Mediline Group Services Limited - Limited company accounts 18.2

REGISTERED NUMBER: 02068130 (England and Wales)

Strategic Report,

Report of the Directors and

Financial Statements

for the Year Ended 31 March 2018

for

Mediline Group Services Limited

Previously known as

North West Community Services Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

7

Other Comprehensive Income

8

Statement of Financial Position

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11

DIRECTORS:

P C Cook

M W Baines

C W Murray

SECRETARY:

M W Baines

REGISTERED OFFICE:

3rd Floor

Butt Dyke House

33 Park Row

Nottingham

NG1 6EE

REGISTERED NUMBER:

02068130 (England and Wales)

AUDITORS:

HSKS Greenhalgh

Chartered Accountants &

Statutory Auditor

3rd Floor

Butt Dyke House

33 Park Row

Nottingham

NG1 6EE

The directors present their strategic report for the year ended 31 March 2018.

REVIEW OF BUSINESS

During the year under review, the company changed its name in line with the rebranding strategy of the board.

This resulted in the Mediline Group Services company continuing to deliver central support to its operating

subsidiaries that comprise of:-

- Mediline Supported Living Limited

- North West Community Services Training

The central support provided to these companies is by way of providing board strategy, the provision of a

centralised human resource facility, finance, banking and payroll in addition to the preparation of management

accounts.

PRINCIPAL RISKS AND UNCERTAINTIES

Any risks relating to the Group Services provided are relative to the contracts operated by the subsidiary

companies. By maintaining their sustainability through effective tendering and strategic direction, the Group

Service remains a focal point of the group.

Economies of scale underpin the operating model of the Group Services operation and consequently any

reduction in contract values would have a negative impact on the trading position of the company.

KEY PERFORMANCE INDICATORS

As the company derives its income in the main from internal recharges the ability to remain profitable and

have distributable reserves is the minimum KPI. The company also receives rental income from Group

Companies, private tenancy agreements and external Housing Associations.

2018

2017

£

£

Company income

968,191

1,017,767

Company profit before tax

885,079

378,667

Company profit margin before tax

91.4%

37.2%

The directors report a profit margin which is in line with expectations resultant from the sector specific

pressures encountered by the subsidiary companies during the year under review.

ON BEHALF OF THE BOARD:

M W Baines - Secretary

20 December 2018

The directors present their report with the financial statements of the company for the year ended 31 March 2018.

CHANGE OF NAME

The company passed a special resolution on 1 March 2018 changing its name from North West Community Services Limited to Mediline Group Services Limited.

PRINCIPAL ACTIVITIES

The principal activities of the company in the year under review were those of the provision of property to

support the social care commitments of its subsidiaries and external care providers. The company also

provides central administrative support to its subsidiary companies.

DIVIDENDS

No dividends will be distributed for the year ended 31 March 2018.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2017 to the date of this

report.

P C Cook

M W Baines

C W Murray

FINANCIAL INSTRUMENTS

The company finances its operations through retained profits and, where necessary to fund expansion or

capital expenditure programmes, through bank borrowings.

The management's objectives are to:

- retain sufficient liquid funds to enable it to meet its day to day obligations as they fall due whilst maximising

returns on surplus funds;

- minimise the company's exposure to fluctuating interest rates when seeking new borrowings; and

- match the repayment schedule of any external borrowings or overdrafts with the expected future cash flows

expected to arise from the company's trading activities.

Where appropriate, funds are invested in sterling treasury deposit accounts. There is therefore no price risk

exposure.

EMPLOYEE INVOLVEMENT

The company's policy is to consult and discuss with employees, through unions, staff councils and at

meetings, matters likely to affect employees' interests.

Information of matters of concern to employees is given through information bulletins and reports which seek

to achieve a common awareness on the part of all employees of the financial and economic factors affecting

the company's performance.

There is no employee share scheme at present, but the directors are considering the introduction of such a

scheme as a means of further encouraging the involvement of employees in the group's performance.

DISABLED PERSONS

The company's policy is to recruit disabled workers for those vacancies that they are able to fill. All necessary

assistance with initial training courses is given. Once employed, a career plan is developed so as to ensure

suitable opportunities for each disabled person. Arrangements are made, wherever possible, for retraining

employees who become disabled, to enable them to perform work identified as appropriate to their aptitudes

and abilities.

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), including

Financial Reporting Standard 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:

-	select suitable accounting policies and then 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.

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.

ON BEHALF OF THE BOARD:

M W Baines - Secretary

20 December 2018

Opinion

We have audited the financial statements of Mediline Group Services Limited (the 'company') for the year

ended 31 March 2018 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 the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 March 2018 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 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 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 opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to

report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

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. We have nothing to report in this regard.

Opinion on other matters prescribed by the Companies Act 2006

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

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.

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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are

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 directors determine 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 directors are 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 directors either intend to liquidate the company or to cease

operations, or have 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.

Philip Handley (FCA) (Senior Statutory Auditor)

for and on behalf of HSKS Greenhalgh

Chartered Accountants &

Statutory Auditor

3rd Floor

Butt Dyke House

33 Park Row

Nottingham

NG1 6EE

20 December 2018

TURNOVER

3

968,191

1,017,767

Administrative expenses

(598,967

)

(634,505

)

OPERATING PROFIT

5

369,224

383,262

Income from shares in group undertakings

515,000

-

Interest receivable and similar income

855

1,132

885,079

384,394

Interest payable and similar expenses

6

-

(5,727

)

PROFIT BEFORE TAXATION

885,079

378,667

Tax on profit

7

(73,756

)

(82,376

)

PROFIT FOR THE FINANCIAL YEAR

811,323

296,291

PROFIT FOR THE YEAR

811,323

296,291

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

811,323

296,291

FIXED ASSETS

Tangible assets

8

2,367,145

2,440,983

Investments

9

400

400

Investment property

10

1,190,000

1,190,000

3,557,545

3,631,383

CURRENT ASSETS

Debtors

11

2,763,873

1,436,748

Cash at bank and in hand

279,631

1,356,497

3,043,504

2,793,245

CREDITORS

Amounts falling due within one year

12

4,224,537

4,859,439

NET CURRENT LIABILITIES

(1,181,033

)

(2,066,194

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,376,512

1,565,189

CAPITAL AND RESERVES

Called up share capital

15

40,000

40,000

Capital redemption reserve

16

20,000

20,000

Other reserves

16

33,778

33,778

Retained earnings

16

2,282,734

1,471,411

SHAREHOLDERS' FUNDS

2,376,512

1,565,189

The financial statements were approved by the Board of Directors on 20 December 2018 and were signed on its behalf by:

M W Baines - Director

Called up

Capital

share

Retained

redemption

Other

Total

capital

earnings

reserve

reserves

equity

£

£

£

£

£

Balance at 1 April 2016

40,000

1,175,120

20,000

33,778

1,268,898

Changes in equity

Total comprehensive income

-

296,291

-

-

296,291

Balance at 31 March 2017

40,000

1,471,411

20,000

33,778

1,565,189

Changes in equity

Total comprehensive income

-

811,323

-

-

811,323

Balance at 31 March 2018

40,000

2,282,734

20,000

33,778

2,376,512

1.	STATUTORY INFORMATION

Mediline Group Services 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. The company's principal place of business is Bechers House, Charnock Road,

Aintree, Liverpool, L9 6AW.

The presentation currency of the financial statements is the Pound Sterling (£).

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 as modified by the revaluation of certain assets.

At the year end the company had net current liabilities of £1,181,033 (2017: £2,066,194), arising

predominantly as a result of amounts due to group undertakings. Financial forecasts prepared indicate

that the group will remain profitable. It is on this basis that the directors consider that the company will

have adequate cash resources available to fund its trading and other obligations during the course of

the twelve months from the date the financial statements are approved. Consequently the accounts

have been prepared on the going concern basis.

Financial Reporting Standard 102 - reduced disclosure exemptions

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 7 Statement of Cash Flows.

Preparation of consolidated financial statements

The financial statements contain information about Mediline Group Services Limited as an individual

company and do not contain consolidated financial information as the parent of a group. The company

is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare

consolidated financial statements as it and its subsidiary undertakings are included by full consolidation

in the consolidated financial statements of its ultimate parent, Peter Cook Limited, 3rd Floor, Butt Dyke

House, 33 Park Row, Nottingham, NG1 6EE.

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.

Turnover

Turnover represents rent receivable for the year and management charges receivable from subsidiary

companies for central support services provided during the year.

Rents receivable under operating leases are charged to the income statement on a straight line basis

over the period of the lease.

Tangible fixed assets

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated

to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Land and buildings freehold 2% straight line

Land and buildings leasehold 2% straight line

Fixtures, fittings and equipment

20-50% straight line

Motor vehicles

25% straight line

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from

changes in fair value is recognised in profit or loss.

Taxation

Taxation for the year 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 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.

Leasing commitments

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.

Investments

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

3.

TURNOVER

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

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

2018

2017

£

£

Rent receivable

386,438

377,604

Management charges receivable

581,753

640,163

968,191

1,017,767

4.	EMPLOYEES AND DIRECTORS

2018

2017

£

£

Wages and salaries

259,302

309,756

Other pension costs

48,709

50,050

308,011

359,806

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

2018

2017

Directors and management

3

3

Administration

10

11

13

14

Directors' remuneration paid by subsidiary companies during the year ended 31 March 2018 was

£61,354 (2017: £135,714). This value comprised compensation for loss of office of £nil (2017:

£30,000) and remuneration of £61,354 (2017: £105,714).

The number of directors accruing retirement benefits in both the company and its subsidiaries during

the year ended 31 March 2018 was 1 (2017: 1).

The remuneration paid in total by the company and its subsidiaries to the highest paid director during

the year ended 31 March 2018 was £116,692 (2017: £136,400), comprising salary and benefits in kind

of £76,692 (2017: £93,895) and pension contributions of £40,000 (2017: £42,505).

2018

2017

£

£

Directors' remuneration

15,338

22,694

Directors' pension contributions to money purchase schemes

40,000

42,505

5.	OPERATING PROFIT

The operating profit is stated after charging:

2018

2017

£

£

Hire of plant and machinery

16,741

16,897

Other operating leases

2,396

8,454

Depreciation - owned assets

74,972

74,104

Loss on disposal of fixed assets

-

101

Auditors' remuneration

6,000

6,000

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2018

2017

£

£

Bank loan interest

-

5,727

7.

TAXATION

Analysis of the tax charge

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

2018

2017

£

£

Current tax:

UK corporation tax

82,439

82,376

Deferred tax

(8,683

)

-

Tax on profit

73,756

82,376

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The

difference is explained below:

2018

2017

£

£

Profit before tax

885,079

378,667

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2017 - 20%)

168,165

75,733

Effects of:

Depreciation in excess of capital allowances

11,433

10,046

Group relief

-

(3,403

)

Deferred tax

(8,683

)

-

Pensions

691

-

Shares in group undertakings

(97,850

)

-

Total tax charge

73,756

82,376

8.	TANGIBLE FIXED ASSETS

Land and

Land and

Fixtures,

buildings

buildings

fittings

Motor

Freehold

Leasehold

& equipment

vehicles

Totals

£

£

£

£

£

COST

At 1 April 2017

2,216,883

865,750

39,606

21,227

3,143,466

Additions

-

-

1,134

-

1,134

At 31 March 2018

2,216,883

865,750

40,740

21,227

3,144,600

DEPRECIATION

At 1 April 2017

458,086

205,595

30,593

8,209

702,483

Charge for year

44,338

22,267

3,060

5,307

74,972

At 31 March 2018

502,424

227,862

33,653

13,516

777,455

NET BOOK VALUE

At 31 March 2018

1,714,459

637,888

7,087

7,711

2,367,145

At 31 March 2017

1,758,797

660,155

9,013

13,018

2,440,983