Cignpost Diagnostics Limited

We aim to present a balanced and comprehensive view of the development and performance of our business during the period and its position at the year end. Business review As expected, dedicated Covid testing ceased to a service that was in demand from individuals and corporate alike. The company devoted resources to invest in research and development in order to apply the transformational advancements achieved in Covid testing to other diagnostic tests in a mobile lab environment in areas such as animal diseases, other human pandemic such as Monkey Pox, and tracking and identifying disease from groups of people impacted by natural or man-made disasters. However, these initiatives did not lead to the development of a profitable business and the company went through a reorganisation and repositioning. Along with a divestment of a discrete business unit, the company was acquired by a new parent in July 2024. The company continues to explore ways to exploit its assets, know and brands in order to maximise the return to shareholders. Operating performance Revenue for the period under review was £2.6 million (£45.2 million, 2022/23). The operating loss achieved amounted to £7.3 million (£18.1 million, 2022/23) and after-tax losses for the period amounted to £2.5 million (£14.5 million, 2022/23). Principal risks and uncertainties The company continually reviews the risks that may impact its business. The company is still required to adhere to various laws and regulations applicable to its assets and activities. The key risks, to the extent possible, have been mitigated through rigorous attention to asset security via the use of blue-chip third-party service providers. Strategy execution The company's core strategy entailed: - Collaboration with organisations to create tailored solutions for specific business needs; and - Accelerating innovation and digital transformation initiatives. General Key Performance Indicators The company's KPIs aligned the requirement to maintain asset security with regulatory requirements and the need to provide stakeholders with returns commensurate with the business operations. Section 172(1) Statement During the period the Board considers as individuals and collectively that it has acted in a way it considers, in good faith, would; - most likely promote the success of the group for the benefit of all of its stakeholders, including, but not limited to, its members, employees, suppliers and customers; - mitigate the impact of the group's operations on the community and the environment; enable the group to maintain a reputation for high standards of business conduct. Directors' duties Directors have been briefed on their duties with access to professional advice from the company's professional advisors. On group secretarial matters, where necessary, they have been supported by external independent advisors. The Directors fulfilled their duties in part through a governance framework that included delegation of certain day-to-day decision making to senior employees, and various management committees. Risk Management Due to the rapidly changing nature of the group's business environment the management of its business and risk is accordingly changing in response. It is therefore necessary for the Directors' approach to risk management to evolve continually to identify, evaluate, manage and mitigate effectively the risks faced. The potential risks and uncertainties that could have a material impact on the performance of the company are: Asset security and the diminution of asset values The Directors regularly identify, monitor, and ensure appropriate processes are in place to mitigate potential risks and uncertainties relating to asset security and the degradation of their value; Financial and liquidity Risk The Directors regularly undertake forecasting to identify the company's liquidity requirements and to ensure that sufficient financial headroom exists for at least a forward 12-month period; Economic Risk There is always the possibility that an economic downturn or changes to regulation could affect the business negatively. Where possible, the Directors regularly identify, monitor, and ensure appropriate processes and actions are in place to mitigate such potential risks and uncertainties; Credit Risk The company monitors credit risk closely and considers that its current policies of credit checks and applications of credit limits meet its objectives of managing exposure to credit risk. The company has no significant concentrations of credit risk; Regulatory Risk The company monitors regulatory risk on an ongoing basis and has both internal and third-party advisors to help it comply to the necessary standards. Investors The Board meets informally at least monthly and have formal meetings when required from a legal or business perspective. The Board recognises the importance of continuing an effective and transparent dialogue with shareholders, suppliers, customers and others. Suppliers, customers and others The company is committed to acting ethically and with integrity in all its business dealings and relationships. The Board looks to implement and enforce effective systems and controls to ensure its supply chains are maintaining the highest standard of business conduct in line with best practice including in relation to anti- bribery and modern slavery. The Board identifies and re-evaluates its stakeholders regularly to facilitate effective communication with them. The interests of the company's employees The Board promotes effective engagement with the company's workforce. The Board regularly interacts with all senior executives to gain insights into group affairs and to offer direction and advice as and when required. Regular briefing meetings are held to keep employees abreast of company results and performance, new developments, department overviews and insights.