrative expenses
(12,219)
(181,519)
Other operating income
12,003
Operating loss
4
(12,219)
(169,516)
Finance costs
7
(90,000)
(90,246)
Loss before taxation
(102,219)
(259,762)
Tax on loss
8
Loss for the financial year
(102,219)
(259,762)
The income statement has been prepared on the basis that all operations are continuing operations.
MOLECULAR VISION LIMITED
Molecular Vision Limited
STATEMENT OF FINANCIAL POSITION
AS AT
30 JUNE 2021
30 June 2021
- 7 -
2021
2020
unaudited
as restated
Notes
£
£
£
£
Non-current assets
Intangible assets
10
-
-
Property, plant and equipment
11
-
-
-
-
Current assets
Trade and other receivables
12
28,188
753
Cash and cash equivalents
66,053
68,908
94,241
69,661
Current liabilities
14
(220,292)
(183,493)
Net current liabilities
(126,051)
(113,832)
Total assets less current liabilities
(126,051)
(113,832)
Non-current liabilities
15
(1,539,966)
(1,449,966)
Net liabilities
(1,666,017)
(1,563,798)
Equity
Called up share capital
16, 21
574
574
Share premium account
21
4,662,966
4,662,966
Retained earnings
(6,329,557)
(6,227,338)
Total equity
(1,666,017)
(1,563,798)
The financial statements were approved by the board of directors and authorised for issue on 18 March 2022 and are signed on its behalf by:
Mrs M Ross
Director
Company Registration No. 04292847
MOLECULAR VISION LIMITED
Molecular Vision Limited
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2021
- 8 -
Share capital
Share premium account
Retained earnings
Total
£
£
£
£
As restated for the period ended 30 June 2020:
Balance at 1 July 2019 (unaudited, restated)
21
574
4,662,966
(5,967,576)
(1,304,036)
Year ended 30 June 2020:
Loss and total comprehensive income for the year (unaudited)
-
-
(259,762)
(259,762)
Balance at 30 June 2020 (unaudited, restated)
21
574
4,662,966
(6,227,338)
(1,563,798)
Year ended 30 June 2021:
Loss and total comprehensive income for the year
-
-
(102,219)
(102,219)
Balance at 30 June 2021
574
4,662,966
(6,329,557)
(1,666,017)
MOLECULAR VISION LIMITED
Molecular Vision Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
- 9 -
1
Accounting policies
Company information
Molecular Vision Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
York Biotech Campus, Sand Hutton, York, YO41 1LZ.
1.1
Accounting convention
These financial statements have been prepared in accordance with “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £
1
.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues
:
The
disclosure
requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b), 11.48(c), 12.26, 12.27, 12.29(a), 12.29(b), and 12.29A;
-
Section 26 ‘Share based Payment’
:
Share based payment arrangements required under FRS 102 paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
-
Section 33 ‘Related Party Disclosures’
:
Compensation for key management personnel
.
Where required, equivalent disclosures are given in the group accounts of Abingdon Health Plc. The group accounts of Abingdon Health Plc are available to the public and can be obtained as set out in note 20.
MOLECULAR VISION LIMITED
Molecular Vision Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
1
Accounting policies
(Continued)
- 10 -
1.2
Going concern
The Directors have considered the principal risks and uncertainties facing the business, along with the
true
company’s objectives, policies and processes for managing its exposure to financial risk. In making this
assessment the Directors have prepared cash flows on a group basis until June 2023 and continue to
evaluate financial forecasts .
The parent company, Abingdon Health Plc, has experienced a delay in recovery of monies on a large trade
receivable and is currently in the process of contractual dispute resolution negotiations with the customer.
Through this process it is expected that the monies owed will be
substantially
recovered, however the exact timing of
this is uncertain as at the date of approval of the financial statements .
The company in its own right continues to benefit from its trading results, however the cash flow suffers
from support given to other group companies in light of the above. The above factor together with the
ability to gain regulatory approvals to secure sales of existing and new products, represent a material
uncertainty that may cast significant doubt on the Group’s ability to continue as a going concern and
therefore, that it may be unable to realise its assets and discharge its liabilities in the normal course of
business.
Furthermore, the Group received additional funding support of £6.5 million
(
£6.1 million net of
expenses)
through an issue of shares in December 2021. In case the DHSC receivable remains unpaid for an extended period, the Directors are of the opinion that the funds raised and the significant unused cash reserves of the parent company will permit the Group, and therefore the company, to remain a going concern. As such the Directors continue to adopt a going concern basis for the preparation of these financial statements.
1.3
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated
.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Development costs
10 years
1.5
Property, plant and equipment
Property, plant and equipment
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
33% straight line
MOLECULAR VISION LIMITED
Molecular Vision Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
1
Accounting policies
(Continued)
- 11 -
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.6
Impairment of non-current 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.
Where a reasonable and consistent basis of allocation can be identified, assets are allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position 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.
MOLECULAR VISION LIMITED
Molecular Vision Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
1
Accounting policies
(Continued)
- 12 -
Basic financial assets
Basic financial assets, which include
trade and other receivables
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
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
trade and other payables
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade payables
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade payables
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
MOLECULAR VISION LIMITED
Molecular Vision Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
1
Accounting policies
(Continued)
- 13 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are
s
ubsequently 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 th
r
ough 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.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
income statement
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
income statement
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
MOLECULAR VISION LIMITED
Molecular Vision Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
1
Accounting policies
(Continued)
- 14 -
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
non-current assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant
effect on amounts recognised in the financial statements.
Going concern
The accounts are prepared on the going concern basis, despite significant level of retained losses. Further explanation of this judgement is provided in note 1.2.
3
Revenue
2021
2020
£
£
Other significant revenue
Royalty income
11,250
Grants received
753
MOLECULAR VISION LIMITED
Molecular Vision Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
- 15 -
4
Operating loss
2021
2020
Operating loss for the year is stated after charging/(crediting):
£
£
Government grants
(753)
Amortisation of intangible assets
23,020
Impairment of intangible assets
142,175
5
Auditor's remuneration
In the current year the company's audit fee has been borne by its parent, Abingdon Health Plc. The company was unaudited in the prior year.
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Directors
1
1
Their aggregate remuneration comprised:
2021
2020
£
£
Wages and salaries
6,597
7
Finance costs
2021
2020
£
£
Interest payable to group undertakings
90,000
90,246
MOLECULAR VISION LIMITED
Molecular Vision Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
- 16 -
8
Taxation
The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2021
2020
£
£
Loss before taxation
(102,219)
(259,762)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
(19,422)
(49,355)
Unutilised tax losses carried forward
19,422
18,687
Amortisation on assets not qualifying for tax allowances
31,387
Research and development tax credit
(719)
Taxation charge for the year
-
-
The UK corporation tax rate was 19% throughout the year.
In the March 2021 Budget, a change to the future UK corporation tax rate was announced, indicating that the rate will increase to 25% from April 2023.
The company has estimated tax losses of £
3,830,000
(2020 - £3,730,000) which have not been recognised as a deferred tax asset due to uncertainty over the timing and extent of the company's ability to utilise these against future taxable profits. If a deferred tax asset was recognised in full in respect of this, the company's net assets would increase by approximately £
957,000
(2020 - £710,000).
9
Impairments
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
2021
2020
Notes
£
£
In respect of:
Intangible assets
10
142,175
Recognised in:
Administrative expenses
-
142,175
MOLECULAR VISION LIMITED
Molecular Vision Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
- 17 -
10
Intangible fixed assets
Development costs
£
Cost
At 1 July 2020 and 30 June 2021
230,204
Amortisation and impairment
At 1 July 2020 and 30 June 2021
230,204
Carrying amount
At 30 June 2021
At 30 June 2020
In the
prior
year management have reviewed the useful life of the capitalised development assets and have determined that the future direction of the business is likely to include a reduced focus on the assets included within the brought forward carrying value. As such, all development assets have been impaired in full.
11
Property, plant and equipment
Fixtures and fittings
£
Cost
At 1 July 2020
2,863
Disposals
(2,863)
At 30 June 2021
Depreciation and impairment
At 1 July 2020
2,863
Eliminated in respect of disposals
(2,863)
At 30 June 2021
Carrying amount
At 30 June 2021
At 30 June 2020
MOLECULAR VISION LIMITED
Molecular Vision Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
- 18 -
12
Trade and other receivables
2021
2020
Amounts falling due within one year:
£
£
Corporation tax recoverable
753
753
Amounts owed by fellow group undertakings
26,780
Other receivables
655
28,188
753
13
Borrowings
2021
2020
£
£
Loans from parent undertakings
1,539,966
1,449,966
Payable after one year
1,539,966
1,449,966
The interest rate on the loan with Abingdon Health Plc, the company's ultimate parent, is 8% per annum.
14
Current liabilities
2021
2020
£
£
Trade payables
4,254
1,335
Amounts owed to parent undertakings
147,660
139,303
Taxation and social security
5,743
Other payables
67,308
37,112
Accruals and deferred income
1,070
220,292
183,493
15
Non-current liabilities
2021
2020
Notes
£
£
Amounts owed to parent undertakings
13
1,539,966
1,449,966
The interest rate on the loans is 8% per annum. There is a fixed and floating charge over the assets of the company in favour of loan note holders in the company's parent, Abingdon Health
Plc
.
MOLECULAR VISION LIMITED
Molecular Vision Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
- 19 -
16
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of 0.1p each
448,676
448,676
449
449
2021
2020
2021
2020
Preference share capital
Number
Number
£
£
Issued and fully paid
Preference A shares of 0.01p each
447,360
447,360
45
45
Preference A1 shares of 0.01p each
803,489
803,489
80
80
1,250,849
1,250,849
125
125
Preference shares classified as equity
125
125
Total equity share capital
574
574
It has been identified that the preference share capital in the prior year included a rounding error, creating an overstatement by a factor of 10. This has been rectified in the current period, with the corresponding entry being a credit to share premium
(note 21).
17
Financial commitments, guarantees and contingent liabilities
The company is not party to any contingent liabilities, capital commitments, or guarantees as at the current or comparative year end.
18
Events after the reporting date
The parent
c
ompany, Abingdon Health Plc, is at present negotiating for payment on a key contract which
directly effects the debts in the company. As at the date of signing these accounts, Abingdon Health Plc ha
s
met with the DHSC on two occasions in an effort to mediate a resolution to this issue and during the
second mediation meeting both parties signed a non-binding heads of agreement which would, if
concluded, lead to the outstanding monies being substantially collected and resolve all outstanding
disputes with DHSC.
In
December 2021 the parent company, Abingdon Health Plc,
received additional funding support of
£6.5 million in aggregate (
£6.1 million net of
expenses)
through an issue of shares.
The company is exposed to credit risk on its trade receivables where the counterparty is Abingdon Health
Plc. In either scenario it is expected that these receivables are settled following completion of
either
process.
19
Related party transactions
The company has taken advantage of the disclosure exemptions of Section 33.1A of FRS 102 which permit it to not present details of its transactions with members of the group headed by Abingdon Health Plc where relevant group companies are all wholly owned. Details of outstanding balances as at the year end are given in notes 12 and 14.
MOLECULAR VISION LIMITED
Molecular Vision Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
- 20 -
20
Ultimate controlling party
The company's immediate parent company is Abingdon Health
Plc
, a company registered in England and Wales.
The ultimate parent company and controlling party is Abingdon Health
Plc
, a company incorporated in the England and Wales with registered office York Biotech Campus, Sand Hutton, York, YO41 1LZ. Abingdon Health
Plc
is the smallest and largest group into which Molecular Vision Limited is consolidated.
21
Prior period adjustment
Changes to the statement of financial position
As previously reported
Adjustment
As restated at 30 Jun 2020
£
£
£
Net assets
(1,563,798)
-
(1,563,798)
Capital and reserves
Share capital
1
1,297
(723)
574
Share premium
1
4,662,243
723
4,662,966
Total equity
(1,563,798)
-
(1,563,798)
Changes to the income statement
As previously reported
Adjustment
As restated
Period ended 30 June 2020
£
£
£
Loss for the financial period
(259,762)
-
(259,762)
Notes to reconciliation
1 - Correction of A1 preferred shares
The prior period adjustment relates to the correction of the A1 preferred shares which
included a rounding error, creating an overstatement by a factor of 10. This has been rectified
through a prior period adjustment
, with the corresponding entry being a credit to share premium
(note 16).
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