Bourton Vale Equine Clinic Limited - Period Ending 2019-08-14

Registration number: 05949470

Bourton Vale Equine Clinic Limited

Annual Report and Unaudited Financial Statements

for the Period from 1 April 2018 to 14 August 2019

Bourton Vale Equine Clinic Limited

Contents

Company Information	1
Balance Sheet	2
Notes to the Financial Statements	3 to 14

Bourton Vale Equine Clinic Limited

Company Information

Directors

J C Malone M Stanworth

Registered office

Leeman House Holgate Park Drive York YO26 4GB

Accountants

Hazlewoods LLP Staverton Court Staverton Cheltenham GL51 0UX

- 1 -

Bourton Vale Equine Clinic Limited

(Registration number: 05949470)
Balance Sheet as at 14 August 2019

	Note	14 August 2019  £	31 March 2018  £
Fixed assets
Tangible assets	5	319,751	588,745
Current assets
Stocks		79,266	67,901
Debtors	6	1,122,065	543,704
Cash at bank and in hand		366,092	294,714
		1,567,423	906,319
Creditors: Amounts falling due within one year	7	(850,078)	(570,541)
Net current assets		717,345	335,778
Total assets less current liabilities		1,037,096	924,523
Creditors: Amounts falling due after more than one year	7	(2,848)	(219,714)
Deferred tax liabilities	9	(51,840)	(46,396)
Net assets		982,408	658,413
Capital and reserves
Called up share capital	10	500	600
Share premium reserve		49,980	49,980
Capital redemption reserve		100	-
Profit and loss account		931,828	607,833
Total equity		982,408	658,413

For the financial period ending 14 August 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the period in question in accordance with section 476; and
•	The directors acknowledge their 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.

Approved and authorised by the Board on 28 July 2020 and signed on its behalf by:
 

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

M Stanworth
Director

The notes on pages 3 to 14 form an integral part of these financial statements.
- 2 -

Bourton Vale Equine Clinic Limited

Notes to the Financial Statements for the Period from 1 April 2018 to 14 August 2019

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:
Leeman House
Holgate Park Drive
York
YO26 4GB

The principal place of business is:
Wyck Rd
Lower Slaughter
Cheltenham
Gloucestershire
GL54 2EX

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.This statement is made subject to all of the potential implications of the current COVID-19 outbreak on the company’s trade, employees, customers, suppliers and the wider economy, as these are difficult to evaluate. Actual results could therefore be significantly different from the current forecasts and projections.

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.

- 3 -

Bourton Vale Equine Clinic Limited

Notes to the Financial Statements for the Period from 1 April 2018 to 14 August 2019

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.

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

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.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

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.

- 4 -

Bourton Vale Equine Clinic Limited

Notes to the Financial Statements for the Period from 1 April 2018 to 14 August 2019

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
Freehold land and buildings	Over 50 years
Short leasehold land and buildings	Over the term of the lease
Plant and machinery	25% and 15% reducing balance
Fixtures, fittings and equipment	15% reducing balance and 25% straight line
Motor vehicles	25% reducing balance

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.

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.

- 5 -

Bourton Vale Equine Clinic Limited

Notes to the Financial Statements for the Period from 1 April 2018 to 14 August 2019

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. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

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.

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.

- 6 -

Bourton Vale Equine Clinic Limited

Notes to the Financial Statements for the Period from 1 April 2018 to 14 August 2019

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 directors) during the period, was as follows:

	1 April 2018 to 14 August 2019  No.	Year ended 31 March 2018  No.
Average number of employees	30	30

- 7 -

Bourton Vale Equine Clinic Limited

Notes to the Financial Statements for the Period from 1 April 2018 to 14 August 2019

4

Intangible assets

	Goodwill  £
Cost
At 1 April 2018	600,000
Additions acquired separately	1,667
At 14 August 2019	601,667
Amortisation
At 1 April 2018	600,000
Amortisation charge	1,667
At 14 August 2019	601,667
Carrying amount
At 14 August 2019	-

- 8 -

Bourton Vale Equine Clinic Limited

Notes to the Financial Statements for the Period from 1 April 2018 to 14 August 2019

5

Tangible assets

	Freehold land and buildings £	Short leasehold property  £	Plant and machinery  £	Furniture, fittings and equipment  £	Motor vehicles  £	Total £
Cost
At 1 April 2018	272,468	-	430,207	107,061	79,083	888,819
Additions	9,879	7,905	93,747	40,987	-	152,518
Disposals	(282,347)	-	(10,090)	-	(69,218)	(361,655)
At 14 August 2019	-	7,905	513,864	148,048	9,865	679,682
Depreciation
At 1 April 2018	-	-	202,724	62,078	35,272	300,074
Charge for the year	15,191	416	73,888	16,554	12,322	118,371
Eliminated on disposal	(15,191)	-	(3,494)	-	(39,829)	(58,514)
At 14 August 2019	-	416	273,118	78,632	7,765	359,931
Carrying amount
At 14 August 2019	-	7,489	240,746	69,416	2,100	319,751
At 31 March 2018	272,468	-	227,483	44,983	43,811	588,745

- 9 -

Bourton Vale Equine Clinic Limited

Notes to the Financial Statements for the Period from 1 April 2018 to 14 August 2019

6

Debtors

	14 August 2019  £	31 March 2018  £
Trade debtors	485,212	464,945
Other debtors	582,954	3,697
Prepayments	53,899	75,062
	1,122,065	543,704

7

Creditors

	Note	14 August 2019  £	31 March 2018  £
Due within one year
Loans and borrowings	8	197,807	207,180
Trade creditors		276,032	126,639
Social security and other taxes		321,137	220,916
Other creditors		86	-
Accrued expenses		55,016	15,806
		850,078	570,541
Due after one year
Loans and borrowings	8	2,848	219,714

- 10 -

Bourton Vale Equine Clinic Limited

Notes to the Financial Statements for the Period from 1 April 2018 to 14 August 2019

8

Loans and borrowings

	2019 £	2018 £
Current loans and borrowings
Bank borrowings	172,111	14,928
Hire purchase liabilities	25,696	32,584
Other borrowings	-	159,668
	197,807	207,180

	2019 £	2018 £
Non-current loans and borrowings
Bank borrowings	-	177,868
Hire purchase liabilities	2,848	41,846
	2,848	219,714

The hire purchase liabilities are secured on the assets for which the liability relates.

The bank loan is secured on the property for which the loan relates to.

Included in the loans and borrowings are the following amounts due after more than five years:

	2019 £	2018 £
After more than five years by instalments	-	118,156

	-	-

9

Deferred tax

Deferred tax assets and liabilities

2019	Liability £
Difference between accumulated depreciation and amortisation and capital allowances	51,840

2018	Liability £
Difference between accumulated depreciation and amortisation and capital allowances	46,396

- 11 -

Bourton Vale Equine Clinic Limited

Notes to the Financial Statements for the Period from 1 April 2018 to 14 August 2019

10

Share capital

Allotted, called up and fully paid shares

	14 August 2019		31 March 2018
	No.	£	No.	£
Ordinary A shares of £0.33 (2018 - £1) each	210	70.00	70	70
Ordinary B shares of £0.33 (2018 - £1) each	-	-	100	100
Ordinary C shares of £0.33 (2018 - £1) each	310	103.33	70	70
Ordinary D shares of £0.33 (2018 - £1) each	-	-	70	70
Ordinary E shares of £0.33 (2018 - £1) each	310	103.33	70	70
Ordinary F shares of £0.33 (2018 - £1) each	310	103.33	70	70
Ordinary G shares of £0.33 (2018 - £1) each	90	30.00	30	30
Ordinary H shares of £0.33 (2018 - £1) each	90	30.00	30	30
Ordinary I shares of £0.33 (2018 - £1) each	-	-	30	30
Ordinary J shares of £0.33 (2018 - £1) each	90	30.00	30	30
Ordinary K shares of £0.33 (2018 - £1) each	90	30.00	30	30
	1,500	500	600	600

During the year all of the company's shares were reclassified from £1 shares to 33 1/3p shares.

Following the share reclassification, the Company purchased 210 Ordinary D shares of 33p each and 90 Ordinary I shares of 33p each. The shares were purchased at a premium of £93,588.

During the year the 300 Ordinary B shares of 33p each (previously 100 Ordinary B shares of £1 each) were reclassified as 100 Ordinary C shares, 100 Ordinary E shares, and 100 Ordinary F shares, all of 33p each.

The different classes of shares referred to above carry separate rights to dividends, but in all other significant respects, rank pari passu.

- 12 -

Bourton Vale Equine Clinic Limited

Notes to the Financial Statements for the Period from 1 April 2018 to 14 August 2019

11

Financial commitments

Operating leases

The total of future minimum lease payments is as follows:

	2019  £	2018  £
Not later than one year	120,991	71,503
Later than one year and not later than five years	299,054	209,593
Later than five years	393,228	132,800
	813,273	413,896

The amount of non-cancellable operating lease payments recognised as an expense during the period was £101,574 (2018 - £30,088).

12

Related party transactions

Key management personnel

Key management personnel are considered to be the former directors of the company.

Summary of transactions with key management

As at the balance sheet date, the former directors owed the company £468,818 (2018 - the company owed £159,668). These amounts are included in other debtors (2018 - other borrowings). There are no fixed repayment terms and interest has been charged.
 

Transactions with former directors

2019	At 1 April 2018 £	Advances to directors £	Repayments by director £	At 14 August 2019 £
Mr J D Swan
Expenses paid on behalf of former director	53,223	(234,883)	34,000	(147,660)
Mr G R Staniek
Expenses paid on behalf of former director	53,223	(234,883)	39,950	(141,710)
Mr T L Campbell
Expenses paid on behalf of former director	53,222	(266,669)	34,000	(179,447)

2018	At 1 April 2017 £	Repayments by director £	At 31 March 2018 £
Mr R J Tyler
Expenses paid on behalf of former director	(2,570)	2,570	-

- 13 -

Bourton Vale Equine Clinic Limited

Notes to the Financial Statements for the Period from 1 April 2018 to 14 August 2019

Summary of transactions with other related parties

Mr C G McCartan, Mr J D Swan, Mr R J Tyler, Mr G R Staniek, Mr T L Campbell, Equine Medicine on the Move Limited
(Retired directors and shareholders of the company)
The company operates from premises owned by the above. No rent was charged during the period.

Mr T Brazil
(Retired director of the company)
During the year the company made purchases of £1,403 (2018 - £6,848) from Equine Medicine on the Move Limited which is a company in which Mr T Brazil is a director and shareholder. As at the balance sheet date the amount owed to Equine Medicine on the Move Limited was £nil (2018 - £8,218). This amount is included in trade creditors.

13

Parent and ultimate parent undertaking

At the balance sheet date, the company’s immediate controlling party was VetPartners Limited, whose ultimate controlling parent undertaking was BC European Capital X, a collection of Limited partnerships with no single controlling party.

 

- 14 -