REGISTERED NUMBER:
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MEU Solutions Ltd |
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Strategic Report, Report of the Directors and |
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Financial Statements |
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for the Year Ended 31 March 2020 |
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REGISTERED NUMBER:
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MEU Solutions Ltd |
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Strategic Report, Report of the Directors and |
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Financial Statements |
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for the Year Ended 31 March 2020 |
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MEU Solutions Ltd (Registered number: 09157193) |
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Contents of the Financial Statements |
for the Year Ended 31 March 2020 |
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Page |
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Company information | 1 |
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Strategic report | 2 |
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Report of the directors | 3 |
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Report of the independent auditors | 5 |
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Statement of comprehensive income | 8 |
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Balance sheet | 9 |
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Statement of changes in equity | 10 |
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Cash flow statement | 11 |
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Notes to the financial statements | 12 |
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MEU Solutions Ltd |
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Company Information |
for the Year Ended 31 March 2020 |
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Directors: |
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Registered office: |
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Registered number: |
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Auditors: |
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Chartered Accountants |
76 Manchester Road |
Denton |
Manchester |
M34 3PS |
MEU Solutions Ltd (Registered number: 09157193) |
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Strategic Report |
for the Year Ended 31 March 2020 |
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The directors present their strategic report for the year ended 31 March 2020. |
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Review of business |
MEUS continues to expand its business and has had another excellent year of trading increasing our turnover by 450% in year. We have secured numerous contracts across multiple services in locations throughout the world. |
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As a result of this increase in income we now can report our first year of profitable trading. |
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The team has expanded and now comprises of 4 staff who have many years of experience in the following areas: |
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Project Management - Extensive project management experience both within the UK and throughout Europe |
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GCP and GMP Training - Access to GCP and GMP trained auditors |
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SOP and Policy writing - The team have written upward of 200 clinical study SOP's and policy's |
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Ethics submission - Experience of UK and EU ethics submissions |
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Monitoring - Several years monitoring experience in numerous therapies from Phase I-IV |
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Regulatory Submission and advice - Specialist UK regulatory personnel |
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Site Feasibility - Full feasibility assessment of potential clinical trial sites |
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Medical and Protocol Writing - We make protocols work, achieving endpoints whilst remaining deliverable |
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Site and Sub-contractor Audit services - Undertaken by our team of experienced Auditors |
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We continue to work closely with our sister company Medicines Evaluation Unit, and our third party partners, and jointly have become a "one stop shop" for Pharma and Biotec's drug development. |
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In line with the current business plan and due to the expansion of services it is anticipated that this growth and profitability will continue into 2021 and beyond. |
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On behalf of the board: |
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MEU Solutions Ltd (Registered number: 09157193) |
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Report of the Directors |
for the Year Ended 31 March 2020 |
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The directors present their report with the financial statements of the company for the year ended 31 March 2020. |
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Dividends |
No ordinary dividends were paid. The directors do not recommend payment of a final dividend. |
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Directors |
The directors shown below have held office during the whole of the period from 1 April 2019 to the date of this report. |
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Going concern |
The directors are confident that there is a reasonable expectation that the company will continue in operational existence for the foreseeable future. Further details are disclosed in the notes to the financial statements. |
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Covid-19 |
The impact of the Covid-19 pandemic resulted in the implementation of a government enforced nationwide lockdown. The directors increased previously implemented measures to create a Covid safe workplace thus enabling the business to continue to operate. |
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Having reviewed the performance and considered the potential impact of Covid-19 on the future of the business when preparing the budgets and forecasts, the directors are satisfied that Covid-19 is unlikely to cast significant doubt over the company's ability to continue as a going concern. |
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Statement of directors' responsibilities |
The directors are responsible for preparing the Strategic report, the Report of the directors and the financial statements in accordance with applicable law and regulations. |
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Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
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MEU Solutions Ltd (Registered number: 09157193) |
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Report of the Directors |
for the Year Ended 31 March 2020 |
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Statement of directors' responsibilities - continued |
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. |
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Statement as to disclosure of information to auditors |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
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Auditors |
The auditors, Warr & Co Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
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On behalf of the board: |
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Report of the Independent Auditors to the Members of |
MEU Solutions Ltd |
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Opinion |
We have audited the financial statements of MEU Solutions Ltd (the 'company') for the year ended 31 March 2020 which comprise the Statement of comprehensive income, Balance sheet, Statement of changes in equity, Cash flow statement and Notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
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In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 March 2020 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. |
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Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
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Conclusions relating to going concern |
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where: |
- | the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
- | the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
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Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic report and the Report of the directors, but does not include the financial statements and our Report of the auditors thereon. |
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Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
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In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Report of the Independent Auditors to the Members of |
MEU Solutions Ltd |
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Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic report and the Report of the directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic report and the Report of the directors have been prepared in accordance with applicable legal requirements. |
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Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Report of the directors. |
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We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
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Responsibilities of directors |
As explained more fully in the Statement of directors' responsibilities set out on pages three and four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
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In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
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Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
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A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the auditors. |
Report of the Independent Auditors to the Members of |
MEU Solutions Ltd |
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Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
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for and on behalf of
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Warr & Co Limited, Statutory Auditor |
Manchester |
MEU Solutions Ltd (Registered number: 09157193) |
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Statement of Comprehensive Income |
for the Year Ended 31 March 2020 |
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31.3.20 | 31.3.19 |
Notes | £ | £ |
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Turnover | 3 |
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Cost of sales | ( |
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Gross profit |
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Administrative expenses | ( |
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Operating profit/(loss) and |
Profit/(loss) before taxation |
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Tax on profit/(loss) | 6 |
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Profit/(loss) for the financial year |
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Other comprehensive income | - | - |
Total comprehensive income for the
year |
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MEU Solutions Ltd (Registered number: 09157193) |
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Balance Sheet |
31 March 2020 |
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31.3.20 | 31.3.19 |
Notes | £ | £ |
Current assets |
Debtors | 7 |
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Cash at bank |
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Creditors |
Amounts falling due within one year | 8 | ( |
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Net current liabilities | ( |
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Total assets less current liabilities | ( |
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Capital and reserves |
Called up share capital | 9 |
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Retained earnings | 10 | ( |
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Shareholders' funds | ( |
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The financial statements were approved by the Board of Directors and authorised for issue on
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MEU Solutions Ltd (Registered number: 09157193) |
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Statement of Changes in Equity |
for the Year Ended 31 March 2020 |
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Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
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Balance at 1 April 2018 |
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Changes in equity |
Total comprehensive income | - | ( |
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Balance at 31 March 2019 |
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Changes in equity |
Total comprehensive income | - |
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Balance at 31 March 2020 |
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MEU Solutions Ltd (Registered number: 09157193) |
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Cash Flow Statement |
for the Year Ended 31 March 2020 |
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31.3.20 | 31.3.19 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 12 |
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Net cash from operating activities |
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Increase in cash and cash equivalents |
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Cash and cash equivalents at beginning
of year |
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48,548 |
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Cash and cash equivalents at end of
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13 |
170,952 |
56,600 |
MEU Solutions Ltd (Registered number: 09157193) |
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Notes to the Financial Statements |
for the Year Ended 31 March 2020 |
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1. | Statutory information |
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MEU Solutions Ltd is a
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2. | Accounting policies |
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Basis of preparing the financial statements |
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The company's parent undertaking, North West Lung Centre, includes the company in its consolidated financial statements that are prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The consolidated accounts are available to the public and may be obtained from it's registered office at Wythenshawe Hospital, Wythenshawe, Manchester, M23 9LT. |
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The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
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• | the requirement of paragraph 33.7. |
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Turnover |
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business and is shown net of VAT. |
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When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of future receipts. The difference between the fair value of the consideration and the normal amount received is recognised as interest income. |
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Revenue from contracts for the provision of professional services is recognised by reference to 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 recovered. |
MEU Solutions Ltd (Registered number: 09157193) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 March 2020 |
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2. | Accounting policies - continued |
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Financial instruments |
The company has elected to apply the provisions of section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS102 to all of its financial instruments. |
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Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. |
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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. |
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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 financial 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. |
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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 the 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. |
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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. |
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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 the profit or loss. |
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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 the profit or loss. |
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De-recognition of financial assets |
Financial assets are de-recognised 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 part that is able to sell the asset in its entirety to an unrelated third party. |
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Classification of financial liabilities |
MEU Solutions Ltd (Registered number: 09157193) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 March 2020 |
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2. | Accounting policies - continued |
Financial liabilities are classified according to the substance of the contractual arrangements entered into. |
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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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. |
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Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
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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. |
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De-recognition of financial liabilities |
Financial liabilities are de-recognised when the company's contractual obligations expire or are discharged or cancelled. |
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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
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Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
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Going concern |
The directors have considered the impact of the Covid-19 pandemic in their assessment of the company's financial position. They expect that the company will continue to create positive cash flows for the foreseeable future and are confident that there is a reasonable expectation that the company will continue in operational existence for the foreseeable future, being at least 12 months from the date of approval of the financial statements. Thus the company has prepared the financial statements on a going concern basis. |
MEU Solutions Ltd (Registered number: 09157193) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 March 2020 |
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3. | Turnover |
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The turnover and profit (2019 - loss) before taxation are attributable to the one principal activity of the company. |
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An analysis of turnover by class of business is given below: |
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31.3.20 | 31.3.19 |
£ | £ |
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An analysis of turnover by geographical market is given below: |
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31.3.20 | 31.3.19 |
£ | £ |
United Kingdom |
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4. | Employees and directors |
31.3.20 | 31.3.19 |
£ | £ |
Wages and salaries |
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Social security costs |
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Other pension costs |
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The average number of employees during the year was as follows: |
31.3.20 | 31.3.19 |
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Employees |
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31.3.20 | 31.3.19 |
£ | £ |
Directors' remuneration |
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MEU Solutions Ltd (Registered number: 09157193) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 March 2020 |
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5. | Operating profit/(loss) |
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The operating profit (2019 - operating loss) is stated after charging: |
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31.3.20 | 31.3.19 |
£ | £ |
Auditors' remuneration |
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6. | Taxation |
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Analysis of the tax charge |
No liability to UK corporation tax arose for the year ended 31 March 2020 nor for the year ended 31 March 2019. |
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Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
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31.3.20 | 31.3.19 |
£ | £ |
Profit/(loss) before tax |
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Profit/(loss) multiplied by the standard rate of corporation tax in the
UK of |
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Effects of: |
Utilisation of tax losses | ( |
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Unutilised tax losses carried forward | - | 1,856 |
Total tax charge | - | - |
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7. | Debtors: amounts falling due within one year |
31.3.20 | 31.3.19 |
£ | £ |
Trade debtors |
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Amounts owed by group undertakings |
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Other debtors |
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MEU Solutions Ltd (Registered number: 09157193) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 March 2020 |
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8. | Creditors: amounts falling due within one year |
31.3.20 | 31.3.19 |
£ | £ |
Trade creditors |
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Amounts owed to group undertakings |
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Accruals and deferred income |
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9. | Called up share capital |
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Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.3.20 | 31.3.19 |
value: | £ | £ |
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Ordinary "A" | £1 | 828 | 828 |
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Ordinary "B" | £1 | 39 | 39 |
867 | 867 |
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10. | Reserves |
Retained |
earnings |
£ |
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At 1 April 2019 | ( |
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Profit for the year |
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At 31 March 2020 | ( |
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11. | Ultimate controlling party |
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The parent company of MEU Solutions Limited is North West Lung Centre, a charity limited by guarantee, which owns 95.5% of the issued share capital. |
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12. | Reconciliation of profit/(loss) before taxation to cash generated from operations |
31.3.20 | 31.3.19 |
£ | £ |
Profit/(loss) before taxation |
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( |
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Increase in trade and other debtors | ( |
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Increase in trade and other creditors |
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Cash generated from operations |
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MEU Solutions Ltd (Registered number: 09157193) |
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Notes to the Financial Statements - continued |
for the Year Ended 31 March 2020 |
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13. | Cash and cash equivalents |
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The amounts disclosed on the Cash flow statement in respect of cash and cash equivalents are in respect of these Balance sheet amounts: |
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Year ended 31 March 2020 |
31.3.20 | 1.4.19 |
£ | £ |
Cash and cash equivalents | 170,952 | 56,600 |
Year ended 31 March 2019 |
31.3.19 | 1.4.18 |
£ | £ |
Cash and cash equivalents | 56,600 | 48,548 |
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14. | Analysis of changes in net funds |
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At 1.4.19 | Cash flow | At 31.3.20 |
£ | £ | £ |
Net cash |
Cash at bank | 56,600 | 114,352 | 170,952 |
56,600 |
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170,952 |
Total | 56,600 | 114,352 | 170,952 |