Medical 24 Limited - Limited company accounts 20.1

REGISTERED NUMBER: 08705888 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 30 September 2020

for

Medical 24 Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

7

Other Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

DIRECTORS:

C Coyle

N Poturicich

Ms A Coyle

C Walsh

SECRETARY:

C Coyle

REGISTERED OFFICE:

Hygeia House

66-68 College Road

Harrow

Middlesex

HA1 1BE

REGISTERED NUMBER:

08705888 (England and Wales)

AUDITORS:

SHERIDAN CLARKE LTD

STATUTORY AUDITORS

BRIDGE HOUSE

25-27 THE BRIDGE

HARROW

HA3 5AB

The directors present their strategic report for the year ended 30 September 2020.

REVIEW OF BUSINESS

The Directors consider the profit on ordinary activities before taxation to be satisfactory despite a reduction in turnover. This reduction is mainly due to the impact of the Covid 19 pandemic to the wider macro economy and sector in which the company operates. In addition to this, the company has undergone a management restructure along with investment in new teams. The directors believe the company will continue to be profitable, and the investment in new teams and structure will reward its stakeholders in the long term.

2020

2019

2018

Turnover

£4,641,020

£5,667,861

£5,598,395

Turnover movement

(£1,026,841)

£69,466

£2,195,462

Gross profit margin

20.47%

21%

20%

Profit before tax

5.75%

7%

10%

PRINCIPAL RISKS AND UNCERTAINTIES

The Covid Pandemic is the largest risk faced by the company along with the sector in which it operates. The company has used some government support during the peak of the crisis which has helped it retain some staff. The company has come out of the pandemic in a good position but if further government lockdowns are needed in the future, there would be a further impact on the company's profits.

Brexit is the second biggest risk to the company looking ahead. As the business is a UK focused company without international clients this limits its exposure. However, a risk remains in ensuring the company has access to qualified healthcare workers due to the impact of Brexit. The directors have mitigated this by automating the company's database and interfaces with its workers to develop a unique selling point for the business.

The introduction of the new IR35 rules in April 2021 is one of the fundamental changes to the recruitment sector and could have a major impact on revenues and margins throughout the industry in which the company operates. The directors have developed very robust systems and internal processes and taken the best possible advice to ensure the company is fully compliant and able to be a good position compared with its competitors.

It is not considered necessary for an understanding of the development, performance or position of the company's business to comment here on environmental matters, the entity's employees or social, community and human rights issues. However, the company is very much aware and respectful of such matters and takes them in to account when planning and implementing business policy and procedures.

ON BEHALF OF THE BOARD:

C Coyle - Director

25 May 2021

The directors present their report with the financial statements of the company for the year ended 30 September 2020.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of labour supply to the healthcare sector.

DIVIDENDS

No interim dividends were paid during the year ended 30 September 2020.

The directors recommend final dividends per share as follows:

Ordinary £1 shares

4060.92

A Ordinary £1 shares

NIL

The total distribution of dividends for the year ended 30 September 2020 will be £ 406,092 .

DIRECTORS

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

C Coyle

N Poturicich

Other changes in directors holding office are as follows:

Ms A L Cooper - resigned 31 March 2020

Ms A Coyle - appointed 1 October 2019

C Walsh - appointed 1 October 2019

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;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, SHERIDAN CLARKE LTD, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

C Coyle - Director

25 May 2021

Opinion

We have audited the financial statements of Medical 24 Limited (the 'company') for the year ended 30 September 2020 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 30 September 2020 and of its profit for the year then ended;

-	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.

Ms Anna Clarke (Senior Statutory Auditor)

for and on behalf of SHERIDAN CLARKE LTD

STATUTORY AUDITORS

BRIDGE HOUSE

25-27 THE BRIDGE

HARROW

HA3 5AB

25 May 2021

TURNOVER

4,641,020

5,667,861

Cost of sales

3,690,732

4,499,302

GROSS PROFIT

950,288

1,168,559

Administrative expenses

749,708

789,547

200,580

379,012

Other operating income

3

65,999

-

OPERATING PROFIT

5

266,579

379,012

Interest receivable and similar income

569

12,064

PROFIT BEFORE TAXATION

267,148

391,076

Tax on profit

6

51,042

74,273

PROFIT FOR THE FINANCIAL YEAR

216,106

316,803

PROFIT FOR THE YEAR

216,106

316,803

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

216,106

316,803

FIXED ASSETS

Tangible assets

8

5,006

6,675

CURRENT ASSETS

Debtors

9

717,841

1,026,923

Prepayments and accrued income

34,752

18,000

Cash at bank

222,007

254,464

974,600

1,299,387

CREDITORS

Amounts falling due within one year

10

279,777

416,245

NET CURRENT ASSETS

694,823

883,142

TOTAL ASSETS LESS CURRENT LIABILITIES

699,829

889,817

CAPITAL AND RESERVES

Called up share capital

12

134

136

Retained earnings

13

699,695

889,681

SHAREHOLDERS' FUNDS

699,829

889,817

The financial statements were approved by the Board of Directors and authorised for issue on 25 May 2021 and were signed on its behalf by:

C Coyle - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 October 2018

136

1,016,239

1,016,375

Changes in equity

Dividends

-

(443,361

)

(443,361

)

Total comprehensive income

-

316,803

316,803

Balance at 30 September 2019

136

889,681

889,817

Changes in equity

Issue of share capital

(2

)

-

(2

)

Dividends

-

(406,092

)

(406,092

)

Total comprehensive income

-

216,106

216,106

Balance at 30 September 2020

134

699,695

699,829

Cash flows from operating activities

Cash generated from operations

1

453,076

454,192

Tax paid

(49,273

)

(107,383

)

Net cash from operating activities

403,803

346,809

Cash flows from investing activities

Purchase of tangible fixed assets

-

(1,938

)

Sale of fixed asset investments

-

250,000

Interest received

569

12,064

Net cash from investing activities

569

260,126

Cash flows from financing activities

Share issue

(2

)

-

Increase in group company debtors

(30,735

)

-

Equity dividends paid

(406,092

)

(443,361

)

Net cash from financing activities

(436,829

)

(443,361

)

(Decrease)/increase in cash and cash equivalents

(32,457

)

163,574

Cash and cash equivalents at beginning of year

2

254,464

90,890

Cash and cash equivalents at end of year

2

222,007

254,464

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

30.9.20

30.9.19

£

£

Profit before taxation

267,148

391,076

Depreciation charges

1,669

2,224

Finance income

(569

)

(12,064

)

268,248

381,236

Decrease in trade and other debtors

323,065

16,789

(Decrease)/increase in trade and other creditors

(138,237

)

56,167

Cash generated from operations

453,076

454,192

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30 September 2020

30.9.20

1.10.19

£

£

Cash and cash equivalents

222,007

254,464

Year ended 30 September 2019

30.9.19

1.10.18

£

£

Cash and cash equivalents

254,464

90,890

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.10.19

Cash flow

At 30.9.20

£

£

£

Net cash

Cash at bank

254,464

(32,457

)

222,007

254,464

(32,457

)

222,007

Total

254,464

(32,457

)

222,007

1.	STATUTORY INFORMATION

Medical 24 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.

The presentation currency of the financial statements is the Pound Sterling (£).

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.

Turnover

Turnover comprises the invoiced value of services supplied by the company. All revenue is recognised in the Financial Statements as soon as the service has been supplied.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings

-

25% on reducing balance

Government grants

Amounts receivable by the company under the Coronavirus Job Retention Scheme are accounted for when received. Income received under this scheme is included within other income in the profit and loss account.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments.

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

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction cost. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and loans are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.

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 initially recognised at transaction price.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Taxation

Current tax, including UK Corporation tax is provided at amounts expected to be paid using the tax rates and laws enacted by the Balance Sheet date.

Deferred tax is only provided for when material. The Director's have decided that deferred tax is not material this year, as was the case last year.

3.	OTHER OPERATING INCOME

30.9.20

30.9.19

£

£

R&D tax credit

34,822

-

Government grants

31,177

-

65,999

-

4.	EMPLOYEES AND DIRECTORS

30.9.20

30.9.19

£

£

Wages and salaries

528,234

509,088

Social security costs

39,564

46,319

567,798

555,407

The average number of employees during the year was as follows:

30.9.20

30.9.19

Administration

2

2

Sales

5

7

7

9

30.9.20

30.9.19

£

£

Directors' remuneration

60,578

122,278

5.	OPERATING PROFIT

The operating profit is stated after charging:

30.9.20

30.9.19

£

£

Hire of plant and machinery

1,137

2,175

Depreciation - owned assets

1,669

2,224

Auditors' remuneration

5,500

5,500

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

30.9.20

30.9.19

£

£

Current tax:

UK corporation tax

51,042

74,273

Tax on profit

51,042

74,273

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

30.9.20

30.9.19

£

£

Profit before tax

267,148

391,076

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2019 - 19%)

50,758

74,304

Effects of:

Expenses not deductible for tax purposes

124

-

Capital allowances in excess of depreciation

-

(31

)

Depreciation in excess of capital allowances

160

-

Total tax charge

51,042

74,273

7.

DIVIDENDS

30.9.20

30.9.19

£

£

Ordinary shares of £1 each

Final

406,092

443,361

8.	TANGIBLE FIXED ASSETS

Fixtures

and

fittings

£

COST

At 1 October 2019

and 30 September 2020

16,516

DEPRECIATION

At 1 October 2019

9,841

Charge for year

1,669

At 30 September 2020

11,510

NET BOOK VALUE

At 30 September 2020

5,006

At 30 September 2019

6,675

9.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.9.20

30.9.19

£

£

Trade debtors

656,225

967,295

Amounts owed by group undertakings

30,735

-

Other debtors

30,881

59,628

717,841

1,026,923

See note 14 for details regarding amounts due from Related Parties and group companies in Other debtors.

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.9.20

30.9.19

£

£

Trade creditors

38,154

122,278

Tax

29,682

27,913

Social security and other taxes

114,750

93,872

Other creditors

89,491

159,067

Accruals and deferred income

7,700

13,115

279,777

416,245

See note 14 for details regarding amounts due to Related Parties in Other creditors.

11.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

30.9.20

30.9.19

£

£

Within one year

228,400

-

Between one and five years

-

456,800

228,400

456,800

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

30.9.20

30.9.19

value:

£

£

100

Ordinary

£1

100

100

34

A Ordinary

£1

34

36

134

136

The holders of the A Ordinary shares hold no voting or dividend rights. The right to any other distribution is subject to the proceeds reaching a minimum value.

13.

RESERVES

Retained

earnings

£

At 1 October 2019

889,681

Profit for the year

216,106

Dividends

(406,092

)

At 30 September 2020

699,695

14.	RELATED PARTY DISCLOSURES

C. Coyle. A. Coyle, C. Walsh and N. Poturicich are also Directors of Mayday Healthcare Limited, Plan B Healthcare Limited, Direct Healthcare 24 Limited, First Aid Healthcare Limited, Pro Health 24 Limited and Red Group Personnel Limited. Further, C. Coyle, A. Coyle and C. Walsh are also Directors of Coyle Personnel Limited. C. Coyle and A. Coyle are also directors of Tapa Holdings Limited. C. Coyle, A. Coyle and C. Walsh are directors of AMC Professional Limited.

At the year end, the company owed Coyle Personnel Limited £8,438 (2019: £9,713), and Mayday Healthcare Limited £7,296 (2019: £12,983). Direct Healthcare 24 Limited owed the company £4,371 (2019 £3,465 was owed), First Aid Healthcare Limited £ nil (2019: £31,149) and Plan B Healthcare Limited £nil (2019: £991), for services supplied. These amounts have now been paid. The company were owed £nil (2019:£15,861) by First Aid Healthcare Limited, £20,000 (2019: £271) by Pro Health 24 Limited, £6,364 (2019: £1,449) by Red Group Personnel Limited and £417 (2019: £nil) by AMC Professional Limited

No trading has been carried out between any of the Related Parties. The company is owned 100% by Tapa Holdings Limited. Tapa Holdings Limited is controlled by K. Coyle.