GLOUCESTER_GP_CONSORTIUM_ - Accounts

The directors present their annual report and financial statements for the 5 month period ended 31 March 2020.

The principal activity of the company during the period was the provision of healthcare services, subject to the cessation of trade noted below.

On 29 August 2019, the parent company, G DOC LTD, acquired 100% of the share capital of the company for consideration of £369,389. Subsequently, on 31 December 2019, the business and assets of the company were transferred to the parent company, G DOC LTD. The company therefore ceased to trade at this date.

The directors who held office during the 5 month period and up to the date of signature of the financial statements were as follows:

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of GLOUCESTER GP CONSORTIUM LIMITED for the 5 month period ended 31 March 2020 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and the related notes from the company’s accounting records and from information and explanations you have given us.

This report is made solely to the Board of Directors of GLOUCESTER GP CONSORTIUM LIMITED, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the financial statements of GLOUCESTER GP CONSORTIUM LIMITED and state those matters that we have agreed to state to the Board of Directors of GLOUCESTER GP CONSORTIUM LIMITED, as a body, in this report. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than GLOUCESTER GP CONSORTIUM LIMITED and its Board of Directors as a body, for our work or for this report.

It is your duty to ensure that GLOUCESTER GP CONSORTIUM LIMITED has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of GLOUCESTER GP CONSORTIUM LIMITED. You consider that GLOUCESTER GP CONSORTIUM LIMITED is exempt from the statutory audit requirement for the 5 month period.

We have not been instructed to carry out an audit or a review of the financial statements of GLOUCESTER GP CONSORTIUM LIMITED. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

For the financial 5 month period ended 31 March 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

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 member has not required the company to obtain an audit of its financial statements for the 5 month period in question in accordance with section 476.

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

GLOUCESTER GP CONSORTIUM LIMITED is a private company limited by shares incorporated in England and Wales under the Companies Act. The address of the registered office is given on the contents page and its principal activity is the provision of healthcare services.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The current reporting period for the company covers a period of 5 months from 1 November 2019 to 31 March 2020 as the year end was shortened in line with that of its parent company, G DOC LTD. The prior period covered a period of 18 months from 1 May 2018 to 31 October 2019.

As a result of the above, the comparative amounts presented in the financial statements are not entirely comparable with the results in the current period.

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:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

- the amount of revenue can be measured reliably;

- it is probable that the Company will receive the consideration due under the contract;

- the stage of completion of the contract at the end of the reporting period can be measured reliably; and

- the costs incurred and the costs to complete the contract can be measured reliably.

Tangible fixed assets are stated at cost less depreciation.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

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 Comprehensive Income.

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell.

At each reporting 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.

Cash and cash equivalents are basic financial instruments and include cash in hand and deposits held at call with banks.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

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

The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

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 income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of Financial Position date, except that:

- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

NHS Pension scheme

Past and present employees are covered by the provisions of the NHS Pension Scheme. The scheme is an unfunded defined benefit scheme that covers NHS employers, General Practices and other bodies allowed under the direction of the Secretary of State, in England and Wales. The scheme is not designed to be run in a way that would enable NHS bodies to identify their share of the underlying scheme assets and liabilities. Therefore, the scheme is accounted for as if it were a defined contribution scheme: the cost to the company of participating in the scheme is taken as equal to the contributions payable to the scheme for the accounting period.

For early retirements, other than those due to ill health, the additional pension liabilities are not funded by the scheme. The full amount of the liability for the additional costs is charged in expenditure at the time the company commits itself to the retirement, regardless of the method of payment.

Defined contribution pension plan

The company also operates a defined contribution plan for some of 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 payments obligations.

The contributions are recognised as an expense in the Statements of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the company in independently administered funds.

Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

The company has taken advantage of the optional exemption available on transition to FRS 102 which allows lease incentives on leases entered into before the date of transition to the standard 1 May 2015 to continue to be charged over the period to the first market rent review rather than the term of the lease.

Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

Related parties

In preparing these financial statements, the directors have not had to make any key judgments and they do not consider there to be any key sources of estimation uncertainty.

The average monthly number of persons (including directors) employed by the company during the 5 month period was:

NHS Pension Scheme

The NHS Pension Scheme is an unfunded multi-employer defined benefit scheme, the provisions of which are contained in the NHS Pension Scheme Regulations (SI 1995 No. 300). The Scheme is notionally funded, with payment liabilities underwritten by the Exchequer. Scheme accounts are prepared annually by the NHS Pensions Agency and are examined by the Comptroller and Auditor General. The Government Actuary's Department values the NHS Pension Scheme every four years, and those quadrennial reports are published. The Scheme has a money purchase Additional Voluntary Contribution (AVC) arrangement which is available to employees to enhance their pension benefits.

Between valuations the Government Actuary's Department provides an update of the scheme liabilities on an annual basis. The latest assessment of the liabilities of the Scheme is contained in the Report of the Actuary, which forms part of the NHS Pension Scheme & Compensation for Premature Retirement Scheme Resource Accounts, published annually. These accounts can be viewed on the NHS Pensions Agency website at www.nhspa.gov.uk. Copies can also be obtained from the Stationery Office.

Under NHS Pension Scheme regulations, the Agency and participating employees are required to pay contributions, as specified by the Secretary of State for Health. These contributions are used to defray the costs of providing the NHS Pension Scheme benefits. For the period ended 31 October 2019, employees were required to pay tiered contributions of between 5% and 14.5% of pensionable pay. The employer's contribution amounted to 14.3% of pensionable pay. With effect from 1 April 2017, employers have also been required to pay an additional 0.08% administration levy to pay for the administration of the scheme. All of these costs are charged to profit or loss as and when they become due. The company is unable to identify its share of the underlying assets and liabilities of the scheme. The company considers that the scheme should be accounted for as defined contribution in nature as required by Financial Reporting Standard 102 section 28.

The total amount payable in company contributions to the fund during the period was £21,669 (2019: £174,702). There were total outstanding contributions at 31 March 2020 of £Nil (2019: £7,566).

Other pension schemes

The total amount payable in contributions to other schemes during the period was £175 (2019: £1,466). There were outstanding contributions at 31 March 2020 of £Nil (2019: £179).

As at 31 March 2020, the company had total commitments, guarantees and contingencies of £102,676 (2019: £96,868).

On 31 December 2019, the company’s business and assets were transferred to its parent company, G DOC LTD.