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CYDEN LIMITED |
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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 DECEMBER 2018 |
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REGISTERED NUMBER:
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CYDEN LIMITED |
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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 DECEMBER 2018 |
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CYDEN LIMITED (REGISTERED NUMBER: 04470941) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 5 |
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Report of the Independent Auditors | 7 |
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Income Statement | 10 |
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Other Comprehensive Income | 11 |
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Balance Sheet | 12 |
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Statement of Changes in Equity | 13 |
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Notes to the Financial Statements | 14 |
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CYDEN LIMITED |
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COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Chartered Accountants |
And Statutory Auditors |
Langdon House |
Langdon Road |
SA1 Swansea Waterfront |
Swansea |
SA1 8QY |
CYDEN LIMITED (REGISTERED NUMBER: 04470941) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
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The directors present their strategic report for the year ended 31 December 2018. |
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PRINCIPAL ACTIVITIES |
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The company activities consist of the design, development and sale of intense pulsed light (IPL) devices for |
home-based hair removal. The company sells its products as an Outsourced Design Manufacturer (ODM) to |
a single large customer as well as under its own brand, Smoothskin. |
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REVIEW OF BUSINESS |
2018 | 2017 |
Turnover £'000 | 25,048 | 30,416 |
Gross Profit Margin | 23% | 22% |
Average Number of Employees | 49 | 36 |
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The directors are pleased to report that although there has been a decrease in turnover the company is |
reporting an improved gross margin. The company has been heavily reliant on a single customer in recent |
years but the directors are now investing in the own brand business to promote growth and mitigate single |
customer risk. |
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CYDEN LIMITED (REGISTERED NUMBER: 04470941) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
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PRINCIPAL RISKS AND UNCERTAINTIES |
Financial Risk: |
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The company uses various financial instruments which include cash and items such as trade debtors and |
trade creditors that arise directly from its operations. The main purpose of these financial instruments is to |
raise finance for the group's operations. |
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The main financial risks arising from the company's financial instruments are interest rate risk and credit risk. |
The directors review and agree policies for managing each of these risks and they are summarised below. |
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Liquidity Risk |
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The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable |
needs and to invest cash assets safely and profitability. |
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Credit Risk |
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The company's principal financial assets are cash and trade debtors. The principal credit risk arises from its |
trade debtors. In order to manage credit risk the directors set limits for customers based on a combination of |
payment history and third party credit references. Credit limits are reviewed by the financial controller on a |
regular basis in conjunction with debt ageing and collection history. |
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Trading Risks |
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(i) Single Customer: |
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The company has been heavily reliant on a single customer which has an inherent risk should they cease to |
participate in the category. Recently, the success of its own brand business has significantly mitigated this |
risk. |
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(ii) Regulatory Framework: |
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IPL hair removal devices are increasingly being classified as medical devices in global markets. The company |
has had significant success in obtaining medical device clearances in certain territories around the world e.g. |
US already. There is however a risk that as territories switch classification of home use IPL devices from 'over |
the counter' to being medical a period of adjustment is required which may adversely affect trading. If this |
were to occur there is likely only a short term effect while the necessary clearances are obtained, the longer |
term outlook would not be effected. |
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Compliance with GDPR |
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(i) There is a risk that the company is not compliant with GDPR with potential for large penalties to be |
imposed. The group has made sure that decision makers and key people in the organisation are aware that |
the law is changing to the GDPR. They appreciate the impact this is likely to have and have identified areas |
that could cause compliance problems under the GDPR. |
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Information Technology |
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The business continues to rely heavily on its IT infrastructure to enable it to function efficiently. A continuing |
policy of appraisal and development ensures we keep pace with this ever changing environment. As a means |
to safeguard the integrity of our data we have systems in place to regularly update and back up all relevant |
information. |
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CYDEN LIMITED (REGISTERED NUMBER: 04470941) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
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Health & Safety, Quality and Environment |
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The business has in place a rigorous and far reaching health & safety policy and is committed to adhering to |
all legislative requirements imposed on it through the various enforcing authorities. |
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The company holds quality management accreditations e.g. ISO13485 and US FDA 21CRF part 820, which |
ensure customers can have confidence in our supply chain management. |
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Future Development |
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The directors are very pleased with the overall results this year and the company expects to continue to grow |
its operations in line with customers demand. |
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ON BEHALF OF THE BOARD: |
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CYDEN LIMITED (REGISTERED NUMBER: 04470941) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
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The directors present their report with the financial statements of the company for the year ended 31 December 2018. |
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DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2018. |
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RESEARCH AND DEVELOPMENT |
The company is currently undertaking research and development to enhance its offerings to customers. The |
directors regard such investment as an integral part of the continuing strength of the business. |
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EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2018 to the date of |
this report. |
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STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial |
statements in accordance with applicable law and regulations. |
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Company law requires the directors to prepare financial statements for each financial year. Under that law |
the directors have elected to prepare the financial statements in accordance with United Kingdom Generally |
Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company |
law the directors must not approve the financial statements unless they are satisfied that they give a true and |
fair view of the state of affairs of the company and of the profit or loss of the company for that period. In |
preparing these financial statements, the directors are required to: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the
company will continue in business. |
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The directors are responsible for keeping adequate accounting records that are sufficient to show and explain |
the company's transactions and disclose with reasonable accuracy at any time the financial position of the |
company and enable them to ensure that the financial statements comply with the Companies Act 2006. They |
are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for |
the prevention and detection of fraud and other irregularities. |
CYDEN LIMITED (REGISTERED NUMBER: 04470941) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
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STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the |
Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps |
that he or she ought to have taken as a director in order to make himself or herself aware of any relevant |
audit information and to establish that the company's auditors are aware of that information. |
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ON BEHALF OF THE BOARD: |
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CYDEN LIMITED |
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Opinion |
We have audited the financial statements of CyDen Limited (the 'company') for the year ended |
31 December 2018 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, |
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). |
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In our opinion the financial statements: |
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give a true and fair view of the state of the company's affairs as at 31 December 2018 and of its profit for
the year then ended; |
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
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- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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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 |
company in accordance with the ethical requirements that are relevant to our audit of the financial statements |
in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in |
accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and |
appropriate to provide a basis for our opinion. |
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Conclusions relating to going concern |
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to |
report to you where: |
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the directors' use of the going concern basis of accounting in the preparation of the financial statements is
not appropriate; or |
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the directors have not disclosed in the financial statements any identified material uncertainties that may
cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
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Other information |
The directors are responsible for the other information. The other information comprises the information in the |
Strategic Report and the Report of the Directors, but does not include the financial statements and our Report |
of the Auditors thereon. |
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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. |
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In connection with our audit of the financial statements, our responsibility is to read the other information and, |
in doing so, consider whether the other information is materially inconsistent with the financial statements or |
our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such |
material inconsistencies or apparent material misstatements, we are required to determine whether there is a |
material misstatement in the financial statements or a material misstatement of the other information. If, |
based on the work we have performed, we conclude that there is a material misstatement of this other |
information, we are required to report that fact. We have nothing to report in this regard. |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
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the information given in the Strategic Report and the Report of the Directors for the financial year for which
the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and the Report of the Directors have been prepared in accordance with applicable
legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CYDEN LIMITED |
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Matters on which we are required to report by exception |
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 Report of the Directors. |
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We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to |
report to you if, in our opinion: |
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adequate accounting records have not been kept, or returns adequate for our audit have not been received
from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
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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. |
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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. |
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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. |
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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 |
CYDEN LIMITED |
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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. |
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for and on behalf of
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Chartered Accountants |
And Statutory Auditors |
Langdon House |
Langdon Road |
SA1 Swansea Waterfront |
Swansea |
SA1 8QY |
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CYDEN LIMITED (REGISTERED NUMBER: 04470941) |
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INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
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2018 | 2017 |
Notes | £ | £ |
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TURNOVER | 3 |
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Cost of sales |
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GROSS PROFIT |
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Administrative expenses | ( |
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2,337,250 | 3,980,259 |
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Other operating income |
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OPERATING PROFIT | 5 |
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Interest receivable and similar income |
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2,506,989 | 4,241,270 |
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Interest payable and similar expenses | 6 | ( |
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PROFIT BEFORE TAXATION |
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Tax on profit | 7 | ( |
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PROFIT FOR THE FINANCIAL YEAR |
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CYDEN LIMITED (REGISTERED NUMBER: 04470941) |
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OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
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2018 | 2017 |
Notes | £ | £ |
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PROFIT FOR THE YEAR |
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OTHER COMPREHENSIVE INCOME |
Conversion of share premium |
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Share capital reclassification |
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Income tax relating to components of
other comprehensive income |
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OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX |
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TOTAL COMPREHENSIVE INCOME
FOR THE YEAR |
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CYDEN LIMITED (REGISTERED NUMBER: 04470941) |
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BALANCE SHEET |
31 DECEMBER 2018 |
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2018 | 2017 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
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Tangible assets | 10 |
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Investments | 11 |
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CURRENT ASSETS |
Stocks | 12 |
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Debtors | 13 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 14 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
year |
15 |
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PROVISIONS FOR LIABILITIES | 19 | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 20 |
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Retained earnings | 21 |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved by the Board of Directors on
behalf by: |
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CYDEN LIMITED (REGISTERED NUMBER: 04470941) |
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STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
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Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
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Balance at 1 January 2017 |
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Changes in equity |
Issue of share capital | ( |
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Dividends | - | ( |
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Total comprehensive income | - |
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Balance at 31 December 2017 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 31 December 2018 |
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CYDEN LIMITED (REGISTERED NUMBER: 04470941) |
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NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
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1. | STATUTORY INFORMATION |
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CyDen Limited is a
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company's registered number and registered office address can be found on the Company Information |
page. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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The company is both a parent and subsidiary undertaking of a small group and as such has taken |
advantage of the exemption available under the Companies Act 2006 to prepare consolidated financial |
statements. These financial statements therefore present information about the company as an |
individual undertaking and not about its group. |
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Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemption in preparing these financial |
statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and |
Republic of Ireland": |
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• | the requirements of Section 7 Statement of Cash Flows. |
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Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 |
'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related |
party transactions with wholly owned subsidiaries within the group. |
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Critical accounting judgements and key sources of estimation uncertainty |
Significant Judgements used by management |
The preparation of the financial statement requires management to make judgement, estimates and |
assumptions that affect the application of polices and reported amounts of assets and liabilities, |
income and expenses. The estimates and associated assumptions are based on historical experience |
and various other factors that are believed to be reasonable under the circumstances, the results of |
which form the basis of making the judgements about carrying values of assets and liabilities that are |
not readily apparent from other sources. Actual results may differ from these estimates. |
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Warranty Returns Provision |
The company provides warranty coverage on our products that varies per customer. The estimated |
warranty costs are accounted for by accruing these costs for each product upon recognition of the |
sale. The estimated warranty costs are based on the cost of the product and the historical level of |
returns received. Actual results may vary from these estimates but they are reviewed on an ongoing |
basis. |
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Depreciation and Amortisation |
Tangible assets are depreciated over their estimated useful lives of 5 years, they are stated at cost |
less accumulated depreciation. Tangible assets are reviewed periodically, and where any asset is no |
longer used by the Cyden the balance is written off to the income statement. |
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Development and software costs are amortised over their estimated useful life of 5 years and Patents |
and licenses are amortised over their estimated useful life of 6 years. They are both stated at cost less |
accumulated amortisation.Intangible assets are reviewed annually, and where future benefits are |
deemed to have ceased or to be in doubt, the balance is written off to the income statement. |
CYDEN LIMITED (REGISTERED NUMBER: 04470941) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
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2. | ACCOUNTING POLICIES - continued |
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Turnover |
Turnover comprises revenue recognised by the company in respect of goods supplied during the year, |
exclusive of Value Added Tax and trade discounts. Turnover is recognised on despatch of the goods |
to the customer. |
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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. |
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Tangible fixed assets |
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Plant and machinery | - |
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Fixtures and fittings | - |
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Computer equipment | - |
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If there is an indication that there has been a significant change in depreciation rate or residual value of |
an asset, the depreciation of that asset is revised prospectively to reflect the new expectations. |
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Cost comprises the purchase price of the asset and expenditure directly attributable to the acquisition |
of the item. |
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A fixed asset is derecognised upon disposal or when no future economic benefits are expected to arise |
from the continued use of the asset. 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 the income statement. |
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Impairment of fixed assets |
The company performs impairment testing where there are any indicators of impairment. Impairment is |
calculated as the difference between the carrying value and the recoverable value of the asset. |
Recoverable value is the higher of net realisable value and estimated value in use at the date the |
impairment loss is recognised. Value in use represents the present value of expected future |
discounted cash flows. If incurred, impairment is recognised immediately in the income statement. |
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Where an impairment loss subsequently reverses, the carrying value of the asset is increased to the |
revised estimate of the recoverable amount, but so that the increased carrying value does not exceed |
the carrying value that would have been determined if no impairment loss had been recognised for the |
asset in prior years. A reversal of an impairment loss is recognised immediately as a credit to the |
income statement. |
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Fixed asset investments |
Fixed asset investments are valued at fair value unless fair value cannot be measured reliably, in |
which case investments are valued at cost less impairment. |
CYDEN LIMITED (REGISTERED NUMBER: 04470941) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
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2. | ACCOUNTING POLICIES - continued |
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Stocks |
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete |
and slow moving stocks. Cost includes all direct costs and, where required, an appropriate proportion |
of fixed and variable overheads. In general, cost is determined on a first in first out basis. |
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Stock is reviewed at each reporting date to determine whether there is any indication of impairment. |
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Financial instruments |
The company enters into basic financial instrument transactions that result in the recognition of |
financial assets and liabilities such as trade and other receivables and payables, amounts due to and |
from related parties. |
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Financial instruments are classified and accounted for according to the substance of the contractual |
arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any |
contract that evidences a residual interest in the assets of the company after deducting all of its |
liabilities. |
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Debt instruments like loans and other receivables and payables are initially measured at present value |
of the future payments and subsequently at amortised cost using the effective interest method. Debt |
instruments that are payable or receivable within one year, typically trade payables or receivables, are |
measured, initially and subsequently, at the undiscounted amount of cash or other consideration |
expected to be paid or received. However, if the arrangements of a short-term instrument constitute a |
financing transaction, like the payment of a trade debt deferred beyond normal business terms or |
financed at a rate of interest that is not a market rate or in case of an outright short-term loan not at |
market rate, the financial asset or liability is measured, initially and subsequently, at the present value |
of future payments discounted at a market rate of interest for a similar debt instrument. |
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Financial assets that are measured at cost and amortised cost are assessed at the end of each |
reporting period for objective evidence of impairment. If objective evidence of impairment is found, an |
impairment loss is recognised in profit or loss. For financial assets measured at amortised cost, the |
impairment loss is measured as the difference between an asset's carrying value and the present |
value of estimated cash flows discounted at the assets original effective interest rate. If a financial |
asset has a variable interest rate, the discount rate for measuring any impairment loss is the current |
effective interest rate determined under the contract. For financial assets measured at cost less |
impairment, the impairment loss is measured as the difference between an asset's carrying amount |
and the best estimate, which is an approximation, of the amount that the group would receive for the |
asset if it were to be sold at the reporting date. |
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Financial assets and liabilities are offset and the net amount recognised in the balance sheet when |
there is an 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. At each reporting date |
non-financial assets not carried at fair value, such as property, plant and equipment are reviewed to |
determine whether there is an indication that an asset may be impaired. If there is an indication of |
possible impairment, the recoverable amount of any asset or group of related assets, which is the |
higher of value in use and the fair value less costs to sell, is estimated and compared with its carrying |
amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its |
recoverable amount and an impairment loss is recognised immediately in profit or loss. |
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If an impairment loss is subsequently reversed, the carrying amount of the asset or group of related |
assets is increased to the revised estimate of its recoverable amount, but not to exceed the amount |
that would have been determined had no impairment loss been recognised for the asset or group of |
related assets in prior periods. A reversal of an impairment loss is recognised immediately in profit or |
loss. |
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CYDEN LIMITED (REGISTERED NUMBER: 04470941) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
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2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, |
except to the extent that it relates to items recognised in other comprehensive income or directly in |
equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been |
enacted or substantively enacted by the balance sheet date. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at |
the balance sheet date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods |
different from those in which they are recognised in financial statements. Deferred tax is measured |
using tax rates and laws that have been enacted or substantively enacted by the year end and that are |
expected to apply to the reversal of the timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable |
that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
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External research and development |
Development costs are capitalised within intangible assets where they can be identified with a specific |
product or project anticipated to produce future benefits, and are amortised on the straight line basis |
the anticipated life of the benefits arising from the completed product or project, which typically is |
deemed to be 5 years. |
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Deferred research and development costs are reviewed annually, and where future benefits are |
deemed to have ceased or to be in doubt, the balance of any related research and development is |
written off to the income statement. Expenditure on product research and development is written off to |
the income statement in the year in which it is incurred. |
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R&D tax credits are recognised on an accruals basis and are included as an income tax credit under |
current assets. |
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Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at |
the balance sheet date. Transactions in foreign currencies are translated into sterling using a monthly |
average exchange rate. If exchange rates fluctuate significantly in the month foreign currencies are |
translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences |
are taken into account in arriving at the operating result. |
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Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the |
company's pension scheme are charged to profit or loss in the period to which they relate. |
CYDEN LIMITED (REGISTERED NUMBER: 04470941) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
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2. | ACCOUNTING POLICIES - continued |
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Deferred income |
Contributions received towards development costs are recognised in the period that development |
expenditure is incurred. |
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Warranty Provision |
The company provides a 3 year warranty to account for the cost of the warranty. A range of 2 - 20% of |
turnover is as provided. Once the product is >3 years old the warranty provision is released. |
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Employee benefits |
The company provides a range of benefits to employees, including annual bonus arrangements, paid |
holiday arrangements and defined benefit and defined contribution pension plans. |
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Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as |
an expense in the period in which the service is received. |
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Debtors |
Short term trade debtors are measured at transaction price, less any impairment. A provision for |
impairment of trade debtors is established when there is objective evidence that the company will not |
be able to collect all amounts due. |
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Creditors |
Short term creditors are measured at the transaction price. Bank loans are measured initially at fair |
value, net of transaction costs, and are measured subsequently at amortised cost using the effective |
interest method. |
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Provisions for liabilities |
Provisions are recognised when the Company has a present obligation (legal or constructive) as a |
result of a past event, it is probable that an outflow of resources embodying economic benefits will be |
required to settle the obligation and a reliable estimate can be made of the amount of the obligation. |
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Functional and presentation currency |
The company's functional and presentational currency is pounds sterling. |
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Going concern |
The financial statements have been prepared on a going concern basis. The directors have considered |
the basis of preparation of the financial statements and are satisfied that the company has adequate |
resources to continue in operational existence for the foreseeable future based on budgets and cash |
flow forecasts for at least 12 months from the date of signing of the financial statements. |
CYDEN LIMITED (REGISTERED NUMBER: 04470941) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
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3. | TURNOVER |
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The turnover and profit before taxation are attributable to the one principal activity of the company. |
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An analysis of turnover by geographical market is given below: |
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2018 | 2017 |
£ | £ |
United Kingdom |
|
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Europe |
|
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United States of America |
|
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Asia |
|
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Australia | - | 1,821,355 |
Middle East | 236,263 | 34,291 |
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4. | EMPLOYEES AND DIRECTORS |
2018 | 2017 |
£ | £ |
Wages and salaries |
|
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Social security costs |
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Other pension costs |
|
|
|
|
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The average number of employees during the year was as follows: |
2018 | 2017 |
|
Clinical | 4 | 4 |
CEO | 1 | 1 |
Finance | 6 | 2 |
Operations | 6 | 6 |
Quality | 6 | 3 |
Development | 11 | 11 |
Research | 1 | 1 |
Sales | 3 | 2 |
Marketing | 5 | 6 |
Factory | 5 | - |
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|
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Included in creditors are pension contributions of £2,145 (2017: £377). |
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2018 | 2017 |
£ | £ |
Directors' remuneration |
|
|
Directors' pension contributions to money purchase schemes |
|
|
CYDEN LIMITED (REGISTERED NUMBER: 04470941) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
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4. | EMPLOYEES AND DIRECTORS - continued |
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The number of directors to whom retirement benefits were accruing was as follows: |
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Money purchase schemes |
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|
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Information regarding the highest paid director is as follows: |
2018 | 2017 |
£ | £ |
Emoluments etc |
|
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Pension contributions to money purchase schemes |
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5. | OPERATING PROFIT |
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The operating profit is stated after charging: |
|
2018 | 2017 |
£ | £ |
Depreciation - owned assets |
|
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Patents and licences amortisation |
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Development costs amortisation |
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Computer software amortisation |
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Auditors' remuneration |
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Auditors' remuneration for non audit work |
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Directors pension |
|
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Foreign exchange losses |
|
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Research & development expenses |
|
|
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6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2018 | 2017 |
£ | £ |
Bank loan interest |
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Other Interest |
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Exchange rate variance |
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7. | TAXATION |
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Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2018 | 2017 |
£ | £ |
Deferred tax |
|
|
Tax on profit |
|
|
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Tax effects relating to effects of other comprehensive income |
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There were no tax effects for the year ended 31 December 2018. |
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CYDEN LIMITED (REGISTERED NUMBER: 04470941) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
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7. | TAXATION - continued |
2017 |
Gross | Tax | Net |
£ | £ | £ |
Conversion of share premium |
|
- | 20,386,095 |
Share capital reclassification |
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- | 231,101 |
20,617,196 | - | 20,617,196 |
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Factors that may affect future current and total tax charges |
Reductions in the rate of corporation tax to 19% (effective from 1 April 2017) and to 18% (effective 1 |
April 2020) were enacted on 18 November 2015. Subsequently a further reduction in the rate, to 17%, |
from April 2020 was enacted on 15 September 2016. The deferred tax assets/liabilities at 31 |
December 2018 have been calculated at the rate of 17% on the expectation that the associated timing |
differences will not reverse prior to April 2020. |
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8. | DIVIDENDS |
2018 | 2017 |
£ | £ |
Ordinary 0.1p shares of 0.1p each |
Interim | - | 2,900,000 |
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9. | INTANGIBLE FIXED ASSETS |
Patents |
and | Development | Computer |
licences | costs | software | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2018 |
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Additions |
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At 31 December 2018 |
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AMORTISATION |
At 1 January 2018 |
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Amortisation for year |
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At 31 December 2018 |
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NET BOOK VALUE |
At 31 December 2018 |
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|
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At 31 December 2017 |
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CYDEN LIMITED (REGISTERED NUMBER: 04470941) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
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10. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and | Computer |
machinery | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2018 |
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Additions |
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At 31 December 2018 |
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DEPRECIATION |
At 1 January 2018 |
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Charge for year |
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At 31 December 2018 |
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NET BOOK VALUE |
At 31 December 2018 |
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At 31 December 2017 |
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11. | FIXED ASSET INVESTMENTS |
Unlisted |
investments |
£ |
COST |
At 1 January 2018 |
and 31 December 2018 |
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NET BOOK VALUE |
At 31 December 2018 |
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At 31 December 2017 |
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The company's investments at the Balance Sheet date in the share capital of companies include the |
following: |
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Registered office: |
Nature of business:
|
% |
Class of shares: | holding |
|
|
2018 | 2017 |
£ | £ |
Aggregate capital and reserves |
|
|
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The company's investment is the 100% holding of the ordinary share capital of MC500 Limited, a |
dormant company. |
CYDEN LIMITED (REGISTERED NUMBER: 04470941) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
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12. | STOCKS |
2018 | 2017 |
£ | £ |
Stocks |
|
|
Work-in-progress |
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Finished goods |
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13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2018 | 2017 |
£ | £ |
Trade debtors |
|
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Amounts owed by group undertakings |
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Other debtors |
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|
VAT |
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Prepayments and accrued income |
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14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2018 | 2017 |
£ | £ |
Bank loans and overdrafts (see note 16) |
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Trade creditors |
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Amounts owed to group undertakings |
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Social security and other taxes |
|
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Other creditors |
|
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Deferred income |
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Accrued expenses |
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15. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
2018 | 2017 |
£ | £ |
Bank loans (see note 16) |
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16. | LOANS |
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An analysis of the maturity of loans is given below: |
|
2018 | 2017 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
|
|
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Amounts falling due between one and two years: |
Bank loans - 1-2 years |
|
|
CYDEN LIMITED (REGISTERED NUMBER: 04470941) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
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16. | LOANS - continued |
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The bank loan has interest charged on a floating rate basis, under which the interest rate will never be |
less than 4.45% per annum. Repayments are made monthly over 36 months. |
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17. | LEASING AGREEMENTS |
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Minimum lease payments under non-cancellable operating leases fall due as follows: |
2018 | 2017 |
£ | £ |
Within one year |
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Between one and five years |
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In more than five years |
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18. | SECURED DEBTS |
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The following secured debts are included within creditors: |
|
2018 | 2017 |
£ | £ |
Bank loans |
|
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Amounts owed to group | 3,222,723 | 3,193,003 |
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Amounts owed to group are interest free and repayable on demand. |
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Bank Securities |
Fixed and floating charge over the undertaking and all property and assets present and future dated |
28/09/2011. |
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Amounts owed to group undertakings |
A fixed and floating charge over all intellectual property rights now or in the future belonging to the |
company or undertaking of the company. |
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19. | PROVISIONS FOR LIABILITIES |
2018 | 2017 |
£ | £ |
Deferred tax | 41,255 | - |
Other provisions | 713,798 | 1,068,454 |
|
|
CYDEN LIMITED (REGISTERED NUMBER: 04470941) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
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19. | PROVISIONS FOR LIABILITIES - continued |
|
Warranty |
Deferred | & liability |
tax | provision |
£ | £ |
Balance at 1 January 2018 |
|
|
Charge/(credit) to Income Statement during year |
|
( |
) |
Balance at 31 December 2018 |
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|
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Other provisions represent warranty and liability claims. Warranty costs run over a three year period |
from the point of sale and are utilised on expiry of the period. |
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Deferred taxation relates solely to the excess of capital allowances over depreciation. |
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20. | CALLED UP SHARE CAPITAL |
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Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2018 | 2017 |
value: | £ | £ |
25,677,901 | Ordinary 0.1p | 0.1p | 25,678 | 25,678 |
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Each share is entitled to: |
- One vote in any circumstances; |
- Pari passu to dividend or any other distribution; and |
- full participation in capital distributions. |
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21. | RESERVES |
Retained |
earnings |
£ |
|
At 1 January 2018 |
|
Profit for the year |
|
At 31 December 2018 |
|
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Called up share capital - represents the nominal value of shares that have been issued. |
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Retained earnings - included all current and prior period retained profits and losses. |
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22. | ULTIMATE PARENT COMPANY |
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Ipulse Limited is regarded by the directors as being the company's ultimate parent company. |
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23. | RELATED PARTY DISCLOSURES |
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During the year the company paid £1,006,229 to key management personnel. |
CYDEN LIMITED (REGISTERED NUMBER: 04470941) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
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24. | POST BALANCE SHEET EVENTS |
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There were no events after the reporting period to the date the accounts were approved that are |
material for disclosure in the financial statements. |
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25. | ULTIMATE CONTROLLING PARTY |
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Richard Koch is the ultimate controlling party by virtue of holding more than 50% of the iPulse Limited |
share capital. |