H.I._WELDRICK_LIMITED - Accounts

The directors present the strategic report for the year ended 30 April 2021.

The company defines its mission statement as “committed to community healthcare”; the mission is linked to the corporate vision and values statements emphasising the provision of the highest quality healthcare services locally. Involvement with staff at all levels of the company is paramount to the development and promoting of the mission.

The company is committed to the pharmacy contract (as negotiated by the PSNC and the Department of Health) and actively work in partnership with local area teams, PCNs and public health England in the promotion of additional healthcare services. Whilst the contract offers certainty of income for the 5-year term of the agreement, the company has concerns that there has been no increase in the overall budget to reflect cost inflation nor the increase in prescriptions prescribed by GPs, this adding financial and workload pressures to pharmacy.

The increases in costs, primarily the national living wage, add further financial pressures to the company which reflect the operating results of the company for the current year.

The company has identified that the healthcare services it offers can only be provided by ensuring staff are prepared for the challenges by providing effective training and ensuring that appropriate investments are made to the business infrastructure despite the challenges the company faces. The company continually reviews all existing practises and modernises them when technology allows, for instance all possible company training has now been moved online.

The Covid 19 pandemic has added to the challenges the company is facing, in terms of both the financial operations of the business and the welfare of its employees and customers. The company has taken many precautions to protect the welfare of its employees by enabling remote working where possible and implementing strict social distancing measures where not. It has also implemented strict hygiene policies and invested heavily in protective equipment and screens.

Whilst facing these challenges, the company continues to invest and build knowledge and expand its services, together with reviewing its investments and assets, realising gains and losses to aid cashflow where appropriate.

During the year, the company merged and closed three operations into modern facilities , extending the opening hours as appropriate to enhance the service offered to its customers.

We have significantly increased the prescription volumes sent to our central dispensing hub to meet the requirements of the government to dispense NHS prescriptions at ever lower cost.

The company continues to expand organically, with consideration to the communities in which it operates. Shortly after the year end, agreement was reached to acquire an additional pharmacy in Harworth, to complement the existing pharmacy in the neighbourhood.

Financial risk management objectives and policies

The company uses borrowings, cash and other liquid resources and various other items such as trade debtors and creditors that arise directly from its operations to raise finance for the company’s operation.

Liquidity risk

The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.

Interest rate risk

The company finances its operations through a mixture of retained earnings and bank borrowings.

Risk from leaving the EU.

The directors have assessed any impact from leaving the EU and by working in line with NHS England policies and guidelines believe there will be no significant impact on the business, however this is monitored on a weekly basis.

The company’s approach is to create positive changes for the people and communities with which the Company interacts. The company is committed to embracing the safeguarding of the environment by: -

An independent review of energy use was commissioned and undertaken.

Reduction in energy consumption through installation of LED lighting throughout the company

Installation of electric car charging points

Solar panels have been installed at the company’s main offices/warehousing operation.

Reduction of the use of packaging and consumables wherever possible

Waste is recycled and cardboard compacted.

Staff education and training on best practice

Carbon footprint

In accordance with the streamlined energy and carbon reporting (“SECR”) guidance we report on our greenhouse gas emissions and energy usage for the year ended 30 April 2021.

The company is pleased to report reductions in all key ratios of greenhouse gas emissions and energy usage as can be seen from the table below

Key actions taken to reduce energy consumption are included in the statement above.

Payment of Creditors

We produce a bi-annual payment practices report and summary following HMRC guidelines.

Our standard term is to comply with those of our suppliers, the majority of our suppliers are;

30 days from invoice

30 days from the end of the month following invoice

60 days from end of month

All agreements are put in place and signed in accordance with the supplier’s terms and conditions before any purchase is made. This is checked and authorised by a Senior member of the team.

Trade creditor days per the financial statements is 82 days

Whilst this is the figure of trade creditor days per the financial statements, this does not give a true indication of the actual creditor days because 3 of the company’s main suppliers have set direct debit payments for the first working day of the month in reflection of the payment terms of NHSBSA.

The true creditor days figure is 33 days, as reported to HMRC in the payment practices report of May to October 2021.

Qualitative measures relating to “improvement in service” are important measures of performance to the company and the community. Quantitative measures in terms of business performance and profitability are important to shareholders and the company’s other stakeholders to provide assurance as to the continuing stability of the organisation.

Basic Key Performance Indicators (KPIs) which the company bases financial evaluations upon are gross profit, net profit, and staff costs. The link between profitability and branch staffing levels is a key component in the budgeting process.

Gross profit percentage has decreased from 30.73% in 2020 to 30.53% in 2021 as a direct result of the 5-year pharmacy NHS contract and despite all sensible cost savings, turnover has risen from £67.5m to £69.1m and actual gross profit is £21.1m compared to £20.7m in 2020.

Investments in staffing through effective recruitment, promotion, training and rewarding structures provides the company with an effective asset but a significant cost in such a retail environment, equating to £13.2m in 2021 compared to £12.6m in 2020. Staff cost as a percentage of turnover were 19.1 % in 2021 and 19.1% in 2020 and as percentage of gross profit were 62.6 % in 2021 compared to 60.8% in 2020.

Company net profits before tax were £716k in 2021 ,which included £404k in income from investment properties. Net profits from normal operating activities of £312k are 0.45% of turnover.

Other costs are not significant to the profitability of the company and are not deemed KPIs.

Following a detailed review of the individual branch performance figures it was agreed that an impairment review on goodwill would be carried out. All branches are performing in line with expectations and no impairment was felt necessary.

By order of the board

The directors present their annual report and financial statements for the year ended 30 April 2021.

The principal activity of the company continued to be that of the provision of local pharmaceutical services.

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £414,447. The directors do not recommend payment of a final dividend.

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

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

The company places considerable value on the involvement of its employees and communicates clearly and openly on a personal and two-way basis, sharing information and ideas. Employees are continually kept informed of matters affecting them as employees and of various factors affecting the performance of the group. This is achieved through formal and informal meetings and newsletters. Employee representatives are consulted regularly in a wide range of maters affecting their current and future interests.

The auditor, BHP LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

The directors are responsible for preparing the annual report 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 UK 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.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

We have audited the financial statements of H.I. Weldrick limited (the 'company') for the year ended 30 April 2021 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 April 2021 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 Auditor's 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

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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 our audit:

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

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 and the directors' report.

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 remuneration specified by law are not made; or

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

As explained more fully in the directors' responsibilities statement, 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 is 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.

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 an auditor's report 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We focused on laws and regulations, relevant to the company, which could give rise to a material misstatement in the financial statements. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management, review of company minutes and legal expenses. There are inherent limitations in the audit procedures described and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

As part of our audit, we addressed the risk of management override of internal controls, including testing of journals and review of nominal ledger. We evaluated whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 an auditor's report 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.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

H.I. Weldrick limited is a private company limited by shares incorporated in England and Wales. The registered office is Leedale House, Railway Court, Doncaster, South Yorkshire, DN4 5FB.

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.

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, modified to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is exempt from the requirement to prepare consolidated financial statements as all of its subsidiaries are permitted to be excluded by virtue of section 402 and 405 of the Companies Act 2006.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which ranges from 10 to 25 years.

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ 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, 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.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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.

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, including creditors and bank loans, 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.

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

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

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements, estimates and assumptions have the most significant effect on amounts recognised in the financial statements.

The company estimates the useful lives and residual values of property, plant and equipment in order to calculate depreciation charges. Changes in these estimates could result in changes being required to annual depreciation charges in the statement of comprehensive income and the carrying values of property, plant and equipment.

The company estimates the useful lives and residual values of intangible assets in order to calculate amortisation charges. Changes in these estimates could result in changes being required to annual amortisation charges in the statement of comprehensive income and the carrying values of intangible fixed assets.

The company is subject to review of certain income which may result in a clawback of revenues by the Department of Health. In the directors' view it is not possible to estimate whether there will be further clawbacks in relation to the current and prior periods as the company has not been notified at the date of signing these accounts. Therefore no further provisions have been made.

All turnover in the current and prior year arose within the United Kingdom from the company's principal activity

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

Their aggregate remuneration comprised:

Investment income includes the following:

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

At 30 April 2021, the company's investment property was valued by the director's of the company. The most recent valuation by an independent external chartered surveyor was conducted in April 2020. In the director's opinion, the valuation of the investment property is a fair value reflection of its open market value at the year end.

Details of the company's subsidiaries at 30 April 2021 are as follows:

Details of the company's joint ventures at 30 April 2021 are as follows:

For details of bank loan security, see note 23.

For details of finance lease security, see note 24.

For details of bank loan security, see note 23.

For details of finance lease security, see note 24.

The bank loans are secured by first legal charges over the freehold and leasehold properties and a debenture over the assets owned by the company.

Interest on bank loans is charged at 1.55% over base rate. Loans are repayable over a period of 5 to 10 years from the drawdown date.

Finance lease payments represent rentals payable by the company for certain items of fixtures, fittings and office equipment. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Obligations under finance leases are secured over the assets to which they relate.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Ordinary A shares are full voting shares, entitled to return of capital on winding up.

Ordinary B shares are non voting income shares, entitled to their nominal value on winding up.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

The remuneration of key management personnel is as follows.

During the year, the company rented premises from L H Alcock, a director of the company. Rentals were charged totalling £142,098 (2020: £158,760).

During the year, the company rented certain premises from the SIPP of C W J Alcock, a director of the company. Rentals were charged totalling £81,789 (2020: £98,339).

During the year, the company rented certain premises from the SIPP of J Alcock, wife of C W J Alcock. Rentals were charged totalling £19,137 (2020: £19,136).

Included within other debtors is a loan amount of £305,000 (2020: £305,000) owed from City Road Limited, a company in which C W J Alcock is a shareholder. Interest is charged at a rate of base rate plus 3%. Interest received during the year totalled £9,885 (2020: £9,940).

During the year, rents were received from City road Limited of £50,000 (2020: £66,000) and other amounts of £19,029(2020: £8,500) were also recharged. The trading balance at the year end owed from City Road Limited was £18,440 (2019: £959) and is included within trade debtors. During the year, purchases of £31,675 (2020: £95,019) were made from City Road Limited and the trading balance at the year end owing was £3,973 (2020: £3,973) and is included within trade creditors.

During the year, purchases of £1,361 (2020: £1,671) were made from Medicine Chest Limited, a company in which C W J Alcock is a director and shareholder. The trading balance owing to Medicine Chest Limited at the year end was £nil (2020: £286) and is included within trade creditors.

Included within other creditors are amounts due to the following directors; L H Alcock £213,841 (2020: £102,601) and C W J Alcock £271,173 (2020: £118,868).

The company is controlled by C W J Alcock due to his majority shareholding in the company.