DATASCOPE SYSTEMS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
Company Registration No. 07555682 (England and Wales)
DATASCOPE SYSTEMS LIMITED
COMPANY INFORMATION
Directors
Mr A C Butt
Mr R Hinds
Secretary
S Jones
Company number
07555682
Registered office
Access House
Aviation Park
Flint Road
Chester
CH4 0GZ
Auditor
DSG
Unit 5 Evolution House
Lakeside Business Village
St David's Park, Ewloe
Deeside, Flintshire
CH5 3XP
DATASCOPE SYSTEMS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 26
DATASCOPE SYSTEMS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2023
- 1 -
The directors present the strategic report for the year ended 30 April 2023.
Principal activities
The principal activity of the company continued to be that of the hire and supply of access control solutions and supporting data systems.
Fair review of the business
As shown in the company’s statement of comprehensive income, revenue for the year has increased by 16.3%. However, profit before tax has decreased by 45.0%. The reduction in profit before tax is after operating exceptional expenditure of £308,167.
The company continues to maintain strong controls over fixed costs and other overheads whilst also investing in development to enable it to achieve its profitability targets.
Principal risks and uncertainties
There are a number of risks and uncertainties that can impact on the performance of Datascope Systems Limited, some of which are beyond the control the company.
The company monitors market trends and risks on an ongoing basis and takes corrective action as and when required.
Competitive pressure in all the markets it operates in are an ongoing risk to the company. To manage this risk the company maintains strong relationships with its customers with high levels of customer service and product
quality, range and value.
Fluctuations in the price and supply of key raw materials as well as the availability of staff with key skills may also affect the profitability of the business. Purchasing policies and practices mitigate, where practicable, these risks. Post year end the company has continued to trade well.
Liquidity, foreign currency and credit risks are set out in the directors’ report.
Key performance indicators
Key performance indicators continue to be used throughout the business, and the financial indicators such as turnover, gross profit margin, profit before tax, trade debtors and levels of new site installations are set out in the body of the accounts.
The cash balance at the year end was positive and the company maintains strong cash control which has enabled it to meet its obligations to suppliers and other creditors as they fall due.
The directors also consider other non-financial indicators to monitor the performance of the business. These include the company’s ability to react to market conditions and opportunities with a flexible approach to their service capabilities.
Other performance indicators
Research and development. The company continues with a robust policy to develop new products to enhance its position in the marketplace.
Employees - The company continues to invest in its strategies for the training, development and retention of employees. Average headcount for 2023 was 93 (2022: 81).
DATASCOPE SYSTEMS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 2 -
Mr A C Butt
Director
25 January 2024
DATASCOPE SYSTEMS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2023
- 3 -
The directors present their annual report and financial statements for the year ended 30 April 2023.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £90,000. The directors do not recommend payment of a further 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 A C Butt
Mr R Hinds
Financial instruments
Liquidity risk
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
Foreign currency risk
The company’s principal foreign currency exposures arise from trading with overseas companies. Company policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling.
Credit risk
Investments of cash surpluses are made through banks and companies which must fulfil credit rating criteria approved by the Board.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Post reporting date events
There have been no significant events affecting the company since the year-end.
Future developments
The company takes a long term view of its business and continues to invest in products, infrastructure and people. This investment, together with the innovative approach we have developed to serving customers in the construction and related industries, is key to our future success.
Auditor
The auditor, DSG, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.
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.
DATASCOPE SYSTEMS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 4 -
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr A C Butt
Director
25 January 2024
DATASCOPE SYSTEMS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2023
- 5 -
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.
DATASCOPE SYSTEMS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DATASCOPE SYSTEMS LIMITED
- 6 -
Opinion
We have audited the financial statements of Datascope Systems Limited (the 'company') for the year ended 30 April 2023 which comprise the statement of comprehensive income, 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 30 April 2023 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 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.
DATASCOPE SYSTEMS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DATASCOPE SYSTEMS LIMITED
- 7 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the 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, 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.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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.
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.
Capability of the audit in detecting irregularities, including fraud
Discussions were held with, and enquiries made of, management and those charged with governance with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the company.
The following laws and regulations were identified as being of significance to the company:
Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation.
It is considered that there are no laws and regulations for which non-compliance may be fundamental to the operating aspects of the business.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the company complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; testing the appropriateness of entries in the nominal ledger, including journal entries which could be indicative of fraud; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.
DATASCOPE SYSTEMS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DATASCOPE SYSTEMS LIMITED
- 8 -
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the company’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
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.
Jean Ellis BA FCA CTA
Senior Statutory Auditor
For and on behalf of DSG
25 January 2024
Chartered Accountants
Statutory Auditor
Unit 5 Evolution House
Lakeside Business Village
St David's Park, Ewloe
Deeside, Flintshire
CH5 3XP
DATASCOPE SYSTEMS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
9,847,178
8,468,274
Cost of sales
(1,362,459)
(1,455,921)
Gross profit
8,484,719
7,012,353
Administrative expenses
(7,267,036)
(5,349,668)
Other operating income
13,516
15,467
Exceptional item
4
(308,167)
Operating profit
5
923,032
1,678,152
Interest receivable and similar income
8
60
Interest payable and similar expenses
9
(56,500)
(44,144)
Profit before taxation
866,592
1,634,008
Tax on profit
10
(252,141)
(708,998)
Profit for the financial year
614,451
925,010
The notes on pages 12 to 26 form part of these financial statements.
DATASCOPE SYSTEMS LIMITED
BALANCE SHEET
AS AT
30 APRIL 2023
30 April 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
5,052,026
4,893,867
Investment property
14
258,394
258,394
5,310,420
5,152,261
Current assets
Stocks
15
5,490
5,490
Debtors
16
5,516,294
3,302,053
Cash at bank and in hand
265,436
839,237
5,787,220
4,146,780
Creditors: amounts falling due within one year
17
(2,041,928)
(1,388,301)
Net current assets
3,745,292
2,758,479
Total assets less current liabilities
9,055,712
7,910,740
Creditors: amounts falling due after more than one year
18
(563,685)
(823,386)
Provisions for liabilities
Deferred tax liability
21
1,081,613
1,003,023
(1,081,613)
(1,003,023)
Deferred income
22
(2,655,740)
(1,854,108)
Net assets
4,754,674
4,230,223
Capital and reserves
Called up share capital
24
750
750
Profit and loss reserves
4,753,924
4,229,473
Total equity
4,754,674
4,230,223
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true
The financial statements were approved by the board of directors and authorised for issue on 25 January 2024 and are signed on its behalf by:
Mr A C Butt
Director
Company registration number 07555682 (England and Wales)
DATASCOPE SYSTEMS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2021
750
3,394,463
3,395,213
Year ended 30 April 2022:
Profit and total comprehensive income
-
925,010
925,010
Dividends
11
-
(90,000)
(90,000)
Balance at 30 April 2022
750
4,229,473
4,230,223
Year ended 30 April 2023:
Profit and total comprehensive income
-
614,451
614,451
Dividends
11
-
(90,000)
(90,000)
Balance at 30 April 2023
750
4,753,924
4,754,674
DATASCOPE SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
- 12 -
1
Accounting policies
Company information
Datascope Systems Limited is a private company limited by shares incorporated in England and Wales. The registered office is Access House, Aviation Park, Flint Road, Chester, CH4 0GZ.
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.
The principal activities of the company are disclosed in the Strategic Report.
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 under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Datascope (Holdings) Limited.
Datascope (Holdings) Limited is a company incorporated in Great Britain and registered in England and Wales. The registered office is Access House, Aviation Park, Flint Road, Chester, CH4 0GZ.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of trade discounts and VAT and other sales related taxes.
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.
DATASCOPE SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 13 -
Turnover in respect of equipment hire is recognised on a straight line basis over the period of the hire net of VAT and trade discounts. Income received in advance is included within deferred income.
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.
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
4% straight line
Plant and machinery
10% - 25% straight line
Fixtures, fittings & equipment
25% straight line
Computer equipment
33.33% straight line
Motor vehicles
25% - 50% straight line
Other assets
10% 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
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.7
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.
DATASCOPE SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 14 -
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.
1.8
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
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.
1.9
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.
1.10
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
DATASCOPE SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 15 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities 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 payments 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. Amounts 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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
DATASCOPE SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 16 -
1.11
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.
1.12
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 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.
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 profit and loss account, 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 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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
DATASCOPE SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 17 -
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 leases asset are consumed.
1.16
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.
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.
Depreciation of tangible fixed assets
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover analysed by class of business
Hire and supply of software & equipment
9,847,178
8,468,274
2023
2022
£
£
Turnover analysed by geographical market
UK
7,489,687
7,171,280
Rest of Europe
1,950,213
1,233,882
Rest of the World
407,278
63,112
9,847,178
8,468,274
DATASCOPE SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
3
Turnover and other revenue
(Continued)
- 18 -
2023
2022
£
£
Other revenue
Interest income
60
-
4
Exceptional item
2023
2022
£
£
Expenditure
Professional fees
308,167
-
Exceptional costs incurred in the period relate to one-off potential reorganisation costs.
5
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Exchange losses
101,014
7,586
Auditors' remuneration
7,500
7,500
Depreciation of owned tangible fixed assets
946,078
750,696
Operating lease charges
262,131
247,889
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Sales and marketing
12
13
Research and development
23
17
Engineering
29
16
Administration
6
8
Warehouse
3
4
Developers and help desk
19
20
Project management
1
3
Total
93
81
DATASCOPE SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
6
Employees
(Continued)
- 19 -
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
3,677,867
2,806,072
Social security costs
398,074
319,256
Pension costs
111,431
80,064
4,187,372
3,205,392
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
116,983
106,884
Company pension contributions to defined contribution schemes
13,144
4,350
130,127
111,234
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
60
9
Interest payable and similar expenses
2023
2022
£
£
Interest on finance leases and hire purchase contracts
9
5,874
Other interest
56,491
38,270
56,500
44,144
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
99,690
86,669
Adjustments in respect of prior periods
73,861
227,577
Total current tax
173,551
314,246
DATASCOPE SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
10
Taxation
2023
2022
£
£
(Continued)
- 20 -
Deferred tax
Origination and reversal of timing differences
49,337
159,830
Changes in tax rates
13,937
50,473
Adjustment in respect of prior periods
15,316
184,449
Total deferred tax
78,590
394,752
Total tax charge
252,141
708,998
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
866,592
1,634,008
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
216,648
310,462
Adjustments in respect of prior years
89,177
412,025
Deferred tax rate change
13,937
50,474
Permanent differences
(67,621)
(63,963)
Taxation charge for the year
252,141
708,998
11
Dividends
2023
2022
£
£
Final paid
90,000
90,000
DATASCOPE SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 21 -
12
Intangible fixed assets
Goodwill
£
Cost
At 1 May 2022 and 30 April 2023
62,000
Amortisation and impairment
At 1 May 2022 and 30 April 2023
62,000
Carrying amount
At 30 April 2023
At 30 April 2022
DATASCOPE SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 22 -
13
Tangible fixed assets
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Other assets
Total
£
£
£
£
£
£
£
Cost
At 1 May 2022
426,989
8,056,251
39,948
319,508
312,220
250,000
9,404,916
Additions
1,258,715
2,455
15,453
1,276,623
Disposals
(228,032)
(201)
(228,233)
At 30 April 2023
426,989
9,086,934
42,403
334,760
312,220
250,000
10,453,306
Depreciation and impairment
At 1 May 2022
24,500
3,896,703
25,370
231,421
295,555
37,500
4,511,049
Depreciation charged in the year
17,080
840,867
5,730
55,374
2,027
25,000
946,078
Eliminated in respect of disposals
(55,646)
(201)
(55,847)
At 30 April 2023
41,580
4,681,924
31,100
286,594
297,582
62,500
5,401,280
Carrying amount
At 30 April 2023
385,409
4,405,010
11,303
48,166
14,638
187,500
5,052,026
At 30 April 2022
402,489
4,159,548
14,578
88,087
16,665
212,500
4,893,867
DATASCOPE SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
13
Tangible fixed assets
(Continued)
- 23 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2023
2022
£
£
Motor vehicles
14,557
14
Investment property
2023
£
Fair value
At 1 May 2022 and 30 April 2023
258,394
The company acquired investment property in July 2021. The directors have assessed the property's value at 30 April 2023 and deemed that the current value is appropriate.
15
Stocks
2023
2022
£
£
Finished goods and goods for resale
5,490
5,490
16
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,479,012
1,933,098
Other debtors
1,218,377
416,346
Prepayments and accrued income
1,818,905
952,609
5,516,294
3,302,053
Included within other debtors is A Butt's director's loan account, which was overdrawn at the year end date by £735,359 (2022: £357,195). The maximum overdrawn balance during the year was £774,376.
DATASCOPE SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 24 -
17
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
19
260,000
260,000
Obligations under finance leases
20
50,755
Other borrowings
19
100,000
Trade creditors
1,152,561
422,612
Corporation tax
99,690
148,528
Other taxation and social security
102,728
264,893
Accruals
426,949
141,513
2,041,928
1,388,301
Bank loans of £260,000 (2022: £260,000) relates to a bank loan provided in the prior year by Barclays Bank UK Plc under the Coronavirus Business Interruption Loan Scheme (CBILS) which is a UK government backed loan scheme whereby the government provides a limited guarantee to the bank for up to 80% of the loan value. The total loan of £1,300,000 is repayable in 60 instalments commencing 12 months after the draw down date (June 2020). The interest is calculated on a floating rate basis. The interest cost for the first 12 months of the term of the loan is met by the UK government.
Other borrowings of £nil (2022: £100,000) were secured by charges over the company's assets.
18
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans
19
563,685
823,386
Bank loans of £563,685 (2022: £823,386) - see note 19 for details.
19
Loans and overdrafts
2023
2022
£
£
Bank loans
823,685
1,083,386
Other loans
100,000
823,685
1,183,386
Payable within one year
260,000
360,000
Payable after one year
563,685
823,386
A bank loan provided in the prior year by Barclays Bank UK Plc under the Coronavirus Business Interruption Loan Scheme (CBILS) which is a UK government backed loan scheme whereby the government provides a limited guarantee to the bank for up to 80% of the loan value. The loan of £1,300,000 is repayable in 60 instalments commencing 12 months after the draw down date (June 2020). The interest is calculated on a floating rate basis. The interest cost for the first 12 months of the term of the loan is met by the UK government.
DATASCOPE SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 25 -
20
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
50,755
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
21
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
1,081,613
1,003,023
2023
Movements in the year:
£
Liability at 1 May 2022
1,003,023
Charge to profit or loss
78,590
Liability at 30 April 2023
1,081,613
22
Deferred income
2023
2022
£
£
Arising from Deferred income
2,655,740
1,854,108
Included within deferred income is an amount due in less than one year of £1,894,230 (2022: £1,324,713).
23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
111,431
80,064
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.
DATASCOPE SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 26 -
24
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
750
750
750
750
25
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
103,182
87,259
Between two and five years
44,445
114,081
147,627
201,340
26
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
CCB Property Partnership LLP is controlled by Colin Butt, a former director of Datascope Systems Limited. During the year, the company made purchases from CCB Property Partnership LLP totalling £161,074 (2022: £113,739). At 30 April 2023, the company owed £39,022 (2022: £25,209) to CCB Property Partnership LLP.
Other information
The company has taken advantage of the reduced disclosure exemption available under Financial Reporting Standard 102 relating to the disclosure of related party transactions between wholly owned group companies.
No other transactions with related parties were undertaken such as are required to be disclosed under Financial Reporting Standard 102.
27
Ultimate controlling party
The company is a wholly owned subsidiary of Datascope (Holdings) Limited, who is also the ultimate parent company. The ultimate parent company is registered in England and Wales at Access House, Aviation Park, Chester, Cheshire, CH4 0GZ.
The smallest and largest group into which the results of this company are consolidated is that headed by Datascope (Holdings) Limited.
The ultimate controlling party is Mr A Butt.
2023-04-302022-05-01falseCCH SoftwareCCH Accounts Production 2023.300No description of principal activityMr A C ButtMr R HindsS Jonesfalse075556822022-05-012023-04-3007555682bus:Director12022-05-012023-04-3007555682bus:Director22022-05-012023-04-3007555682bus:CompanySecretary12022-05-012023-04-3007555682bus:RegisteredOffice2022-05-012023-04-30075556822023-04-30075556822021-05-012022-04-300755568212022-05-012023-04-300755568212021-05-012022-04-3007555682core:RetainedEarningsAccumulatedLosses2021-05-012022-04-3007555682core:RetainedEarningsAccumulatedLosses2022-05-012023-04-30075556822022-04-3007555682core:LeaseholdImprovements2023-04-3007555682core:PlantMachinery2023-04-3007555682core:FurnitureFittings2023-04-3007555682core:ComputerEquipment2023-04-3007555682core:MotorVehicles2023-04-3007555682core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2023-04-3007555682core:LeaseholdImprovements2022-04-3007555682core:PlantMachinery2022-04-3007555682core:FurnitureFittings2022-04-3007555682core:ComputerEquipment2022-04-3007555682core:MotorVehicles2022-04-3007555682core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2022-04-3007555682core:CurrentFinancialInstrumentscore:WithinOneYear2023-04-3007555682core:CurrentFinancialInstrumentscore:WithinOneYear2022-04-3007555682core:Non-currentFinancialInstrumentscore:AfterOneYear2023-04-3007555682core:Non-currentFinancialInstrumentscore:AfterOneYear2022-04-3007555682core:CurrentFinancialInstruments2023-04-3007555682core:CurrentFinancialInstruments2022-04-3007555682core:ShareCapital2023-04-3007555682core:ShareCapital2022-04-3007555682core:RetainedEarningsAccumulatedLosses2023-04-3007555682core:RetainedEarningsAccumulatedLosses2022-04-3007555682core:ShareCapital2021-04-3007555682core:RetainedEarningsAccumulatedLosses2021-04-3007555682core:Goodwill2022-05-012023-04-3007555682core:LeaseholdImprovements2022-05-012023-04-3007555682core:PlantMachinery2022-05-012023-04-3007555682core:FurnitureFittings2022-05-012023-04-3007555682core:ComputerEquipment2022-05-012023-04-3007555682core:MotorVehicles2022-05-012023-04-3007555682core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2022-05-012023-04-3007555682core:UKTax2022-05-012023-04-3007555682core:UKTax2021-05-012022-04-300755568222022-05-012023-04-300755568222021-05-012022-04-3007555682core:Goodwill2022-04-3007555682core:Goodwill2023-04-3007555682core:Goodwill2022-04-3007555682core:LeaseholdImprovements2022-04-3007555682core:PlantMachinery2022-04-3007555682core:FurnitureFittings2022-04-3007555682core:ComputerEquipment2022-04-3007555682core:MotorVehicles2022-04-3007555682core:Non-standardPPEClass1ComponentTotalPropertyPlantEquipment2022-04-30075556822022-04-3007555682core:Non-currentFinancialInstruments2023-04-3007555682core:Non-currentFinancialInstruments2022-04-3007555682core:WithinOneYear2023-04-3007555682core:WithinOneYear2022-04-3007555682core:BetweenTwoFiveYears2023-04-3007555682core:BetweenTwoFiveYears2022-04-3007555682bus:PrivateLimitedCompanyLtd2022-05-012023-04-3007555682bus:FRS1022022-05-012023-04-3007555682bus:Audited2022-05-012023-04-3007555682bus:FullAccounts2022-05-012023-04-30xbrli:purexbrli:sharesiso4217:GBP