Company Registration No. 05925090 (England and Wales)
LONDON SPERM BANK LIMITED
ANNUAL REPORT AND
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 OCTOBER 2021
LONDON SPERM BANK LIMITED
COMPANY INFORMATION
Directors
K Ahuja
D Williams
Secretary
D Lewsey
Company number
05925090
Registered office
113-115 Harley Street
London
W1G 6AP
Auditor
Cheesmans
4 Aztec Row
Berners Road
London
N1 0PW
Bankers
HSBC Bank Plc
165 Fleet Street
London
EC4 2DY
LONDON SPERM BANK LIMITED
CONTENTS
Page
Directors' report
1 - 2
Independent auditor's report
3 - 5
Profit and loss account
6
Balance sheet
7
Statement of changes in equity
8
Notes to the financial statements
9 - 16
LONDON SPERM BANK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2021
- 1 -
The directors present their annual report and financial statements for the year ended 31 October 2021.
Principal activities
The principal activity of the company has continued to be the provision and sale of sperm for fertility treatments.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
K Ahuja
D Williams
Post reporting date events
After the year end, on 28 April 2022, the Health and Care Act 2022 was enacted, which extends the storage period for gametes and embryos to 55 years, in renewable ten-year tranches of consent. There is not enough information for the Directors to make a realistic assessment of the impact this will have on provisions against stock at the year, as the existing donor base would need to provide written consent to a new ten-year tranche, and for this reason the accounts are not adjusted for this post reporting date event.
Auditor
The auditor, Cheesmans, are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
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). 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;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s 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.
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.
LONDON SPERM BANK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
- 2 -
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
By order of the Board
D Lewsey
Secretary
25 May 2022
LONDON SPERM BANK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LONDON SPERM BANK LIMITED
- 3 -
Opinion
We have audited the financial statements of London Sperm Bank Limited (the 'company') for the year ended 31 October 2021 which comprise the profit and loss account, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 31 October 2021 and of its profit for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
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 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.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the directors'
r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the directors' report has been prepared in accordance with applicable legal requirements.
LONDON SPERM BANK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LONDON SPERM BANK LIMITED
- 4 -
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 identifie
d
material misstatements in the directors'
r
eport
. 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, 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
remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit; or
-
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and from the requirement to prepare a strategic report.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, 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
.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below
.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Based on our understanding of the
c
ompany and industry, we identified that the principal risks of non-compliance with laws and regulations related to Employment Law and UK tax legislation, as well as conformity to the standards set by HFEA (the regulatory body in the fertilisation industry), and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journals to increase revenue or reduce expenditure and management bias in accounting estimates. Audit procedures performed by the engagement team included:
Audit response to risks identified
Discussions with management in respect of known or suspected instances of non-compliance with laws and regulations and fraud, as well as reviews of board minutes and internal and external reports;
Evaluation of t
he operating effectiveness of management’s key controls around the forecasting of costs and margin estimation;
LONDON SPERM BANK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LONDON SPERM BANK LIMITED
- 5 -
Challenging the a
ssumptions and judgements made by management in their significant accounting estimates, in particular those that involve the assessment of future events, which are inherently uncertain – the key estimate determined in this respect being that relating to the valuation of stock at the year end; and
Reviewing
all identified misstatements, as well as
j
ournal entries with unusual account combinations such as those with unusual or unexpected journal postings to the profit and loss as well as journals which contain unusual words.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 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 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.
Carol Cheesman (Senior Statutory Auditor)
For and on behalf of Cheesmans
25 May 2022
Chartered Accountants
Statutory Auditor
4 Aztec Row
Berners Road
London
N1 0PW
LONDON SPERM BANK LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 OCTOBER 2021
- 6 -
2021
2020
Notes
£
£
Turnover
1.2
2,200,792
1,516,558
Cost of sales
(839,701)
(651,069)
Gross profit
1,361,091
865,489
Administrative expenses
(952,873)
(767,451)
Other operating income
10,188
Profit before taxation
418,406
98,038
Taxation
(82,073)
(13,031)
Profit for the financial year
336,333
85,007
LONDON SPERM BANK LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2021
31 October 2021
- 7 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
5
104,017
146,309
Current assets
Stocks
1,074,447
820,051
Debtors
6
36,618
26,921
Cash at bank and in hand
203,763
30,532
1,314,828
877,504
Creditors: amounts falling due within one year
7
(640,563)
(580,309)
Net current assets
674,265
297,195
Total assets less current liabilities
778,282
443,504
Provisions for liabilities
(3,665)
(5,220)
Net assets
774,617
438,284
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
774,517
438,184
Total equity
774,617
438,284
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the Board of Directors and authorised for issue on 25 May 2022 and are signed on its behalf by:
K Ahuja
Director
Company Registration No. 05925090
LONDON SPERM BANK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2021
- 8 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 November 2019
100
353,177
353,277
Year ended 31 October 2020:
Profit and total comprehensive income for the year
-
85,007
85,007
Balance at 31 October 2020
100
438,184
438,284
Year ended 31 October 2021:
Profit and total comprehensive income for the year
-
336,333
336,333
Balance at 31 October 2021
100
774,517
774,617
LONDON SPERM BANK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2021
- 9 -
1
Accounting policies
Company information
London Sperm Bank Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
113-115 Harley Street, London, W1G 6AP.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover represents amounts receivable for goods and services rendered during the year.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer
(usually on dispatch of the goods)
, the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that
it is probable will be
recover
ed
.
1.3
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated
.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated
amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected
life
.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
LONDON SPERM BANK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
1
Accounting policies
(Continued)
- 10 -
1.5
Tangible fixed assets
Tangible fixed assets
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
Over the remaining life of the lease
Plant and machinery
20% straight line
Fixtures, fittings & equipment
50% 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 credited or charged to profit or loss
.
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Stocks
Stock at the year end comprises donated and purchased sperm and is stated at the lower of cost and estimated selling price less costs to complete and sell. Costs of purchased sperm is based on purchase price plus costs to bring the stock to its present location and condition. Donated stock cost is based on the absorption of relevant costs, including direct materials, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks 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.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
LONDON SPERM BANK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
1
Accounting policies
(Continued)
- 11 -
1.8
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade creditors
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
LONDON SPERM BANK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
1
Accounting policies
(Continued)
- 12 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.15
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.16
Foreign exchange
Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All foreign exchange differences are taken to profit and loss account.
1.17
Group relief
Where tax losses are claimed, the claimant company pays to the surrendering company an amount equal to the corporation tax saved.
LONDON SPERM BANK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
- 13 -
2
Judgements and key sources of estimation uncertainty
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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant
effect on amounts recognised in the financial statements.
Stock provisions
Sperm stock is held net of provisions based on the age of stock. The previous legislation in such regard set a maximum of ten years storage of gametes without a medical reason, and provisions were calculated in accordance with this.
The Health and Care Act 2022, which received Royal Assent on 28 April 2022, extends storage to 55 years for gametes, in ten year tranches of consent by the donor, however the Board has made a judgement that these provisions are still valid, as these are based on current donor consents for storage which are for ten years maximum.
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.
Stock value
The value of stock that is acquired via a donor is based on an absorption of relevant costs, including direct materials, direct labour costs and those overheads that have been incurred in bringing the stock to its present location and condition.
In calculating the relevant costs the directors estimate the allocation of these costs on the average number of amps donated during each visit to the clinic by the donor. This estimation is reviewed every year comparing to the average number of amps produced per visit in that year and where material adjustments are made in the calculation.
Stock provisions
Due to the nature of the stock, there are government imposed restrictions on the usage based on the number of families who have used the stock and the ageing of the stock.
Each year, the directors make an appropriate provision based on the data available to reduce the carrying value of the stock based on whether the stock is approaching either the family limit or the ageing limit currently recognised by the company, being a ten year consent period.
Due to the nature of the stock, there are government imposed restrictions on the usage of stock donated over the course of a donation programme until such time as the donor has obtained a final ‘clear’ blood test after the stock has been held in quarantine for the requisite 180 days.
Each year directors make an appropriate provision each year based on the data available to reduce the carrying amount of stock based on the likelihood of the donor returning for the final test.
LONDON SPERM BANK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
- 14 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
12
9
4
Intangible fixed assets
Goodwill
£
Cost
At 1 November 2020 and 31 October 2021
210,000
Amortisation and impairment
At 1 November 2020 and 31 October 2021
210,000
Carrying amount
At 31 October 2021
At 31 October 2020
5
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 November 2020
49,126
384,415
433,541
Additions
54,853
54,853
Disposals
(12,958)
(12,958)
At 31 October 2021
49,126
426,310
475,436
Depreciation and impairment
At 1 November 2020
10,497
276,735
287,232
Depreciation charged in the year
12,816
80,968
93,784
Eliminated in respect of disposals
(9,597)
(9,597)
At 31 October 2021
23,313
348,106
371,419
Carrying amount
At 31 October 2021
25,813
78,204
104,017
At 31 October 2020
38,629
107,680
146,309
LONDON SPERM BANK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
- 15 -
6
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
4,200
Other debtors
32,418
26,921
36,618
26,921
7
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
125,095
14,932
Amounts owed to group undertakings
393,966
463,811
Corporation tax
83,300
Other taxation and social security
22,779
Other creditors
38,202
78,787
640,563
580,309
8
Financial commitments, guarantees and contingent liabilities
There is a fixed and floating charge between the companies of the J D Healthcare Group Limited under the terms of which amounts due to HSBC Bank Plc are secured on the assets of all group companies.
There have been no instances in the year or to date whereby the obligations under this debenture are actually considered to be enforceable.
The Company participates in a cross guarantee with other companies in the group and associated companies. There is a composite company unlimited multilateral guarantee between J D Healthcare Limited, The Bridge Centre Limited and HSBC whereby amounts due to and from HSBC can be offset.
There is a contingent liability between sperm donors and London Sperm Bank Limited under the terms of which donors are entitled to travelling expense reimbursements for their visits to the clinic. The amounts estimated to be due to donors at 31 October 2021 amounted to £82,142 (2020: £84,573).
9
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2021
2020
£
£
444,000
666,000
LONDON SPERM BANK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2021
- 16 -
10
Parent company
The
ultimate
parent company of London Sperm Bank Limited is JD Healthcare Limited.
The registered office is 113-115 Harley Street, London, W1G 6AP.
2021-10-31
2020-11-01
false
CCH Software
CCH Accounts Production 2022.100
K Ahuja
D Williams
D Lewsey
05925090
2020-11-01
2021-10-31
05925090
bus:Director1
2020-11-01
2021-10-31
05925090
bus:Director2
2020-11-01
2021-10-31
05925090
bus:CompanySecretaryDirector1
2020-11-01
2021-10-31
05925090
bus:CompanySecretary1
2020-11-01
2021-10-31
05925090
bus:RegisteredOffice
2020-11-01
2021-10-31
05925090
bus:Agent1
2020-11-01
2021-10-31
05925090
2021-10-31
05925090
2019-11-01
2020-10-31
05925090
core:RetainedEarningsAccumulatedLosses
2019-11-01
2020-10-31
05925090
core:RetainedEarningsAccumulatedLosses
2020-11-01
2021-10-31
05925090
2020-10-31
05925090
core:LandBuildings
2021-10-31
05925090
core:OtherPropertyPlantEquipment
2021-10-31
05925090
core:LandBuildings
2020-10-31
05925090
core:OtherPropertyPlantEquipment
2020-10-31
05925090
core:CurrentFinancialInstruments
core:WithinOneYear
2021-10-31
05925090
core:CurrentFinancialInstruments
core:WithinOneYear
2020-10-31
05925090
core:CurrentFinancialInstruments
2021-10-31
05925090
core:CurrentFinancialInstruments
2020-10-31
05925090
core:ShareCapital
2021-10-31
05925090
core:ShareCapital
2020-10-31
05925090
core:RetainedEarningsAccumulatedLosses
2021-10-31
05925090
core:RetainedEarningsAccumulatedLosses
2020-10-31
05925090
core:ShareCapital
2019-10-31
05925090
core:RetainedEarningsAccumulatedLosses
2019-10-31
05925090
2019-10-31
05925090
core:Goodwill
2020-11-01
2021-10-31
05925090
core:LandBuildings
core:LongLeaseholdAssets
2020-11-01
2021-10-31
05925090
core:PlantMachinery
2020-11-01
2021-10-31
05925090
core:FurnitureFittings
2020-11-01
2021-10-31
05925090
core:NetGoodwill
2020-10-31
05925090
core:NetGoodwill
2021-10-31
05925090
core:NetGoodwill
2020-10-31
05925090
core:LandBuildings
2020-10-31
05925090
core:OtherPropertyPlantEquipment
2020-10-31
05925090
2020-10-31
05925090
core:LandBuildings
2020-11-01
2021-10-31
05925090
core:OtherPropertyPlantEquipment
2020-11-01
2021-10-31
05925090
core:WithinOneYear
2021-10-31
05925090
core:WithinOneYear
2020-10-31
05925090
bus:PrivateLimitedCompanyLtd
2020-11-01
2021-10-31
05925090
bus:FRS102
2020-11-01
2021-10-31
05925090
bus:Audited
2020-11-01
2021-10-31
05925090
bus:FullAccounts
2020-11-01
2021-10-31
xbrli:pure
xbrli:shares
iso4217:GBP