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02409474
Arrow Medical Limited
Registered number: 02409474
Information for filing with the registrar
For the 18 month period ended 30 June 2019
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ARROW MEDICAL LIMITED
REGISTERED NUMBER: 02409474
BALANCE SHEET
AS AT 30 JUNE 2019
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18 month period ended 30 June 2019
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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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Net current assets/(liabilities)
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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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- 1 -
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ARROW MEDICAL LIMITED
REGISTERED NUMBER: 02409474
BALANCE SHEET (CONTINUED)
AS AT 30 JUNE 2019
The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the 18 month period in question in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
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 statement of income and retained earnings 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 by:
................................................
J C Atkinson
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- 2 -
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ARROW MEDICAL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE 18 MONTH PERIOD ENDED 30 JUNE 2019
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Comprehensive income for the year
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Comprehensive income for the 18 month period
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Loss for the 18 month period
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Total comprehensive income for the 18 month period
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Shares issued during the 18 month period
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Total transactions with owners
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The notes on pages 4 to 12 form part of these financial statements.
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- 3 -
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ARROW MEDICAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTH PERIOD ENDED 30 JUNE 2019
Arrow Medical Limited (no. 02409474) is a private company limited by shares incorporated in England and Wales. Its registered office is Hatton Garden Industrial Estate, Kingston, Hereford, HR5 3RB.
The principal activity of the Company is the manufacture, assembly, cutting, sewing and FR welding of textile and other materials, sterilization, sale and distribution of medical devices and the manufacture of silicon and rubber components and products for third party customers, the majority of which are incorporated into medical devices.
The financial statements have been presented in Pound Sterling as this is currency of the primary economic environment in which the Company operates and is rounded to the nearest pound.
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 following principal accounting policies have been applied:
The directors' are pleased to confirm that Loan Stockholders have confirmed that their loans will not be recalled before 2023 and have also agreed to waive the interest charges to assist the Company in these difficult trading times. Despite the uncertainty of Brexit, the directors' are also pleased to confirm that long-standing loyal customers have indicated they will continue placing orders at their current level. Only one customer forecasts a drop in demand as their product waits to be further approved for FDA. Contractually subcontractors do not have firm order quantities for 12 months. With the new businesses recently started and secured, the directors' have produced a forecast for the next 12 months which does show the Company has all the resources necessary to meet its obligations and support growth.
We are also pleased to see continued cooperation and exchange of technologies with our new Singaporean based investor. This investor has indicated a willingness to provide future financial support if required whilst trading performance improves. All of the above analysis supports the directors' believing Arrow Medical Limited is a ‘Going Concern’.
- 4 -
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ARROW MEDICAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTH PERIOD ENDED 30 JUNE 2019
2.Accounting policies (continued)
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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.
Revenue 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. Revenue 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
Revenue 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.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to the Statement of income and retained earnings on a straight line basis over the lease term.
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Leased assets: the Company as lessee
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Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the Statement of income and retained earnings so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
- 5 -
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ARROW MEDICAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTH PERIOD ENDED 30 JUNE 2019
2.Accounting policies (continued)
Interest income is recognised in the Statement of income and retained earnings using the effective interest method.
Finance costs are charged to the Statement of income and retained earnings 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.
All borrowing costs are recognised in the Statement of income and retained earnings in the 18 month period in which they are incurred.
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 the Statement of income and retained earnings 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.
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.
- 6 -
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ARROW MEDICAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTH PERIOD ENDED 30 JUNE 2019
2.Accounting policies (continued)
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Tangible fixed assets (continued)
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Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the following basis:.
Depreciation is provided on the following basis:
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 the Statement of income and retained earnings.
Investments in subsidiaries are measured at cost less accumulated impairment.
Stocks are stated at the lower of cost and net realisable value. Work in progress and finished goods include labour and attributable overheads.
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. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
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.
- 7 -
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ARROW MEDICAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTH PERIOD ENDED 30 JUNE 2019
2.Accounting policies (continued)
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
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The average monthly number of employees, including directors, during the 18 month period was 58 (2017 - 58).
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Charge for the 18 month period on owned assets
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- 8 -
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ARROW MEDICAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTH PERIOD ENDED 30 JUNE 2019
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Investments in subsidiary companies
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18 month period ended 30 June 2019
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Prepayments and accrued income
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Creditors: Amounts falling due within one year
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18 month period ended 30 June 2019
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Other taxation and social security
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Obligations under finance lease and hire purchase contracts
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Accruals and deferred income
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- 9 -
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ARROW MEDICAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTH PERIOD ENDED 30 JUNE 2019
7.Creditors: Amounts falling due within one year (continued)
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The Company's bankers hold a first charge over the freehold property owned by the Company.
Liabilities under hire purchase contracts are secured against the relevant assets.
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Creditors: Amounts falling due after more than one year
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18 month period ended 30 June 2019
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Net obligations under finance leases and hire purchase contracts
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The subordinated loan notes are unsecured and in accordance with the undertaking, all interest due or which would otherwise accrue on the relevant loans on and from the date of the undertaking until the repayment date which is the 31 December 2023. The loan notes are subordinated to the ordinary creditors of the Company.
Liabilities under hire purchase contracts are secured against the relevant assets.
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18 month period ended 30 June 2019
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Shares classified as equity
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Authorised, allotted, called up and fully paid
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1,375,000 (2017 - 1,000,001) Ordinary shares of £0.01 each
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1,000,001 Deferred shares of £0.09 each
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- 10 -
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ARROW MEDICAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTH PERIOD ENDED 30 JUNE 2019
9.Share capital (continued)
On 1 February 2018 99,999 Ordinary shares of 1p each were issued and fully paid and on 16 November 2018 a further 275,000 Ordinary shares of 1p each were issued and fully paid.
Deferred shares do not entitle the holders to participate in return of assets in a winding up, reduction of capital. Deferred shares are entitled to participate in dividends at a rate of 10p per share subject to conditions of the articles, controlled by the Company. Deferred shares are redeemable at the Companies discretion.
Share premium account
The share premium account represents the amount above the nominal value received for issued share capital, less transaction costs.
Profit & loss account
The profit and loss account represents cumulative profits and losses of the Company.
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £23,209 (2017 : £7,515) Contributions totalling £1,845 (2017 : £498) were payable to the fund at the balance sheet date and are included in creditors.
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Commitments under operating leases
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At 30 June 2019 the Company had future minimum lease payments under non-cancellable operating leases as follows:
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18 month period ended 30 June 2019
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Total operating lease commitments
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- 11 -
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ARROW MEDICAL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 18 MONTH PERIOD ENDED 30 JUNE 2019
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Related party transactions
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Arrow Medical Products Limited
Arrow Medical Products Limited is a wholly owned subsidary of Arrow Medical Limited. The Company has taken advantage of the exemption in FRS102 section 33 not to disclose transactions with other members of the group.
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