Central England Healthcare (Stoke) Limited - Period Ending 2020-02-29

Registration number: 06999847

Prepared for the registrar

Central England Healthcare (Stoke) Limited

Annual Report and Financial Statements

for the Year Ended 29 February 2020

Hazlewoods LLP
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

Central England Healthcare (Stoke) Limited

Contents

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

Central England Healthcare (Stoke) Limited

Company Information

Director

K Kandola

Registered office

8 Clarendon Place Leamington Spa Warwickshire CV32 5QN

Bankers

Santander UK PLC Business Banking Centre T54 Ground Floor Ops Bridle Road Bootle L30 4GB

Auditors

Hazlewoods LLP Windsor House Bayshill Road Cheltenham GL50 3AT

- 1 -

Central England Healthcare (Stoke) Limited

(Registration number: 06999847)
Balance Sheet as at 29 February 2020

	Note	2020  £	2019  £
Fixed assets
Intangible assets	4	-	63,000
Tangible assets	5	2,066,605	2,097,258
		2,066,605	2,160,258
Current assets
Stocks		3,000	3,000
Debtors: Amounts falling due within one year	6	241,929	253,248
Debtors: Amounts falling due after more than one year	6	449,700	309,073
Cash at bank and in hand		577,522	541,774
		1,272,151	1,107,095
Creditors: Amounts falling due within one year	7	(2,013,844)	(2,048,931)
Net current liabilities		(741,693)	(941,836)
Total assets less current liabilities		1,324,912	1,218,422
Creditors: Amounts falling due after more than one year	7	(117,804)	(148,088)
Deferred tax liabilities		(53,712)	(59,090)
Net assets		1,153,396	1,011,244
Capital and reserves
Called up share capital		1,000	1,000
Profit and loss account		1,152,396	1,010,244
Total equity		1,153,396	1,011,244

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 director on 8 December 2020
 

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

K Kandola
Director

The notes on pages 3 to 11 form an integral part of these financial statements.
- 2 -

Central England Healthcare (Stoke) Limited

Notes to the Financial Statements for the Year Ended 29 February 2020

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:
8 Clarendon Place
Leamington Spa
Warwickshire
CV32 5QN

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.

Name of parent of group

These financial statements are consolidated in the financial statements of Central England Healthcare (Holdings) Limited.

The financial statements of Central England Healthcare (Holdings) Limited may be obtained from Companies House.

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.

Judgements and estimation uncertainty

These financial statements do not contain any significant judgements or estimation uncertainty.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the 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.

- 3 -

Central England Healthcare (Stoke) Limited

Notes to the Financial Statements for the Year Ended 29 February 2020

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 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 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 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 balance sheet 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, over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Freehold property	1% of cost
Fixtures, fittings and equipment	15% reducing balance
Freehold land	nil

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.

Negative goodwill arising on an acquisition is recognised on the face of the balance sheet on the acquisition date and subsequently the excess up to the fair value of non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered.

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	10 years straight line

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.

- 4 -

Central England Healthcare (Stoke) Limited

Notes to the Financial Statements for the Year Ended 29 February 2020

Trade debtors

Trade debtors are amounts due from customers for 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.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

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.

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.

- 5 -

Central England Healthcare (Stoke) Limited

Notes to the Financial Statements for the Year Ended 29 February 2020

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.

Financial instruments

- 6 -

Central England Healthcare (Stoke) Limited

Notes to the Financial Statements for the Year Ended 29 February 2020

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.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
 

- 7 -

Central England Healthcare (Stoke) Limited

Notes to the Financial Statements for the Year Ended 29 February 2020

3

Staff numbers

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

	2020  No.	2019  No.
Average number of employees	53	52

4

Intangible assets

	Goodwill  £
Cost
At 1 March 2019 and at 29 February 2020	630,000
Amortisation
At 1 March 2019	567,000
Amortisation charge	63,000
At 29 February 2020	630,000
Carrying amount
At 29 February 2020	-
At 28 February 2019	63,000

5

Tangible assets

	Freehold land and buildings £	Furniture, fittings and equipment  £	Total £
Cost
At 1 March 2019	2,073,078	300,654	2,373,732
Additions	-	8,081	8,081
At 29 February 2020	2,073,078	308,735	2,381,813
Depreciation
At 1 March 2019	129,800	146,674	276,474
Charge for the year	14,426	24,308	38,734
At 29 February 2020	144,226	170,982	315,208
Carrying amount
At 29 February 2020	1,928,852	137,753	2,066,605
At 28 February 2019	1,943,278	153,980	2,097,258

Land of £350,000 (2019 - £350,000) is not depreciated.

- 8 -

Central England Healthcare (Stoke) Limited

Notes to the Financial Statements for the Year Ended 29 February 2020

6

Debtors

	2020  £	2019  £
Trade debtors	141,373	124,531
Amounts owed by group undertakings	449,700	309,073
Other debtors	80,967	109,967
Prepayments	19,589	18,750
	691,629	562,321
Less non-current portion	(449,700)	(309,073)
Total current trade and other debtors	241,929	253,248

Details of non-current trade and other debtors

£449,700 (2019 - £309,073) of amounts owed by group undertakings is classified as non-current.

7

Creditors

	Note	2020  £	2019  £
Due within one year
Loans and borrowings	8	1,734,631	1,821,391
Trade creditors		61,802	37,938
Social security and other taxes		9,491	8,934
Outstanding defined contribution pension costs		5,611	4,514
Other creditors		31,838	31,424
Accrued expenses		102,072	87,359
Corporation tax		68,399	57,371
		2,013,844	2,048,931
Due after one year
Loans and borrowings	8	28,056	72,190
Related party creditors		89,748	75,898
		117,804	148,088

- 9 -

Central England Healthcare (Stoke) Limited

Notes to the Financial Statements for the Year Ended 29 February 2020

8

Loans and borrowings

	2020 £	2019 £
Current loans and borrowings
Bank borrowings	1,687,723	1,772,403
Finance lease liabilities	41,814	48,988
Other borrowings	5,094	-
	1,734,631	1,821,391

	2020 £	2019 £
Non-current loans and borrowings
Bank borrowings	-	8,735
Finance lease liabilities	28,056	63,455
	28,056	72,190

The bank loan is secured.

The loan incurs an interest rate of 2.25% above LIBOR and is secured against all the assets of the company and by way of an intercompany guarantee. The loan is repayable in monthly instalments up to 19 April 2020, when the loan falls due for repayment in full.

9

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

	2020  £	2019  £
Not later than one year	6,984	6,984
Later than one year and not later than five years	6,984	13,968
	13,968	20,952

10

Related party transactions

At the balance sheet date, the company was owed £78,525 (2019 - £107,525) from companies in which K Kandola is a director. No interest was charged during the year on these balances.

11

Parent and ultimate parent undertaking

The company's immediate parent is Central England Healthcare Limited, incorporated in England and Wales.

The ultimate parent is Central England Healthcare (Holdings) Limited, incorporated in England and Wales.

- 10 -

Central England Healthcare (Stoke) Limited

Notes to the Financial Statements for the Year Ended 29 February 2020

12

Disclosure under Section 444(5B) CA 2006 relating to the independent auditor's report

As permitted by Section 444 CA 2006, these accounts do not contain a copy of the company’s Profit and Loss account or a copy of the Directors’ Report. Accordingly, the Independent Auditors’ Report has also been omitted.

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 10 December 2020 was Martin Howard, who signed for and on behalf of Hazlewoods LLP.

- 11 -