Caseware UK (AP4) 2022.0.179 2022.0.179 Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.truefalsetrue2022-01-01false109112 09894418 2022-01-01 2022-12-31 09894418 2021-01-01 2021-12-31 09894418 2022-12-31 09894418 2021-12-31 09894418 2021-01-01 09894418 1 2022-01-01 2022-12-31 09894418 d:CompanySecretary1 2022-01-01 2022-12-31 09894418 d:Director1 2022-01-01 2022-12-31 09894418 d:Director2 2022-01-01 2022-12-31 09894418 d:Director4 2022-01-01 2022-12-31 09894418 d:Director4 2022-12-31 09894418 d:Director5 2022-01-01 2022-12-31 09894418 d:Director6 2022-01-01 2022-12-31 09894418 d:Director6 2022-12-31 09894418 d:Director7 2022-01-01 2022-12-31 09894418 d:Director8 2022-01-01 2022-12-31 09894418 d:Director8 2022-12-31 09894418 d:Director9 2022-01-01 2022-12-31 09894418 d:Director9 2022-12-31 09894418 d:RegisteredOffice 2022-01-01 2022-12-31 09894418 d:Agent1 2022-01-01 2022-12-31 09894418 c:OfficeEquipment 2022-01-01 2022-12-31 09894418 c:OfficeEquipment 2022-12-31 09894418 c:OfficeEquipment 2021-12-31 09894418 c:OfficeEquipment c:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 09894418 c:ComputerEquipment 2022-01-01 2022-12-31 09894418 c:ComputerEquipment 2022-12-31 09894418 c:ComputerEquipment 2021-12-31 09894418 c:ComputerEquipment c:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 09894418 c:OwnedOrFreeholdAssets 2022-01-01 2022-12-31 09894418 c:CurrentFinancialInstruments 2022-12-31 09894418 c:CurrentFinancialInstruments 2021-12-31 09894418 c:ReportableOperatingSegment1 2022-01-01 2022-12-31 09894418 c:ReportableOperatingSegment1 2021-01-01 2021-12-31 09894418 c:ReportableOperatingSegment2 2022-01-01 2022-12-31 09894418 c:ReportableOperatingSegment2 2021-01-01 2021-12-31 09894418 c:UKTax 2022-01-01 2022-12-31 09894418 c:UKTax 2021-01-01 2021-12-31 09894418 c:ShareCapital 2022-12-31 09894418 c:ShareCapital 2021-12-31 09894418 c:ShareCapital 2021-01-01 09894418 c:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 09894418 c:RetainedEarningsAccumulatedLosses 2022-12-31 09894418 c:RetainedEarningsAccumulatedLosses 2021-01-01 2021-12-31 09894418 c:RetainedEarningsAccumulatedLosses 2021-12-31 09894418 c:RetainedEarningsAccumulatedLosses 2021-01-01 09894418 d:OrdinaryShareClass2 2022-01-01 2022-12-31 09894418 d:OrdinaryShareClass2 2021-01-01 2021-12-31 09894418 d:OrdinaryShareClass2 2022-12-31 09894418 d:OrdinaryShareClass3 2022-01-01 2022-12-31 09894418 d:OrdinaryShareClass3 2021-01-01 2021-12-31 09894418 d:OrdinaryShareClass3 2022-12-31 09894418 d:OrdinaryShareClass4 2022-01-01 2022-12-31 09894418 d:OrdinaryShareClass4 2021-01-01 2021-12-31 09894418 d:OrdinaryShareClass4 2022-12-31 09894418 d:FRS102 2022-01-01 2022-12-31 09894418 d:Audited 2022-01-01 2022-12-31 09894418 d:FullAccounts 2022-01-01 2022-12-31 09894418 d:PrivateLimitedCompanyLtd 2022-01-01 2022-12-31 09894418 c:WithinOneYear 2022-12-31 09894418 c:WithinOneYear 2021-12-31 09894418 c:BetweenOneFiveYears 2022-12-31 09894418 c:BetweenOneFiveYears 2021-12-31 09894418 c:MoreThanFiveYears 2022-12-31 09894418 c:MoreThanFiveYears 2021-12-31 09894418 c:AcceleratedTaxDepreciationDeferredTax 2022-12-31 09894418 c:AcceleratedTaxDepreciationDeferredTax 2021-12-31 09894418 2 2022-01-01 2022-12-31 09894418 6 2022-01-01 2022-12-31 xbrli:shares iso4217:GBP xbrli:pure

img50f6.png






Financial Statements
Obsidian Healthcare Group Limited
For the year ended 31 December 2022





































Registered number: 09894418

 
Obsidian Healthcare Group Limited
 

Company Information


Directors
Howard Beggs 
Wendy Mathias 
Peter Thompson (resigned 6 September 2022)
Rory Cremin 
Gareth Tucker (resigned 1 December 2022)
Tara Kearns 
Mandy Watty-Miller (resigned 9 September 2022)
Craig Kennedy (appointed 9 November 2022)




Company secretary
Erin Lane 



Registered number
09894418



Registered office
Aurora House
Deltic Avenue

Rooksley

Milton Keynes

Buckinghamshire

United Kingdom




Independent auditor
Grant Thornton
Chartered Accountants & Statutory Auditors

13 - 18 City Quay

Dublin 2

Ireland




Bankers
Citibank N.A. London
Canada SQ Service CTR

Citigroup CTR 25

London

United Kingdom

E14 5LB





 
Obsidian Healthcare Group Limited
 

Contents



Page
Strategic report
1
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Notes to the financial statements
13 - 23


 
Obsidian Healthcare Group Limited
 
Strategic report
For the year ended 31 December 2022

The directors present their strategic report and the financial statements for the year ended 31 December 2022.

Review of activities and future trading
 
The directors' aim to present a balanced and comprehensive review of the development and performance of the business during the period and its position at the period end. Their review is consistent with the size and nature of the business and is written in the context of the risks and uncertainties they face. As with many businesses of their size, the business environment in which they operate continues to be challenging. With this in mind, the directors are aware that any plans for the future development of the business may be subject to unforeseen future events outside of their control.
The principal activity of the Company is the provision of comprehensive services to pharmaceutical companies, healthcare professionals, and other stakeholders. Our core services include medical writing, scientific publications, digital solutions, event management, and educational programs.
We pride ourselves on our deep expertise in the healthcare sector, leveraging our scientific knowledge and understanding to deliver impactful and evidence-based communication strategies. Our commitment to quality, innovation, and client satisfaction has helped us establish long-standing relationships with key industry players and drive our growth. The Company plans to continue its current operations.
The directors consider that the key performance indicators are turnover, gross margin, and EBITDA.


2022
2021

Turnover
7,896,097
10,061,073

Gross margin %
81.52%
81.55%

EBITDA
80,879
1,624,726

Although the directors are satisfied with stable gross profit margin performance, the decline in revenue had a material impact on the business’s profitability margin. The Directors have taken a number of corrective actions to return the business to its historical profitability levels. The Directors expect the business to return to higher levels of profitability for the upcoming year.

Principal risks and uncertainties
 
There are many factors which may materially and adversely affect the Company's ability to achieve objectives and to successfully continue in operation. Management applied its judgment in determining impact of this uncertainty on carrying amounts of assets and liabilities in these financial statements. As a result of this assessment, the Company has not identified any impairment triggers as of 31 December 2022.

Financial risk management objectives and policies

The Company's principal financial instruments comprise cash and cash equivalents. Other financial assets and liabilities such as trade debtors and trade creditors arise from operating activities. We have identified and assessed several typical risks that are inherent to our operations in the medical communication and education space:

Client Dependency Risk: 
There is a risk associated with dependency on a limited number of key clients. A significant loss of a major client or a reduction in their business could have adverse effects on our financial performance. To mitigate this risk, we have implemented strategies to diversify our client base and strengthen relationships with existing clients. 
Page 1

 
Obsidian Healthcare Group Limited
 

Strategic report (continued)
For the year ended 31 December 2022

Financial risk management objectives and policies (continued)

Talent Retention and Recruitment Risk: 
Our success heavily relies on the skills and expertise of our employees, particularly medical writers, scientific experts, and digital specialists. The risk of high turnover or challenges in recruiting top talent could impact project delivery and client satisfaction. We have implemented strategies to attract and retain skilled professionals, including competitive remuneration packages, professional development opportunities, and a positive work culture.

Regulatory Compliance Risk: 
As a medical communication and education agency, we operate within a highly regulated environment. Non-compliance with relevant regulations and ethical guidelines can result in legal and reputational risks. We maintain a comprehensive understanding of the regulatory landscape and have established robust compliance processes to ensure adherence to applicable laws and regulations.

Project Delivery Risk: 
Timely and successful project delivery is critical to maintaining client satisfaction and securing repeat business. Risks associated with project delays, scope changes, and quality issues can adversely affect client relationships and our reputation. We have implemented project management methodologies, quality control processes, and communication protocols to minimize project delivery risks.

Financial key performance indicators

The directors utilise various KPIs in order to measure the performance of the business. Revenue and margin are closely monitored. These KPIs allow the Board to assess both the growth and profitability of the Company against competitors and the internal and external factors that affect the business. The directors are satisfied with the performance in respect of these KPIs.


Conclusion
 
We remain committed to delivering exceptional services to our clients, nurturing our talent, and driving sustainable growth. By leveraging our expertise, embracing technological advancements, and fostering strategic partnerships, we are confident in our ability to create long-term value for our stakeholders.

On behalf of the Board of Directors, we would like to express our gratitude to our clients, employees, and shareholders for their continued support and commitment. We look forward to an exciting future as we navigate the evolving landscape of the medical communication and education industry.

This report was approved by the board and signed on its behalf.



................................................
Howard Beggs
Director

Date: 28 July 2023
Page 2

 
Obsidian Healthcare Group Limited
 
 
Directors' report
For the year ended 31 December 2022

The directors present their report and the financial statements for the year ended 31 December 2022.

Principal activity

The principal activity of the Company in the year under review is that of a holding company.
The Company received income from its fixed asset investments of £Nil during the year (2021: £2,100,000).

Results and dividends

The loss for the year, after taxation, amounted to £396,147 (2021: profit £2,154,582).

The directors have proposed a dividend of £Nil  in the subsequent year (2021: £1,000,000 ).

The Company has paid a dividend of £955,000 during the year (2021: £1,000,000).

Directors

The directors who served during the year were:

Howard Beggs 
Wendy Mathias 
Peter Thompson (resigned 6 September 2022)
Rory Cremin 
Gareth Tucker (resigned 1 December 2022)
Tara Kearns 
Mandy Watty-Miller (resigned 9 September 2022)
Craig Kennedy (appointed 9 November 2022)

Research and development activities

The Company did not engage in research or development activities during the year.

Going concern

In preparing the financial statements the directors consider it appropriate to use the going concern assumption, which assures the Company will have sufficient resources to enable it to meet it liabilities as they fall due, including adequate financial support. During the year the Company made a loss before tax of £395,486 (2021: profit before tax £2,185,108). At 31 December 2022, the Company has shareholders' deficit of £42,036 (2021: shareholders' funds of £1,309,111). The directors have reviewed the future projections of the Company and its subsidiaries and are satisfied that based on future trading results, the Company will continue to generate very strong cash flows. The directors have ensured that the Company will receive adequate financial backing from its subsidiaries should it be required.  On the basis of all of the above, the directors believe that the going concern basis of preparation is appropriate for the financial statements. 

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Page 3

 
Obsidian Healthcare Group Limited
 

Directors' report (continued)
For the year ended 31 December 2022

Post balance sheet events

There have been no significant events affecting the Company since year end.

Auditor

The auditor, Grant Thorntonwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





................................................
Howard Beggs
Director

Date: 28 July 2023

Page 4

 
Obsidian Healthcare Group Limited
 

Directors' responsibilities statement
For the year ended 31 December 2022

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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:

select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

On behalf of the board



................................................

Howard Beggs

Director


Date: 28 July 2023

Page 5

 
 
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Independent auditor's report to the members of Obsidian Healthcare Group Limited
 
Opinion


We have audited the financial statements of Obsidian Healthcare Group Limited which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity for the year ended 31 December 2022, and the related notes to the financial statements, including a summary of significant accounting policies.  

The financial reporting framework that has been applied in the 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, Obsidian Healthcare Group Limited's financial statements:


give a true and fair view in accordance with United Kingdom Generally Accepted Accounting Practice of the assets, liabilities and financial position of the Company as at 31 December 2022 and of its financial performance for the year then ended; 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 'Responsibilities of the auditor 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 United Kingdom, namely the FRC's Ethical Standard and the ethical pronouncements established by Chartered Accountants Ireland, applied as determined to be appropriate in the circumstances of the entity. 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 the date 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.
Page 6

 
 
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Independent auditor's report to the members of Obsidian Healthcare Group Limited (continued)



Other information


Other information comprises the information included in the annual report, other than the financial statements and our Auditor's report thereon, including the Directors' report and the Strategic Report. The directors are responsible for the other information. Our opinion on the financial statements does not cover the 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 statementsour 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 in the financial statements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


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 Directors' report and the Strategic Report for the year for which the financial statements are prepared is consistent with the financial statements, and 
the Directors' report and the Strategic 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 we have obtained in the course of the audit, we have not identified material misstatements in the Directors' report and the Strategic 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:


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.



Page 7

 
 
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Independent auditor's report to the members of Obsidian Healthcare Group Limited (continued)

Responsibilities of management and those charged with governance for the financial statements
 

Management is responsible for the preparation of the financial statements which give a true and fair view in accordance with United Kingdom Generally Accepted Accounting Practice, including FRS102 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, management is 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 management either intend to liquidate the Company or to cease operations, or has no realistic alternative but to do so.


Those charged with governance are responsible for overseeing the Company's financial reporting process.

Responsibilities of the auditor for the audit of the financial statements
 

The objectives of an auditor 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 their opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of an auditor's 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 auditor's report.

Explanation as to what extent 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. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatement in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with ISAs (UK).

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

Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to compliance with data protection and Employment laws, Health and Safety Regulation and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulation that have a direct impact on the preparation of the financial statements such as Companies Act 2006 and UK tax legislation. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial performance and management bias through judgments and assumptions in significant accounting estimates, in particular in relation to significant one-off or unusual transactions. We apply professional scepticism through the audit to consider potential deliberate omission or concealment of significant transactions, or incomplete/inaccurate disclosures in the financial statements.
Page 8

 
 
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Independent auditor's report to the members of Obsidian Healthcare Group Limited (continued)

Responsibilities of the auditor for the audit of the financial statements (continued)

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud (continued)

In response to these principal risks, our audit procedures included but were not limited to:

inquiries of management and board on the policies and procedures in place regarding compliance with laws and regulations, including consideration of known or suspected instances of non-compliance and whether they have knowledge of any actual, suspected or alleged fraud;
inspection of the Company’s regulatory and legal correspondence and review of minutes of board meetings during the year to corroborate inquiries made;
gaining an understanding of the internal controls established to mitigate risk related to fraud;
discussion amongst the engagement team in relation to the identified laws and regulations and regarding the risk of fraud, and remaining alert to any indications of non-compliance or opportunities for fraudulent manipulation of financial statements throughout the audit;
identifying and testing journal entries to address the risk of inappropriate journals and management override of controls;
designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing;
challenging assumptions and judgments made by management in their significant accounting estimates, including useful lives of depreciable assets; and
review of the financial statements disclosures to underlying supporting documentation and inquiries of management.

The primary responsibility for the prevention and detection of irregularities including fraud rests with those charged with governance and management. As with any audit, there remains a risk of non-detection or irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or override of internal controls.

The purpose of our audit work and to whom we owe our responsibilities
 

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.
 
 
Tracey Sullivan (Senior statutory auditor)
for and on behalf of
Grant Thornton
Chartered Accountants
& Statutory Auditors
Dublin
 
Date:
 28 July 2023
Page 9

 
Obsidian Healthcare Group Limited
 

Statement of comprehensive income
For the year ended 31 December 2022

2022
2021
Note
£
£

Turnover
 4 
6,653,313
6,987,379

Cost of sales
  
(8,155)
(2,070)

Gross profit
  
6,645,158
6,985,309

Administrative expenses
  
(7,040,644)
(6,900,201)

Operating (loss)/profit
 5 
(395,486)
85,108

Investment income
 8 
-
2,100,000

(Loss)/profit before tax
  
(395,486)
2,185,108

Tax on profit
 10 
(661)
(30,526)

(Loss)/profit for the year
  
(396,147)
2,154,582

All amounts relate to continuing operations.
There was no other comprehensive income for 2022 (2021£Nil).

The notes on pages 13 to 23 form part of these financial statements.

Page 10

 
Obsidian Healthcare Group Limited
Registered number:09894418

Statement of financial position
As at 31 December 2022

2022
2021
Note
£
£

Fixed assets
  

Tangible fixed assets
 11 
108,424
165,104

Investments
 12 
2
2

  
108,426
165,106

Current assets
  

Debtors: amounts falling due within one year
 13 
3,406,714
3,355,690

Cash at bank and in hand
 14 
184,191
142,011

  
3,590,905
3,497,701

Current liabilities
  

Creditors: amounts falling due within one year
 15 
(3,736,680)
(2,349,009)

Net current (liabilities)/assets
  
 
 
(145,775)
 
 
1,148,692

Provisions for liabilities
  

Deferred tax
 16 
(4,687)
(4,687)

Net (liabilities)/assets
  
(42,036)
1,309,111


Capital and reserves
  

Called up share capital 
 17 
3
3

Profit and loss account
 18 
(42,039)
1,309,108

Shareholders' (deficit)/funds
  
(42,036)
1,309,111



The financial statements were approved and authorised for issue by the board and were signed on its behalf on: 




................................................
Howard Beggs
Director

Date: 28 July 2023

The notes on pages 13 to 23 form part of these financial statements.

Page 11

 
Obsidian Healthcare Group Limited
 

Statement of changes in equity
For the year ended 31 December 2022


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2022
3
1,309,108
1,309,111



Loss for the year
-
(396,147)
(396,147)

Dividends: Equity capital
-
(955,000)
(955,000)


At 31 December 2022
3
(42,039)
(42,036)



Statement of changes in equity
For the year ended 31 December 2021


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 January 2021
3
154,526
154,529



Profit for the year
-
2,154,582
2,154,582

Dividends: Equity capital
-
(1,000,000)
(1,000,000)


At 31 December 2021
3
1,309,108
1,309,111


The notes on pages 13 to 23 form part of these financial statements.

Page 12

 
Obsidian Healthcare Group Limited
 
 
Notes to the financial statements
For the year ended 31 December 2022

1.


General information

Obsidian Healthcare Group Limited is a company limited by shares with a registered office at Aurora House, Deltic Avenue, Rooksley, Milton Keynes, Buckinghamshire, MK13 8LW, United Kingdom. The principal activity of the Company in the year under review is that of a holding company.

2.Accounting policies

  
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The Company is exempt from the requirement to produce consolidated accounts by virtue of s401 of the Companies Act 2006, as the results of the Company and its subsidiary are included in the consolidated financial statements of Clanwilliam Headquarters Limited, drawn up to 31 December 2022, available from Companies Registration Office, Bloom House, Gloucester Place Lower, Dublin 1.

The Company has availed of the exemptions in FRS 102 section 1.12 (b) which allows non disclosure of the requirements of Section 7 Statement of Cash Flows, Section 3 Financial Statement Presentation paragraph 3.17(d) and from disclosing the company key management personnel compensation under paragraph 33.7.

The following principal accounting policies have been applied:

 
2.2

Going concern

In preparing the financial statements the directors consider it appropriate to use the going concern assumption, which assures the Company will have sufficient resources to enable it to meet it liabilities as they fall due, including adequate financial support. During the year the Company made a loss before tax of £395,486 (2021: profit before tax £2,185,108). At 31 December 2022, the Company has shareholders' deficit of £42,036 (2021: shareholders' funds of £1,309,111). The directors have reviewed the future projections of the Company and its subsidiaries and are satisfied that based on future trading results, the Company will continue to generate very strong cash flows. The directors have ensured that the Company will receive adequate financial backing from its subsidiaries should it be required.  On the basis of all of the above, the directors believe that the going concern basis of preparation is appropriate for the financial statements. 

Page 13

 
Obsidian Healthcare Group Limited
 

Notes to the financial statements
For the year ended 31 December 2022

2.Accounting policies (continued)

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP (£).

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.4

Revenue

Revenue arises mainly from management service charges charged to other group companies.

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

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 of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Page 14

 
Obsidian Healthcare Group Limited
 

Notes to the financial statements
For the year ended 31 December 2022

2.Accounting policies (continued)

 
2.5

Operating leases: the Company as lessor

Rental income from operating leases is credited to profit or loss on a straight line basis over the lease term.

Amounts paid and payable as an incentive to sign an operating lease are recognised as a reduction to income over the lease term on a straight line basis, unless another systematic basis is representative of the time pattern over which the lessor's benefit from the leased asset is diminished.

  
2.6

Operating leases: the Company as lessee

Rentals paid under operating leases are recognised in profit or loss on a straight-line basis over the lease term.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of financial position date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Page 15

 
Obsidian Healthcare Group Limited
 

Notes to the financial statements
For the year ended 31 December 2022

2.Accounting policies (continued)


2.9
Current and deferred taxation (continued)

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

 
2.10

 Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Office equipment
-
20%
Computer equipment
-
33%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.11

 Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.
At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

 
2.12

 Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, including transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.13

 Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Page 16

 
Obsidian Healthcare Group Limited
 

Notes to the financial statements
For the year ended 31 December 2022

2.Accounting policies (continued)

 
2.14

 Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, including transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.15

 Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Statement of financial position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of financial position.

 
2.16

 Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

When preparing the financial statements management prepares a number of judgments, estimates and assumptions about recognition and measurement of assets, liabilities, income and expenses.

Useful lives of depreciable assets
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on the number of factors. In re-assessing asset lives, factors such as value assessments consider future market conditions, the remaining life of the asset and projected disposal value.

4.


Turnover

An analysis of turnover by class of business is as follows:


2022
2021
£
£

Management charges
6,645,000
6,951,000

Rental income
8,313
36,379

6,653,313
6,987,379


All turnover arose within the United Kingdom.

Page 17

 
Obsidian Healthcare Group Limited
 
 
Notes to the financial statements
For the year ended 31 December 2022

5.


Operating profit

The operating profit is stated after charging:

2022
2021
£
£

Depreciation of tangible fixed assets
85,312
87,491

Exchange differences
262
182

Auditor's remuneration
25,200
22,000

Rent - non-operating leases
428,586
408,743


6.


Employees

The average monthly number of employees, including the directors, during the year was as follows:


        2022
        2021
            No.
            No.







Management and business services
109
112


7.


Directors' remuneration

2022
2021
£
£

Directors' emoluments
433,356
384,313

Company contributions to defined contribution pension schemes
23,302
28,077

456,658
412,390



8.


Income from investments

2022
2021
£
£



Income from investments in group companies
-
2,100,000



9.


Dividends

2022
2021
£
£


Dividends paid to shareholders
955,000
1,000,000

Page 18

 
Obsidian Healthcare Group Limited
 
 
Notes to the financial statements
For the year ended 31 December 2022

10.


Taxation


2022
2021
£
£

Corporation tax


Current tax on profits for the year
-
30,526

Adjustments in respect of previous periods
661
-


Taxation on profit on ordinary activities
661
30,526

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2021 - lower than) the profit before tax multiplied by the standard rate of corporation tax in the UK of19% (2021 - 19%). The differences are explained below:

2022
2021
£
£


(Loss)/profit on ordinary activities before tax
(395,486)
2,185,108


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021: 19%)
(75,142)
415,171

Effects of:


Capital allowances for year in excess of depreciation
7,923
(347)

Expenses not deductible for tax purposes
9,103
(384,298)

Group loss surrendered
49,972
-

Unrelieved tax losses carried forward
8,144
-

(Over)/under provision in prior years
661
-

Total tax charge for the year
661
30,526


Factors that may affect future tax charges

There are no factors that may affect future tax charges.

Page 19

 
Obsidian Healthcare Group Limited
 
 
Notes to the financial statements
For the year ended 31 December 2022

11.


Tangible fixed assets





Office equipment
Computer equipment
Total

£
£
£



Cost or valuation


At 1 January 2022
253,759
151,149
404,908


Additions
-
28,632
28,632



At 31 December 2022

253,759
179,781
433,540



Depreciation


At 1 January 2022
148,943
90,861
239,804


Charge for the year on owned assets
48,449
36,863
85,312



At 31 December 2022

197,392
127,724
325,116



Net book value



At 31 December 2022
56,367
52,057
108,424



At 31 December 2021
104,816
60,288
165,104


12.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2022
2



At 31 December 2022

2



Net book value



At 31 December 2022
2



At 31 December 2021
2

Page 20

 
Obsidian Healthcare Group Limited
 
 
Notes to the financial statements
For the year ended 31 December 2022

13.


Debtors: Amounts falling due within one year

2022
2021
£
£

Trade debtors
-
7,956

Amounts owed by group undertakings
3,199,999
3,209,368

Other debtors
85,782
94,468

Prepayments and accrued income
107,631
43,898

Corporation tax repayable
13,302
-

3,406,714
3,355,690


All balances are recoverable within one year.
Amounts owed to group undertakings are unsecured, interest free and repayable on demand.


14.


Cash and cash equivalents

2022
2021
£
£


Cash at bank and in hand
184,191
142,011



15.


Creditors: Amounts falling due within one year

2022
2021
£
£

Trade creditors
23,458
69,802

Amounts owed to group undertakings
2,960,690
1,300,000

Corporation tax
-
20,096

Other taxation and social security
552,695
618,462

Other creditors
125,677
81,979

Accruals
74,160
258,670

3,736,680
2,349,009


Amounts owed to group undertakings are unsecured, interest free and repayable on demand.
Glas Trust Corporation Limited holds a fixed and floating charge over the assets of the company.

Page 21

 
Obsidian Healthcare Group Limited
 
 
Notes to the financial statements
For the year ended 31 December 2022

16.


Deferred taxation




2022
2021


£

£






At beginning of year
4,687
4,687

The provision for deferred taxation is made up as follows:
2022
2021
£
£


Accelerated capital allowances
4,687
4,687


17.


Share capital

2022
2021
£
£
Allotted, called up and fully paid



153 A Ordinary shares of £0.01 each
1.53
1.53
90 B Ordinary shares of £0.01 each
0.90
0.90
57 C Ordinary shares of £0.01 each
0.57
0.57

3.00

3.00



18.


Reserves

Profit and loss account

Includes all current and prior period retained profits and losses. 


19.


Commitments under operating leases

At 31 December 2022 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2022
2021
£
£


Not later than 1 year
182,762
400,191

Later than 1 year and not later than 5 years
731,048
731,048

Later than 5 years
319,834
502,596

1,233,644
1,633,835

Rent expense recognised in profit or loss during the year amounted to £428,586 (2021: £408,743).

Page 22

 
Obsidian Healthcare Group Limited
 
 
Notes to the financial statements
For the year ended 31 December 2022

20.


Related party transactions

The Company has availed of the exemptions in FRS102 Section 33, Paragraph 33.1A which allows non-disclosure of transactions between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.


21.


Controlling party

The immediate controlling party is Clanwilliam Investments U.K. Limited, a company incorporated in the United Kingdom.
The smallest and largest consolidated financial statements presented are that of  Clanwilliam Headquarters Limited. They are publicly available from the Companies Registration Office, Bloom House, Gloucester Place Lower, Dublin 1.  
Clanwilliam Headquarters Limited is owned by a UK trust called The Clanwilliam Group Trust. M H Steven Wilson is the sole trustee and is the ultimate controlling party.


22.


Post balance sheet events

There have been no significant events affecting the Company since year end.


Page 23