South Lakes Veterinary Centre Limited - Period Ending 2018-09-30

Registration number: 07147058

Prepared for the registrar

South Lakes Veterinary Centre Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 30 September 2018

South Lakes Veterinary Centre Limited

Contents

Company Information	1
Balance Sheet	2 to 3
Notes to the Financial Statements	4 to 11

South Lakes Veterinary Centre Limited

Company Information

Director

Ms T Malham

Registered office

Victoria Road Ulverston Cumbria LA12 0BY

Accountants

Hazlewoods LLP Staverton Court Staverton Cheltenham GL51 0UX

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South Lakes Veterinary Centre Limited

(Registration number: 07147058)
Balance Sheet as at 30 September 2018

	Note	2018  £	2017  £
Fixed assets
Intangible assets	4	216,116	234,125
Tangible assets	5	12,668	14,927
		228,784	249,052
Current assets
Stocks		21,651	20,647
Debtors	6	51,951	28,259
Cash at bank and in hand		123,930	94,151
		197,532	143,057
Creditors: Amounts falling due within one year	7	(124,303)	(118,029)
Net current assets		73,229	25,028
Total assets less current liabilities		302,013	274,080
Creditors: Amounts falling due after more than one year	7	(140,901)	(160,522)
Deferred tax liabilities	8	(1,652)	(1,939)
Net assets		159,460	111,619
Capital and reserves
Called up share capital		1	1
Profit and loss account		159,459	111,618
Total equity		159,460	111,619

For the financial year ending 30 September 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The director acknowledges her responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

The notes on pages 4 to 11 form an integral part of these financial statements.
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South Lakes Veterinary Centre Limited

(Registration number: 07147058)
Balance Sheet as at 30 September 2018

Approved and authorised by the director on 22 February 2019
 

.........................................

Ms T Malham
Director

The notes on pages 4 to 11 form an integral part of these financial statements.
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South Lakes Veterinary Centre Limited

Notes to the Financial Statements for the Year Ended 30 September 2018

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Victoria Road
Ulverston
Cumbria
LA12 0BY

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

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South Lakes Veterinary Centre Limited

Notes to the Financial Statements for the Year Ended 30 September 2018

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Leasehold improvements	Over the term of the lease
Plant and machinery	15% of written down value
Fixtures and fittings	10% of written down value
Office equipment	33% of cost

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Goodwill	Over 20 years

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South Lakes Veterinary Centre Limited

Notes to the Financial Statements for the Year Ended 30 September 2018

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

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South Lakes Veterinary Centre Limited

Notes to the Financial Statements for the Year Ended 30 September 2018

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
 

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was as follows:

	2018  No.	2017  No.
Average number of employees	11	12

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South Lakes Veterinary Centre Limited

Notes to the Financial Statements for the Year Ended 30 September 2018

4

Intangible assets

	Goodwill  £
Cost
At 1 October 2017	360,188
At 30 September 2018	360,188
Amortisation
At 1 October 2017	126,063
Amortisation charge	18,009
At 30 September 2018	144,072
Carrying amount
At 30 September 2018	216,116
At 30 September 2017	234,125

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South Lakes Veterinary Centre Limited

Notes to the Financial Statements for the Year Ended 30 September 2018

5

Tangible assets

	Land and buildings £	Furniture, fittings and equipment  £	Total £
Cost
At 1 October 2017	2,239	37,062	39,301
At 30 September 2018	2,239	37,062	39,301
Depreciation
At 1 October 2017	733	23,641	24,374
Charge for the year	189	2,070	2,259
At 30 September 2018	922	25,711	26,633
Carrying amount
At 30 September 2018	1,317	11,351	12,668
At 30 September 2017	1,506	13,421	14,927

Included within the net book value of land and buildings above is £1,317 (2017 - £1,506) in respect of short leasehold land and buildings.
 

6

Debtors

	2018  £	2017  £
Trade debtors	49,789	25,825
Prepayments	2,162	2,434
	51,951	28,259

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South Lakes Veterinary Centre Limited

Notes to the Financial Statements for the Year Ended 30 September 2018

7

Creditors

Creditors: amounts falling due within one year

	Note	2018  £	2017  £
Due within one year
Loans and borrowings	9	53,901	55,920
Trade creditors		21,243	17,117
Social security and other taxes		22,818	20,666
Other creditors		2	302
Accrued expenses		3,370	3,280
Corporation tax liability		22,969	20,744
		124,303	118,029
Due after one year
Loans and borrowings	9	140,901	160,522

Creditors: amounts falling due after more than one year

	Note	2018 £	2017 £
Due after one year
Loans and borrowings	9	140,901	160,522

8

Deferred tax

Deferred tax assets and liabilities

2018	Liability £
Difference between accumulated depreciation and amortisation and capital allowance	1,652

2017	Liability £
Difference between accumulated depreciation and amortisation and capital allowance	1,939

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South Lakes Veterinary Centre Limited

Notes to the Financial Statements for the Year Ended 30 September 2018

9

Loans and borrowings

	2018 £	2017 £
Current loans and borrowings
Bank borrowings	19,132	17,976
Other borrowings	34,769	37,944
	53,901	55,920

	2018 £	2017 £
Non-current loans and borrowings
Bank borrowings	140,901	160,522

The bank loans and borrowings are secured by the company.

10

Financial commitments, guarantees and contingencies

Operating leases

The total of future minimum lease payments is as follows:

	2018  £	2017  £
Not later than one year	11,446	15,355
Later than one year and not later than five years	36,914	35,012
Later than five years	17,280	25,920
	65,640	76,287

The amount of non-cancellable operating lease payments recognised as an expense during the year was £14,908 (2017 - £15,355).

11

Related party transactions

At the balance sheet date the amount due to the director was £34,769 (2017 - £37,944). This amount is shown in other borrowings. There are no fixed repayment terms and no interest is due on the outstanding amount.

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