Company registration number 08234534 (England and Wales)
UK ADDICTION TREATMENT GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
UK ADDICTION TREATMENT GROUP LIMITED
COMPANY INFORMATION
Directors
D Gerrard
M Workman
(Appointed 27 April 2021)
Company number
08234534
Registered office
Unit 1, 1st Floor
Imperial Place
Maxwell Road
Borehamwood
Hertfordshire
WD6 1JN
Auditor
Gerald Edelman LLP
73 Cornhill
London
EC3V 3QQ
UK ADDICTION TREATMENT GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 31
UK ADDICTION TREATMENT GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 1 -

The directors present the strategic report for the year ended 31 December 2021.

Fair review of the business

The principal activity of the group continued to be that of operating rehabilitation and recovery facilities.

The key financial performance indicators during the year were as follows:

 

 

2021

2020

Change %

 

 

 

 

 

Turnover (£)

18,634,000

15,685,970

19%

 

Gross profit (£)

10,351,469

8,108,676

28%

 

Operating profit (£)

3,143,233

6,187,670

-49%

 

Gross profit margin (%)

55.6%

51.7%

 

 

Operating profit margin (%)

16.9%

39.4%

 

 

 

During the year, the Group continued to operate through the pandemic and experienced growth from the 2020 results. The group incurred additional legal and professional costs due to a re-finance of the business, exceptional costs of £2.9m were incurred in this transaction.

Principal risks and uncertainties

Liquidity risk

The interest rate risk has been considered. Gearing ratios and interest cover are reviewed on a monthly basis by management. The Group maintains financial projections that are reviewed regularly to ensure that cash flows and cash reserves are sufficient to meet its financial obligations as they fall due.

 

Regulatory risk

The group’s principle activity of the provision of addiction treatment services, is a highly regulated area, covered by various UK and EU legislation. The group has strong operating procedures in place to ensure compliance with existing legislation and has historically been able to adapt to any new legislation put in place. However any future changes in relevant legislation may require further changes which could incur costs and result in a reduction in operating profitability of the group.

 

Operating risk

The group’s activities involve the provision of services to at-risk and vulnerable clients. The group has robust policies and procedures to protect the safety of clients and staff at all times however the health risks cannot be mitigated completely. Any adverse events could have a damaging impact on the reputation of the group and its finances. This financial risk is somewhat mitigated by a comprehensive level of insurance in place.

 

Covid-19

In 2020, the group had successfully put in place a Covid-19 action plan to enable all sites to continue to operate throughout 2020 and 2021. This mitigated the impact of Covid-19 on the group.

UK ADDICTION TREATMENT GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
Promoting the success of the company

The directors understand the business and the key stakeholders. When accessing key decisions, the likely impact on all stakeholders is considered. During the year a large refurbishment was completed at one of the Group’s largest centres. This investment has produced a centre with an enriching environment for both employees and clients.

 

The directors understand that their employees are a fundamental asset to the business and a key contributor to the successes enjoyed by our clients and the business. As a result of this, the Group is regularly reviews its employee recognition programme.

 

The directors recognise the need for good, strong relationships throughout the operations of the Group. Building aftercare relationships with clients is of high importance to all those involved in their recovery.

 

The directors believe that due to the nature of the business, the operations contribute significantly to the community and the environment. The Group embraces the use of video conferencing to stay in regular contact across all centres in order to avoid any unnecessary travel. The Group is conscious of maintaining a low carbon footprint and looking to assess measures to reduce this further in the future.

 

The directors review the professionalism and the level of service provided continuously. The Group maintains a robust internal quality compliance system to ensure high levels of care and conduct are achieved. Externally, the Group is measured by The Care Quality Commission.

 

The directors recognise that having a shareholder on the board could create asymmetry of information. Extra precaution is taken to ensure that all information is reported at our board meetings to avoid this.

On behalf of the board

D Gerrard
Director
9 September 2022
UK ADDICTION TREATMENT GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2021.

Principal activities

The principal activity of the company continued to be that of a holding company. The principal activity of the group continued to be that of a rehabilitation and recovery facilities.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

E Alexander
(Resigned 27 August 2021)
D Gerrard
R Gaddy
(Resigned 27 April 2021)
M Greenspan
(Resigned 27 April 2021)
B Hurley
(Resigned 27 April 2021)
M Workman
(Appointed 27 April 2021)
Auditor

Gerald Edelman LLP were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of directors' responsibilities

The directors are responsible 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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

UK ADDICTION TREATMENT GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 4 -
Going concern

The financial statements have been prepared on the assumption that the company is a going concern.

 

The directors have considered the effects of the Coronavirus pandemic on the financial position of the company and have no reason to believe there to be a significant impact which would cast doubt on the company to continue as a going concern.

 

Having reviewed the company's financial forecasts, expected future cash flows, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, the going concern basis has been adopted in preparing the financial statements for the year ended 31 December 2021.

On behalf of the board
D Gerrard
Director
9 September 2022
UK ADDICTION TREATMENT GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF UK ADDICTION TREATMENT GROUP LIMITED
- 5 -
Opinion

We have audited the financial statements of UK Addiction Treatment Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2021 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 directors' 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

UK ADDICTION TREATMENT GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF UK ADDICTION TREATMENT GROUP LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 is 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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We planned our audit so that we have a reasonable expectation of detecting material misstatements in the financial statements resulting from irregularities, fraud or non-compliance with law or regulations.

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

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

UK ADDICTION TREATMENT GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF UK ADDICTION TREATMENT GROUP LIMITED
- 7 -

Audit response to risks identified

Fraud due to management override

To address the risk of fraud through management bias and override of controls, we:

Irregularities and non-compliance with laws and regulations

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but are not limited to:

The test nature and other inherent limitations of an audit, together with the inherent limitations of any accounting and internal control system, mean that there is an unavoidable risk that even some material misstatements in respect of irregularities may remain undiscovered even though the audit is properly planned and performed in accordance with ISAs (UK). Furthermore, the more removed that laws and regulations are from financial transactions, the less likely that we would become aware of non-compliance. Our examination should therefore not be relied upon to disclose all such material misstatements or frauds, errors or instances of non-compliance that might exist. The responsibility for safeguarding the assets of the group and for the prevention and detection of fraud, error and non-compliance with law or regulations rests with the directors.

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

Hemen Doshi FCCA (Senior Statutory Auditor)
For and on behalf of Gerald Edelman LLP
9 September 2022
Chartered Accountants
Statutory Auditor
73 Cornhill
London
EC3V 3QQ
UK ADDICTION TREATMENT GROUP LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 8 -
2021
2020
Notes
£
£
Turnover
3
18,634,000
15,685,970
Cost of sales
(8,282,531)
(7,577,294)
Gross profit
10,351,469
8,108,676
Administrative expenses
(4,278,726)
(1,921,006)
Exceptional costs
4
(2,929,510)
-
0
Operating profit
5
3,143,233
6,187,670
Interest receivable and similar income
9
114,116
52,994
Interest payable and similar expenses
10
(4,284,171)
(1,727,804)
(Loss)/profit before taxation
(1,026,822)
4,512,860
Tax on (loss)/profit
11
(135,315)
(1,190,488)
(Loss)/profit for the financial year
(1,162,137)
3,322,372
(Loss)/profit for the financial year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

UK ADDICTION TREATMENT GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021
- 9 -
2021
2020
£
£
(Loss)/profit for the year
(1,162,137)
3,322,372
Other comprehensive income
-
-
Total comprehensive income for the year
(1,162,137)
3,322,372
Total comprehensive income for the year is all attributable to the owners of the parent company.
UK ADDICTION TREATMENT GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 10 -
2021
2020
Notes
£
£
£
£
Fixed assets
Goodwill
12
874,997
974,997
Other intangible assets
12
1
1
Total intangible assets
874,998
974,998
Tangible assets
13
6,949,617
5,677,540
Investments
14
74,000
78,701
7,898,615
6,731,239
Current assets
Stocks
17
3,000
3,000
Debtors
18
22,947,651
22,133,892
Cash at bank and in hand
1,401,135
1,777,398
24,351,786
23,914,290
Creditors: amounts falling due within one year
19
(18,874,864)
(1,954,876)
Net current assets
5,476,922
21,959,414
Total assets less current liabilities
13,375,537
28,690,653
Creditors: amounts falling due after more than one year
20
-
(14,152,979)
Net assets
13,375,537
14,537,674
Capital and reserves
Called up share capital
23
1,105
1,105
Profit and loss reserves
13,374,432
14,536,569
Total equity
13,375,537
14,537,674
The financial statements were approved by the board of directors and authorised for issue on 9 September 2022 and are signed on its behalf by:
09 September 2022
D Gerrard
Director
UK ADDICTION TREATMENT GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2021
31 December 2021
- 11 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
13
4,722,698
4,723,938
Investments
14
1,695,578
1,700,279
6,418,276
6,424,217
Current assets
Debtors
18
22,653,884
21,934,835
Cash at bank and in hand
1,278,746
1,678,567
23,932,630
23,613,402
Creditors: amounts falling due within one year
19
(29,010,111)
(3,306,327)
Net current (liabilities)/assets
(5,077,481)
20,307,075
Total assets less current liabilities
1,340,795
26,731,292
Creditors: amounts falling due after more than one year
20
-
(14,152,979)
Net assets
1,340,795
12,578,313
Capital and reserves
Called up share capital
23
1,105
1,105
Profit and loss reserves
1,339,690
12,577,208
Total equity
1,340,795
12,578,313

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the period was £11,237,518 (2020 - £19,749,812 profit).

The financial statements were approved by the board of directors and authorised for issue on 9 September 2022 and are signed on its behalf by:
09 September 2022
D Gerrard
Director
Company Registration No. 08234534
UK ADDICTION TREATMENT GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2020
1,105
11,214,197
11,215,302
Period ended 31 December 2020:
Profit and total comprehensive income for the period
-
3,322,372
3,322,372
Balance at 31 December 2020
1,105
14,536,569
14,537,674
Year ended 31 December 2021:
Loss and total comprehensive income for the year
-
(1,162,137)
(1,162,137)
Balance at 31 December 2021
1,105
13,374,432
13,375,537
UK ADDICTION TREATMENT GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2020
1,105
(7,172,604)
(7,171,499)
Period ended 31 December 2020:
Profit and total comprehensive income for the period
-
19,749,812
19,749,812
Balance at 31 December 2020
1,105
12,577,208
12,578,313
Year ended 31 December 2021:
Loss and total comprehensive income for the year
-
(11,237,518)
(11,237,518)
Balance at 31 December 2021
1,105
1,339,690
1,340,795
UK ADDICTION TREATMENT GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 14 -
2021
2020
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
29
7,388,287
(10,550,539)
Interest paid
(4,279,470)
(1,323,103)
Income taxes paid
(113,792)
(446,190)
Net cash inflow/(outflow) from operating activities
2,995,025
(12,319,832)
Investing activities
Purchase of intangible assets
-
(999,998)
Purchase of tangible fixed assets
(1,419,248)
(810,401)
Purchase of financial instrument
-
(483,402)
Interest received
114,116
52,994
Net cash used in investing activities
(1,305,132)
(2,240,807)
Financing activities
Repayment of bank loans
(2,066,156)
14,152,979
Net cash (used in)/generated from financing activities
(2,066,156)
14,152,979
Net decrease in cash and cash equivalents
(376,263)
(407,660)
Cash and cash equivalents at beginning of year
1,777,398
2,185,058
Cash and cash equivalents at end of year
1,401,135
1,777,398
UK ADDICTION TREATMENT GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 15 -
1
Accounting policies
Company information

UK Addiction Treatment Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 1, 1st Floor, Imperial Place, Maxwell Road, Borehamwood, Hertfordshire WD6, 1JN .

 

The group consists of UK Addiction Treatment Group Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated group financial statements consist of the financial statements of the parent company UK Addiction Treatment Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2021. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

UK ADDICTION TREATMENT GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 16 -
1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all the following conditions are satisfied:

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Patents & licences
Straight line over 20 years
1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

UK ADDICTION TREATMENT GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 17 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
1% on reducing balance
Leasehold improvements
25% on reducing balance
Plant and equipment
25% on reducing balance
Fixtures and fittings
25% - 33% on reducing balance
Computers
25% on reducing balance
Motor vehicles
25% on reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

UK ADDICTION TREATMENT GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 18 -
1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

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

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

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

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

UK ADDICTION TREATMENT GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 19 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

UK ADDICTION TREATMENT GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 20 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.17
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.18
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

UK ADDICTION TREATMENT GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 21 -
3
Turnover and other revenue
2021
2020
£
£
Turnover analysed by class of business
Rehabilitation centres
18,559,306
15,671,946
Referral fees
74,694
14,024
18,634,000
15,685,970
2021
2020
£
£
Turnover analysed by geographical market
United Kingdom
18,634,000
15,685,970
2021
2020
£
£
Other revenue
Interest income
114,116
52,994
4
Exceptional costs
2021
2020
£
£
Expenditure
Exceptional legal and professional fees
2,929,510
-

In 2021, the group were seeking to refinance and underwent a restructuring. Legal and professional fees were incurred in the parent company due to these one-off costs in relation to the refinancing and restructuring of £2,689,469 and £240,041 respectively.

5
Operating profit
2021
2020
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
220,684
(839,026)
Depreciation of owned tangible fixed assets
147,172
145,819
Amortisation of intangible assets
100,000
25,000
Operating lease charges
220,381
216,616
6
Auditor's remuneration
2021
2020
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
105,000
77,780
UK ADDICTION TREATMENT GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 22 -
7
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2021
2020
2021
2020
Number
Number
Number
Number
195
175
30
30

Their aggregate remuneration comprised:

Group
Company
2021
2020
2021
2020
£
£
£
£
Wages and salaries
4,912,754
4,510,766
1,651,847
1,692,291
Social security costs
448,283
421,022
186,965
189,449
Pension costs
79,926
70,700
20,178
19,597
5,440,963
5,002,488
1,858,990
1,901,337
8
Directors' remuneration
2021
2020
£
£
Remuneration for qualifying services
430,000
480,000
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2021
2020
£
£
Remuneration for qualifying services
270,000
240,000
9
Interest receivable and similar income
2021
2020
£
£
Interest income
Interest on bank deposits
-
0
2,102
Interest receivable from group companies
114,000
45,836
Other interest income
116
5,056
Total income
114,116
52,994
UK ADDICTION TREATMENT GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
9
Interest receivable and similar income
(Continued)
- 23 -

Investment income includes the following:

Interest on financial assets not measured at fair value through profit or loss
114,000
47,938
10
Interest payable and similar expenses
2021
2020
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
2,388,600
686,424
Other interest on financial liabilities
1,885,384
627,732
4,273,984
1,314,156
Other finance costs:
Loss on hedged item in a fair value hedge
4,701
404,701
Other interest
5,486
8,947
Total finance costs
4,284,171
1,727,804
11
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
138,361
1,171,943
Adjustments in respect of prior periods
(3,046)
18,545
Total current tax
135,315
1,190,488
UK ADDICTION TREATMENT GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
11
Taxation
(Continued)
- 24 -

The actual charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2021
2020
£
£
(Loss)/profit before taxation
(1,026,822)
4,512,860
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
(195,096)
857,443
Tax effect of expenses that are not deductible in determining taxable profit
480,535
131,205
Group relief
(110,028)
93,183
Permanent capital allowances in excess of depreciation
(84,906)
(19,237)
Depreciation on assets not qualifying for tax allowances
27,963
27,706
Amortisation on assets not qualifying for tax allowances
19,000
4,750
Effect of revaluations of investments
893
76,893
Under/(over) provided in prior years
(3,046)
18,545
Taxation charge
135,315
1,190,488
12
Intangible fixed assets
Group
Goodwill
Patents & licences
Total
£
£
£
Cost
At 1 January 2021 and 31 December 2021
999,997
1
999,998
Amortisation and impairment
At 1 January 2021
25,000
-
0
25,000
Amortisation charged for the year
100,000
-
0
100,000
At 31 December 2021
125,000
-
0
125,000
Carrying amount
At 31 December 2021
874,997
1
874,998
At 31 December 2020
974,997
1
974,998
The company had no intangible fixed assets at 31 December 2021 or 31 December 2020.
UK ADDICTION TREATMENT GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 25 -
13
Tangible fixed assets
Group
Freehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 January 2021
5,437,318
340,865
154,373
475,248
92,656
24,425
6,524,885
Additions
1,107,121
136,517
67,715
96,979
10,916
-
0
1,419,248
Disposals
-
0
-
0
-
0
-
0
-
0
(3,000)
(3,000)
At 31 December 2021
6,544,439
477,382
222,088
572,227
103,572
21,425
7,941,133
Depreciation and impairment
At 1 January 2021
97,837
248,968
106,417
332,242
41,627
20,254
847,344
Depreciation charged in the year
35,980
26,654
19,176
50,970
13,694
698
147,172
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
-
0
(3,000)
(3,000)
At 31 December 2021
133,817
275,622
125,593
383,211
55,321
17,952
991,516
Carrying amount
At 31 December 2021
6,410,622
201,760
96,495
189,016
48,251
3,473
6,949,617
At 31 December 2020
5,339,481
91,897
47,956
143,006
51,029
4,171
5,677,540
UK ADDICTION TREATMENT GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 26 -
13
Tangible fixed assets (continued)
Company
Freehold land and buildings
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 January 2021
4,738,393
158,738
61,435
4,958,566
Additions
29,351
12,089
9,265
50,705
At 31 December 2021
4,767,744
170,827
70,700
5,009,271
Depreciation and impairment
At 1 January 2021
96,134
109,613
28,881
234,628
Depreciation charged in the year
28,186
14,629
9,130
51,945
At 31 December 2021
124,320
124,242
38,011
286,573
Carrying amount
At 31 December 2021
4,643,424
46,585
32,689
4,722,698
At 31 December 2020
4,642,259
49,125
32,554
4,723,938
14
Fixed asset investments
Group
Company
2021
2020
2021
2020
£
£
£
£
Investments in subsidiaries
-
0
-
0
1,621,578
1,621,578
Unlisted investments
74,000
78,701
74,000
78,701
74,000
78,701
1,695,578
1,700,279
Movements in fixed asset investments
Group
Investments other than loans
£
Cost or valuation
At 1 January 2021
78,701
Valuation changes
(4,701)
At 31 December 2021
74,000
Carrying amount
At 31 December 2021
74,000
At 31 December 2020
78,701
UK ADDICTION TREATMENT GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
14
Fixed asset investments
(Continued)
- 27 -
Movements in fixed asset investments
Company
Shares in group undertakings
Other investments other than loans
Total
£
£
£
Cost or valuation
At 1 January 2021
1,621,578
78,701
1,700,279
Valuation changes
-
(4,701)
(4,701)
At 31 December 2021
1,621,578
74,000
1,695,578
Carrying amount
At 31 December 2021
1,621,578
74,000
1,695,578
At 31 December 2020
1,621,578
78,701
1,700,279
15
Subsidiaries

Details of the company's subsidiaries at 31 December 2021 are as follows:

Name of undertaking
Registered office
Nature of business
Class of shares
Holding
UK Addiction Treatment  Limited
England and Wales
Provision of drug and alcohol rehabilitation services
Ordinary
100.00
Blue Skies Addiction Centre Limited
England and Wales
Provision of drug and alcohol rehabilitation services
Ordinary
100.00
Liberty House Clinic Limited
England and Wales
Provision of drug and alcohol rehabilitation services
Ordinary
100.00
Treatment Direct Limited
England and Wales
Provision of drug and alcohol rehabilitation services
Ordinary
100.00
Sanctuary Banbury Limited
England and Wales
Provision of drug and alcohol rehabilitation services
Ordinary
100.00
Care Referrals Limited
England and Wales
Provision of drug and alcohol rehabilitation services
Ordinary
100.00
Recovery Web Solutions Limited
England and Wales
Dormant company
Ordinary
100.00
The Recovery House Limited
England and Wales
Dormant company
Ordinary
100.00
16
Financial instruments
Group
Company
2021
2020
2021
2020
£
£
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
74,000
78,701
74,000
78,701
UK ADDICTION TREATMENT GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 28 -
17
Stocks
Group
Company
2021
2020
2021
2020
£
£
£
£
Finished goods and goods for resale
3,000
3,000
-
0
-
0
18
Debtors
Group
Company
2021
2020
2021
2020
(as restated)
(as restated)
Amounts falling due within one year:
£
£
£
£
Trade debtors
219,266
132,663
-
0
3,561
Amounts owed by group undertakings
16,464,883
15,790,224
16,466,968
15,820,318
Other debtors
6,062,958
5,971,709
6,061,407
5,970,409
Prepayments and accrued income
200,544
239,296
125,509
140,547
22,947,651
22,133,892
22,653,884
21,934,835

The prior year debtors balance for the company has been restated to reflect the amendment to the classification between debtor amounts. Other debtors per the prior year financial statements were £1,287,245, the restated amounts are £5,970,409. Amounts owed by group companies per the prior year financial statements was £20,503,482, the restated amounts are £15,820,318.

 

The prior year debtors balance for the group has been restated to reflect the amendment made in the parent company. Other debtors per the prior year financial statements were £1,287,245, the restated amounts are £5,971,709. Amounts owed by group companies per the prior year financial statements was £20,473,387, the restated amounts are £15,790,224.

19
Creditors: amounts falling due within one year
Group
Company
2021
2020
2021
2020
Notes
£
£
£
£
Bank loans
21
16,580,808
-
0
16,580,808
-
0
Trade creditors
155,416
225,476
27,096
59,376
Amounts owed to group undertakings
-
0
-
0
12,000,781
3,014,696
Corporation tax payable
665,317
643,794
-
0
-
0
Other taxation and social security
140,707
132,552
66,770
65,027
Other creditors
206,620
68,306
153,540
66,045
Accruals and deferred income
1,125,996
884,748
181,116
101,183
18,874,864
1,954,876
29,010,111
3,306,327
UK ADDICTION TREATMENT GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 29 -
20
Creditors: amounts falling due after more than one year
Group
Company
2021
2020
2021
2020
Notes
£
£
£
£
Other loan
21
-
0
14,152,979
-
0
14,152,979
21
Loans and overdrafts
Group
Company
2021
2020
2021
2020
£
£
£
£
Other loan
16,580,808
14,152,979
16,580,808
14,152,979
Payable within one year
16,580,808
-
0
16,580,808
-
0
Payable after one year
-
0
14,152,979
-
0
14,152,979

The other loan is secured on a fixed and floating charge over the assets of the group. Interest is charged at 15% on the loan.

 

Following the year end the company refinanced on 18 January 2022. The outstanding loan was repaid in full and a new bank loan facility was taken out for up to £23,050,000, with interest charged at 16.5% + Sterling Overnight Index Average interest rate benchmark. The loan is for a 36 month period.

22
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
79,926
70,700

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

23
Share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,100
1,100
1,100
1,100
B Non voting of £1 each
1
1
1
1
C Non voting of £1 each
1
1
1
1
D Non voting of £1 each
1
1
1
1
E Non voting of £1 each
1
1
1
1
F Non voting of £1 each
1
1
1
1
1,105
1,105
1,105
1,105
UK ADDICTION TREATMENT GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 30 -
24
Financial commitments, guarantees and contingent liabilities

The company has given unlimited guarantees in favour of UKAT Investments Limited in support of borrowings amounting to £15,110,416 (2020: £14,985,118).

25
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2021
2020
2021
2020
£
£
£
£
Within one year
170,655
171,778
24,750
29,250
Between two and five years
645,257
498,351
167,351
-
In over five years
478,337
602,336
-
-
1,294,249
1,272,465
192,101
29,250
26
Events after the reporting date

Following the year end there was a restructuring within the group the settlor of the The UKAT Group Trust is now UKAT Parent LLC, a company incorporated in the United States with the ultimate parent company being Global Growth Holdings Inc, a company incorporated in the United States.

 

There is not considered to be any ultimate owner of Global Growth Holdings Inc.

27
Related party transactions

The company has taken the advantage of the exemption in paragraph 33.1A within FRS102 to not disclose transactions entered into between two or more members of a group, provided that any subsidiary which is party to the transactions is wholly owned by such a member.

 

Included in other debtors are amounts of £2,055 (2020: £21,592) owed by the directors.

 

28
Controlling party

The immediate parent company is UKAT Investments Limited, a company incorporated in the United Kingdom. The ultimate parent company as at the year end is UKAT Holdings LLC, a company incorporated in the USA. The ultimate controlling party as at the year end is The UKAT Group Trust in which the trustee is H.S. Wilson. The ultimate beneficiary of the trust is R. Gaddy.

 

The company is consolidated into the group accounts of UKAT Interco Limited which heads the group of which the company is a member. The registered office of UKAT Interco Limited is Unit 1, 1st Floor, Imperial Place, Maxwell Road, Borehamwood, England, WS6 1JN.

UK ADDICTION TREATMENT GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 31 -
29
Cash generated from/(absorbed by) group operations
2021
2020
£
£
(Loss)/profit for the year after tax
(1,162,137)
3,322,372
Adjustments for:
Taxation charged
135,315
1,190,488
Finance costs
4,284,171
1,727,804
Investment income
(114,116)
(52,994)
Loan amortisation and interest charged
4,493,985
-
Amortisation and impairment of intangible assets
100,000
25,000
Depreciation and impairment of tangible fixed assets
147,172
145,819
Movements in working capital:
Increase in debtors
(813,760)
(17,042,637)
Increase in creditors
317,657
133,609
Cash generated from/(absorbed by) operations
7,388,287
(10,550,539)
30
Analysis of changes in net debt - group
1 January 2021
Cash flows
31 December 2021
£
£
£
Cash at bank and in hand
1,777,398
(376,263)
1,401,135
Borrowings excluding overdrafts
(14,152,979)
(2,427,829)
(16,580,808)
(12,375,581)
(2,804,092)
(15,179,673)
2021-12-312021-01-01falseCCH SoftwareCCH Accounts Production 2022.200E AlexanderD GerrardR GaddyM GreenspanB HurleyM WorkmanC 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