Florence Nightingale Hospitals Limited - Period Ending 2022-12-31

Florence Nightingale Hospitals Limited

Contents

Florence Nightingale Hospitals Limited

Company Information

Florence Nightingale Hospitals Limited

Strategic Report for the Year Ended 31 December 2022

The directors present their strategic report on the affairs of Florence Nightingale Hospitals Limited for the year ended 31 December 2022.

Fair review of the business

The company's principal activity during the year continued to be the operation of a private hospital supplying psychiatric and related treatments.

The company's key financial and other performance indicators during the year were as follows:

There have been several challenges during the year to 31 December 2022, most significantly the recruitment of nurses (of all grades) and clinical staff as a result of the national shortage. Premium rates had to be paid for the resources available to deliver essential care for the patients. Thus consequently leading to a high increase in the cost of labour. This significantly impacted the profitability of the business and has been reflected in the results to 31 December 2022.

The business has embarked on a major recruitment drive and has been engaging with universities to attract staff for training and internship opportunities, during which they will learn and gain practical knowledge in supplying psychiatric and related treatments. In addition, the business has launched various recruitment initiatives to attract nurses to the psychiatric care sector and results of the initiatives are being seen in the second quarter of the year to 31 December 2023.
 

Environmental matters

The company continually refines its detailed policies and procedures in respect of health and safety, and environmental matters. The impact of its business on the environment is taken seriously and the company has in place safeguards to protect the environment from pollution. The company seeks to minimise any disturbance to the local and global environment and to the quality of life of local communities.

Employee involvement

The company’s philosophy is to encourage all of its employees to contribute to improving the business’s performance through the utilisation of their knowledge, experience and ideas. Communication with the employees individually is achieved through information bulletins, team briefings and regular management contact.

Florence Nightingale Hospitals Limited

Strategic Report for the Year Ended 31 December 2022 (continued)

Employment of disabled persons

The company recognises that it has clear obligations towards all its employees and the community at large to ensure that people with disabilities are afforded equal opportunities to enter employment and progress with the company.

In addition to complying with the requirements of the Equality Act 2010 and the Disability Discriminations Act 1995, the company will follow procedures designed to provide for fair consideration and selection of disabled applicants and to satisfy their training and career development needs. When employees become disabled in the course of their employment, the company will attempt to ensure they remain in employment by making reasonable adjustments to accommodate their disability.

Principal risks and uncertainties

• Competitive risks
The company is reliant on the number of predominantly non-contracted patient referrals it receives from private referrers. The level of patient referrals is therefore uncertain.

• Pricing levels
Pricing remains competitive with self-paying increases held in line with inflationary levels seen within the reported period. Private medical insurance pricing has become less stable and subject to aggressive renegotiations as widely reported across the healthcare sector.

• Liquidity and cash flow
Trading growth and a lowered cost base has improved the company’s liquidity. The company is free of debt or liabilities outside of standard trade creditors.

• Legislative risks
The psychiatric services performed by the company must comply with Care Standards Act 2000 and Mental Health Act 2007. These standards are subject to continuous revision and any material changes could significantly impact service delivery and in turn the company’s financial results.

• Covid-19 Update
The safety of our patients is our number one priority. As understanding of the virus increases, so does our knowledge of developing more accessible and relevant innovative service options.

Future developments

The services offered at the hospital have been expanded to reflect innovative changes in mental health delivery.

The hospital continues to adapt the operational model in order it meets the regulatory requirements.

Approved and authorised by the Board on 15 June 2023 and signed on its behalf by:
 

Florence Nightingale Hospitals Limited

Directors' Report for the Year Ended 31 December 2022

The directors present their report and the financial statements for the year ended 31 December 2022.

Principal activity

The principal activity of the company is the operation of a private hospital supplying psychiatric and related treatments

Directors of the company

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

E S Masson (resigned 22 July 2022)

G F M Uytterschaut (appointed 22 July 2022 and resigned 21 December 2022)

L Guillot (appointed 21 December 2022)

A Hussain

Going concern

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis in preparing the annual financial statements.

Events after the financial period

There have been no significant events between the year end and the date of approval of these accounts which would require a change to, or disclosure in, the financial statements.

Directors' insurance and indemnities
 

Disclosure of information to the auditors

Florence Nightingale Hospitals Limited

Directors' Report for the Year Ended 31 December 2022 (continued)

Reappointment of auditors

Harmer Slater Limited are deemed to be reappointed in accordance with an elective resolution made under section 386 of the Companies Act 1985 which continued in force under the Companies Act 2006.

Approved and authorised by the Board on 15 June 2023 and signed on its behalf by:
 

Florence Nightingale Hospitals Limited

Statement of Directors' Responsibilities

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),including FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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:

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.

Florence Nightingale Hospitals Limited

Independent Auditor's Report to the Member of
Florence Nightingale Hospitals Limited

Opinion

We have audited the financial statements of Florence Nightingale Hospitals Limited (the 'company') for the year ended 31 December 2022, which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 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 director's 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 original financial statements were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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.

Florence Nightingale Hospitals Limited

Independent Auditor's Report to the Member of
Florence Nightingale Hospitals Limited (continued)

We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our 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.

Florence Nightingale Hospitals Limited

Independent Auditor's Report to the Member of
Florence Nightingale Hospitals Limited (continued)

Auditor 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 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:

The extent to which the audit was considered capable of detecting irregularities including fraud

Florence Nightingale Hospitals Limited

Independent Auditor's Report to the Member of
Florence Nightingale Hospitals Limited (continued)

A further description of our responsibilities is available on the Financial Reporting Council’s website at: 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 member, 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 member 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 member as a body, for our audit work, for this report, or for the opinions we have formed.

......................................
Ransford Agyei-Boamah (Senior Statutory Auditor)
For and on behalf of Harmer Slater Limited, Statutory Auditor

Salatin House
19 Cedar Road
Sutton
Surrey
SM2 5DA

15 June 2023

Florence Nightingale Hospitals Limited

Statement of Income and Retained Earnings
for the Year Ended 31 December 2022

Continuing operations

All results are derived wholly from continuing operations.

Florence Nightingale Hospitals Limited

(Registration number: 01431836)
Statement of Financial Position as at 31 December 2022

The financial statements of Florence Nightingale Hospitals Limited were approved and authorised for issue by the Board on 15 June 2023 and signed on its behalf by:
 

.........................................

A Hussain
Director

Florence Nightingale Hospitals Limited

Notes to the Financial Statements
for the Year Ended 31 December 2022

Florence Nightingale Hospitals Limited (the 'company') is a private company limited by share capital, registered in England and Wales under the Companies Act. The address of the registered office is given on page 1. The nature of the company’s operations and its principal activities are set out in the directors' report on page 2.

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Going concern

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis in preparing the annual financial statements.

Statement of compliance

Basis of preparation

Summary of disclosure exemptions

The company meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemptions available to it in respect of its separate financial statements. The company is consolidated in the financial statements of its parent, Orpea SA, which may be obtained from https://orpea-corp.com/documentation-invest-fr/documents-de-reference. Exemptions have been taken in these separate company financial statements in relation to financial instruments, presentation of a cash flow statement, transactions with group entities and remuneration of key management personnel.

Florence Nightingale Hospitals Limited

Notes to the Financial Statements
for the Year Ended 31 December 2022 (continued)

Judgements

Key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements
(apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements..

(i) Property, plant and equipment
The company establishes a reliable estimate of the useful life of tangible fixed assets; this estimate is based on a variety of factors which may be uncertain. The carrying amount is £4,027,647 (2021 £3,979,653).

(ii) Accounts receivable
Accounts receivable are derived from sales. In order to monitor potential credit losses, an ongoing evaluations of the balances outstanding are performed. An allowance for doubtful debts is maintained for potential credit losses based upon management's assessment of the expected collectability of all accounts receivable. The allowance for doubtful accounts is reviewed periodically to assess the adequacy of the allowance. The actual level of debt collected may differ from the estimated levels of recovery and could impact future operating results positively or negatively. As at 31 December 2022 the company's current trade receivables were £3,033,183 against which £418,179 was provided for.

(iii) Deferred tax
At December 2022, the company had unrelieved tax losses of approximately £5,184,000. No deferred tax asset has been recognised in respect of these tax losses. In the director's opinion, there may not be other future taxable profits/gains against which the tax losses will be relieved and consequently have not recognised any deferred tax asset in respect of these losses.

Revenue recognition

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into Sterling at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on the initial transaction dates. Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Florence Nightingale Hospitals Limited

Notes to the Financial Statements
for the Year Ended 31 December 2022 (continued)

Taxation

Property, plant and equipment

Intangible assets

Amortisation

Florence Nightingale Hospitals Limited

Notes to the Financial Statements
for the Year Ended 31 December 2022 (continued)

Impairment of assets
At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in statement of income and retained earnings.

If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Cash and cash equivalents

Receivables

Payables

Leases

Share capital

Dividends

Florence Nightingale Hospitals Limited

Notes to the Financial Statements
for the Year Ended 31 December 2022 (continued)

Defined contribution pension obligation

Financial instruments

The company only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

The analysis of the company's Revenue for the year from continuing operations is as follows:

Arrived at after charging/(crediting)

Florence Nightingale Hospitals Limited

Notes to the Financial Statements
for the Year Ended 31 December 2022 (continued)

The aggregate payroll costs (including directors' remuneration) were as follows:

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

The directors' remuneration for the year was as follows:

Florence Nightingale Hospitals Limited

Notes to the Financial Statements
for the Year Ended 31 December 2022 (continued)

Tax charged/(credited) in the income statement

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2021 - lower than the standard rate of corporation tax in the UK) of 19% (2021 - 19%).

The differences are reconciled below:

Deferred tax assets in respect of tax losses have not been recognised as their future recovery is uncertain or not currently anticipated. The amount of £1,295,975 (31 December 2021 - £1,113,160) not recognised in the period was calculated using the tax rates and laws that have been enacted or substantively enacted by the year end.

Florence Nightingale Hospitals Limited

Notes to the Financial Statements
for the Year Ended 31 December 2022 (continued)

Florence Nightingale Hospitals Limited

Notes to the Financial Statements
for the Year Ended 31 December 2022 (continued)

The amount receivable from parent undertaking disclosed as falling within one year is unsecured, payable on demand and interest is charged at 3.25% per annum.

Florence Nightingale Hospitals Limited

Notes to the Financial Statements
for the Year Ended 31 December 2022 (continued)

Allotted, called up and fully paid shares

Reserves

The retained earnings reserve represents cumulative profit or losses net of dividends paid and other adjustments.

The capital contribution represents funding from the immediate parent that carries no rights to repayment or control over usage. This reserve forms part of the company's distributable reserves.

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £269,077 (2021 - £238,910).

Contributions totalling £40,635 (2021 - £Nil) were payable to the scheme at the end of the year and are included in creditors.

Florence Nightingale Hospitals Limited

Notes to the Financial Statements
for the Year Ended 31 December 2022 (continued)

Operating leases

The total of future minimum lease payments is as follows:

The amount of non-cancellable operating lease payments recognised as an expense during the year was £2,361,076 (2021 - £2,248,808).

The company is a wholly owned subsidiary member of its group and has therefore taken advantage of the provisions of Section 33. 1A of FRS 102 the "The Financial Reporting Standard applicable in the UK and Republic of Ireland" not to disclose transactions with entities that are wholly owned members of the the group.

There were no other related party transactions to disclose.

The company's immediate parent is Groupe Sinoue SAS, incorporated in France.

 The ultimate parent is Orpea SA, incorporated in France.

 The most senior parent entity producing publicly available financial statements is Orpea SA. These financial statements are available upon request from https://orpea-corp.com/documentation-invest-fr/documents-de-reference