Isabel Healthcare Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 04759944 (England and Wales)

Financial Statements for the Year Ended 31 December 2018

for

Isabel Healthcare Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTOR:

Mr J R Maude

SECRETARY:

Mr T R Meadows

REGISTERED OFFICE:

Meadowbrook

Bunch Lane

Haslemere

Surrey

GU27 1AE

REGISTERED NUMBER:

04759944 (England and Wales)

ACCOUNTANTS:

SRG LLP

28 Ely Place

London

EC1N 6AA

FIXED ASSETS

Intangible assets

4

373,542

449,239

Tangible assets

5

162,971

145,136

Investments

6

-

-

536,513

594,375

CURRENT ASSETS

Debtors

7

2,320,751

2,101,435

Cash at bank

19,513

19,893

2,340,264

2,121,328

CREDITORS

Amounts falling due within one year

8

3,042,926

2,872,627

NET CURRENT LIABILITIES

(702,662

)

(751,299

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(166,149

)

(156,924

)

CAPITAL AND RESERVES

Called up share capital

1,501,441

1,501,441

Retained earnings

(1,667,590

)

(1,658,365

)

SHAREHOLDERS' FUNDS

(166,149

)

(156,924

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2018.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2018 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director on 10 September 2019 and were signed by:

Mr J R Maude - Director

1.	STATUTORY INFORMATION

Isabel Healthcare Limited is a private company, limited by shares , registered in England and Wales. The

company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover and revenue recognition

Turnover represents net invoiced sales of services, excluding value added tax.

Revenue is measured at fair value of the consideration received and represents amounts receivable for goods and

services provided in the normal course of business, net of discounts, VAT and other sales related taxes. All

revenues generated are attributable to the company's principal activity.

Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest

rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of

the financial asset to that asset's net carrying amount.

Patents and trademarks

Patents and trademarks are measured initially at purchase cost and amortised on a straight line basis over their

estimated useful lives.

Intangible assets

Amortisation is provided in order to write off each asset in equal annual amounts over its estimated useful

economic life. In the case of Intellectual Property this is estimated to be 20 years.

Tangible fixed assets

Plant and equipment and website design and content costs are stated at cost less accumulated depreciation and

any recognised impairment loss.

Depreciation is charged so as to write off the cost or valuation of assets over their estimated useful lives using the

straight line method, on the following basis

Website design & content 25% on cost

Equipment, fixtures and fittings 25% on cost

Website development costs

Website design and content development costs are capitalised and recorded as tangible fixed assets to the extent

that they lead to the creation of an enduring asset which it is envisaged will deliver benefits at least as great as the

amount capitalised. To the extent that such is not envisaged the cost is written off as incurred. Website

application and infrastructure development costs are recorded as plant and equipment in respect of hardware,

software and similar costs and as intangible assets in respect of domain names and similar costs.

Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the period. 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 periods and it further excludes items that are never taxable or deductible. The liability for current tax is

calculated using rates that have been enacted or substantively enacted by the balance sheet date.

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 (other than in a business combination) of other assets and liabilities in a transaction that affects

neither the tax profit nor the accounting profit.

Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries

and associates, and interest in join ventures, except where the company is able to control the reversal of the

temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the

balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at

the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

Profit from operations

Profit from operations is stated before investment income and finance costs.

Internally-generated intangible assets - Research and development

Expenditure on research activities is recognised as an expense in the period in which it is incurred. An internally

generated intangible asset arising from the company's work on developing working prototypes from initial design

work is recognised only if all of the following conditions are met:

- An asset is created that can be identified;

- It is probable that the asset created will generate future economic benefits;

- The development cost of the asset can be measured reliably.

As at the date of these financial statements no development expenditure had met all of the above conditions and

accordingly no intangible asset recognised.

Impairment of tangible and intangible assets

At each balance sheet date, the company reviews the carrying amounts of its tangible and intangible 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 the asset does not generate cash flows that are independent from other assets, the

company estimates the recoverable amount of the cash-generating unit to which the asset belongs. An intangible

asset with an indefinite useful life is tested for impairment annually and whenever there is an indication that the

asset may be impaired.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the

estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current

market assessments of the time value of money and the risks specific to the asset for which the estimates of future

cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount,

the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss

is recognised as an expense immediately, unless the relevant asset is carried at a revalued amount, in which case

the impairment loss is treated as a revaluation decrease.

Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is

increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not

exceed that would have been determined had no impairment loss been recognised for the asset (cash generating

unit) in prior years. A reversal of an impairment loss is recognised as income immediately, unless the relevant

asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation

increase.

Financial instruments

Financial assets and financial liabilities are recognised on the company's balance sheet when the company

becomes a party to the contractual provisions of the instrument.

Cash and cash equivalents

Cash and cash equivalents are included in the balance sheet at cost.

Financial liability and equity

Financial liabilities and equity instruments are classified according to the substance of the contractual

arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of

the company after deducting all of its liabilities.

Trade payables

Trade and other payables are stated at their cost.

Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 3 (2017 - 3 ) .

4.	INTANGIBLE FIXED ASSETS

Intellectual

Patents

Property

and

Rights

trademarks

Totals

£

£

£

COST

At 1 January 2018

and 31 December 2018

1,504,440

9,500

1,513,940

AMORTISATION

At 1 January 2018

1,059,358

5,343

1,064,701

Amortisation for year

75,222

475

75,697

At 31 December 2018

1,134,580

5,818

1,140,398

NET BOOK VALUE

At 31 December 2018

369,860

3,682

373,542

At 31 December 2017

445,082

4,157

449,239

The director considers that the carrying value of the intellectual property rights is greater than the recoverable

amount. An impairment review has been carried out in accordance with Financial Reporting Standard 11 Fixed

Assets and Goodwill.

5.	TANGIBLE FIXED ASSETS

Website

Equipment,

design

fixtures

and

& fittings

content

Totals

£

£

£

COST

At 1 January 2018

14,144

901,652

915,796

Additions

374

125,750

126,124

At 31 December 2018

14,518

1,027,402

1,041,920

DEPRECIATION

At 1 January 2018

12,065

758,595

770,660

Charge for year

829

107,460

108,289

At 31 December 2018

12,894

866,055

878,949

NET BOOK VALUE

At 31 December 2018

1,624

161,347

162,971

At 31 December 2017

2,079

143,057

145,136

6.	FIXED ASSET INVESTMENTS

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Isabel Healthcare Inc.

Registered office: 1710 Hermitage, Ann Arbor, MI 48104, USA

Nature of business: Market, distribute and implement software.

%

Class of shares:

holding

Ordinary

100.00

31.12.18

31.12.17

£

£

Aggregate capital and reserves

(3,591,397

)

(3,691,556

)

(Loss)/profit for the year

(21,901

)

17,762

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.18

31.12.17

£

£

Amounts owed by group undertakings

2,298,974

2,095,992

Other debtors

21,777

5,443

2,320,751

2,101,435

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.18

31.12.17

£

£

Trade creditors

15,594

22,889

Amounts owed to group undertakings

2,980,898

2,818,404

Taxation and social security

6,814

5,498

Other creditors

39,620

25,836

3,042,926

2,872,627

9.	RELATED PARTY DISCLOSURES

The company operates a current account with the director and the activity during the year was as follows:

31.12.18

31.12.17

Mr J R Maude

£

£

Amount owed to director at end of year

5,041

4,583

Amount owed to director at start of year

4,583

4,583

The amount owed to the director is interest free and repayable on demand.

During the year, the company received income under a distribution agreement from its subsidiary undertaking,

Isabel Healthcare Inc. This amounted to £277,767 (2017: £294,591) and was received under normal commercial

terms. The company also received management fees amounting to £42,733 (2017: £45,322) from the same

company, again under normal commercial terms.

As at the year end, the company owed £2,980,898 (2017: £2,818,404) to its holding company, Isabel Healthcare

Holdings Inc. The company was also owed £2,298,974 (2017: £2,095,992) by its trading subsidiary, Isabel

Healthcare Inc. at the year end.

10.	ULTIMATE CONTROLLING PARTY

The company is a wholly owned subsidiary of Isabel Healthcare Holdings Inc., a company registered in the

United States of America, which is also the ultimate controlling party.

The company has taken advantage of the exemption within FRS 8 from disclosing transactions with related

parties that are part of Isabel Healthcare Holdings Inc. group.