Company No: 05464465 (England and Wales)

Contents

• Statement of Financial Position
• Notes to the Financial Statements

	Note	2022		2021
		£		£
Fixed assets
Tangible assets	3	3,269,931		3,199,749
Investment property	4	1,552,931		1,552,931
		4,822,862		4,752,680
Current assets
Stocks		12,962		12,476
Debtors	5	2,435,347		1,988,390
Cash at bank and in hand		302,960		309,661
		2,751,269		2,310,527
Creditors
Amounts falling due within one year	6	( 1,298,311)		( 348,259)
Net current assets		1,452,958		1,962,268
Total assets less current liabilities		6,275,820		6,714,948
Creditors
Amounts falling due after more than one year	7	( 256,079)		( 1,174,365)
Provision for liabilities	8	( 530,980)		( 511,861)
Net assets		5,488,761		5,028,722
Capital and reserves
Called-up share capital	9	100		100
Revaluation reserve		1,184,714		1,849,824
Profit and loss account		4,303,947		3,178,798
Total shareholders' funds		5,488,761		5,028,722

For the financial year ending 31 May 2022 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

• The members have not required the Company to obtain an audit of its financial statements for the financial year in accordance with section 476;
• The director acknowledges their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Statement of Income and Retained Earnings has not been delivered.

The financial statements of Scoliosis SOS Limited (registered number: 05464465) were approved and authorised for issue by the Director on 28 February 2023. They were signed on its behalf by:

Erika Maude Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

Scoliosis SOS Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is Century House, Nicholson Road, Torquay, TQ2 7TD, England, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the company and rounded to the nearest £.

Foreign currency

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the Statement of Financial Position date are reported at the rates of exchange prevailing at that date.

Exchange differences are recognised in the Statement of Income and Retained Earnings in the period in which they arise except for exchange differences arising on gains or losses on non-monetary items which are recognised in the Statement of Comprehensive Income.

Turnover

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.

Turnover is recognised when the significant risks and rewards are considered to have been transferred to the customer.

Employee benefits

Defined contribution schemes
The Company operates a defined contribution scheme. The amount charged to the Statement of Income and Retained Earnings in respect of pension costs and other post-retirement benefits is the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are included as either accruals or prepayments in the Statement of Financial Position.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Statement of Financial Position date.

Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible fixed assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. Depreciation is provided on all tangible fixed assets, other than investment properties and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line basis over its expected useful life, as follows:

Land and buildings	not depreciated
Plant and machinery	6 - 7 years straight line
Fixtures and fittings	6 - 7 years straight line

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each Statement of Financial Position date. If there is objective evidence of impairment, an impairment loss is recognised in the Statement of Income and Retained Earnings as described below.

Investment property

Investment property is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at each reporting date with changes in fair value recognised in profit or loss. Deferred taxation is provided on these gains at the rate expected to apply when the property is sold.

The fair value is determined annually by the director, on an open market value for existing use basis.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity. Cost is calculated using the FIFO (first-in, first-out) method. Provision is made for obsolete, slow-moving or defective items where appropriate.

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.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts, except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in creditors: amounts falling due within one year.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost.

Financial instruments

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.

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.

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Statement of Financial Position date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

Ordinary share capital

The ordinary share capital of the Company is presented as equity.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

2. Employees

	2022		2021
	Number		Number
Monthly average number of persons employed by the Company during the year, including the director	27		28

3. Tangible assets

	Land and buildings		Plant and machinery		Fixtures and fittings		Total
	£		£		£		£
Cost
At 01 June 2021	3,147,069		100,232		120,830		3,368,131
Additions	0		91,740		2,436		94,176
At 31 May 2022	3,147,069		191,972		123,266		3,462,307
Accumulated depreciation
At 01 June 2021	0		90,318		78,064		168,382
Charge for the financial year	0		12,244		11,750		23,994
At 31 May 2022	0		102,562		89,814		192,376
Net book value
At 31 May 2022	3,147,069		89,410		33,452		3,269,931
At 31 May 2021	3,147,069		9,914		42,766		3,199,749

4. Investment property

	Investment property
	£
Valuation
As at 01 June 2021	1,552,931
As at 31 May 2022	1,552,931

Valuation

The 2022 valuations were made by the director, on an open market value for existing use basis.

5. Debtors

	2022		2021
	£		£
Trade debtors	38,184		7,132
Amounts owed by connected companies	2,359,185		1,942,348
Prepayments	29,579		34,257
Other debtors	8,399		4,653
	2,435,347		1,988,390

6. Creditors: amounts falling due within one year

	2022		2021
	£		£
Bank loans	923,945		106,646
Trade creditors	48,128		43,135
Amounts owed to director	156,444		92,132
Accruals and deferred income	48,885		70,510
Corporation tax	103,701		21,039
Other taxation and social security	17,208		14,797
	1,298,311		348,259

The bank loans are secured by way of a first legal charge over the freehold land and buildings owned by the company and an unlimited debenture.

7. Creditors: amounts falling due after more than one year

	2022		2021
	£		£
Bank loans	256,079		1,174,365

The bank loans are secured by way of a first legal charge over the freehold land and buildings owned by the company and an unlimited debenture.

8. Deferred tax

	2022		2021
	£		£
At the beginning of financial year	( 511,861)		( 73,134)
Charged to the Statement of Income and Retained Earnings	( 19,119)		( 438,727)
At the end of financial year	( 530,980)		( 511,861)

9. Called-up share capital

	2022		2021
	£		£
Allotted, called-up and fully-paid
60 Ordinary shares of £ 1.00 each	60		60
40 A ordinary shares of £ 1.00 each	40		40
	100		100

10. Financial commitments

Pensions

The Company operates a defined contribution pension scheme for the director and employees. The assets of the scheme are held separately from those of the Company in an independently administered fund.

11. Related party transactions

Transactions with entities in which the entity itself has a participating interest

	2022		2021
	£		£
Maudelet Limited, a company under common control	2,359,185		1,942,348

The above balance is included in debtors. Interest has been received on the loan at 2.5% (2021: Interest at 2.5%) and there is no fixed date for repayment.

Transactions with the entity's director

	2022		2021
	£		£
J Maude, director	(108,444)		(42,132)
E Maude, director	(48,000)		(50,000)

No interest has been charged on the directors' loan accounts and there are no fixed dates for repayment.