TRUST GROUP HOLDINGS LTD

Company Registration Number:
10388315 (England and Wales)

Unaudited statutory accounts for the year ended 31 March 2023

Period of accounts

Start date: 1 April 2022

End date: 31 March 2023

TRUST GROUP HOLDINGS LTD

Contents of the Financial Statements

for the Period Ended 31 March 2023

Directors report
Profit and loss
Balance sheet
Additional notes
Balance sheet notes

TRUST GROUP HOLDINGS LTD

Directors' report period ended 31 March 2023

The directors present their report with the financial statements of the company for the period ended 31 March 2023

Principal activities of the company

The company's principal activity is the provision of drug dispensing services to UHL and has limited exposure to commercial market risks. The Directors of the Company consider that it provides a vital service to UHL and enables savings to be achieved for UHL and group. As such, the Company's Directors consider that the company will be providing its service to UHL for the foreseeable future.

Political and charitable donations

The company made no political or charitable donations or incurred any political expenditure during the year 2022/23, (2021/22: £nil).

Additional information

This is the seventh period of account of the company since its creation in September 2016 and its start of trading from 1 April 2017. The Company is focused on delivering the outpatient services franchise that it acquired from the outsourced operator, Lloyds Pharmacy, on 1 April 2017.The TGH accounts have been prepared on a 'going concern' basis. The company is a wholly owned subsidiary of the University Hospitals of Leicester NHS Trust and has considered the going concern position of its parent and the group in assessing its own going concern position. This is necessary as the company relies on UHL for virtually all of its income. The company's Board of Directors has carefully considered the principle of "going concern" and in making its assessment has reviewed the UHL's assessment of its own, and the Group's, going concern. The company's principal activity is the provision of drug dispensing services to UHL and has limited exposure to commercial market risks. The Directors of the Company consider that it provides a vital service to UHL and enables savings to be achieved for UHL and group. As such, the Company's Directors consider that the company will be providing its service to UHL for the foreseeable future.UHL Trust agreed contracts with local commissioners for 2023/24 and services are being commissioned in a similar manner in the future as in prior years and there are no discontinued operations. Also, there were no transfers of services or significant amendment to the structure of the organisation in the year and there is no decision pending for such at this time. The Board of Directors have a reasonable expectation that the Trust and Group will have access to adequate resources in the form of support from the Department of Health and Social Care (NHS Act 2006 s42a) to continue to deliver the full range of mandatory services for the foreseeable future.The directors do not recommend payment of a dividend for the period 2022/23. (2021/22 £nil). Payment policy for external trade creditors is that of the parent NHS Trust, which is 30 days from date of invoice in line with managing public money. At the year end, external trade creditors were £2,422k as per note 8.The directors who held office at the date of approval of this directors' report confirm that, so far as they are each aware, there is no relevant audit information of which the company's auditor is unaware; and each director has taken all the steps that he / she ought to have taken as a director to make himself/herself aware of any relevant audit information and to establish, that the company's auditor is aware of that information. This confirmation is given and should be interpreted in accordance with the provisions of s418 of the Companies Act 2006.Pursuant to Section 485 of the Companies Act 2006, the Board appointed KPMG LLP as the company's external auditor.



Directors

The directors shown below have held office during the whole of the period from
1 April 2022 to 31 March 2023

Claire Ellwood
Jonathan Shuter
Mala Khiroya
Stephen Harris


The director shown below has held office during the period of
1 April 2022 to 31 December 2022

Andrew Johnson


The director shown below has held office during the period of
1 January 2023 to 31 March 2023

Jeffrey Worrall


Secretary Jonathan Shuter

The above report has been prepared in accordance with the special provisions in part 15 of the Companies Act 2006

This report was approved by the board of directors on
21 September 2023

And signed on behalf of the board by:
Name: Jeffrey Worrall
Status: Director

TRUST GROUP HOLDINGS LTD

Profit And Loss Account

for the Period Ended 31 March 2023

2023 2022


£

£
Turnover: 36,605,000 34,483,000
Cost of sales: ( 34,753,000 ) ( 33,059,000 )
Gross profit(or loss): 1,852,000 1,424,000
Administrative expenses: ( 1,687,000 ) ( 1,293,000 )
Operating profit(or loss): 165,000 131,000
Interest payable and similar charges: ( 1,000 ) ( 1,000 )
Profit(or loss) before tax: 164,000 130,000
Tax: ( 31,000 ) ( 25,000 )
Profit(or loss) for the financial year: 133,000 105,000

TRUST GROUP HOLDINGS LTD

Balance sheet

As at 31 March 2023

Notes 2023 2022


£

£
Called up share capital not paid: 0 0
Fixed assets
Tangible assets: 3 151,000 200,000
Total fixed assets: 151,000 200,000
Current assets
Stocks: 4 2,013,000 1,595,000
Debtors: 5 4,101,000 4,280,000
Cash at bank and in hand: 2,264,000 1,517,000
Total current assets: 8,378,000 7,392,000
Creditors: amounts falling due within one year: 6 ( 3,908,000 ) ( 3,078,000 )
Net current assets (liabilities): 4,470,000 4,314,000
Total assets less current liabilities: 4,621,000 4,514,000
Creditors: amounts falling due after more than one year: 7 ( 138,000 ) ( 185,000 )
Provision for liabilities: ( 57,000 ) ( 37,000 )
Total net assets (liabilities): 4,426,000 4,292,000
Capital and reserves
Called up share capital: 4,000,000 4,000,000
Profit and loss account: 426,000 292,000
Total Shareholders' funds: 4,426,000 4,292,000

The notes form part of these financial statements

TRUST GROUP HOLDINGS LTD

Balance sheet statements

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

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These accounts have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

This report was approved by the board of directors on 21 September 2023
and signed on behalf of the board by:

Name: Jeffrey Worrall
Status: Director

The notes form part of these financial statements

TRUST GROUP HOLDINGS LTD

Notes to the Financial Statements

for the Period Ended 31 March 2023

  • 1. Accounting policies

    Basis of measurement and preparation

    These financial statements have been prepared in accordance with the provisions of Financial Reporting Standard 101

    Tangible fixed assets depreciation policy

    Property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment losses. Such cost includes costs directly attributable to making the asset capable of operating as intended. Depreciation is provided on all property, plant and equipment, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows: Plant and machinery – over 5 to 15 years The carrying values of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.Assets in the course of construction are valued at historic cost and are not depreciated until the asset is brought into use.

    Valuation information and policy

    After recognition of the asset, property, plant and equipment are carried at cost value, less any subsequent accumulated depreciation and impairment losses. The carrying values of the property, plant and equipment are reviewed for impairment in year, if events or changes in circumstances indicate the carrying value may not be recoverable.

    Other accounting policies

    The Financial statements have been prepared and approved by the directors in accordance with International Financial Reporting Standards (IFRS), International Accounting Standards (IAS) and IFRC interpretations.The company's principal activity is the provision of drug dispensing services to UHL and has limited exposure to commercial market risks, therefore the directors have a reasonable expectation that the company has access to adequate resources to continue in operational existence for the foreseeable future. The preparation of financial statements in conformity with IFRS requires the use of estimates and assumptions that affect the reported accounts of assets and liabilities at the date of the financial statements and the reported amount of revenue and expenses for the reporting year. Although these estimates are based on managements best knowledge of the amount, event or actions, actual results may ultimately differ from those estimates. There are no critical judgements or sources of estimation uncertainty requiring disclosure beyond the accounting policies listed below.The TGH accounts have been prepared on a 'going concern' basis. The company is a wholly owned subsidiary of the University Hospitals of Leicester NHS Trust and has considered the going concern of its parent and the group in assessing its own going concern. This is necessary as the company relies on UHL for virtually all of its income. The company's Board of Directors has carefully considered the principle of "going concern" and in making its assessment has reviewed the UHL's assessment of its own, and the Group's, going concern. The company's principal activity is the provision of drug dispensing services to UHL and has limited exposure to commercial market risks. The Directors of the Company consider that it provides a vital service to UHL and enables savings to be achieved for UHL and group. As such, the Company's Directors consider that the company will be providing its service to UHL for the foreseeable future.Revenue represents the fair value of consideration receivable, excluding value added tax and trade discounts, in the ordinary course of business for goods and services provided. Revenue is not recognised until the service to which the sale relates have been provided to the customer.The main source of revenue for the company is from its parent company University Hospitals of Leicester NHS Trust (UHL) in respect of the provision of outpatient pharmacy services. The contract with UHL identifies the predominant performance obligation as dispensing outpatient prescriptions to patients. The transaction price is a contracted price of drugs and as such is allocated to each dispense. Revenue is recognised in the period the performance obligation is satisfied and drugs are dispensed.Salaries, wages and employment related payment are recognised in the year in which the service is received from the employees. The cost of the annual leave entitlement earned but not taken by employees at the end of the year is recognised in the financial statements to the extent that the employees are permitted to carry forward leave into the following year.The company pays fixed contributions into defined contribution pension plans operated by Scottish Widows and Standard Life; there is no legal or constructive obligations to pay further amounts. Obligations for contributions to the defined contribution pension schemes are charged to the income statement in the year in which they fall due.Expenditure on goods and services is recognised when, and to the extent that they have been received, and is measured at the fair value of those goods and services. Expenditure is recognised in operating expenses except where it results in the creation of a non current asset such as property, plant and equipment.All property, plant and equipment are stated initially at cost. Where it is probable that the expenditure will cause future economic benefits to flow to the company over a period greater than one year, then costs are capitalised.Cash and cash equivalents in the statement of financial position comprise cash at banks and in hand and short term deposits with an original maturity date of three months or less. For the purpose of the cash flow statement, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts.Inventories are stated at the lower of cost and net realisable value. Cost includes all costs incurred in bringing each product to its present location and condition, as follows:Raw materials, consumables and goods for resale:Purchase cost on a first-in, first-out basisDebtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement in other operating expenses.The company establishes provisions based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective countries in which it operates. The amount of such provisions is based on various factors, such as experience with previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority. Management estimation is required to determine the amount of deferred tax assets that can be recognised, based upon likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies. Further details are contained in note 3.Deferred tax is recognised in respect of all timing differences which are differences between taxable profits and total comprehensive income that arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements, except that: - provision is made for deferred tax that would arise on remittance of the retained earnings of overseas subsidiaries, associates and joint ventures only to the extent that, at the statement of financial position date, dividends have been accrued as receivable; - where there are differences between amounts that can be deducted for tax for assets (other than goodwill) and liabilities compared with the amounts that are recognised for those assets and liabilities in a business combination a deferred tax liability/(asset) shall be recognised. The amount attributed to goodwill is adjusted by the amount of the deferred tax recognised; and - unrelieved tax losses and other deferred tax assets are recognised only to the extent the directors consider it probable they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the statement of financial position date.A provision is recognised when the group has a legal or constructive obligation as a result of a past event and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions for the expected costs of maintenance under guarantees are charged against profits when products have been invoiced. The effect of the time value of money is not material and therefore the provisions are not discounted.We received £4,000,000 from our parent, the University Hospitals of Leicester NHS Trust for the purchase of one ordinary share valued at £1 which we classify as equity. Our share premium account totals £3,999,999.We have utilised the £4,000,000 cash in the course of our business - primarily to fund the purchase of our opening stock and to provide working capital for the first month of our operation.The directors do not recommend the payment of a dividend for 2022/23. (2021/22 £0)We have no specific objectives, policies or processes in relation to capital management over and above the objectives which relate to our normal course of business.

TRUST GROUP HOLDINGS LTD

Notes to the Financial Statements

for the Period Ended 31 March 2023

  • 2. Employees

    2023 2022
    Average number of employees during the period 27 20

TRUST GROUP HOLDINGS LTD

Notes to the Financial Statements

for the Period Ended 31 March 2023

3. Tangible assets

Land & buildings Plant & machinery Fixtures & fittings Office equipment Motor vehicles Total
Cost £ £ £ £ £ £
At 1 April 2022 200,000 200,000
Additions
Disposals
Revaluations
Transfers
At 31 March 2023 200,000 200,000
Depreciation
At 1 April 2022 0 0
Charge for year 49,000 49,000
On disposals
Other adjustments
At 31 March 2023 49,000 49,000
Net book value
At 31 March 2023 151,000 151,000
At 31 March 2022 200,000 200,000

TRUST GROUP HOLDINGS LTD

Notes to the Financial Statements

for the Period Ended 31 March 2023

4. Stocks

2023 2022
£ £
Stocks 2,013,000 1,595,000
Total 2,013,000 1,595,000

TRUST GROUP HOLDINGS LTD

Notes to the Financial Statements

for the Period Ended 31 March 2023

5. Debtors

2023 2022
£ £
Prepayments and accrued income 3,448,000 3,206,000
Other debtors 653,000 1,074,000
Total 4,101,000 4,280,000

TRUST GROUP HOLDINGS LTD

Notes to the Financial Statements

for the Period Ended 31 March 2023

6. Creditors: amounts falling due within one year note

2023 2022
£ £
Trade creditors 2,422,000 1,375,000
Taxation and social security 33,000 50,000
Other creditors 1,453,000 1,653,000
Total 3,908,000 3,078,000

TRUST GROUP HOLDINGS LTD

Notes to the Financial Statements

for the Period Ended 31 March 2023

7. Creditors: amounts falling due after more than one year note

2023 2022
£ £
Amounts due under finance leases and hire purchase contracts 138,000 185,000
Total 138,000 185,000