Transform Hospital Group Limited - Limited company accounts 20.1

REGISTERED NUMBER: 11932035 (England and Wales)

Strategic Report, Report of the Director and

Financial Statements

for the Period 8 April 2019 to 31 December 2019

for

Transform Hospital Group Limited

Page

Company Information

1

Strategic Report

2

Report of the Director

5

Report of the Independent Auditors

7

Income Statement

10

Other Comprehensive Income

11

Statement of Financial Position

12

Statement of Changes in Equity

13

Notes to the Financial Statements

14

DIRECTOR:

A R Veverka

REGISTERED OFFICE:

Pines Hospital

192 Altrincham Road

Manchester

M22 4RZ

REGISTERED NUMBER:

11932035 (England and Wales)

AUDITORS:

Venture House Business Service Limited

Chartered Accountants and

Statutory Auditors

Venture House

Calne Road

Lyneham

Chippenham

SN15 4PP

The director presents his strategic report for the period 8 April 2019 to 31 December 2019.

REVIEW OF BUSINESS

Transform Hospital Group was incorporated on 8 April 2019 and on 3 July 2019 purchased the trade and assets of TFHC Limited and Combine OpCo Limited from their administrators.

Transform Hospital Group Limited is a provider of surgical and non-surgical cosmetic procedures, as well as weight­ loss treatments in the United Kingdom. The company has a network comprising 18 clinics in England, Scotland and Wales, as well as two dedicated surgical procedure hospitals.

Headquartered in Manchester (United Kingdom), Transform Hospital Group Limited is managed by a CEO with the support of a senior management team in the areas of Finance, Human Resources, IT, Legal and Operations. The senior management team is also responsible for the company's three operating segments of Cosmetic Surgery, Weight Loss Services and Medical Aesthetics interventions.

The market environment of the Company is still very competition-intensive and characterized by a general downturn. Among other factors, the persistent uncertainty surrounding Brexit further depressed consumer confidence in the United Kingdom during this period.

Key performance indicators

The Director measures financial performance (sales, gross margin, stock turnover and cashflow) and customer and employee satisfaction as indicators or the success of the company. The internal systems and processes are aligned to these KPI's and enable management to monitor movement and progress in comparison to these.

The Company's restructuring in July 2019 that was done in reaction to the challenging market conditions weakened the operating business temporarily and led to revenue declines and increased costs. The Company's Loss for the year was £8.2m and included £4.5m of exceptional one-off items due to the restructure.

Covid-19 Impact

The March 2020 COVID-19 pandemic has created unprecedented challenges and uncertainty with the full socio-economic impact of the virus likely to be significant for years to come. This event has not impacted on the financial performance for the year ended 31st December 2019, nor on its financial position as at 31 December 2019.

The Company's revenues were heavily influenced by the coronavirus crisis in 2020, especially in the months of March to July 2020 when it could no longer offer its normal services. The resulting revenue and profit effects were partially offset by the transfer of use of the company's clinics and hospitals to the National Health Service.

The business was able to adapt to the ever changing environment. Moreover, the service portfolio has expanded beyond the traditional areas of cosmetic interventions and now includes a broader range of elective healthcare and wellbeing services.

The management continues to review the situation and its effect on the market it serves. The health and wellbeing of our employees and service delivery remain top priorities with cashflow and liquidity, business continuity and cost control under continuous review.

PRINCIPAL RISKS AND UNCERTAINTIES

All medical procedures carry an inherent risk. The company manages this by investing in the clinical and administrative systems, processes, and reports employed to detect, monitor, assess, mitigate, and prevent risks. By employing risk management processes and a strong clinical governance framework the Company proactively and systematically safeguards patient safety.

The Company's strategy is to follow an appropriate risk policy which effectively manages exposure related to the achievement of business objectives. The key risks which management face are detailed as follows:

Business performance risk

Business performance risk is the risk that the company may not perform as expected either due to internal factors or due to competitive pressures in the markets in which they operate. This risk is managed through a number of measures; authorisation of purchase and capital commitments; ensuring the appropriate management team is in place; budget and business planning; monthly reporting and variance analysis; financial controls; key performance indicators; and regular forecasting.

Business continuity risk

While there is a reliance on physical infrastructure, the Company operates from a number of geographically separate facilities which helps the company to minimise the business continuity risk. The Company ensures that there is sufficient IT support available should an unforeseen event occur. Management are continually implementing and reviewing business continuity and IT disaster recovery plans to ensure any increase in risk arising from future activities is managed.

During the COVID 19 pandemic in 2020 the business was quick to mobilise to a digital infrastructure which allowed virtual consultations and telemedicine.

Maintaining standards of care and health and safety risk

The Company has worked with the Care Quality Commission throughout the period to ensure the highest standards of care and facilities are provided and maintained. It is committed to ensuring a caring and safe working environment. These risks are managed by the company through strong promotion of a health and safety culture, well defined health and safety and care policies and procedures together with training programmes for staff.

Financial and business control

Strong financial and business controls are necessary to ensure the integrity and reliability of financial and other information on which the company relies for day-to-day operations, external reporting and for longer term planning. The company exercises financial and business control through a combination of qualified and experienced financial personnel, performance analysis, budgeting, cashflow forecasting and clearly defined approval limits.

Price risk

The company is exposed to a risk from competitor pricing, but its markets are sufficiently differentiated as a market leading premium brand to enable it to maintain its pricing levels.

Social, ethical and environment risk

Due to the company's nature and size, no significant social, ethical or environment risks have been identified by management, The company has a range of insurances to manage major risks such as business continuity disruption, public liability, property disaster, employee and public liability and medical claims. Management are periodically advised by insurance professionals on adequacy of cover.

SECTION 172(1) STATEMENT

The board of directors of Transform Hospital Group Limited consider, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole. In particular, the board decisions are made with reference to:

- Decision making requires a long-term perspective, and this is characterized by our approach to sustainable growth.

- We consider our employees as a key success factor in the future success of the company. It is the company's policy to keep all employees as fully informed as practical about the company's progress, through regular newsletters and meetings. Meetings are held between management and employees to allow input and review at all levels of the business, allowing employees views to be considered when making decisions that may affect them.

- The company works in a collaborative way with its suppliers, ensuring open dialogue is frequent and co-operative.

- The company is aware of the importance of environmentally business practices and keep the environment in mind when making decisions. The move to telemedicine in 2020 is expected to reduce the company's carbon consumption in the forthcoming years.

ON BEHALF OF THE BOARD:

A R Veverka - Director

29 June 2021

The director presents his report with the financial statements of the company for the period 8 April 2019 to 31 December 2019.

INCORPORATION

The company was incorporated on 8 April 2019 and commenced trading on 3 July 2019.

DIVIDENDS

No dividends will be distributed for the period ended 31 December 2019.

EVENTS SINCE THE END OF THE PERIOD

Information relating to events since the end of the period is given in the notes to the financial statements.

DIRECTOR

A R Veverka was appointed as a director on 8 April 2019 and held office during the whole of the period from then to the date of this report.

DISCLOSURE IN THE STRATEGIC REPORT

The company has opted to disclose some items in the Strategic Report rather than the Directors Report.

DIRECTOR'S RESPONSIBILITIES STATEMENT

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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 director is 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 he 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, Venture House Business Service Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A R Veverka - Director

29 June 2021

Qualified opinion

We have audited the financial statements of Transform Hospital Group Limited (the 'company') for the period ended 31 December 2019 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, 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, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:

- give a true and fair view of the state of the company's affairs as at 31 December 2019 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 qualified opinion

Stock balances of £400,000 were purchased from the Administrators of TFHC Limited and Combine Opco Limited at 3 July 2019 and an accrual for stock used in procedures not invoiced was included as at 31 December 2019 of £247,590. We were unable to satisfy ourselves concerning the inventory values held at 31 December 2019, which are included in the balance sheet at £975,007 and the stock accrual figure due to limitations in the stock systems. Consequently we were unable to determine whether any adjustment to these amounts was necessary.

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 qualified opinion.

Material uncertainty relating to going concern

We draw your attention to note 21, as stated, these events or conditions indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

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.

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the inventory quantities of £975,007 and stock accrual of £247,590 held at 31 December 2019. We have concluded that where the other information refers to the inventory and stock accrual balance or related balances such as cost of sales, it may be materially misstated for the same reason.

Opinions on other matters prescribed by the Companies Act 2006

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, 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

Except for the matter described in the basis for qualified opinion section of our report, 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.

Arising solely from the limitation on the scope of our work relating to inventory, referred to above:

- We have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and

- We were unable to determine whether adequate accounting records have been kept.

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:

- 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.

Responsibilities of director

As explained more fully in the Director's Responsibilities Statement set out on page five, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.

Neil Elsden (Senior Statutory Auditor)

for and on behalf of Venture House Business Service Limited

Chartered Accountants and

Statutory Auditors

Venture House

Calne Road

Lyneham

Chippenham

SN15 4PP

29 June 2021

REVENUE

3

15,787,271

Cost of sales

8,981,256

GROSS PROFIT

6,806,015

Administrative expenses

10,618,026

OPERATING LOSS

(3,812,011

)

Fundamental restructuring cost

5

4,411,117

(8,223,128

)

Interest payable and similar expenses

6

114,881

LOSS BEFORE TAXATION

7

(8,338,009

)

Tax on loss

8

-

LOSS FOR THE FINANCIAL PERIOD

(8,338,009

)

LOSS FOR THE PERIOD

(8,338,009

)

OTHER COMPREHENSIVE INCOME

-

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

(8,338,009

)

FIXED ASSETS

Intangible assets

9

43,740

Property, plant and equipment

10

347,723

391,463

CURRENT ASSETS

Inventories

11

975,007

Debtors

12

1,427,792

Cash at bank

888,345

3,291,144

CREDITORS

Amounts falling due within one year

13

11,882,048

NET CURRENT LIABILITIES

(8,590,904

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(8,199,441

)

CREDITORS

Amounts falling due after more than one year

14

(30,567

)

PROVISIONS FOR LIABILITIES

17

(108,000

)

NET LIABILITIES

(8,338,008

)

CAPITAL AND RESERVES

Called up share capital

18

1

Retained earnings

(8,338,009

)

SHAREHOLDERS' FUNDS

(8,338,008

)

The financial statements were approved by the director and authorised for issue on 29 June 2021 and were signed by:

A R Veverka - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

1

-

1

Total comprehensive income

-

(8,338,009

)

(8,338,009

)

Balance at 31 December 2019

1

(8,338,009

)

(8,338,008

)

1.	STATUTORY INFORMATION

Transform Hospital Group 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.

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 requirement of paragraph 33.7.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.The Company is included in the group accounts of the ultimate parent, Aurelius Equity Opportunities SE & Co. KGaA, copies of which can be obtained from Ludwig-Ganghofer-Straße 6, 82031 Grünwald, Germany

Significant judgements and estimates

In the application of the company's accounting policies, which are described in note 2, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 on going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The restructuring process created a number of uncertainties. In order to secure continued smooth operation of the Company, certain liabilities of TFHC Limited and Combine Opco Limited were met and there was uncertainty surrounding the extent of these so provision was made at 31 December 2019 based on best estimates. Post year end £429,523 of this provision was released post year end as the situation was clarified. Uncertainties also existed concerning stock purchase liabilities resulting in a provision of £247,590 of which £178,172 was released post period end. See Note 20.

Stock was purchased from the administrators at a value of £400,000. Stock at the period end has been valued at the original purchase price from suppliers using stocktake quantities and totals £975,007. It is not possible to quantify how much stock purchased from the administrator remains in this balance at 31 December 2019 and is therefore valued in excess of cost. It is the assessment of management that due to the level of stock turnover, this balance is not material. Management have reviewed the stock in detail and it is his assessment that no provision for slow moving stock is required.

Services are exempt where they are undertaken as an element of a health care treatment programme. Where services are undertaken outside of the healthcare treatment programme, they are standard-rated. The Company have an ever improving system under constant review ensuring high standards of medical consultation, carefully establishing why the patient is seeking treatment, the psychological impact of the presenting concerns, associated physical symptoms and stating a therapeutic purpose for intervention and associated documentation. The Company relies on surgeons' assessments of the procedures carried out to determine the VAT status and has controls in place, notwithstanding this, there is however a risk that HMRC may take a contrary view.

A provision for revision surgery of £108,000 is included in these accounts. There is an inherent risk with medical procedures, the provision is calculated based on historical data and the experience of the Company Secretary and finance team, however is it by nature subjective.

Turnover

Revenue is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Business to customer revenue is recognised on completion of the medical procedure. Business to business revenue is recognised as invoiced.

Goodwill

Goodwill, being the amount paid for the acquisition of businesses in 2019, has been fully amortised in the year of acquisition.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of four years.

Tangible fixed assets

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

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Long leasehold - 25% on cost

Plant and machinery - at varying rates on cost

Fixtures and fittings - 20% on cost

Motor vehicles - 20% on cost

Computer equipment - 33% on cost

Stocks

Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Inventories are valued using a first in first out cost model.

Financial instruments

The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

Basic financial assets, including trade and other receivables and cash and bank balances, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method.

Basic financial liabilities, including trade and other payables, bank loans and loans from fellow group companies, 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Financial assets and liabilities are offset and 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.

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Going concern

It is the intention of the company and its parent that it will continue to trade for at least twelve months from the date of the audit report. To this regard the ultimate parent company will offer such support as may be necessary to ensure this intention and this will likely be through the ongoing provision of a funding facility offered by Aurelius Finance Company Limited.This support has been documented in a letter to the company. Therefore the financial statements have been prepared on a going concern basis.

3.

REVENUE

The revenue and loss before taxation are attributable to the one principal activity of the company.

An analysis of revenue by class of business is given below:

£

UK sales of services

15,787,271

15,787,271

4.	EMPLOYEES AND DIRECTORS

£

Wages and salaries

5,001,092

Social security costs

422,973

Other pension costs

104,229

5,528,294

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

Nursing staff

164

Management and administration

288

452

£

Director's remuneration

85,750

Director's pension contributions to money purchase schemes

2,475

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

5.	EXCEPTIONAL ITEMS

£

Fundamental restructuring cost

(4,411,117

)

The exceptional item relates mainly to deposits received by TFHC Limited and Combine Opco Limited prior to novation on 3 July with surgery taking place post novation and surgeon and anaesthetist invoices relating to period prior to 3 July but received and paid post novation.

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

£

Loan interest

114,881

7.	LOSS BEFORE TAXATION

The loss is stated after charging:

£

Hire of plant and machinery

82,162

Other operating leases

1,314,055

Depreciation - owned assets

44,254

Depreciation - assets on hire purchase contracts

3,367

Goodwill amortisation

2

Patents and licences amortisation

6,249

Auditors' remuneration

26,040

Auditors' remuneration for non audit work

21,960

8.

TAXATION

Analysis of the tax charge

No liability to UK corporation tax arose for the period.

Reconciliation of total tax charge included in profit and loss

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

£

Loss before tax

(8,338,009

)

Loss multiplied by the standard rate of corporation tax in the UK of 19%

(1,584,222

)

Effects of:

Expenses not deductible for tax purposes

21,603

Depreciation in excess of capital allowances

4,445

Losses carried forward

1,558,174

Total tax charge

-

9.	INTANGIBLE FIXED ASSETS

Patents

and

Goodwill

licences

Totals

£

£

£

COST

Additions

2

49,989

49,991

At 31 December 2019

2

49,989

49,991

AMORTISATION

Amortisation for period

2

6,249

6,251

At 31 December 2019

2

6,249

6,251

NET BOOK VALUE

At 31 December 2019

-

43,740

43,740

10.	PROPERTY, PLANT AND EQUIPMENT

Fixtures

Long

Plant and

and

leasehold

machinery

fittings

£

£

£

COST

Additions

60,277

113,306

84,640

At 31 December 2019

60,277

113,306

84,640

DEPRECIATION

Charge for period

9,874

7,637

15,517

At 31 December 2019

9,874

7,637

15,517

NET BOOK VALUE

At 31 December 2019

50,403

105,669

69,123

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

Additions

67,351

69,770

395,344

At 31 December 2019

67,351

69,770

395,344

DEPRECIATION

Charge for period

3,367

11,226

47,621

At 31 December 2019

3,367

11,226

47,621

NET BOOK VALUE

At 31 December 2019

63,984

58,544

347,723

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Motor

vehicles

£

COST

Additions

67,351

At 31 December 2019

67,351

DEPRECIATION

Charge for period

3,367

At 31 December 2019

3,367

NET BOOK VALUE

At 31 December 2019

63,984

11.	INVENTORIES

£

Stocks

975,007

Stocks comprise medical goods for use in procedures.

12.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

£

Trade debtors

470,562

Prepayments

957,230

1,427,792

13.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

£

Hire purchase contracts (see note 15)

18,966

Payments on account

2,473,860

Trade creditors

2,407,299

Amounts owed to group undertakings

4,413,999

Social security and other taxes

222,166

VAT

212,885

Other creditors

45,289

Accrued expenses

2,087,584

11,882,048

Included in amounts owed to group undertakings is a loan from the parent company, Aurelius ETA UK Investments Limited of £750,000 on which interest is charged at 2.8% and a revolving credit facility with Aurelius Finance Company Limited with a balance outstanding at 31 December 2019 of £3,500,000.

14.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

£

Hire purchase contracts (see note 15)

30,567

15.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire

purchase

contracts

£

Net obligations repayable:

Within one year

18,966

Between one and five years

30,567

49,533

Non-cancellable

operating leases

£

Within one year

1,099,400

Between one and five years

5,736,800

In more than five years

687,100

7,523,300

16.	SECURED DEBTS

The following secured debts are included within creditors:

£

Group undertakings

4,250,000

Aurelius Finance Company Limited have fixed and floating charges over all assets of the company.

Aurelius ETA UK Investments Limited have fixed and floating charges over intellectual property.

17.	PROVISIONS FOR LIABILITIES

£

Other provisions

108,000

Other

provisions

£

Provided during period

108,000

Balance at 31 December 2019

108,000

18.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

value:

£

1

Ordinary

£1

1

1 Ordinary share of £1 was allotted and fully paid for cash at par during the period.