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COMPANY REGISTRATION NUMBER: 03867872
Healthcode Limited
Filleted Financial Statements
31 December 2021
Healthcode Limited
Statement of Financial Position
31 December 2021
2021
2020
(restated)
Note
£
£
£
Fixed assets
Intangible assets
5
1,306,050
1,412,856
Tangible assets
6
90,960
116,726
------------
------------
1,397,010
1,529,582
Current assets
Debtors
7
1,060,254
2,753,528
Cash at bank and in hand
1,835,346
1,390,187
------------
------------
2,895,600
4,143,715
Creditors: amounts falling due within one year
8
( 2,250,342)
( 3,953,910)
------------
------------
Net current assets
645,258
189,805
------------
------------
Total assets less current liabilities
2,042,268
1,719,387
Creditors: amounts falling due after more than one year
9
( 1,050,000)
( 1,275,000)
------------
------------
Net assets
992,268
444,387
------------
------------
Capital and reserves
Called up share capital
600,000
600,000
Profit and loss account
392,268
( 155,613)
---------
---------
Shareholders funds
992,268
444,387
---------
---------
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
Healthcode Limited
Statement of Financial Position (continued)
31 December 2021
These financial statements were approved by the board of directors and authorised for issue on 21 July 2022 , and are signed on behalf of the board by:
P M Connor
Director
Company registration number: 03867872
Healthcode Limited
Notes to the Financial Statements
Year ended 31 December 2021
1. General information
The company is a private company limited by shares, registered in England. The address of the registered office is 10 Orange Street, London, UK, WC2H 7DQ and the principal place of business is Rourke House, Waterman's Business Park, The Causeway, Staines, Surrey, TW18 3BA. The principal activity of the company is that of the provision of bill clearing services for the private healthcare market together with the provision of practice management systems, secure messaging, pre-authorisation and clinical coding translation tools.
2. Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities at fair value through profit or loss as set out in the accounting polices below. The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
The directors have undertaken a rigorous assessment of whether the company is a going concern considering all available information about the future including the impact of Covid 19 and the company's forecasts and projections covering a period of 12 months from the date of the approval of the accounts. The directors are not aware of any material uncertainty arising from their assessment that would cast doubt on the company's ability to continue as a going concern.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for services rendered, stated net of discounts and of Value Added Tax. Subscription income is recognised on a straight line basis over the period of the subscription. Clearing income is recognised at the point where the service is provided.
Government grants
The company has received Covid-19 government assistance in the form of Job Retention Scheme (JRS) grant income and other assistance such as deferral of VAT payments, business interruption payments on CBIL loan interest and CBIL loan guarantees.
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received.
Government grants are recognised using the accrual model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it it becomes receivable.
Grant income in respect of the Job Retention Scheme has been recognised in the period to which the employment relates.
Intangible assets-software development expenditure
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses.
Research expenditure is written off in the period in which it is incurred.
Development expenditure is written off as incurred, except where the directors are satisfied as to the technical, commercial financial viability of the project. In such cases the identifiable expenditure is deferred and amortised over the period during which the company is expected to benefit.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Software Development
-
20% straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Fixtures & Fittings
-
20% straight line
Computer Equipment
-
20% straight line
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Defined contribution plans
The company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. The contributions payable are charged to the profit and loss account.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 58 (2020: 51 ).
5. Intangible assets
Software Development
£
Cost
At 1 January 2021 (as restated)
2,431,119
Additions
763,381
Rationalisation
( 1,225,925)
------------
At 31 December 2021
1,968,575
------------
Amortisation
At 1 January 2021
1,018,263
Charge for the year
531,537
Rationalisation
( 887,275)
------------
At 31 December 2021
662,525
------------
Carrying amount
At 31 December 2021
1,306,050
------------
At 31 December 2020
1,412,856
------------
6. Tangible assets
Fixtures and fittings
Equipment
Total
£
£
£
Cost
At 1 January 2021 (as restated)
92,592
206,125
298,717
Additions
1,846
45,525
47,371
Disposals
( 10,895)
( 59,684)
( 70,579)
--------
---------
---------
At 31 December 2021
83,543
191,966
275,509
--------
---------
---------
Depreciation
At 1 January 2021
64,509
117,482
181,991
Charge for the year
10,957
41,491
52,448
Disposals
( 6,774)
( 43,116)
( 49,890)
--------
---------
---------
At 31 December 2021
68,692
115,857
184,549
--------
---------
---------
Carrying amount
At 31 December 2021
14,851
76,109
90,960
--------
---------
---------
At 31 December 2020
28,083
88,643
116,726
--------
---------
---------
7. Debtors
2021
2020
(restated)
£
£
Trade debtors
116,117
2,168,509
Other debtors
944,137
585,019
------------
------------
1,060,254
2,753,528
------------
------------
The debtors above include the following amounts falling due after more than one year:
2021
2020
(restated)
£
£
Other debtors
20,670
----
--------
8. Creditors: amounts falling due within one year
2021
2020
(restated)
£
£
Bank loans and overdrafts
300,000
225,000
Trade creditors
752,539
778,003
Deferred Income
161,123
1,731,844
Social security and other taxes
285,359
660,683
Other creditors
751,321
558,380
------------
------------
2,250,342
3,953,910
------------
------------
On 13 June 2016 a fixed and floating charge was created in favour of Barclays Bank Plc over all assets of the company.
9. Creditors: amounts falling due after more than one year
2021
2020
(restated)
£
£
Bank loans and overdrafts
1,050,000
1,275,000
------------
------------
In April 2020 the company applied for and obtained a loan of £1.5m under the Coronavirus Business Interruption Loan (CBIL) Scheme. This loan is repayable over 6 years in quarterly instalments of £75,000 at 3% interest rate with a capital repayment holiday of 12 months and is interest free for 12 months. Included within bank loan falling due after more than one year is an amount of nil (2020:£75,000) which is due for repayment after more than 5 years from the reporting date. The £1.5m loan is subject to to an 80% government guarantee under the CBIL loan scheme.
10. Prior year adjustment
Following a detailed review it was determined that £106,043 of IT costs that had previously been classified as additions to tangible fixed assets were by nature more expenditure that should have been recognised in the profit and loss for ongoing IT support and operational assistance. A prior year adjustment has been recognised in respect of this with the following impact on FY 2020: 1) Increase in professional consultancy costs £106,043 2) Decrease in depreciation charge £15,003 3) Decrease in net book value of tangible fixed assets of £91,040.
11. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2021
2020
(restated)
£
£
Not later than 1 year
105,584
171,873
Later than 1 year and not later than 5 years
3,814
104,366
---------
---------
109,398
276,239
---------
---------
12. Pension commitments
The amount recognised in the profit or loss as an expense in relation to defined contribution plans was £203,795 (2020: £195,794). At the year end, amounts outstanding in relation to pensions was £18,326 (2020: £14,569).
13. Summary audit opinion
The auditor's report for the year dated 4 August 2022 was unqualified .
The senior statutory auditor was Peter Conneely , for and on behalf of Shipleys LLP .
14. Related party transactions
During the year the company invoiced £2,331,217 (2020: £3,129,377) to owners having a participating interest in the company. The total amount owing to the company at the year end from owners having a participating interest in the company and which included within trade debtors is £16,114 (2020: £1,593,880).