REGISTERED NUMBER: |
Strategic Report, Directors' Report and |
Financial Statements for the Period 1 January 2022 to 24 February 2023 |
for |
Scott Arms Associates Limited |
REGISTERED NUMBER: |
Strategic Report, Directors' Report and |
Financial Statements for the Period 1 January 2022 to 24 February 2023 |
for |
Scott Arms Associates Limited |
Scott Arms Associates Limited (Registered number: 07183016) |
Contents of the Financial Statements |
for the Period 1 January 2022 to 24 February 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Directors' Report | 3 |
Independent Auditors' Report | 5 |
Profit and loss account | 9 |
Balance Sheet | 10 |
Cash Flow Statement | 12 |
Notes to the Financial Statements | 13 |
Scott Arms Associates Limited |
Company Information |
for the Period 1 January 2022 to 24 February 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
4 Brindley Place |
Birmingham |
United Kingdom |
B1 2HZ |
BANKERS: |
Units 2 & 3 Caxton Gate |
36/38 New Street |
Birmingham |
B2 4LP |
Scott Arms Associates Limited (Registered number: 07183016) |
Strategic Report |
for the Period 1 January 2022 to 24 February 2023 |
The directors present their strategic report for the period 1 January 2022 to 24 February 2023. |
REVIEW OF BUSINESS |
The business carried out its principal activity of the provision of dental care and services throughout the period. |
During this period the company continued to focus on providing the highest standard of care to its patients whilst growing the practice to meet increasing demand. Three new surgeries at the site were opened in October 2022, bringing the total number of surgeries to 22. |
Revenue was 8% higher on an annual basis to the prior year, this growth being a result of the expansion and an increase in patient numbers year on year. |
The company's gross profit for the period was £6.2million, resulting in a gross margin percentage of 45.2% (2021: 44.7%). |
During the period the company wrote off an associated company loan of £1.7million (2021: £5.2million), and completed the transfer of all business assets relating to the trading activities of the company that were owned by the landlord of the property (£0.4million). |
PRINCIPAL RISKS AND UNCERTAINTIES |
The Directors continually monitor key risks facing the business such as the market, economy and competition. The company is exposed to the general economic climate and tighter constraints on individual's disposable income which has the potential to have a negative impact on the income of the business. The company is also susceptible to increases in inflation rates pushing up operating and administrative costs with the exception of associates' pay which is directly linked to revenue. |
The company manages operational and clinical risk by ensuring all associates are subject to high levels of regulation and are continually updating their professional skills and development to ensure they are compliant with the required regulatory standards. |
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES |
The company has limited exposure with regard to credit risk. The majority of payments are paid at the time of treatment, advanced payments are requested for larger value treatments and internal policies in place to mitigate the risk on income of non-payment. |
The Directors review the cashflow on a regular basis and manages the finances to ensure there are always sufficient funds to meet the monthly operational requirements. |
FUTURE DEVELOPMENTS |
Details of future developments can be found in the Directors' Report on page 3 and form part of this report by cross-reference. |
ON BEHALF OF THE BOARD: |
Scott Arms Associates Limited (Registered number: 07183016) |
Directors' Report |
for the Period 1 January 2022 to 24 February 2023 |
The directors present their report with the financial statements of the company for the period 1 January 2022 to 24 February 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the period under review was that of providing dental services. |
DIVIDENDS |
No dividends will be distributed for the period ended 24 February 2023. |
FUTURE DEVELOPMENTS |
On the 24th February 2023 Portman Healthcare purchased 50.01% of the shares in Scott Arms Associates Limited. Portman Healthcare are one of the largest dental groups in the UK and one of Europe's largest dental care platforms and this development provides the company with the support structure to continue to push growth going forward. |
DIRECTORS |
The directors who have held office during the period from 1 January 2022 to the date of this report are as follows: |
QUALIFYING INDEMNITY PROVISION |
During the year, an indemnity from the company was made available to the Directors against liabilities that might be incurred by them in defending proceedings against them in respect of the affairs of the company. The indemnity is subject to the provisions of the Companies Act and is set out in the Articles of Association. |
GOING CONCERN |
After making enquiries, the Directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the company continues to adopt the going concern basis in preparing the annual report and financial statements. |
EVENTS AFTER THE BALANCE SHEET DATE |
The sale of the company to Portman Healthcare (reference to in Future Developments above) will see Portman purchase the remaining share capital of the company over the next three years in three equal instalments. |
Dividends will be payable to the remaining shareholder for each of the next three years in the relevant proportion. |
DISCLOSURE IN THE STRATEGIC REPORT |
Information as required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 has been included in the Strategic Report, relating to financial risk management, objectives and policies. |
Scott Arms Associates Limited (Registered number: 07183016) |
Directors' Report |
for the Period 1 January 2022 to 24 February 2023 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Directors' 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 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. |
AUDITORS |
The auditors, Deloitte LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Independent Auditors' Report to the Members of |
Scott Arms Associates Limited |
Opinion |
We have audited the financial statements of Scott Arms Associates Limited (the 'company') for the period ended 24 February 2023 which comprise the Profit and loss account, Balance Sheet, Cash Flow Statement 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 24 February 2023 and of its profit for the period 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 |
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 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' Report 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 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. |
Independent Auditors' Report to the Members of |
Scott Arms Associates Limited |
Opinions 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Directors' Report 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 Directors' Report. |
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. |
Independent Auditors' Report to the Members of |
Scott Arms Associates Limited |
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 an Auditors' 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: |
Extent to which the audit was considered capable of detecting irregularities, including fraud |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. |
We considered the nature of the company's industry and its control environment and reviewed the company's documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities. |
We obtained an understanding of the legal and regulatory frameworks that the company operates in, and identified the key laws and regulations that: |
- had a direct effect on the determination of material amounts and disclosures in the financial statements. These included UK Companies Act, pensions legislation and tax legislation; and |
- do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty, which included GDPR and Bribery Act . |
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements. |
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business. |
In addition to the above, our procedures to respond to the risks identified included the following: |
- reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- enquiring of management and in-house legal counsel concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and |
- reading minutes of meetings of those charged with governance. |
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 Auditors' Report. |
Independent Auditors' Report to the Members of |
Scott Arms Associates Limited |
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 Auditors' 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. |
for and on behalf of |
Statutory Auditor |
4 Brindley Place |
Birmingham |
United Kingdom |
B1 2HZ |
Scott Arms Associates Limited (Registered number: 07183016) |
Profit and loss account |
for the Period 1 January 2022 to 24 February 2023 |
Period |
1/1/22 |
to | Year Ended |
24/2/23 | 31/12/21 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
1,196,039 | (2,713,537 | ) |
Other operating income |
OPERATING PROFIT/(LOSS) | 5 | ( |
) |
Interest receivable and similar income |
1,271,408 | (2,629,189 | ) |
Interest payable and similar expenses |
8 |
( |
) |
( |
) |
PROFIT/(LOSS) BEFORE TAXATION | ( |
) |
Tax on profit/(loss) | 9 | ( |
) | ( |
) |
PROFIT/(LOSS) FOR THE FINANCIAL PERIOD |
( |
) |
Retained earnings at beginning of period |
Dividends | 10 | ( |
) |
RETAINED EARNINGS AT END OF PERIOD |
Scott Arms Associates Limited (Registered number: 07183016) |
Balance Sheet |
24 February 2023 |
2023 | 2021 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 | ( |
) | ( |
) |
NET CURRENT ASSETS/(LIABILITIES) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
Scott Arms Associates Limited (Registered number: 07183016) |
Balance Sheet - continued |
24 February 2023 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Scott Arms Associates Limited (Registered number: 07183016) |
Cash Flow Statement |
for the Period 1 January 2022 to 24 February 2023 |
Period |
1/1/22 |
to | Year Ended |
24/2/23 | 31/12/21 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 24 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Grant received |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Loan repayments in year | ( |
) |
Capital repayments in year |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of period |
25 |
213,294 |
Cash and cash equivalents at end of period |
25 |
1,745,473 |
166,233 |
Scott Arms Associates Limited (Registered number: 07183016) |
Notes to the Financial Statements |
for the Period 1 January 2022 to 24 February 2023 |
1. | STATUTORY INFORMATION |
Scott Arms Associates Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going Concern |
After making enquiries, the Directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the company continues to adopt the going concern basis in preparing the annual report and financial statements. |
Significant judgements and estimates |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. There were no estimates and assumption that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities with the next financial year. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts and rebates. |
Scott Arms Associates Limited (Registered number: 07183016) |
Notes to the Financial Statements - continued |
for the Period 1 January 2022 to 24 February 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. |
Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. |
An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss. |
Depreciation |
Depreciation is calculated so as to write off its cost or valuation of an asset, less its residual value, over the useful economic life of the asset as follows: |
Plant and machinery - 25% reducing balance |
Fixtures and fittings - 25% reducing balance |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Taxation |
Taxation for the period 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 balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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 period 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. |
Scott Arms Associates Limited (Registered number: 07183016) |
Notes to the Financial Statements - continued |
for the Period 1 January 2022 to 24 February 2023 |
2. | ACCOUNTING POLICIES - continued |
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. |
Exceptional items |
Exceptional items are transactions that fall within the ordinary activities of the company but are presented separately due to their size or incidence. |
Defined contributions plans |
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. |
When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises. |
Provisions |
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the Balance Sheet and the amount of the provision as an expense. |
Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. |
When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises. |
Hire purchase and leasing commitments |
Assets held under finance leases are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. |
Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability. |
Scott Arms Associates Limited (Registered number: 07183016) |
Notes to the Financial Statements - continued |
for the Period 1 January 2022 to 24 February 2023 |
3. | TURNOVER |
The turnover and profit (2021 - loss) before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
Period |
1/1/22 |
to | Year Ended |
24/2/23 | 31/12/21 |
£ | £ |
4. | EMPLOYEES AND DIRECTORS |
Period |
1/1/22 |
to | Year Ended |
24/2/23 | 31/12/21 |
£ | £ |
Wages and salaries |
Other pension costs |
The average number of employees during the period was as follows: |
Period |
1/1/22 |
to | Year Ended |
24/2/23 | 31/12/21 |
Management | 3 | 3 |
Administration | 5 | 4 |
Dental services | 103 | 93 |
Period |
1/1/22 |
to | Year Ended |
24/2/23 | 31/12/21 |
£ | £ |
Directors' remuneration |
Scott Arms Associates Limited (Registered number: 07183016) |
Notes to the Financial Statements - continued |
for the Period 1 January 2022 to 24 February 2023 |
5. | OPERATING PROFIT/(LOSS) |
The operating profit (2021 - operating loss) is stated after charging/(crediting): |
Period |
1/1/22 |
to | Year Ended |
24/2/23 | 31/12/21 |
£ | £ |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
6. | AUDITORS' REMUNERATION |
Period |
1/1/22 |
to | Year Ended |
24/2/23 | 31/12/21 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
18,000 |
- |
Total audit fees | 18,000 | - |
7. | EXCEPTIONAL ITEMS |
Period |
1/1/22 |
to | Year Ended |
24/2/23 | 31/12/21 |
£ | £ |
Associated company loan write |
off | (1,714,148 | ) | (5,242,129 | ) |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
1/1/22 |
to | Year Ended |
24/2/23 | 31/12/21 |
£ | £ |
Interest on overdue taxation |
Loan interest |
HP interest |
Scott Arms Associates Limited (Registered number: 07183016) |
Notes to the Financial Statements - continued |
for the Period 1 January 2022 to 24 February 2023 |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the period was as follows: |
Period |
1/1/22 |
to | Year Ended |
24/2/23 | 31/12/21 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on profit/(loss) |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
Period |
1/1/22 |
to | Year Ended |
24/2/23 | 31/12/21 |
£ | £ |
Profit/(loss) before tax | ( |
) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Deferred tax movement | 88,843 | 22,321 |
Total tax charge | 603,296 | 483,336 |
10. | DIVIDENDS |
Period |
1/1/22 |
to | Year Ended |
24/2/23 | 31/12/21 |
£ | £ |
Ordinary A shares of 0.01 each |
Final |
Scott Arms Associates Limited (Registered number: 07183016) |
Notes to the Financial Statements - continued |
for the Period 1 January 2022 to 24 February 2023 |
11. | TANGIBLE FIXED ASSETS |
Plant and | Fixtures |
dental | and |
equipment | fittings | Totals |
£ | £ | £ |
COST |
At 1 January 2022 |
Additions |
At 24 February 2023 |
DEPRECIATION |
At 1 January 2022 |
Charge for period |
At 24 February 2023 |
NET BOOK VALUE |
At 24 February 2023 |
At 31 December 2021 |
Obligations under finance leases |
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements: |
Plant and machinery at 24 February 2023 - £92,009 (31 December 2021 - £50,940). |
12. | STOCKS |
2023 | 2021 |
£ | £ |
Stocks |
13. | DEBTORS |
2023 | 2021 |
£ | £ |
Amounts falling due within one year: |
Other debtors |
AOE control | - | 30 |
Prepayments and accrued income |
Amounts falling due after more than one year: |
Intercompany loans |
Aggregate amounts |
Scott Arms Associates Limited (Registered number: 07183016) |
Notes to the Financial Statements - continued |
for the Period 1 January 2022 to 24 February 2023 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2021 |
£ | £ |
Hire purchase contracts (see note 16) |
Trade creditors |
Other creditors | 308,951 | - |
Tax |
Social security and other taxes |
Pension control |
Accruals and deferred income |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2021 |
£ | £ |
Hire purchase contracts (see note 16) |
16. | LEASING AGREEMENTS |
Minimum lease payments under hire purchase fall due as follows: |
2023 | 2021 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2021 |
£ | £ |
Hire purchase contracts | 108,395 | 64,524 |
The finance leases are secured on the assets concerned. |
18. | PROVISIONS FOR LIABILITIES |
2023 | 2021 |
£ | £ |
Deferred tax | 111,164 | 22,321 |
Scott Arms Associates Limited (Registered number: 07183016) |
Notes to the Financial Statements - continued |
for the Period 1 January 2022 to 24 February 2023 |
18. | PROVISIONS FOR LIABILITIES - continued |
Deferred |
tax |
£ |
Balance at 1 January 2022 |
Provided during period |
Balance at 24 February 2023 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2021 |
value: | £ | £ |
Ordinary A | 0.01 | 100 | 100 |
Ordinary E | 0.01 | 1,500 | 1,500 |
1,600 | 1,600 |
20. | RESERVES |
Retained |
earnings |
£ |
At 1 January 2022 |
Profit for the period |
At 24 February 2023 |
21. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
During the period, the company made an interest free loan to the director, Dr P Tangri. The loan was unsecured and repayable on demand. The maximum amount outstanding during the period was £251,303. The amount outstanding at 24 February 2023 was £Nil (2021 - £Nil). |
22. | RELATED PARTY DISCLOSURES |
During the period the company provided funding to Scott Arms Portfolio Investments Limited, a company in which Dr P Tangri is a director. The balance due from Scott Arms Portfolio Investments Limited at 24 February 2023 amounted to £Nil (31 December 2021- £368,627). |
During the period the company provided funding to Amie Lane Management Limited, a company in which Dr P Tangri is a director. The balance due from Amie Lane Management Limited at 24 February 2023 amounted to £Nil (31 December 2021 - £2,958). |
Scott Arms Associates Limited (Registered number: 07183016) |
Notes to the Financial Statements - continued |
for the Period 1 January 2022 to 24 February 2023 |
23. | ULTIMATE CONTROLLING PARTY |
The company's immediate parent undertaking is Portman Healthcare Limited, a company incorporated in England and Wales. Company number 06740579. |
The directors consider Portman Healthcare Limited a company incorporated in England and Wales to be the ultimate parent company and the ultimate controlling party. |
24. | RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Period |
1/1/22 |
to | Year Ended |
24/2/23 | 31/12/21 |
£ | £ |
Profit/(loss) before taxation | ( |
) |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Government grants | ( |
) | ( |
) |
Finance costs | 2,719 | 10,014 |
Finance income | - | (455 | ) |
1,357,391 | (2,623,778 | ) |
(Increase)/decrease in stocks | ( |
) |
Decrease in trade and other debtors |
Increase in trade and other creditors |
Cash generated from operations |
25. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Period ended 24 February 2023 |
24/2/23 | 1/1/22 |
£ | £ |
Cash and cash equivalents | 1,745,473 | 166,233 |
Year ended 31 December 2021 |
31/12/21 | 1/1/21 |
£ | £ |
Cash and cash equivalents | 166,233 | 213,294 |
Scott Arms Associates Limited (Registered number: 07183016) |
Notes to the Financial Statements - continued |
for the Period 1 January 2022 to 24 February 2023 |
26. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/1/22 | Cash flow | At 24/2/23 |
£ | £ | £ |
Net cash |
Cash at bank | 166,233 | 1,579,240 | 1,745,473 |
166,233 | 1,745,473 |
Debt |
Finance leases | (64,524 | ) | (43,871 | ) | (108,395 | ) |
(64,524 | ) | (43,871 | ) | (108,395 | ) |
Total | 101,709 | 1,535,369 | 1,637,078 |