Company registration number 11685363 (England and Wales)
CELLTRION HEALTHCARE UNITED KINGDOM LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
CELLTRION HEALTHCARE UNITED KINGDOM LIMITED
COMPANY INFORMATION
Directors
Mr H Lee
Mr J Shin
(Appointed 8 March 2021)
Company number
11685363
Registered office
The Switch
1-7 The Grove
Slough
SL1 1QP
Auditor
Kirk Rice LLP
The Courtyard
High Street
Ascot
Berkshire
SL5 7HP
CELLTRION HEALTHCARE UNITED KINGDOM LIMITED
CONTENTS
Page
Directors' report
1 - 2
Independent auditor's report
3 - 5
Statement of comprehensive income
6
Statement of financial position
7
Statement of changes in equity
8
Statement of cash flows
9
Notes to the financial statements
10 - 21
CELLTRION HEALTHCARE UNITED KINGDOM LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 1 -
The directors present their annual report and financial statements for the year ended 31 December 2021.
Principal activities
The principal activity of the company continued to be that of selling, marketing and distribution of pharmaceutical products in the UK.
Results and dividends
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr H J Choi
(Resigned 8 March 2021)
Mr H Lee
Mr J Shin
(Appointed 8 March 2021)
Future developments
After a very successful launch of Regkirona (Covid antibody medicine) in EU countries we are in the final process of becoming a Marker Authorisation Holder for the product in UK and receiving an approval from MHRA for the sale and distribution of the product in UK.
Auditor
Kirk Rice LLP were appointed as auditor to the company during the year and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom. 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, International Accounting Standard 1 requires that directors:
-
properly select and apply accounting policies;
-
present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable information;
-
provide additional disclosures when compliance with the specific requirements in IFRSs are insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity's financial position and financial performance; and
-
make an assessment of the company's ability to continue as a going concern.
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.
CELLTRION HEALTHCARE UNITED KINGDOM LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
Statement of disclosure to auditor
Each director in office at the date of approval of this annual report confirms that:
-
so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware, and
-
the director has taken all the steps that he / she ought to have taken as a director in order to make himself / herself aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This confirmation is given and should be interpreted in accordance with the provisions of section 418 of the Companies Act 2006.
Going concern
The Directors have made an assessment of the Company’s ability to continue as a going concern. As a result of our assessment, we consider that the Company is able to continue to operate as a going concern and that it is appropriate to prepare the financial statements on a going concern basis.
The Coronavirus (Covid-19) pandemic continues to have a negative effect on the business. The access to our potential clients is still restricted, which has an effect on our growth and revenue. However, our revenue has been growing steadily every quarter and we are able to report a profit for the year.
In response to Brexit, a good supply chain process has been set up and no additional significant cost has occurred.
Our relationship with the main supplier remains strong and we addressed the FX risk by changing the supplier contract currency from EUR to GBP.
The Directors have taken into account that as part of the Group, the company has the ability to request the support from the Group where necessary and can take actions to ensure business continuity through operational channels as well as the ability to manage variable costs.
The business plan for 2022 is to launch three new products. Together with our current well-established product, we anticipate to strengthen our position in the market and increase our revenue.
On behalf of the board
Mr H Lee
Director
4 April 2022
CELLTRION HEALTHCARE UNITED KINGDOM LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CELLTRION HEALTHCARE UNITED KINGDOM LIMITED
- 3 -
Opinion
We have audited the financial statements of Celltrion Healthcare United Kingdom Limited
(the 'company')
for the year ended 31 December 2021 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the statement of cash flows 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
International Financial Reporting Standards (IFRSs) as adopted by the United Kingdom.
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 31 December 2021 and of its profit for the year then ended;
-
have been properly prepared in accordance with UK adopted international accounting standards; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's
responsibilities for the audit of the
financial statements
section of our report. We are independent of the
company
in accordance with the ethical requirements that are relevant to our audit of the
financial statements
in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the directors'
r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the directors' report has been prepared in accordance with applicable legal requirements.
CELLTRION HEALTHCARE UNITED KINGDOM LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CELLTRION HEALTHCARE UNITED KINGDOM LIMITED
- 4 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the directors'
r
eport
. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of
directors'
remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit; or
-
the directors were not entitled to take advantage of the small companies exemption from the requirement to prepare a strategic report.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of
financial statements
that are free from material misstatement, whether due to fraud or error. In preparing the
financial statements
, the
directors are
responsible for assessing the company
'
s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have
no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the
financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with
ISAs (UK)
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements
.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below
.
Our audit approach was developed by obtaining an understanding of the company’s activities, the key functions undertaken on behalf of the Board by management and by service organisations, and the overall control environment. Based on this understanding we assessed those aspects of the company’s transactions and balances which were most likely to give rise to a material misstatement and were most susceptible to irregularities including fraud or error. Specifically, we identified what we considered to be key audit risks and planned our audit approach accordingly.
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company which were contrary to applicable laws and regulations, including fraud. These included but were not limited to compliance with Companies Act 2006, IFRS, and regulations which affect the company’s products.
We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion.
We focused on laws and regulations that could give rise to a material misstatement in the company financial statements. Our tests included, but were not limited to:
CELLTRION HEALTHCARE UNITED KINGDOM LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CELLTRION HEALTHCARE UNITED KINGDOM LIMITED
- 5 -
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. As in all of our audits we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
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.
Graham Jennings (Senior Statutory Auditor)
For and on behalf of Kirk Rice LLP
4 April 2022
Statutory Auditor
The Courtyard
High Street
Ascot
Berkshire
SL5 7HP
CELLTRION HEALTHCARE UNITED KINGDOM LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021
- 6 -
2021
2020
Notes
£
£
Revenue
4
29,380,233
7,354,317
Cost of sales
(20,896,564)
(6,440,706)
Gross profit
8,483,669
913,611
Administrative expenses
(5,530,816)
(257,341)
Operating profit
5
2,952,853
656,270
Finance costs
8
(84,288)
(8,125)
Profit before taxation
2,868,565
648,145
Income tax expense
9
(261,980)
(85,843)
Profit and total comprehensive income for the year
20
2,606,585
562,302
The income statement has been prepared on the basis that all operations are continuing operations.
CELLTRION HEALTHCARE UNITED KINGDOM LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2021
31 December 2021
- 7 -
2021
2020
Notes
£
£
Non-current assets
Property, plant and equipment
10
215,261
274,931
Current assets
Inventories
11
3,385,007
8,448,438
Trade and other receivables
12
12,097,462
2,986,596
Cash and cash equivalents
1,128,534
686,821
16,611,003
12,121,855
Current liabilities
Trade and other payables
15
7,671,819
11,233,443
Current tax liabilities
30,388
82,342
Borrowings
14
5,500,000
Lease liabilities
16
85,624
79,712
13,287,831
11,395,497
Net current assets
3,323,172
726,358
Non-current liabilities
Lease liabilities
16
134,809
204,230
Deferred tax liabilities
17
3,481
3,501
138,290
207,731
Net assets
3,400,143
793,558
Equity
Called up share capital
19
490,100
490,100
Retained earnings
20
2,910,043
303,458
Total equity
3,400,143
793,558
The financial statements were approved by the board of directors and authorised for issue on 4 April 2022 and are signed on its behalf by:
Mr H Lee
Director
Company registration number 11685363
CELLTRION HEALTHCARE UNITED KINGDOM LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
- 8 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 January 2020
490,100
(258,844)
231,256
Year ended 31 December 2020:
Profit and total comprehensive income for the year
-
562,302
562,302
Balance at 31 December 2020
490,100
303,458
793,558
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
2,606,585
2,606,585
Balance at 31 December 2021
490,100
2,910,043
3,400,143
CELLTRION HEALTHCARE UNITED KINGDOM LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 9 -
2021
2020
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
24
(4,623,090)
547,705
Interest paid
(33,695)
(8,125)
Tax paid
(313,954)
Net cash (outflow)/inflow from operating activities
(4,970,739)
539,580
Investing activities
Purchase of property, plant and equipment
(4,812)
(18,634)
Net cash used in investing activities
(4,812)
(18,634)
Financing activities
Proceeds from bank loans
5,500,000
Payment of lease liabilities
(82,736)
(11,376)
Net cash generated from/(used in) financing activities
5,417,264
(11,376)
Net increase in cash and cash equivalents
441,713
509,570
Cash and cash equivalents at beginning of year
686,821
177,251
Cash and cash equivalents at end of year
1,128,534
686,821
CELLTRION HEALTHCARE UNITED KINGDOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 10 -
1
Accounting policies
Company information
Celltrion Healthcare United Kingdom Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Switch, 1-7 The Grove, Slough, SL1 1QP.
The company's principal activities and nature of its operations are disclosed in the directors' report.
1.1
Accounting convention
The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted for use in the United Kingdom and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS, except as otherwise stated.
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 £.
The financial statements have been prepared prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The Directors have made an assessment of the Company’s ability to continue as a going concern. As a result of our assessment, we consider that the Company is able to continue to operate as a going concern and that it is appropriate to prepare the financial statements on a going concern basis.
true
The Coronavirus (Covid-19) pandemic continues to have a negative effect on the business. The access to our potential clients is still restricted, which has an effect on our growth and revenue. However, our revenue has been growing steadily every quarter and we are able to report a profit for the year.
In response to Brexit, a good supply chain process has been set up and no additional significant cost has occurred.
Our relationship with the main supplier remains strong and we addressed the FX risk by changing the supplier contract currency from EUR to GBP.
The Directors have taken into account that as part of the Group, the company has the ability to request the support from the Group where necessary and can take actions to ensure business continuity through operational channels as well as the ability to manage variable costs.
The business plan for 2022 is to launch three new products. Together with our current well-established product, we anticipate to strengthen our position in the market and increase our revenue.
1.3
Revenue
Revenue from the sale of pharmaceutical goods is recognised when the significant risks and rewards of the ownership of goods have passed to the buyer (usually on dispatch on inspected 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 cost incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue represents income receivable from the provision of services related to the promotion, sales and distribution of pharmaceutical products within UK, and it is shown net of VAT and other sales related taxes.
Revenue is recognised in the period in which the services are provided in accordance with the stage of completion of the contract.
CELLTRION HEALTHCARE UNITED KINGDOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 11 -
1.4
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
Over useful life of lease
Computers
20% on cost
Motor vehicles
33% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the
income statement
.
1.5
Impairment of tangible and intangible assets
At each reporting end date, the
company
reviews the carrying amounts of its tangible 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.
1.6
Inventories
Inventories
are stated at the lower of cost and
estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the
inventories
to their present location and condition.
Inventories
held for distribution at no or nominal consideration are measured the lower of
replacement
cost and cost,
adjusted where applicable for any loss of service potential.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
Inventories are valued using the weighted average cost method. Goods with the shortest expiry dates are dispatched first.
1.7
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial assets
Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.
At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.
1.9
Financial liabilities
The company recogni
s
es financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either
'
financial liabilities at fair value through profit or loss
'
or
'
other financial liabilities
'
.
CELLTRION HEALTHCARE UNITED KINGDOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 12 -
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
income statement
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
income statement
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
At inception, the company assesses whether a contract is
,
or contains
,
a lease
within the scope of IFRS 16. A contract is
,
or contains
,
a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within
property, plant and equipment,
apart from those that meet the definition of investment property
.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
CELLTRION HEALTHCARE UNITED KINGDOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 13 -
1.13
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
Adoption of new and revised standards and changes in accounting policies
In the current year, the following new and revised Standards and Interpretations have been adopted by the company and have an effect on the current period or a prior period or may have an effect on future periods:
Standards which are in issue but not yet effective
At the date of authorisation of these financial statements, the following Standards and Interpretations, which have not yet been applied in these financial statements, were in issue but not yet effective (and in some cases had not yet been adopted by the EU):
Amendment to IFRS 16 issued March 2021
Leases
Amendment to IFRS 9 issued December 2021
Financial Instruments
Amendment to IAS 12 issued May 2021
Income Taxes
Amendment to IAS 1 issued March 2021
Presentation of Financial Statements
Amendment to IAS 8 issued February 2021
Accounting Policy Changes
3
Critical accounting estimates and judgements
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
Critical judgements
Impairments
Determine whether there are indicators of impairment of the Company’s fixed assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.
CELLTRION HEALTHCARE UNITED KINGDOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
3
Critical accounting estimates and judgements
(Continued)
- 14 -
Key sources of estimation uncertainty
Depreciation
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 the 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.
The Company’s directors are of the opinion that there are no other judgements and no estimates or assumptions that have a significant risk of causing material adjustment to the carrying value of assets and liabilities for the company within the next financial year.
4
Revenue
2021
2020
£
£
Revenue analysed by class of business
Product sales
29,380,233
2,168,922
Service fees
-
5,185,395
29,380,233
7,354,317
5
Operating profit
2021
2020
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange gains
(623,618)
(40,512)
Depreciation of property, plant and equipment
83,709
41,704
Cost of inventories recognised as an expense
20,896,564
1,810,888
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
17
13
CELLTRION HEALTHCARE UNITED KINGDOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
6
Employees
(Continued)
- 15 -
Their aggregate remuneration comprised:
2021
2020
£
£
Wages and salaries
1,585,529
1,260,833
Social security costs
179,751
124,632
Pension costs
84,344
108,282
1,849,624
1,493,747
Salaries of £nil (2020: £1,138,334), social security costs of £nil (2020: £112,230) and pension costs of £nil (2020: - £98,404) were recharged to the parent company during the year.
7
Directors' remuneration
2021
2020
£
£
Remuneration for qualifying services
54,401
8
Finance costs
2021
2020
£
£
Interest on bank overdrafts and loans
52,364
Interest on lease liabilities
11,402
8,125
Other interest payable
20,522
Total interest expense
84,288
8,125
9
Income tax expense
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
262,000
82,342
Deferred tax
Origination and reversal of temporary differences
(20)
3,501
Total tax charge
261,980
85,843
CELLTRION HEALTHCARE UNITED KINGDOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
9
Income tax expense
(Continued)
- 16 -
The charge for the year can be reconciled to the profit per the income statement as follows:
2021
2020
£
£
Profit before taxation
2,868,565
648,145
Expected tax charge based on a corporation tax rate of 19.00% (2020: 19.00%)
545,027
123,148
Effect of expenses not deductible in determining taxable profit
(282,928)
11,857
Utilisation of tax losses not previously recognised
(49,672)
Deferred tax adjustment
(119)
510
Taxation charge for the year
261,980
85,843
CELLTRION HEALTHCARE UNITED KINGDOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 17 -
10
Property, plant and equipment
Leasehold land and buildings
Computers
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2020
2,740
2,740
Additions
215,852
18,634
79,466
313,952
At 31 December 2020
215,852
21,374
79,466
316,692
Additions
4,812
19,227
24,039
At 31 December 2021
215,852
26,186
98,693
340,731
Accumulated depreciation and impairment
At 1 January 2020
57
57
Charge for the year
35,976
2,891
2,837
41,704
At 31 December 2020
35,976
2,948
2,837
41,761
Charge for the year
49,104
4,917
29,688
83,709
At 31 December 2021
85,080
7,865
32,525
125,470
Carrying amount
At 31 December 2021
130,772
18,321
66,168
215,261
At 31 December 2020
179,876
18,426
76,629
274,931
At 31 December 2019
-
2,683
-
2,683
Property, plant and equipment includes right-of-use assets, as follows:
Right-of-use assets
2021
2020
£
£
Net values
Property
130,772
179,876
Motor vehicles
66,168
76,629
196,940
256,505
Additions
19,227
295,318
Depreciation charge for the year
Property
49,104
35,976
Motor vehicles
29,688
2,837
78,792
38,813
CELLTRION HEALTHCARE UNITED KINGDOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 18 -
11
Inventories
2021
2020
£
£
Finished goods
3,385,007
8,448,438
12
Trade and other receivables
2021
2020
£
£
Trade receivables
11,995,296
2,595,280
VAT recoverable
255,457
Prepayments
102,166
135,859
12,097,462
2,986,596
Amounts owed by group undertakings are unsecured, interest free and repayable on demand.
13
Trade receivables - credit risk
Fair value of trade receivables
The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.
No significant receivable balances are impaired at the reporting end date.
14
Borrowings
2021
2020
£
£
Borrowings held at amortised cost:
Bank loans
5,500,000
-
Celltrion Healthcare Co., Ltd (the ultimate controlling company) has provided a guarantee over the bank loan borrowing facility.
15
Trade and other payables
2021
2020
£
£
Trade payables
481,258
299,176
Amounts owed to fellow group undertakings
5,010,455
10,731,657
Accruals
330,179
156,831
Social security and other taxation
1,849,927
Other payables
45,779
7,671,819
11,233,443
CELLTRION HEALTHCARE UNITED KINGDOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
15
Trade and other payables
(Continued)
- 19 -
Amounts owed to group undertakings are unsecured
and repayable on demand. Interest is charged on overdue inter-company invoices at a rate of 4.6% per annum.
16
Lease liabilities
2021
2020
Maturity analysis
£
£
Within one year
85,624
79,712
In two to five years
134,809
204,230
Total undiscounted liabilities
220,433
283,942
Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:
2021
2020
£
£
Current liabilities
85,624
79,712
Non-current liabilities
134,809
204,230
220,433
283,942
2021
2020
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
11,402
8,125
The fair value of the company's lease obligations is approximately equal to their carrying amount.
CELLTRION HEALTHCARE UNITED KINGDOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 20 -
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.
ACAs
£
Deferred tax balance at 1 January 2020
Deferred tax movements in prior year
Charge/(credit) to profit or loss
3,501
Deferred tax liability at 1 January 2021
3,501
Deferred tax movements in current year
Charge/(credit) to profit or loss
(20)
Deferred tax liability at 31 December 2021
3,481
18
Retirement benefit schemes
Defined contribution schemes
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
The total costs charged to income in respect of defined contribution plans is £84,344 (2020 - £108,282).
19
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £10 each
49,010
49,010
490,100
490,100
20
Retained earnings
The retained earnings reserve represents cumulative profits and losses
.
21
Capital risk management
The company is not subject to any externally imposed capital requirements.
CELLTRION HEALTHCARE UNITED KINGDOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 21 -
22
Related party transactions
Remuneration of key management personnel
The total remuneration of directors and other members of key management in 2021 (including gross salaries, social security costs, pension costs and other benefits) was £60,750 (2020: £103,691). Service fees charged to Celltrion Healthcare Hungary Kft in 2021 was £nil (2020: £5,185,395). Trade payables to Celltrion Healthcare Hungary Kft in 2021 was £5,010,455 (2020: £10,731,657). Other costs charged to Celltrion Healthcare Hungary Kft in 2021 was £nil (2020: £105,384) and to Celltrion Healthcare CO., LTD. £1,349 (2020: £52,200).
23
Controlling party
The Company's immediate parent company is Celltrion Healthcare Hungary KFT (a company incorporated in Hungary) by virtue of its 100% direct shareholding in Celltrion Healthcare United Kingdom Limited.
The Company's ultimate parent company is Celltrion Healthcare Co., Ltd (a company incorporated and listed in South Korea) by virtue of its 100% indirect shareholding in Celltrion Healthcare United Kingdom Limited.
There is no ultimate controlling party of the Company.
The smallest group in which the results of the Company are consolidated is that headed by Celltrion Healthcare Hungary KFT. The consolidated accounts of the Company may be obtained from Váci út 1-3, WestEnd Office building B torony, 1062 Hungary.
The largest group in which the results of the Company are consolidated is that headed by Celltrion Healthcare Co., Ltd. The consolidated accounts of the Company may be obtained from 4th Floor, 19 Academyro, 51 beon-gil, Yeonsu-Gu, Incheon, 22014, Korea.
24
Cash (absorbed by)/generated from operations
2021
2020
£
£
Profit for the year before income tax
2,868,565
648,145
Adjustments for:
Finance costs
84,288
8,125
Depreciation and impairment of property, plant and equipment
83,709
41,704
Movements in working capital:
Decrease/(increase) in inventories
5,063,431
(8,448,438)
Increase in trade and other receivables
(9,110,866)
(2,803,945)
(Decrease)/increase in trade and other payables
(3,612,217)
11,102,114
Cash (absorbed by)/generated from operations
(4,623,090)
547,705
2021-12-31
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