Registered number: 09748313
KINETEC MEDICAL PRODUCTS UK LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
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KINETEC MEDICAL PRODUCTS UK LIMITED
Company Information
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Park Farm Industrial Estate
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Chartered Accountants & Statutory Auditor
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KINETEC MEDICAL PRODUCTS UK LIMITED
Registered number: 09748313
Balance sheet
As at 31 December 2022
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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KINETEC MEDICAL PRODUCTS UK LIMITED
Registered number: 09748313
Balance sheet (continued)
As at 31 December 2022
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the Profit and loss account in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 27 September 2023.
The notes on pages 3 to 11 form part of these financial statements.
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KINETEC MEDICAL PRODUCTS UK LIMITED
Notes to the financial statements
For the Year Ended 31 December 2022
Kinetec Medical Products UK Limited is a private limited company incorporated in the United Kingdom and registered in England and Wales, registration number 09748313. The company's registered office address is 16-20 Morris Close, Park Farm Industrial Estate, Wellingborough, Northamptonshire, NN8 6XF.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.
The following principal accounting policies have been applied:
The going concern basis is not appropriate for the preparation of these financial statements as on 30 June 2023 the company transferred its trade and assets to Medfac UK Limited. The trade and assets were transferred at fair value condsideration and the company ceased to trade on the same day. As such these financial statements have been prepared on a basis other than that of going concern.
As the trade and assets were transferred as a going concern, it was not deemed to be appropriate to reclassify long-term assets to current assets as they continue retain their value and still be long-term in nature on the date of transfer.
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Sale of goods
Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
∙the Company has transferred the significant risks and rewards of ownership to the buyer;
∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the transaction; and
∙the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Rental income
Turnover from rents receivable in relation to the hire of equipment is recognised on an accruals basis. Rents are recognised on a straight line basis over the term of the contract, excluding VAT.
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KINETEC MEDICAL PRODUCTS UK LIMITED
Notes to the financial statements
For the Year Ended 31 December 2022
2.Accounting policies (continued)
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Intercompany sales and recharges
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Intercompany sales and recharges includes revenue recognised by the company in respect of goods supplied during the year, exclusive of Value Added Tax and expenses recharged to subsidiaries, such expenses include website costs, printing and salary recharges.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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over the life of the lease
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell.
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
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KINETEC MEDICAL PRODUCTS UK LIMITED
Notes to the financial statements
For the Year Ended 31 December 2022
2.Accounting policies (continued)
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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.
Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
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KINETEC MEDICAL PRODUCTS UK LIMITED
Notes to the financial statements
For the Year Ended 31 December 2022
2.Accounting policies (continued)
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Financial instruments (continued)
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Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
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KINETEC MEDICAL PRODUCTS UK LIMITED
Notes to the financial statements
For the Year Ended 31 December 2022
2.Accounting policies (continued)
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.
Interest income is recognised in profit or loss using the effective interest method.
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
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The average monthly number of employees, including directors, during the year was 16 (2021 - 13).
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KINETEC MEDICAL PRODUCTS UK LIMITED
Notes to the financial statements
For the Year Ended 31 December 2022
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Finished goods and goods for resale
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KINETEC MEDICAL PRODUCTS UK LIMITED
Notes to the financial statements
For the Year Ended 31 December 2022
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Amounts owed by group undertakings
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Called up share capital not paid
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Prepayments and accrued income
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Creditors: Amounts falling due after more than one year
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Amounts owed to group undertakings
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Authorised, allotted, called up and fully paid
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100 (2021 - 100) Ordinary shares of £1.00 each
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KINETEC MEDICAL PRODUCTS UK LIMITED
Notes to the financial statements
For the Year Ended 31 December 2022
Share premium account
Share premium represents amounts received for issued share capital in excess of its par value.
Other reserves
Other reserves represents the amortisation on the discounting of the beneficial loan from the parent company. This is treated as being akin to a capital contribution in accordance with FRS102.
Profit and loss account
The profit and loss account represents cumilative profits and losses, after payment of any dividends.
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Related party transactions
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At 31st December 2022 the Company owed a director £Nil (2021: £19,100), this loan is interest free and repayable on demand. During the year, £274 (2021: £Nil) of late payment interest was charged.
During the year ended 31 December 2019 the Company received a loan of €375,000 at an interest rate of 2.79% p.a from it's parent company, Medfac BVBA. As at 31 December 2022, the discounted present value of the loan was £212,400 (2021: £197,372) and interest accrued of £26,691 (2021: £20,511). During the year, repayments were made by Kinetec Medical Products UK of £Nil (2021: £9,354). The loan is repayable on demand.
During the year ended 31 December 2020, the Company received a further loan of €85,000 at an interest rate of 2.79% p.a from it's parent company, Medfac BVBA. As at 31 December 2022, the discounted present value of the loan was £75,382 (2021: £67,187) and interest accrued of £6,198 (2021: £2,488). The loan is repayable by 6 October 2023.
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Post balance sheet events
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On 30 June 2023 the trade and assets of Kinetec Medical Products UK Limited were transferred to Medfac UK Limited, a fellow subsidiary of Medfac BVBA as a going concern for fair value consideration. Kinetec Medical Products UK Limited ceased to trade on the same date.
The parent undertaking of the smallest group of which Kinetec Medical Products UK Limited is a member is Medfac BVBA. Their registered office is Kattevennen 8, 3600 Genk, Belgium.
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KINETEC MEDICAL PRODUCTS UK LIMITED
Notes to the financial statements
For the Year Ended 31 December 2022
The auditors' report on the financial statements for the year ended 31 December 2022 was unqualified.
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In their report, the auditors emphasised the following matter without qualifying their report:
We draw attention to the ‘Going concern’ policy in Note 2.2 of the financial statements which explains that the company has ceased to trade and the directors therefore do not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly, the financial statements have been prepared on a basis other than that of a going concern. Our opinion is not modified in respect of this matter.
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The audit report was signed on 27 September 2023 by Hannah Clegg (Senior statutory auditor) on behalf of Sayers Butterworth LLP.
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