Abbey Field Health Limited - Period Ending 2023-03-31

Abbey Field Health Limited

Contents

Company Information	1
Statement of Directors' Responsibilities	2
Accountants' Report	3
Balance Sheet	4
Notes to the Unaudited Financial Statements	5 to 11

Abbey Field Health Limited

Company Information

Directors

Mr C P Daly Mr F T Gourlay Mrs AL Daly

Registered office Registration number

10-12 Barnes High Street Barnes London SW13 9LW 10652466

Accountants

Brown, Scott & Main Chartered Accountants 91 West Savile Terrace Edinburgh Lothian EH9 3DP

Abbey Field Health Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 year. In preparing these financial statements, the directors are required to:

•	select suitable accounting policies and apply them consistently;

•	make judgements and accounting estimates that are reasonable and prudent;

•	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.

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Abbey Field Health Limited
for the Year Ended 31 March 2023

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Abbey Field Health Limited for the year ended 31 March 2023 as set out on pages 4 to 11 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants of Scotland, we are subject to its ethical and other professional requirements which are detailed at www.icas.com/accountspreparationguidance

This report is made solely to the Board of Directors, as a body, in accordance with the terms of our engagement. Our work has been undertaken solely to prepare for your approval the accounts of Abbey Field Health Limited and state those matters that we have agreed to state to the Board of Directors, as a body, in this report in accordance with the requirements of the Institute of Chartered Accountants of Scotland as detailed at http://www.icas.com/accountspreparationguidance. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Abbey Field Health Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Abbey Field Health Limited. You consider that Abbey Field Health Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Abbey Field Health Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

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

Brown, Scott & Main
Chartered Accountants
91 West Savile Terrace
Edinburgh
Lothian
EH9 3DP

26 July 2023

Abbey Field Health Limited

(Registration number: 10652466)
Balance Sheet as at 31 March 2023

	Note	2023 £	2022 £
Fixed assets
Intangible assets	6	4,614	4,933
Tangible assets	7	184,155	185,844
		188,769	190,777
Current assets
Stock		68,618	70,894
Debtors	8	158,656	189,882
Cash at bank and in hand		507,387	398,399
		734,661	659,175
Creditors: Amounts falling due within one year	9	(272,995)	(310,542)
Net current assets		461,666	348,633
Total assets less current liabilities		650,435	539,410
Creditors: Amounts falling due after more than one year	9	(23,206)	(32,094)
Provisions for liabilities	10	(18,048)	(19,865)
Net assets		609,181	487,451
Capital and reserves
Called up share capital		90	90
Share premium reserve		147,967	147,967
Profit and loss account		461,124	339,394
Shareholders' funds		609,181	487,451

For the financial year ending 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 20 July 2023 and signed on its behalf by:
 

......................................... Mr F T Gourlay Director

Abbey Field Health Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
10-12 Barnes High Street
Barnes
London
SW13 9LW
England

The principal place of business is:
Ypres Road
Colchester
Essex
CO2 7UW
England

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

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.

Statement of compliance

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared under the historical cost convention.

The presentation currency is sterling.

Going concern

The financial statements have been prepared on the going concern basis. The directors consider this appropriate as the company is supported by the value of its licence and it continues to meet its day to day commitments from working capital and existing financial arrangements as they fall due. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

Turnover

Turnover represents sales of pharmaceutical products, excluding value added tax and net of discounts allowed, recognised when goods are despatched or provided to customers.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, 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 corporation tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Abbey Field Health Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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 year 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.

Tangible assets

Tangible fixed assets are stated at historic cost less accumulated depreciation and accumulated impairment losses.

Depreciation

Depreciation is provided at rates calculated so as to write off the cost less residual value of each asset over its expected useful life as follows:

Asset class	Depreciation method and rate
Plant and machinery	10% straight line
Fixtures and fittings	10% straight line
Office equipment	20% straight line
Leasehold improvements	5% straight line

Intangible assets

The company's intangible assets comprise a licence fee paid to obtain permission to operate the company's pharmacy. 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.

The company's licence is amortised on the straight line basis over its estimated life of 20 years. This is a departure from the requirements of section 1A of FRS 102 which requires intangible assets to be amortised over a period not exceeding 10 years where it is not possible to make a reliable estimate of the useful life. The directors believe the company's licence has a lifespan longer than 10 years and consider 20 years is a more accurate period for amortisation of the licence.

If the licence had been amortised over 10 years the amortisation charge to the profit and loss account would have been £638 (2022 £638), resulting in a decrease in the profit of £319 (2022 £319).

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 profit or loss.

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.

Stock

Stock is stated at the lower of cost and net realisable value, and comprises pharmaceutical products for resale.

Leases

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

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Abbey Field Health Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme whose assets are held separately from those of the company in independently administered funds. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Financial instruments

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Basic Financial Assets
Basic financial assets, which include stock, 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 value rate of interest.Financial assets classified as receivable within one year are not amortised.

Basic Financial Liabilities
Basic financial liabilities, which include creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

3	Staff numbers

The average number of persons employed by the company (including directors) during the period, was 14 (2022 - 11).

4	Other operating income

	2023		2022
	£		£
Reimbursement of Covid costs	-		56,629
Furlough claims	-		770
Sundry receipts	4,047		523
	4,047		57,922

5

Taxation

The tax charge on the profit for the year was as follows:
	2023		2022
	£		£
UK corporation tax	30,211		50,822
Deferred tax	(1,817)		(496)
	28,394		50,326

Abbey Field Health Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

6	Intangible assets

	Licence £	Total £
Cost
At 1 April 2022	6,381	6,381
At 31 March 2023	6,381	6,381
Amortisation
At 1 April 2022	1,448	1,448
Amortisation charge	319	319
At 31 March 2023	1,767	1,767
Carrying amount
At 31 March 2023	4,614	4,614
At 31 March 2022	4,933	4,933

7	Tangible assets

	Land and buildings £	Furniture, fittings and equipment  £	Total £
Cost
At 1 April 2022	104,671	168,405	273,076
Additions	10,958	10,620	21,578
At 31 March 2023	115,629	179,025	294,654
Depreciation
At 1 April 2022	23,661	63,571	87,232
Charge for the year	5,454	17,813	23,267
At 31 March 2023	29,115	81,384	110,499
Carrying amount
At 31 March 2023	86,514	97,641	184,155
At 31 March 2022	81,010	104,834	185,844

8

Debtors

	2023 £	2022 £
Trade debtors	135,759	166,949
Prepayments	4,228	3,838
Other debtors	18,669	19,095
	158,656	189,882

Trade debtors include balances due from related parties. Details of related party transactions are provided at note 11.

 

Abbey Field Health Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

9

Creditors

Creditors: amounts falling due within one year

	2023 £	2022 £
Due within one year
Trade creditors	213,832	236,640
Taxation and social security	34,368	52,833
Accruals and deferred income	14,233	10,392
Other creditors	562	677
Bank borrowings	10,000	10,000
	272,995	310,542

	2023 £	2022 £
Current loans and borrowings
Bank borrowings	10,000	10,000

Creditors: amounts falling due after more than one year

		2023 £	2022 £
Due after one year
Loans and borrowings		23,206	32,094

In 2021 the company borrowed £50,000 through the government's bounce back loan scheme, made available to businesses in response to the coronavirus pandemic. The loan is interest free for the first 12 months (the first 12 months interest is payable by the UK Government) and no repayments were due within this period. Interest is then charged at 2.5% per annum and the loan is repayable over the following 5 years by monthly instalment.

Further details of related parties and transactions are provided at note 11.

10	Provisions for liabilities

	2023		2022
	£		£
Deferred tax	18,048		19,865
			Deferred tax
Balance at 1 April 2022			19,865
Charge / (credit) to profit and loss account during the year			(1,817)
Balance at 31 March 2023			18,048

Abbey Field Health Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

11	Related party transactions

Abbey Field Health Limited is a joint venture between Mrs A Daly, a majority shareholder, Wellbeing Pharmacies Limited, a minority shareholder, and the medical partnership of Abbey Field Medical Centre, whose partners are minority shareholders in the company.

C P Daly, Mrs A Daly's husband, is:
- a director and shareholder of Wellbeing Rushport (Middlewich) Limited, a retail pharmacy; and
- a director and shareholder of Rushport Corporate Services Limited, a company which provides management consultancy services.

F T Gourlay, a director of the company, is:
- a director and shareholder in Wellbeing Pharmacies Limited, a retail pharmacist which reimburses to the company certain supplier rebates on its purchases;
- a director and shareholder in MAF Pharma Limited, which supplies pharmaceutical products and also reimburses to the company certain supplier rebates on its purchases;
- a director of Wellbeing Rushport (Middlewich) Limited, a retail pharmacist; and
- a director of Medicine Collection Limited, a retailer of medical and orthopaedic goods in specialised stores.

Wellbeing Pharmacies Limited is also a shareholder in Wellbeing Rushport (Middlewich) Limited.

The following related party trading transactions took place at arms length during the year:

	Goods and services provided by				Goods and services purchased by
	Abbey Field Health Limited				Abbey Field Health Limited
	2023		2022		2023		2022
	£		£		£		£
Abbey Field Medical Centre	-		-		1,525		6,100
Agilis Health Limited	-		-		-		1,952
MAF Pharma Limited	-		-		135		2,903
Medicine Collection Limited	-		-		2,000		800
Wellbeing Pharmacies Limited	-		-		29,722		24,282
	-		-		33,382		36,037

At the year end the following trading balances were due:
	Debtor balances: due to				Creditor balances: due from
	Abbey Field Health Limited				Abbey Field Health Limited
	2023		2022		2023		2022
	£		£		£		£
Wellbeing Pharmacies Limited	-		2,222		7,859		6,383
	-		2,222		7,859		6,383

Abbey Field Health Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2023

12	Leasing agreements

Minimum lease payments under non-cancellable operating leases fall due as follows:
	2023		2022
	£		£
Within one year	7,400		10,058
Between two and five years	22,733		26,800
After more than five years	-		3,333
	30,133		40,191