Company Registration No. 05696673 (England and Wales)
Forsite Diagnostics Limited
Annual Report And Financial Statements
For The Year Ended 30 June 2021
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
COMPANY INFORMATION
Directors
Dr C W Hand
Mr C H F Yates
Mrs M Ross
(Appointed 26 January 2021)
Secretary
Mr S A Page
Company number
05696673
Registered office
York Biotech Campus
Sand Hutton
York
YO41 1LZ
Auditor
BDO LLP
6th Floor
1 City Square
Leeds
LS1 2DP
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
CONTENTS
Page
Directors' report
1 - 2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Statement of financial position
8
Statement of changes in equity
9
Notes to the financial statements
10 - 26
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2021
- 1 -
The directors present their 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
developing and manufacturing lateral flow devices
for the diagnostics sector.
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 7.
No ordinary dividends were paid
(2020 - £nil)
. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr S A Page
(Resigned 26 January 2021)
Dr C W Hand
Mr C H F Yates
Mrs M Ross
(Appointed 26 January 2021)
Going concern
The Directors have considered the principal risks and uncertainties facing the business, along with the 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 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.
T
he above factors represent a material uncertainty that may cast significant doubt on the Group’s ability to continue as a going concern
.
In case the receivable in the parent company remains unpaid for an extended period, the Directors have looked at alternative sources of funding and have received an initial offer of funding support from a number of existing shareholders, although this is non-binding at this stage. The Directors are of the opinion that this indication of support provides further comfort that the Group, and therefore the company, will have access to the funds that will permit it to remain a going concern, and as such the Directors continue to adopt a going concern basis for the preparation of these financial statements.
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
- 2 -
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 an Annual General Meeting which is due to be held on 24 December 2021.
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
17 December 2021
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2021
- 3 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), comprising FRS 101. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards, comprising FRS 101 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; and
-
not present a strategic report on the grounds that the company would qualify as small apart from being a member of an ineligible group.
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.
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF FORSITE DIAGNOSTICS LIMITED
- 4 -
Opinion
We have audited the financial statements of Foresite Diagnostics 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 101 applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion:
-
the financial statements give a true and fair view of the state of the Company’s affairs as at 30 June 2021 and its profit for the year then ended;
-
the financial statements have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, comprising FRS101; and
-
the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.
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 related 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, is dependent on recovery of a large recoverability 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.
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF FORSITE DIAGNOSTICS LIMITED
- 5 -
O
ther Companies 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 directors
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:
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF FORSITE DIAGNOSTICS LIMITED
- 6 -
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.
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: https://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
17 December 2021
Leeds
United Kingdom
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2021
- 7 -
2021
2020
as restated*
unaudited
Notes
£
£
Revenue
3
11,097,241
2,237,288
Cost of sales
(7,736,451)
(981,172)
Gross profit
3,360,790
1,256,116
Administrative expenses
(4,054,061)
(1,639,213)
Other operating income
46,883
91,120
EBITDA
(646,388)
(291,977)
Depreciation
(218,471)
(30,181)
Operating loss
4
(864,859)
(322,158)
Finance costs
7
(280,208)
(125,381)
Loss before taxation
(1,145,067)
(447,539)
Tax (charge)/credit
8
(8,908)
15,914
Total comprehensive loss for the year
(1,153,975)
(431,625)
The income statement has been prepared on the basis that all operations are continuing operations.
The accompanying notes on pages 10 - 26 form an integral part of these financial statements.
*The prior period adjustment is detailed in note 25.
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
STATEMENT OF FINANCIAL POSITION
AS AT
30 JUNE 2021
30 June 2021
- 8 -
2021
2020
unaudited
Notes
£
£
£
£
Fixed assets
Intangible assets
9
-
-
Property, plant and equipment
10
4,605,583
1,161,017
4,605,583
1,161,017
Current assets
Inventories
11
7,521,578
671,024
Trade and other receivables
12
1,982,957
1,758,508
Cash and cash equivalents
1,644,493
552,683
11,149,028
2,982,215
Creditors: amounts falling due within one year
Trade and other payables
14
14,764,712
3,067,364
Taxation and social security
93,326
34,382
14,858,038
3,101,746
Net current liabilities
(3,709,010)
(119,531)
Total assets less current liabilities
896,573
1,041,486
Creditors: amounts falling due after one year
Borrowings
13
4,539,450
3,659,242
(4,539,450)
(3,659,242)
Net liabilities
(3,642,877)
(2,617,756)
Capital and reserves
Called up share capital
18
2,400
2,400
Share premium account
19
1,738,365
1,738,365
Capital contribution reserve
121,847
Retained earnings
(5,505,489)
(4,358,521)
Total capital and reserves
(3,642,877)
(2,617,756)
The financial statements on pages 8 to 24 were approved by the board of directors and authorised for issue on
17 December 2021
17 December 2021
and are signed on its behalf by:
Mrs M Ross
Director
Company Registration No. 05696673
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2021
- 9 -
Share capital
Share premium account
Capital contribution reserve
Retained earnings
Total
£
£
£
£
£
As restated for the period ended 30 June 2020:
Balance at 1 July 2019 (unaudited)
2,400
1,738,365
-
(3,926,896)
(2,186,131)
Year ended 30 June 2020:
Loss and total comprehensive income for the year (unaudited)
-
-
-
(431,625)
(431,625)
Balance at 30 June 2020 (unaudited)
2,400
1,738,365
(4,358,521)
(2,617,756)
Year ended 30 June 2021:
Loss and total comprehensive income for the year
-
-
-
(1,153,975)
(1,153,975)
Share based payment expense
-
-
128,854
-
128,854
Forfeiture of share options
-
-
(7,007)
7,007
-
Balance at 30 June 2021
2,400
1,738,365
121,847
(5,505,489)
(3,642,877)
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2021
- 10 -
1
Accounting policies
Company information
Forsite Diagnostics 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.
The company's principal activity is
developing and manufacturing lateral flow devices
for the diagnostics sector.
1.1
Accounting convention
The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with the Companies Act 2006 as applicable to companies using FRS 101.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £
1
.
The financial statements have been prepared on the historical cost basis. The principal accounting policies adopted are set out below.
As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS:
-
the requirements of IFRS 7 Financial Instruments : Disclosure, on the grounds that equivalent disclosures for financial instruments are presented in the group accounts of Abingdon Health Plc;
-
the requirements of IAS 7 Statement of Cash Flows to present a statement of cash flows;
-
the requirements of IAS 24 Related Party Disclosures to disclose related party transactions and balances between two or more members of a group;
-
the requirements of paragraphs 62, B64(d), B64(e), B64(g), B64(h), B64(j) to B64(m), B64(n)(ii), B64(o)(ii), B64(q)(ii), B66 and 367 of IFRS 3 ' Business Combinations ', for which equivalent disclosures are included in the group accounts of Abingdon Health Plc;
-
the requirement in paragraph 38 of IAS 1 ' Presentation of Financial Statements ' to present comparative information in respect of:
-
(i) paragraph 79 (a)(iv) of IAS 1;
-
(ii) paragraph 73 (e) of IAS 16 ' Property , Plant and Equipment '; and
-
(iii) paragraph 118 (e) of IAS 38 ' Intangible Assets '.
-
the requirements of paragraphs 10 (d) , 10(f) , 39 (c) and 134-136 of IAS 1 ' Presentation of Financial Statements; and
-
the requirements of ' paragraphs 134(d)-134 (f) and 135 (c)-35(e) of IAS 36 ' Impairment of Assets
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 23.
1.2
Going concern
The Directors have considered the principal risks and uncertainties facing the business, along with the 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
true
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 recovered, however the exact timing of this is uncertain as at the date of approval of the financial statements
.
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
1
Accounting policies
(Continued)
- 11 -
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.
In case the receivable in the parent company remains unpaid for an extended period, the Directors have looked at alternative sources of funding and have received an initial offer of funding support from a number of existing shareholders, although this is non-binding at this stage. The Directors are of the opinion that this indication of support provides further comfort that the Group, and therefore the company, will have access to the funds that will permit it to remain a going concern, and as such the Directors continue to adopt a going concern basis for the preparation of these financial statements.
1.3
Revenue
The
company
applies IFRS 15 ' Revenue from contracts with customers '. Under IFRS 15, the
company
applies the 5 - step method to identify contracts with its customers, determine performance obligations arising under those contracts, set an expected transaction price, allocate that price to the performance obligations, and then recognises revenues as and when those obligations are satisfied.
Product sales
and contract manufacturing
Goods are supplied under contracts where the key performance criteria for
the company
are the manufacturing and delivery of the products. The fair value of the revenue, being the price per unit net of volume discounts and sales taxes, are recognised as revenue at the point of transfer of control to the customer, which is typically on dispatch from the
company
’s premises. Product sales include a range of rights to return, which are accrued as appropriate where expected to be utilised by the customer.
Contract
development
Contract Development services typically represent a rate for a period of work with demonstrable milestones. Where milestones are met, these will typically trigger an additional stage of work, or alternatively will become a stop point for the contract. This milestone is the risk of the end customer. The
company
therefore breaks down these milestone payments and recognises revenue over time based on a proportion of completion basis, using its judgement as to the stage of completion of the contract through to the point of completion of that milestone.
Although Contract Development services typically cover a period of several weeks or months, the pricing of this is typically set on a day rate as opposed to any milestone or percentage of completion approach. As such, the performance obligations are considered to be availability of staff to fulfil each day’s work, as opposed to the overall contract qualifying as a long-term contract.
Revenues are therefore recognised at a point in time on the day that each unit of contract development is provided, or the day that a member of staff have been utilised, at the day rate agreed on that particular contract. Where contracts include significant uncertainties as to the technical feasibility of outcome, the revenue recognition is deferred until such time as the
company
has reasonable certainty as to the likely success of the development work. As the contracts typically involve the transfer of knowledge, and as any intellectual property created is owned by the customer, the Directors do not consider that there is any deferred element to the provision of staff.
A contract liability does, however, arise where services are invoiced in advance of performance, or where a customer makes payment in advance of an invoice being raised and work being performed. The amount is released to the profit or loss in subsequent periods in reference to utilisation of staff at the prevailing day rate. A contract receivable arises where services are performed, and a sales invoice is not raised before the reporting period end.
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
1
Accounting policies
(Continued)
- 12 -
1.4
Intangible 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:
Intellectual property 10 - 25% straight line
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:
Leasehold improvements
Life of the lease
Plant and equipment
20% - 33% straight line
Computers
33% straight line
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 recognised in the
income statement
.
1.6
Impairment of tangible and intangible assets
At each reporting end date, the
company
reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
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.
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
1
Accounting policies
(Continued)
- 13 -
1.7
Inventories
Inventories
are stated at the lower of cost and
net realisable value
. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the
inventories
to their present location and condition.
Inventories
held for distribution at no or nominal consideration are measured
at
the lower of cost and replacement cost,
adjusted where applicable for any loss of service potential.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
1.8
Cash and cash equivalents
Cash and cash equivalents 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.
1.9
Financial assets
Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.
At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.
Financial assets at fair value through profit or loss
When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognized initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.
Financial assets held at amortised cost
Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.
Financial assets at fair value through other comprehensive income
Debt instruments are classified as financial assets measured at fair value through other comprehensive income where the financial assets are held within the company’s business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
A debt instrument measured at fair value through other comprehensive income is recognised initially at fair value plus transaction costs directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognised through other comprehensive income are directly transferred to profit or loss when the debt instrument is derecognised.
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
1
Accounting policies
(Continued)
- 14 -
The company has made an irrevocable election to recognize changes in fair value of investments in equity instruments through other comprehensive income, not through profit or loss. A gain or loss from fair value changes will be shown in other comprehensive income and will not be reclassified subsequently to profit or loss. Equity instruments measured at fair value through other comprehensive income are recognized initially at fair value plus transaction cost directly attributable to the asset. After initial recognition, each asset is measured at fair value, with changes in fair value included in other comprehensive income. Accumulated gains or losses recognized through other comprehensive income are directly transferred to retained earnings when the equity instrument is derecognized or its fair value substantially decreased. Dividends are recognized as finance income in profit or loss.
Impairment of financial assets
Financial assets, other than those
measured
at fair value through profit or 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 of the investment have been affected.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
1.10
Financial liabilities
The company recogni
s
es financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either
'
financial liabilities at fair value through profit or loss
'
or
'
other financial liabilities
'
.
Financial liabilities at fair value through profit or loss
Financial liabilities are classified as
measured at
fair value through profit or loss when the financial liability is held for trading. A financial liability is classified as held for trading if:
-
it has been incurred principally for the purpose of
repurchasing it in the near term, or
-
on initial recognition it is part of a portfolio of identified financial instruments that the
manages together and has a recent actual pattern of short-term profit taking, or
-
it is a derivative that is not
designated and effective hedging instrument.
Financial liabilities at fair value through profit or loss are stated at fair value with any gains or losses arising on remeasurement recognised in profit or
loss
.
Other financial liabilities
Other financial liabilities, including borrowings
, t
rade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs
directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method
.
For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the
company’s
obligations are discharged, cancelled, or they expire.
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
1
Accounting policies
(Continued)
- 15 -
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Share capital represents the nominal value of shares that have been issued. Share premium represents the excess consideration received over share capital upon the sale of shares, less any incidental costs of issue.
Retained earnings include all current and prior period retained earnings.
The capital contribution
reserve relates to the company's share of the fair value expense imposed on the company in respect of options granted over the equity shares of the company's parent Abingdon Health Plc.
1.12
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 is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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.
1.13
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
inventories
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.
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
1
Accounting policies
(Continued)
- 16 -
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Share-based payments
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the
Black-Scholes
model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.
Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.
1.16
Grants
Government grants are recognised when there is reasonable assurance that the grant conditions will be met and the grants will be received.
1.17
Foreign exchange
Transactions in currencies other than
pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.18
Research and development expenditure credits
Where the
company
receives research and development expenditure credits
(
"
RDEC
"
) the
se are
account
ed
for
a
s government grant income within operating income as it more closely aligns with grant income as opposed to a taxation credit. The income is recognised on the performance model under IAS 20 Accounting for Government Grants and Disclosures '.
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
- 17 -
2
Critical accounting estimates and judgements
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
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 and material uncertainty surrounding the recoverability of a trade receivable recognised in the parent company, Abingdon Health Plc. Further explanation of this judgement is provided in note 1.2.
Revenue recognition
In line with IFRS 15 management are required to determine appropriate revenue recognition points for all revenue streams. Disclosure of the key assumptions and judgements on this is provided in note 1.3. Where multiple contracts are entered into with a single counterparty any instalment payments are not considered to be a key indicator of the satisfaction of a performance obligation, although linked contracts with a counterparty are considered in conjunction when identifying the appropriate point for revenue recognition.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:
Inventory valuation
The company converts raw materials to finished goods. Stock values include any costs such as labour and overheads attributable to generating finished goods, as management believe this is the most suitable costing method to take into account the matching concept of accounting.
Share based payments
The determination of the fair values of the EMI options and SAYE scheme options have been made by reference to the Black-Scholes model.
The expense associated with these options is adjusted to reflect the anticipated staff attrition rates over the life of each scheme.
The company is not itself party to such options, however it is the employer for staff who receive share options in the parent company, Abingdon Health Plc, and takes the benefit of services provided by those employees.
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
- 18 -
3
Revenue
2021
2020
unaudited
£
£
Revenue analysed by class of business
Contract manufacturing
1,593,858
717,165
Contract development
1,508,703
1,207,191
Product sales
7,994,680
312,932
11,097,241
2,237,288
2021
2020
unaudited
£
£
Other revenue
Research and development expenditure credit
46,883
91,120
2021
2020
unaudited
£
£
Revenue analysed by geographical market
United Kingdom
6,155,538
1,199,310
Europe
1,481,058
747,912
USA & Canada
3,105,814
257,627
Rest of the World
354,831
32,439
11,097,241
2,237,288
4
Operating loss
2021
2020
unaudited
£
£
Operating loss for the year is stated after charging/(crediting):
Exchange (gains)/losses
(27,743)
8,981
Research and development costs
503,296
31,828
Government grants
(91,120)
Depreciation of property, plant and equipment
218,471
30,181
Cost of inventories recognised as an expense
4,821,726
639,002
Write downs of inventories recognised as an expense
531,129
Share-based payments
128,854
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.
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
- 19 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
unaudited
Number
Number
Production
92
19
Research
20
13
Management & administration
3
2
Total
115
34
Their aggregate remuneration comprised:
2021
2020
unaudited
£
£
Wages and salaries
4,580,916
1,351,862
Social security costs
288,096
94,935
Pension costs
92,799
41,772
4,961,811
1,488,569
The directors of the company are remunerated through the parent company, Abingdon Health Plc.
7
Finance costs
2021
2020
unaudited
£
£
Interest on financial liabilities measured at amortised cost:
Interest payable to group undertakings
280,208
125,381
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
- 20 -
8
Taxation
2021
2020
unaudited
£
£
Current tax
UK corporation tax on profits for the current period
8,908
-
Adjustments in respect of prior periods
-
(15,914)
Total UK current tax
8,908
(15,914)
The charge for the year can be reconciled to the loss per the income statement as follows:
2021
2020
unaudited
£
£
Loss before taxation
(1,145,067)
(447,539)
Expected tax credit based on a corporation tax rate of 19.00% (2020: 19.00%)
(217,563)
(85,032)
Income not taxable
86
Unutilised tax losses carried forward
582,963
136,298
Effect of change in UK corporation tax rate
(273,017)
(58,380)
Research and development tax credit
8,908
(23,640)
Share based payment charge
(96,223)
-
Other
3,754
14,840
Taxation charge/(credit) for the year
8,908
(15,914)
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. Deferred tax balances at the reporting date are therefore measured at
25
% (20
20
- 1
9
%)
.
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
- 21 -
9
Intangible fixed assets
Intellectual property
£
Cost
At 30 June 2020 (unaudited)
17,293
At 30 June 2021
17,293
Amortisation and impairment
At 30 June 2020 (unaudited)
17,293
At 30 June 2021
17,293
Carrying amount
At 30 June 2021
At 30 June 2020
10
Property, plant and equipment
Leasehold improvements
Plant and equipment
Computers
Total
£
£
£
£
Cost
At 30 June 2020 (unaudited)
16,001
2,126,290
14,695
2,156,986
Additions
3,797,002
3,797,002
Disposals
(133,965)
(133,965)
At 30 June 2021
16,001
5,789,327
14,695
5,820,023
Accumulated depreciation and impairment
At 30 June 2020 (unaudited)
16,001
965,273
14,695
995,969
Charge for the year
218,471
218,471
At 30 June 2021
16,001
1,183,744
14,695
1,214,440
Carrying amount
At 30 June 2021
4,605,583
4,605,583
At 30 June 2020
1,161,017
1,161,017
Included within plant & machinery are assets under construction with value £2,577,646 (2020 - £844,159). The assets are not depreciated until brought into use.
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
- 22 -
11
Inventories
2021
2020
unaudited
£
£
Raw materials
4,136,882
648,454
Work in progress
3,154,961
16,308
Finished goods
229,735
6,262
7,521,578
671,024
I
nventories comprise of products, which are not generally subject to rapid obsolescence on account of technological, deterioration in condition or market trends. Consequently, management considers that there is little risk of significant adjustments to the
company
’s inventory assets within the next financial year except for on AbC-19TM Tests and associated components. The
company
has recognised a total provision of £
206,099
(2020 - £nil) against its inventories.
12
Trade and other receivables
2021
2020
unaudited
£
£
Trade receivables
1,380,054
1,437,419
Provision for expected credit losses
(8,400)
-
1,371,654
1,437,419
Corporation tax recoverable
37,975
107,034
VAT recoverable
-
186,707
Amounts owed by fellow group undertakings
25,939
Other receivables
121,447
-
Prepayments
27,808
27,348
Contract assets
398,134
-
1,982,957
1,758,508
Expected credit losses for the following 12 months have been estimated in accordance with IFRS 9 'Financial Instruments'. The current year expected credit losses have been adjusted to reflect credit risks outstanding at the current reporting period date. This has been determined by reference to past default experience and known issues. Write offs are made when the irrecoverable amount becomes certain. The Directors consider that the carrying amount of trade and other receivables approximates to their fair value.
Contract
assets
have been calculated in accordance with IFRS 15 'Revenue from Contracts with Customers'.
Included within
contract assets
is the recharge of staff, materials, and property, plant and equipment purchased on behalf of the parent company, Abingdon Health Plc, with total value £372,609 (2020 - £nil).
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
- 23 -
13
Borrowings
Non-current
2021
2020
unaudited
£
£
Borrowings held at amortised cost:
Loans from parent undertakings
4,539,450
3,659,242
The interest rate on the loan with Abingdon Health Plc, the company's ultimate parent, is 8% per annum.
14
Trade and other payables
2021
2020
unaudited
£
£
Trade payables
3,288,097
925,643
Amount owed to parent undertaking
10,810,733
1,920,760
Accruals and contract liabilities
640,691
220,961
Other payables
25,191
-
14,764,712
3,067,364
Included with accruals and contract liabilities is £56,004 (2020 - £64,166) relating to deferred revenues, calculated in accordance with IFRS 15
'Revenue from Contracts with Customers'
. The amount of deferred revenues relating to the prior year has been fully released in the current financial year.
The amounts owed to parent undertaking primarily represent amounts advanced to purchase inventories related to the parent company's government contracts. The loan has no fixed repayment terms but there is a general agreement that this will be repaid when inventories are converted into cash. The Directors at present have no clarity over the timing of this, and as such the loan has been presented as due within one year.
15
Deferred taxation
2021
2020
unaudited
£
£
Deferred tax liabilities
131,953
12,133
Deferred tax assets
(131,953)
(12,133)
-
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
15
Deferred taxation
(Continued)
- 24 -
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.
Accelerated capital allowances
Tax losses
Total
£
£
£
Deferred tax balance at 1 July 2019
Deferred tax movements in prior year
Charge/(credit) to profit or loss
10,856
47,524
58,380
Effect of change in tax rate - profit or loss
1,277
(59,657)
(58,380)
Deferred tax liability/(asset) at 1 July 2020
12,133
(12,133)
Deferred tax movements in current year
Charge/(credit) to profit or loss
88,151
184,866
273,017
Effect of change in tax rate - profit or loss
31,669
(304,686)
(273,017)
Deferred tax liability/(asset) at 30 June 2021
131,953
(131,953)
The company has estimated tax losses of £
4,550,000
(2020 - £
2,919,000
) 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 £
1,138,000
(2020 - £
730
,000).
16
Retirement benefit schemes
Defined contribution schemes
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
The total costs charged to income in respect of defined contribution plans is £92,799 (2020 - £41,772).
At the year end there is a pension creditor of £19,755 (2020 - £7,221).
17
Share-based payment transactions
The company has recognised the following expense in the year in respect of share-based payments:
2021
2020
unaudited
£
£
Expenses
Related to equity settled share based payments
128,854
-
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
17
Share-based payment transactions
(Continued)
- 25 -
The fair value expense relates to options granted to employees of the company but are for issue of shares in Abingdon Health Plc, the company's immediate and ultimate parent; accordingly the company has taken advantage of the disclosure exemptions under FRS 101 not to present this information.
The capital contribution
reserve relates to the company's share of the fair value expense imposed on the company in respect of options granted over the equity shares of the company's parent Abingdon Health Plc.
Amounts transferred from the reserve into retained profits represent the forfeit of share options that will not vest.
18
Share capital
2021
2020
2021
2020
unaudited
unaudited
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 0.1p each
2,400,000
2,400,000
2,400
2,400
2,400,000
2,400,000
2,400
2,400
19
Share premium account
2021
2020
unaudited
£
£
At the beginning and end of the year
1,738,365
1,738,365
20
Contingent liabilities
At 30 June 2021 the
company
had contracted for capital commitments of approximately £0.8 million (2020 - £1.7 million). These amounts have not been reflected in the financial statements.
The company is not party to any contingent liabilities or guarantees as at the current or comparative year end.
21
Events after the reporting date
The
parent 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.
On 1 December 2021 the parent company, Abingdon Health Plc, made an announcement of fundraising regarding the Open Offer of up to 4 million Open Offer Shares in the parent company at the issue price of 25p per Open Offer Share to raise up to approximately £1 million (before expenses).
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.
FORSITE DIAGNOSTICS LIMITED
Forsite Diagnostics Limited
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2021
- 26 -
22
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel, including directors, is set out below in aggregate for each of the categories specified in IAS 24
Related Party Disclosures
.
Other information
The company has taken advantage of the disclosure exemptions conferred by FRS 101 to not disclose related party transactions and balances where relevant group companies are all wholly owned by the group headed by Abingdon Health Plc. Details of the outstanding balances at the year end are given in notes 12 and 14.
23
Controlling party
The company's immediate parent company is Abingdon Health P
lc
, a company registered in England and Wales
.
The ultimate parent company and controlling party is Abingdon Health P
lc
, a company incorporated in England and Wales with registered office York Biotech Campus, Sand Hutton, York,
YO41 1LZ. Abingdon Health P
lc
is the smallest and largest group into which Forsite Diagnostics Limited is consolidated.
24
Transition adjustments
On adoption of FRS 101 there were no transitional adjustments.
25
Prior period adjustment
During the current period the directors have taken the decision to reclassify certain expenditure which had previously been shown within administrative expenditure to cost of sales as they believe this more accurately represents the nature of the costs incurred. These items reflect staff used in manufacturing of products, and the costs of rental for premises space used for manufacturing. The adjustments have had no impact on reported profits and are a reallocation only.
The following adjustment has been made to the prior periods filed accounts:
Year to 30 June 2020
Previously reported
Adjustment
As restated
£
£
£
Cost of sales
(639,002)
(342,170)
(981,172)
Gross profit
1,598,286
(342,170)
1,256,116
Administrative expenses
(1,981,383)
342,170
(1,639,213)
Other income
91,120
-
91,120
Depreciation
(30,181)
-
(30,181)
Operating loss
(322,158)
-
(322,158)
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2021-06-30
05696673
2020-06-30
05696673
core:LeaseholdImprovements
core:LeasedAssetsHeldAsLessee
2021-06-30
05696673
core:PlantMachinery
2021-06-30
05696673
core:ComputerEquipment
2021-06-30
05696673
core:LeaseholdImprovements
core:LeasedAssetsHeldAsLessee
2020-06-30
05696673
core:PlantMachinery
2020-06-30
05696673
core:ComputerEquipment
2020-06-30
05696673
core:WithinOneYear
2021-06-30
05696673
core:WithinOneYear
2020-06-30
05696673
core:CurrentFinancialInstruments
2021-06-30
05696673
core:CurrentFinancialInstruments
2020-06-30
05696673
core:CurrentFinancialInstruments
core:WithinOneYear
2021-06-30
05696673
core:CurrentFinancialInstruments
core:WithinOneYear
2020-06-30
05696673
core:Non-currentFinancialInstruments
2021-06-30
05696673
core:Non-currentFinancialInstruments
2020-06-30
05696673
core:ShareCapital
2021-06-30
05696673
core:ShareCapital
2020-06-30
05696673
core:SharePremium
2021-06-30
05696673
core:SharePremium
2020-06-30
05696673
core:OtherReservesSubtotal
2021-06-30
05696673
core:OtherReservesSubtotal
2020-06-30
05696673
core:RetainedEarningsAccumulatedLosses
2021-06-30
05696673
core:RetainedEarningsAccumulatedLosses
2020-06-30
05696673
core:ShareCapitalOrdinaryShares
2021-06-30
05696673
core:ShareCapitalOrdinaryShares
2020-06-30
05696673
core:FinancialInstrumentsFairValueThroughProfitOrLoss
2020-07-01
2021-06-30
05696673
core:Held-to-maturityFinancialAssets
2020-07-01
2021-06-30
05696673
core:Available-for-saleFinancialAssets
2020-07-01
2021-06-30
05696673
core:FinancialInstrumentsDesignatedFairValueThroughProfitOrLoss
2020-07-01
2021-06-30
05696673
core:UKTax
2020-07-01
2021-06-30
05696673
core:UKTax
2019-07-01
2020-06-30
05696673
core:CopyrightsPatentsTrademarksServiceOperatingRights
2020-06-30
05696673
core:CopyrightsPatentsTrademarksServiceOperatingRights
2021-06-30
05696673
core:CopyrightsPatentsTrademarksServiceOperatingRights
2020-06-30
05696673
core:Goodwill
2020-06-30
05696673
core:LeaseholdImprovements
core:LeasedAssetsHeldAsLessee
2020-06-30
05696673
core:PlantMachinery
2020-06-30
05696673
core:ComputerEquipment
2020-06-30
05696673
2020-06-30
05696673
core:LeaseholdImprovements
core:LeasedAssetsHeldAsLessee
2020-07-01
2021-06-30
05696673
core:PlantMachinery
2020-07-01
2021-06-30
05696673
core:ComputerEquipment
2020-07-01
2021-06-30
05696673
core:AcceleratedTaxDepreciationDeferredTax
2019-06-30
05696673
core:TaxLossesCarry-forwardsDeferredTax
2019-06-30
05696673
2019-06-30
05696673
core:AcceleratedTaxDepreciationDeferredTax
2020-06-30
05696673
core:TaxLossesCarry-forwardsDeferredTax
2020-06-30
05696673
core:AcceleratedTaxDepreciationDeferredTax
2021-06-30
05696673
core:TaxLossesCarry-forwardsDeferredTax
2021-06-30
05696673
1
2020-07-01
2021-06-30
05696673
bus:PrivateLimitedCompanyLtd
2020-07-01
2021-06-30
05696673
bus:Audited
2020-07-01
2021-06-30
05696673
bus:FRS101
2020-07-01
2021-06-30
05696673
bus:FullAccounts
2020-07-01
2021-06-30
xbrli:pure
xbrli:shares
iso4217:GBP