ID Medical Group Limited - Limited company accounts 16.3

REGISTERED NUMBER: 03829536 (England and Wales)

ID MEDICAL GROUP LIMITED

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2016

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

DIRECTORS:

Dr M H A Sacoor

M Sacoor

D R Patel

D S Newton

R S Nandha

D J Bruce

SECRETARY:

M Sacoor

REGISTERED OFFICE:

ID House

1 Mill Square

Wolverton Mill South

Milton Keynes

MK12 5ZD

REGISTERED NUMBER:

03829536 (England and Wales)

AUDITORS:

Bessler Hendrie

Chartered Accountants

Statutory Auditor

Albury Mill

Mill Lane

Chilworth

Guildford

Surrey

GU4 8RU

The directors present their strategic report for the year ended 31 December 2016.

REVIEW OF BUSINESS

During the year under review, the company continued, developed and expanded its principal activities, which

consist of the provision of recruitment services to the healthcare industry, namely the provision of Doctors,

Nurses and Allied Health Professionals (AHP) to hospitals within the UK.

The results for the year and financial position of the company as at the year end are as shown in the annexed

financial statements.

Key performance indicators

The directors consider that gross profit and operating profit are the key performance measures in monitoring

and managing the business.

The turnover for the year ended 31 December 2016 was £126.7m (2015: £165.1m). Gross profit was £23.9m

(2015: £26.3m) and operating profit was £1.8m (2015: £4.0m). The directors are satisfied with the results of the

company for the year in the context of the current economic conditions and given the further investment which

has been made for the benefit of future years.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors regularly review the risks pertinent to the company. The principal risks can be broadly grouped

into those related to the economic environment, those related to liquidity and those related to the supply of

locums.

Economic environment risks

The company operates in a sector which is largely dependent upon government funding. In order to reduce the

national deficit the government has continued to focus on costs. The company is proud to work in partnership

with its clients. These partnerships include the provision of services under government frameworks. The

company's appointment to national frameworks assures partnering clients of the company's capability to drive

cost-efficiencies whilst delivering totally sustainable workforce planning. This is one such example of the

company's ability to deliver added value to its client base.

Liquidity risks

This is managed proactively by ensuring that short and medium term cash flow forecasts are supported by

appropriate debt facilities. The company uses invoice discounting to finance the ongoing working capital.

Supply of temporary workers

Demand for both doctors, nurses and AHP's continues and the company has developed its recruitment program

accordingly.

Financial Risks

The directors regularly review future forecasts with specific focus on funding requirements to ensure adequate

financing is available to support future plans.

FUTURE DEVELOPMENTS

The company will continue to invest in its divisions (doctors, nurses, AHP) with a view to building upon its strong

foundations, adding client value and partnering both nationally and internationally. The Company has opened an

office in India to make use of cost-effective resource available with the dual aim of driving UK growth and

managing the company cost base in the medium term.

ON BEHALF OF THE BOARD:

D J Bruce - Director

22 September 2017

The directors present their report with the financial statements of the company for the year ended 31 December 2016.

DIVIDENDS

The total distribution of dividends for the year ended 31 December 2016 was £1,400,000.

EVENTS SINCE THE END OF THE YEAR

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

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2016 to the date of

this report.

Dr M H A Sacoor

M Sacoor

D R Patel

D S Newton

R S Nandha

Other changes in directors holding office are as follows:

D J Bruce - appointed 1 November 2016

EMPLOYEE INVOLVEMENT

The company regularly holds meetings at various levels (e.g. senior management meetings, departmental

meetings etc.) to encourage employee involvement and contribution. Employees are also kept well-informed

about the progress and position of the company by means of both these meetings and by other

communications, as appropriate.

EMPLOYMENT OF DISABLED PERSONS

The company's policy is to give full and fair consideration to applicants for employment made by disabled

persons, having regard to their particular aptitudes and abilities. Disabled employees receive appropriate

training to promote their career development within the company. Employees who become disabled are

retained in their existing posts where possible or retained for suitable alternative posts.

DISCLOSURE IN THE STRATEGIC REPORT

As permitted by Section 414C(11) of the Companies Act 2006 certain matters which are required to be disclosed

in the report of the directors' have been omitted as they are included in the strategic report on pages 2 to 3.

These matters relate to the principal activity and future developments of the company.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial

statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the

directors have elected to prepare the financial statements in accordance with United Kingdom Generally

Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law

the directors must not approve the financial statements unless they are satisfied that they give a true and fair

view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing

these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain

the company's transactions and disclose with reasonable accuracy at any time the financial position of the

company and enable them to ensure that the financial statements comply with the Companies Act 2006. They

are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the

prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are 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 each director 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 auditor, Bessler Hendrie, Chartered Accountants, has indicated a willingness to continue in office.

ON BEHALF OF THE BOARD:

D J Bruce - Director

22 September 2017

We have audited the financial statements of ID Medical Group Limited for the year ended 31 December 2016 on

pages eight to twenty four. The financial reporting framework that has been applied in their preparation is

applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting

Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and

Republic of Ireland'.

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.

Respective responsibilities of directors and auditors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's (APB's) Ethical Standards for Auditors.

Scope of the audit of the financial statements

A description of the scope of an audit of financial statements is provided on the FRC's website at

www.frc.org.uk/auditscopeukprivate.

Opinion on financial statements

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2016 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.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit, the information given in the Strategic

Report and the Report of the Directors for the financial year for which the financial statements are prepared is

consistent with the financial statements, and has been prepared in accordance with applicable legal

requirements. In the light of the knowledge and understanding of the company and its environment, we have

not identified any material misstatements in the Strategic Report or the Report of the Directors.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to

report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

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

Jason Saunders (Senior Statutory Auditor)

for and on behalf of Bessler Hendrie

Chartered Accountants

Statutory Auditor

Albury Mill

Mill Lane

Chilworth

Guildford

Surrey

GU4 8RU

22 September 2017

TURNOVER

3

126,745,680

165,064,493

Cost of sales

(102,841,607

)

(138,790,364

)

GROSS PROFIT

23,904,073

26,274,129

Administrative expenses

(22,184,727

)

(22,358,927

)

1,719,346

3,915,202

Other operating income

62,880

63,505

OPERATING PROFIT

6

1,782,226

3,978,707

Interest receivable and similar income

986

764

1,783,212

3,979,471

Interest payable and similar expenses

8

(293,500

)

(356,945

)

PROFIT BEFORE TAXATION

1,489,712

3,622,526

Tax on profit

9

(302,115

)

(748,637

)

PROFIT FOR THE FINANCIAL YEAR

1,187,597

2,873,889

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,187,597

2,873,889

FIXED ASSETS

Intangible assets

11

404,742

530,665

Tangible assets

12

785,067

975,317

Investments

13

21,002

2

1,210,811

1,505,984

CURRENT ASSETS

Stocks

14

4,302

8,370

Debtors

15

27,394,169

33,591,902

Cash at bank and in hand

413,593

754,807

27,812,064

34,355,079

CREDITORS

Amounts falling due within one year

16

(25,500,019

)

(31,985,343

)

NET CURRENT ASSETS

2,312,045

2,369,736

TOTAL ASSETS LESS CURRENT LIABILITIES

3,522,856

3,875,720

CREDITORS

Amounts falling due after more than one year

17

(174,527

)

(286,988

)

PROVISIONS FOR LIABILITIES

20

(54,000

)

(82,000

)

NET ASSETS

3,294,329

3,506,732

CAPITAL AND RESERVES

Called up share capital

21

100

100

Retained earnings

22

3,294,229

3,506,632

SHAREHOLDERS' FUNDS

3,294,329

3,506,732

The financial statements were approved by the Board of Directors on 22 September 2017 and were signed on its behalf by:

D J Bruce - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2015

100

1,902,743

1,902,843

Changes in equity

Dividends

-

(1,270,000

)

(1,270,000

)

Total comprehensive income

-

2,873,889

2,873,889

Balance at 31 December 2015

100

3,506,632

3,506,732

Changes in equity

Dividends

-

(1,400,000

)

(1,400,000

)

Total comprehensive income

-

1,187,597

1,187,597

Balance at 31 December 2016

100

3,294,229

3,294,329

Cash flows from operating activities

Cash generated from operations

1

6,818,752

(425,407

)

Finance costs paid

(293,500

)

(356,945

)

Tax paid

(682,430

)

(675,387

)

Net cash from operating activities

5,842,822

(1,457,739

)

Cash flows from investing activities

Purchase of intangible fixed assets

(194,400

)

(361,426

)

Purchase of tangible fixed assets

(158,404

)

(858,474

)

Purchase of fixed asset investments

(21,000

)

-

Interest received

986

764

Net cash from investing activities

(372,818

)

(1,219,136

)

Cash flows from financing activities

New loans/(repayments) of loans

(4,352,051

)

4,536,180

Loans from/(to) directors

(59,167

)

(5,030

)

Equity dividends paid

(1,400,000

)

(1,270,000

)

Net cash from financing activities

(5,811,218

)

3,261,150

(Decrease)/increase in cash and cash equivalents

(341,214

)

584,275

Cash and cash equivalents at beginning of year

2

754,807

170,532

Cash and cash equivalents at end of year

2

413,593

754,807

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2016

2015

£

£

Profit before taxation

1,489,712

3,622,526

Depreciation charges

665,104

644,533

Loss on disposal of fixed assets

3,873

-

Finance costs

293,500

356,945

Finance income

(986

)

(764

)

2,451,203

4,623,240

Decrease/(increase) in stocks

4,068

(8,370

)

Decrease/(increase) in trade and other debtors

6,256,900

(4,429,340

)

Decrease in trade and other creditors

(1,893,419

)

(610,937

)

Cash generated from operations

6,818,752

(425,407

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect

of these Balance Sheet amounts:

Year ended 31 December 2016

31.12.16

1.1.16

£

£

Cash and cash equivalents

413,593

754,807

Year ended 31 December 2015

31.12.15

1.1.15

£

£

Cash and cash equivalents

754,807

170,532

1.	STATUTORY INFORMATION

ID Medical 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 (FRS

102) "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies

Act 2006. Unless indicated otherwise in the accounting policies below, the financial statements have been

prepared under the historical cost convention.

The financial statements are prepared on a going concern basis as the directors consider this to be

appropriate given the anticipated ongoing profitability of the business and on the basis that the company

has sufficient financial resources which will allow the company to manage its business risks in the

foreseeable future.

The company has taken advantage of the following disclosure exemption 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 11 Financial Instruments paragraphs 11.40 to 11.48(a).

Preparation of consolidated financial statements

The company accounts present information about it as an individual undertaking. The company is exempt

under section 402 of the Companies Act 2006 from the requirements to prepare consolidated financial

statements as the subsidiary undertakings are not material for the purpose of giving a true and fair view.

Significant judgements and estimates

The directors have made judgements and estimates in relation to accrued income, together with related

accrued cost of sales, at the year end. Further detail is provided in the turnover and income recognition

policy below.

Turnover and income recognition

Turnover represents the fair value of consideration receivable for the sale of services in the ordinary

course of the business, excluding Value Added Tax. This includes the following:

1. Turnover from temporary placements which represents amounts billed to customers for the services

performed. This is recognised when the services are provided to the customer.

2. Turnover from permanent placements which is recognised at the date when a candidate commences

work.

Turnover and income recognition - continued

For temporary placements, invoices are raised to customers after receipt of the timesheet from

candidates. A provision for accrued income is recognised in the financial statements for outstanding

timesheets not yet received from candidates and thus not yet billed to customers at the year end. This

provision is calculated based on the company's best estimate of the value of timesheets to be received,

which takes into account the anticipated sales value but is discounted to allow for the possibility that

turnover may not be invoiced for timesheets not received.

Intangible fixed assets

Intangible fixed assets include the following:

1. Website development costs which are capitalised where a return on investment can reasonably be

regarded as assured.

2. Computer software, where this is separately identifiable from assets of a tangible nature.

Amortisation is provided at an annual rate of 33% on cost in order to write off the cost of each asset over

its estimated useful life.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated

useful life.

Short leasehold improvements - Over the period of the lease

Office equipment - 33% or 20% on cost

Computer equipment - 33% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks are valued at the lower of cost, using the first in first out method, and estimated selling price less

costs to sell.

Taxation

Current tax is the amount of corporation tax payable in respect of the taxable profit for the year or prior

years. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted

by the period end.

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

balance sheet date where transactions or events that result in an obligation to pay more tax in the future

or a right to pay less tax in the future have occurred at the balance sheet date. Timing differences are

differences between the company's taxable profits and its results as stated in the financial statements.

Deferred tax is measured at the average tax rates that are expected to apply in the periods in which

timing differences are expected to reverse, based on tax rates and laws that have been enacted or

substantially enacted by the balance sheet date. Deferred tax is measured on a non-discounted basis.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the

balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange

ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating

result.

Pension costs and other post-retirement benefits

The company operates a defined contribution scheme. The amount charged to the statement of

comprehensive income in respect of pension costs and other post retirement benefits is the contributions

payable in the year. Differences between contributions payable in the year and contributions actually

paid are shown as either accruals or prepayments in the balance sheet.

Invoice discounting

The company uses invoice discounting to obtain finance in respect of trade debts issued to non-related

companies. The company has full recourse for the debts. Invoice discounting costs are charged to the

statement of comprehensive income for the period to which they relate.

Operating leases

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership

remain with the lessor are charged to the statement of comprehensive income as incurred. The benefits

of lease incentives are recognised in the statement of comprehensive income over the life of the lease.

Fixed asset investments

Fixed asset investments are stated at cost less provisions for diminution in value.

Financial Instruments

Basic financial instruments are recognised at amortised cost.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by geographical market is given below:

2016

2015

£

£

United Kingdom

126,740,473

164,756,776

Europe

5,207

307,717

126,745,680

165,064,493

4.	EMPLOYEES AND DIRECTORS

2016

2015

£

£

Wages and salaries

15,530,779

15,757,780

Social security costs

1,579,725

1,623,149

Other pension costs

78,444

70,136

17,188,948

17,451,065

The average monthly number of employees during the year was as follows:

2016

2015

Administration

165

124

Marketing

11

11

Sales

318

358

494

493

The staff costs shown above are net of recharges made to Recruitment Express Limited and Group 24

Limited for salaries, social security and pension costs of £1,180,210 (2015: £1,627,417), £116,458 (2015:

£164,067) and £5,892 (2015: £7,324) respectively.

The pension costs relate to contributions payable into a defined contribution scheme. At the year end,

contributions of £2,363 (2015: £501) were payable to the fund.

5.	DIRECTORS' EMOLUMENTS

2016

2015

£

Directors' remuneration

1,579,746

2,093,166

Information regarding the highest paid director is as follows:

Emoluments etc

815,211

1,158,052

During the year, 3 (2015: 3) directors were accruing retirement benefits under a defined contribution

scheme. The total directors' pension contributions during the year amounted to £1,110 (2015: £1,093), of

which £370 (2015: £364) relates to the highest paid director.

The highest paid director did not exercise any share options during the year.

6.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2016

2015

£

£

Depreciation - owned assets

344,781

356,108

Loss on disposal of fixed assets

3,873

-

Amortisation of intangible assets

320,323

288,425

Foreign exchange differences

5,532

(1,301

)

Operating leases - land and buildings

426,092

350,400

Operating leases - cars

35,906

55,449

7.	AUDITORS' REMUNERATION

2016

2015

£

£

Audit fees

16,453

15,076

Tax compliance fees

4,977

5,132

Other non-audit fees

18,986

15,491

40,416

35,699

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

2016

2015

£

£

Bank loan interest

4,200

6,009

Invoice discounting interest

289,300

350,936

293,500

356,945

9.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2016

2015

£

£

Current tax:

UK corporation tax

335,000

700,000

Prior year adjustment

(4,885

)

(6,613

)

Total current tax

330,115

693,387

Deferred tax

(28,000

)

55,250

Tax on profit

302,115

748,637