The Hub Community Healthcare PH Limited - Limited company accounts 20.1

REGISTERED NUMBER: 07475774 (England and Wales)

The Hub Community Healthcare PH Limited

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31st March 2020

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Statement of Comprehensive Income

6

Balance Sheet

7

Statement of Changes in Equity

8

Notes to the Financial Statements

9

DIRECTORS:

D Atkinson

A Butterworth

REGISTERED OFFICE:

Paddock Business Centre

2 Paddock Road

Skelmersdale

Lancashire

WN8 9PL

REGISTERED NUMBER:

07475774 (England and Wales)

AUDITORS:

Smailes Goldie

Chartered Accountants

Statutory Auditor

Regent's Court

Princess Street

Hull

East Yorkshire

HU2 8BA

The directors present their strategic report for the year ended 31st March 2020.

REVIEW OF BUSINESS

As an intermediate holding company the only costs associated to the business are finance costs and other related expenditure. The directors expect this to continue in future years.

PRINCIPAL RISKS AND UNCERTAINTIES

As the company is an intermediate holding company, the key risk facing the company is the performance of its subsidiary companies to ensure that the value of its investment is supported.

KEY PERFORMANCE INDICATORS

As the company is an intermediate holding company, there are no key performance indicators based on the performance of the company. The main KPIs used by management to monitor performance of the group are NHS items dispensed, turnover, gross margin and pharmacy EBITDA.

ON BEHALF OF THE BOARD:

A Butterworth - Director

22nd December 2020

The directors present their report with the financial statements of the company for the year ended 31st March 2020.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of a holding company.

DIVIDENDS

No dividends will be distributed for the year ended 31st March 2020.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st April 2019 to the date of this report.

D Atkinson

A Butterworth

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Smailes Goldie, will be proposed for re-appointment in accordance with section 485 of the Companies Act 2006.

ON BEHALF OF THE BOARD:

A Butterworth - Director

22nd December 2020

Opinion

We have audited the financial statements of The Hub Community Healthcare PH Limited (the 'company') for the year ended 31st March 2020 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31st March 2020;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Peter Dearing BSc FCCA (Senior Statutory Auditor)

for and on behalf of Smailes Goldie

Chartered Accountants

Statutory Auditor

Regent's Court

Princess Street

Hull

East Yorkshire

HU2 8BA

22nd December 2020

TURNOVER

-

-

OPERATING PROFIT and

PROFIT BEFORE TAXATION

-

-

Tax on profit

5

-

-

PROFIT FOR THE FINANCIAL YEAR

-

-

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

-

-

FIXED ASSETS

Investments

6

11,473,489

11,473,489

CURRENT ASSETS

Debtors

7

6,895,551

6,895,551

Cash at bank

30

15

6,895,581

6,895,566

CREDITORS

Amounts falling due within one year

8

6,986,276

6,986,261

NET CURRENT LIABILITIES

(90,695

)

(90,695

)

TOTAL ASSETS LESS CURRENT LIABILITIES

11,382,794

11,382,794

CAPITAL AND RESERVES

Called up share capital

9

18,559,191

18,559,191

Retained earnings

10

(7,176,397

)

(7,176,397

)

11,382,794

11,382,794

The financial statements were approved by the Board of Directors and authorised for issue on 22nd December 2020 and were signed on its behalf by:

A Butterworth - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st April 2018

18,559,191

(7,176,397

)

11,382,794

Changes in equity

Balance at 31st March 2019

18,559,191

(7,176,397

)

11,382,794

Changes in equity

Balance at 31st March 2020

18,559,191

(7,176,397

)

11,382,794

1.	STATUTORY INFORMATION

The Hub Community Healthcare PH 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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern

The group's business activities, together with the factors likely to affect its future development, performance and position are set out in the strategic report. The financial position of the group, its cash flows, liquidity position and borrowing facilities are shown in the consolidated balance sheet.

Having considered the group's financial budget, investment and financing commitments and cash flow requirements, the directors believe that the group has adequate resources to continue in operational existence for the foreseeable future. Therefore, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);

•

the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;

•

the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23;

•

the requirement of paragraph 33.7.

Investments in subsidiaries

Investments in subsidiaries are measured at cost less accumulated impairment.

Financial instruments

The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like accounts and other payables and investments in non-puttable ordinary shares.

Debt instruments that are payable or receivable with one year, typically trade creditors or trade debtors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received.

Financial assets that are measured at cost and amortised at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, and impairment loss is recognised in the Statement of Comprehensive Income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. if a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value,net of transaction costs and are measured subsequently at amortised cost using the effective interest method.

3.	EMPLOYEES AND DIRECTORS

There were no staff costs for the year ended 31st March 2020 nor for the year ended 31st March 2019.

The average number of employees during the year was NIL (2019 - NIL).

2020

2019

£

£

Directors' remuneration

-

-

Directors' remuneration is borne by another group company.

4.	OPERATING PROFIT

Auditors' remuneration is borne by another group company.

5.

TAXATION

Analysis of the tax charge

No liability to UK corporation tax arose for the year ended 31st March 2020 nor for the year ended 31st March 2019.

6.	FIXED ASSET INVESTMENTS

Shares in

group

undertaking

£

COST

At 1st April 2019

and 31st March 2020

20,925,530

PROVISIONS

At 1st April 2019

and 31st March 2020

9,452,041

NET BOOK VALUE

At 31st March 2020

11,473,489

At 31st March 2019

11,473,489

Name

Country of incorporation

Holding

Principalactivity

The Hub Pharmacy Limited

United Kingdom

100%

Pharmacy operation

THP Southowram Limited

United Kingdom

100%

Dormant company

Welsh's Pharmacy Limited

United Kingdom

100%

Dormant company

T.W. Leach Limited

United Kingdom

100%

Dormant company

Richard Deadman Limited

United Kingdom

100%

Dormant company

Sandbeds Pharmacy Limited

United Kingdom

100%

Dormant company

Misterton Medical Services Limited

United Kingdom

100%

Dormant company

Advanced Healthpharm Services Limited

United Kingdom

100%

Dormant company

W.S. Young Limited

United Kingdom

100%

Dormant company

MPX Hub (Lytham) Limited

United Kingdom

100%

Dormant company

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Amounts owed by group undertakings

6,895,551

6,895,551

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Amounts owed to group undertakings

6,986,276

6,986,261

9.	CALLED UP SHARE CAPITAL

Allotted, called up and fully paid

2020

2019

£

£

92,000 Ordinary A shares of £0.01 each

920

920

8,001 Ordinary B shares of £0.01 each

80

80

35,000 Ordinary C shares of £0.01 each

350

350

18,557,841 Ordinary D shares of £1 each

18,557,841

18,557,841

18,559,191

18,559,191

10.

RESERVES

Retained

earnings

£

At 1st April 2019

(7,176,397

)

Profit for the year

-

At 31st March 2020

(7,176,397

)

11.	ULTIMATE CONTROLLING PARTY