Brooks Healthcare (Newport) Limited - Period Ending 2020-03-31

Registration number: 05828298

Prepared for the registrar

Brooks Healthcare (Newport) Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 March 2020

Hazlewoods LLP
Windsor House
Bayshill Lane
Cheltenham
GL50 3AT

 

Brooks Healthcare (Newport) Limited

Contents

Company Information	1
Balance Sheet	2
Notes to the Unaudited Financial Statements	3 to 9

Brooks Healthcare (Newport) Limited

Company Information

Director

S P Lyons

Company secretary

C L Lyons

Registered office

23 Chiswick Lane Chiswick London W4 2LR

Accountants

Hazlewoods LLP Windsor House Bayshill Lane Cheltenham GL50 3AT

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Brooks Healthcare (Newport) Limited

(Registration number: 05828298)
Balance Sheet as at 31 March 2020

	Note	2020  £	2019  £
Fixed assets
Tangible assets	5	1,136,909	1,146,606
Current assets
Stocks		373	373
Debtors	6	72,426	50,410
Cash at bank and in hand		430,819	293,197
		503,618	343,980
Creditors: Amounts falling due within one year	7	(363,531)	(315,495)
Net current assets		140,087	28,485
Total assets less current liabilities		1,276,996	1,175,091
Creditors: Amounts falling due after more than one year	7	(776,861)	(829,809)
Deferred tax liabilities	8	(37,605)	(33,521)
Net assets		462,530	311,761
Capital and reserves
Called up share capital		100	100
Profit and loss account		462,430	311,661
Total equity		462,530	311,761

For the financial year ending 31 March 2020 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 his 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 director on 17 January 2021
 

 

S P Lyons
Director

The notes on pages 3 to 9 form an integral part of these financial statements.
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Brooks Healthcare (Newport) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 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:
23 Chiswick Lane
Chiswick
London
W4 2LR

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.

Group accounts not prepared

The company has taken advantage of the exemption in section 398 of the Companies Act 2006 from the requirement to prepare consolidated financial statements, on the grounds that it is a small group..

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

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

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.

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.

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Brooks Healthcare (Newport) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2020

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 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 property	1% of cost
Fixtures, fittings and equipment	20% of cost

Goodwill

Goodwill is amortised over its useful life, which shall not exceed five years if a reliable estimate of the useful life cannot be made.

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

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.

Borrowings

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Brooks Healthcare (Newport) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2020

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.

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.

Financial instruments

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Brooks Healthcare (Newport) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 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.
 

3

Staff numbers

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

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Brooks Healthcare (Newport) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2020

	2020  No.	2019  No.
Average number of employees	30	29

4

Intangible assets

	Goodwill  £
Cost
At 1 April 2019	352,499
At 31 March 2020	352,499
Amortisation
At 1 April 2019	352,499
At 31 March 2020	352,499
Carrying amount
At 31 March 2020	-

5

Tangible assets

	Land and buildings £	Furniture, fittings and equipment  £	Total £
Cost
At 1 April 2019	1,269,681	83,354	1,353,035
At 31 March 2020	1,269,681	83,354	1,353,035
Depreciation
At 1 April 2019	123,075	83,354	206,429
Charge for the year	9,697	-	9,697
At 31 March 2020	132,772	83,354	216,126
Carrying amount
At 31 March 2020	1,136,909	-	1,136,909
At 31 March 2019	1,146,606	-	1,146,606

Included within the net book value of land and buildings above is £1,136,909 (2019 - £1,146,606) in respect of freehold land and buildings.
 

6

Debtors

	Note	2020  £	2019  £
Trade debtors		65,068	43,051
Amounts owed by related parties		6,896	6,896
Prepayments		462	463
		72,426	50,410

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Brooks Healthcare (Newport) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2020

7

Creditors

	2020  £	2019  £
Due within one year
Loans and borrowings	293,014	246,266
Trade creditors	4,790	2,433
Social security and other taxes	5,979	6,027
Other creditors	2,086	9,574
Accrued expenses	2,364	2,364
Corporation tax liability	55,298	48,831
	363,531	315,495

	Note	2020 £	2019 £
Due after one year
Loans and borrowings	9	776,861	829,809

8

Deferred tax

Deferred tax assets and liabilities

2020	Liability £
Capital allowances in excess of depreciation	37,605

2019	Liability £
Capital allowances in excess of depreciation	33,521

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Brooks Healthcare (Newport) Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2020

9

Loans and borrowings

	2020 £	2019 £
Current loans and borrowings
Bank borrowings	50,000	50,000
Other borrowings	243,014	196,266
	293,014	246,266

	2020 £	2019 £
Non-current loans and borrowings
Bank borrowings	776,861	829,809

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