Company registration number 07474135 (England and Wales)
NATIONWIDE HEALTHCARE PROVIDERS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
NATIONWIDE HEALTHCARE PROVIDERS LIMITED
COMPANY INFORMATION
Directors
Dr. J Ahmad
Dr. A K Alfredsson
Dr. M C Hallen
Company number
07474135
Registered office
New Brook House
385 Alfreton Road
Nottingham
United Kingdom
NG7 5LR
Auditor
Azets Audit Services
2 Regan Way
Chetwynd Business Park
Chilwell
Nottingham
United Kingdom
NG9 6RZ
NATIONWIDE HEALTHCARE PROVIDERS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 25
NATIONWIDE HEALTHCARE PROVIDERS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -
The directors present the strategic report for the year ended 31 March 2023.
Review of the business
The directors are pleased with the results for the year and are satisfied with the position at Year End. The business has generated steady and predictable profits in the financial year and continued to invest in additional surgeries and has created additional jobs.
Principal risks and uncertainties
The Directors consider the biggest threat to the business are changes in recruitment resulting from Brexit over the next few years. These changes could impact on the quantum of delivery of dental services.
Key performance indicators
The company assessed performance of the business using the following financial key performance indicators; turnover, gross profit, profit before tax, cash and net assets. All of this information can be obtained from the financial statements.
Future developments
Due to the success of the vaccine roll-out, the Directors are confident that the demand for high quality dental services will continue and they are confident that they are well placed to deliver this service.
Other information and explanations
In assessing the appropriateness of the going concern assumption, the Directors have reviewed detailed cash flow forecasts, considering all reasonably foreseeable potential scenarios and material uncertainties in relation to income and costs. Based on these cash flow forecasts the company can meet its liabilities as they fall due and the Directors have therefore concluded that the impact of the pandemic does not create a material uncertainty, and it is appropriate for the financial statements to be prepared on the going concern basis.
Dr. J Ahmad
Director
17 November 2023
NATIONWIDE HEALTHCARE PROVIDERS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
The directors present their annual report and financial statements for the year ended 31 March 2023.
Principal activities
The principal activity of the company continued to be that of dental practice services.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Dr. J Ahmad
Dr. A K Alfredsson
Dr. M C Hallen
Dr. M A Persson
(Resigned 17 November 2022)
Dr Bilal Shiekh
(Appointed 17 November 2022 and resigned 10 March 2023)
Dr Usthman Shiekh
(Appointed 17 November 2022 and resigned 10 March 2023)
Auditor
Azets Audit Services were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Dr. J Ahmad
Director
17 November 2023
NATIONWIDE HEALTHCARE PROVIDERS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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.
NATIONWIDE HEALTHCARE PROVIDERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NATIONWIDE HEALTHCARE PROVIDERS LIMITED
- 4 -
Opinion
We have audited the financial statements of Nationwide Healthcare Providers Limited (the 'company') for the year ended 31 March 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 March 2023 and of its profit for the year 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
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.
NATIONWIDE HEALTHCARE PROVIDERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NATIONWIDE HEALTHCARE PROVIDERS LIMITED
- 5 -
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 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 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 directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
NATIONWIDE HEALTHCARE PROVIDERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NATIONWIDE HEALTHCARE PROVIDERS LIMITED
- 6 -
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 and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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.
Mr Stephen Anthony Harcourt FCCA
Senior Statutory Auditor
For and on behalf of Azets Audit Services
22 November 2023
Chartered Accountants
Statutory Auditor
2 Regan Way
Chetwynd Business Park
Chilwell
Nottingham
United Kingdom
NG9 6RZ
NATIONWIDE HEALTHCARE PROVIDERS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
18,521,157
17,473,437
Cost of sales
(8,341,142)
(7,468,608)
Gross profit
10,180,015
10,004,829
Administrative expenses
(5,847,652)
(5,224,858)
Other operating income
11,900
40,786
Operating profit
4
4,344,263
4,820,757
Interest receivable and similar income
8
43,471
18,124
Interest payable and similar expenses
7
(94,094)
(22,604)
Profit before taxation
4,293,640
4,816,277
Tax on profit
9
(826,925)
(972,813)
Profit for the financial year
3,466,715
3,843,464
The profit and loss account has been prepared on the basis that all operations are continuing operations.
NATIONWIDE HEALTHCARE PROVIDERS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
2023
2022
£
£
Profit for the year
3,466,715
3,843,464
Other comprehensive income
-
-
Total comprehensive income for the year
3,466,715
3,843,464
NATIONWIDE HEALTHCARE PROVIDERS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
5,174,182
4,946,021
Current assets
Stocks
12
75,000
75,000
Debtors
13
21,488,918
20,906,394
Cash at bank and in hand
2,362,862
766,651
23,926,780
21,748,045
Creditors: amounts falling due within one year
14
(4,447,705)
(5,314,079)
Net current assets
19,479,075
16,433,966
Total assets less current liabilities
24,653,257
21,379,987
Creditors: amounts falling due after more than one year
15
(1,913,521)
(2,085,000)
Provisions for liabilities
Deferred tax liability
17
153,553
175,519
(153,553)
(175,519)
Net assets
22,586,183
19,119,468
Capital and reserves
Called up share capital
19
10,000,000
10,000,000
Profit and loss reserves
12,586,183
9,119,468
Total equity
22,586,183
19,119,468
The financial statements were approved by the board of directors and authorised for issue on 17 November 2023 and are signed on its behalf by:
Dr. J Ahmad
Director
Company Registration No. 07474135
NATIONWIDE HEALTHCARE PROVIDERS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2021
10,000,000
5,276,004
15,276,004
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
3,843,464
3,843,464
Balance at 31 March 2022
10,000,000
9,119,468
19,119,468
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
3,466,715
3,466,715
Balance at 31 March 2023
10,000,000
12,586,183
22,586,183
NATIONWIDE HEALTHCARE PROVIDERS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
3,395,135
757,572
Interest paid
(94,094)
(22,604)
Income taxes paid
(1,103,750)
(330,302)
Net cash inflow from operating activities
2,197,291
404,666
Investing activities
Purchase of tangible fixed assets
(484,826)
(3,414,362)
Proceeds on disposal of tangible fixed assets
7,650
Interest received
43,471
18,124
Net cash used in investing activities
(441,355)
(3,388,588)
Financing activities
Repayment of bank loans
(159,725)
(184,325)
Net cash used in financing activities
(159,725)
(184,325)
Net increase/(decrease) in cash and cash equivalents
1,596,211
(3,168,247)
Cash and cash equivalents at beginning of year
766,651
(685,729)
Cash and cash equivalents at end of year
2,362,862
766,651
NATIONWIDE HEALTHCARE PROVIDERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
1
Accounting policies
Company information
Nationwide Healthcare Providers Limited is a private company limited by shares incorporated in England and Wales. The registered office is New Brook House, 385 Alfreton Road, Nottingham, United Kingdom, NG7 5LR.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
In assessing the appropriateness of the going concern assumption, the Directors have reviewed detailed cash flow forecasts, considering all reasonably foreseeable potential scenarios and material uncertainties in relation to income and costs. Based on these cash flow forecasts the company can meet its liabilities as they fall due, and it is appropriate for the financial statements to be prepared on the going concern basis.true
1.3
Turnover
Revenue comprises revenue recognised by the company in respect of dental services provided in the period and is recognised at the point the service is supplied
Interest income is recognised in the Statement of comprehensive income using the effective interest method.
1.4
Intangible fixed assets - goodwill
Goodwill is the difference between amounts paid on the acquisitions of a business and the fair value of the identifiable assets and liabilities. It is amortised to the profit and loss account overs its estimated economic life of 10 years.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
Straight line over 50 years
Dental equipment
15% reducing balance
Fixtures and fittings
15% reducing balance
Computers
25% reducing balance
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
NATIONWIDE HEALTHCARE PROVIDERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 13 -
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
NATIONWIDE HEALTHCARE PROVIDERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 14 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
NATIONWIDE HEALTHCARE PROVIDERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
NATIONWIDE HEALTHCARE PROVIDERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
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 the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.15
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
The only government grants received in the year were in respect of furlough monies received under the Corornavirus Job Retention Scheme.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
NATIONWIDE HEALTHCARE PROVIDERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 17 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Useful lives of tangible fixed assets
Depreciation is provided so as to write down the assets to their residual values over their estimated useful lives as set out in the company's accounting policy. The selection of these estimated lives requires the exercise of management judgement. Useful lives are regularly reviewed and should management's assessment of useful lives shorten then depreciation charges in the financial statements would increase and carrying amounts of property, plant and equipment would reduce accordingly.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Impairment of tangible fixed assets
The directors have determined whether there are indicators of impairment of the company's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.
3
Turnover and other revenue
All turnover arose within the United Kingdom.
2023
2022
£
£
Other significant revenue
Interest income
43,471
18,124
Grants received SSP and apprenticeship schemes
10,500
38,645
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(10,500)
(38,645)
Fees payable to the company's auditor for the audit of the company's financial statements
13,200
13,860
Depreciation of owned tangible fixed assets
256,665
274,657
Profit on disposal of tangible fixed assets
-
(3,237)
Operating lease charges
486,663
355,040
NATIONWIDE HEALTHCARE PROVIDERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
5
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
77,798
50,266
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Dental services & administration
216
206
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
3,633,547
3,382,496
Social security costs
197,669
182,492
Pension costs
71,693
58,628
3,902,909
3,623,616
7
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
86,804
21,863
Other finance costs:
Other interest
7,290
741
94,094
22,604
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
141
Interest receivable from related parties
43,471
17,983
Total income
43,471
18,124
NATIONWIDE HEALTHCARE PROVIDERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 19 -
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
848,891
913,751
Adjustments in respect of prior periods
(1,209)
Total current tax
848,891
912,542
Deferred tax
Origination and reversal of timing differences
(21,966)
61,570
Adjustment in respect of prior periods
(1,299)
Total deferred tax
(21,966)
60,271
Total tax charge
826,925
972,813
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
4,293,640
4,816,277
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
815,792
915,093
Tax effect of expenses that are not deductible in determining taxable profit
18,078
18,104
Adjustments in respect of prior years
(5,272)
(2,508)
Effect of change in corporation tax rate
42,124
Effect of Super deduction claims
(1,673)
Taxation charge for the year
826,925
972,813
10
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2022 and 31 March 2023
19,522,262
Amortisation and impairment
At 1 April 2022 and 31 March 2023
19,522,262
Carrying amount
At 31 March 2023
At 31 March 2022
NATIONWIDE HEALTHCARE PROVIDERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 20 -
11
Tangible fixed assets
Freehold land and buildings
Dental equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2022
4,068,103
1,297,474
515,146
188,862
191,306
6,260,891
Additions
395,079
24,600
46,018
19,129
484,826
At 31 March 2023
4,463,182
1,322,074
561,164
207,991
191,306
6,745,717
Depreciation and impairment
At 1 April 2022
100,815
571,487
393,589
102,659
146,320
1,314,870
Depreciation charged in the year
81,362
112,588
25,136
26,333
11,246
256,665
At 31 March 2023
182,177
684,075
418,725
128,992
157,566
1,571,535
Carrying amount
At 31 March 2023
4,281,005
637,999
142,439
78,999
33,740
5,174,182
At 31 March 2022
3,967,288
725,987
121,557
86,203
44,986
4,946,021
12
Stocks
2023
2022
£
£
Raw materials and consumables
75,000
75,000
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,114,446
1,054,247
Corporation tax recoverable
15,480
15,480
Other debtors
20,127,119
19,568,541
Prepayments and accrued income
231,873
268,126
21,488,918
20,906,394
Included within debtors are amounts due after 1 year of £1,007,656 (2022: £1,068,777).
NATIONWIDE HEALTHCARE PROVIDERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
16
192,185
180,431
Trade creditors
966,576
915,517
Corporation tax
448,892
703,751
Other taxation and social security
43,094
82,977
Other creditors
2,742,230
3,355,543
Accruals and deferred income
54,728
75,860
4,447,705
5,314,079
The bank loans are secured via a fixed and floating guarantee over all assets of the business.
Bank overdrafts are secured by way of a personal guarantee from Dr J Ahmad, a director.
15
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
16
1,913,521
2,085,000
The bank loans are secured via a fixed and floating guarantee over all assets of the business.
Included within bank loans and overdrafts is a loan for £1,000,000 which is secured by way of a debenture granted by the company and a guarantee by Hyson Green Limited with 1st legal charge of two of its properties. Dr J Ahmad, the director is also director and shareholder of Hyson Green Limited.
There is also personal guarantees given on this loan by Dr J Ahmad, by way of 1st legal charge over his properties and a personal guarantee given by Dr M Shiekh, by way of 1st legal charge of over properties. Dr M Shiekh is a self employed consultant for Nationwide Healthcare Providers Limited
Amounts included above which fall due after five years are as follows:
Payable by instalments
1,343,500
1,481,448
16
Loans and overdrafts
2023
2022
£
£
Bank loans
2,105,706
2,265,431
Payable within one year
192,185
180,431
Payable after one year
1,913,521
2,085,000
NATIONWIDE HEALTHCARE PROVIDERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
16
Loans and overdrafts
(Continued)
- 22 -
The bank has a fixed and floating guarantee over all assets of the business.
Included within other loans is a loan of £450,000 on which interest is charged at a rate of 2.04% above base rate and will be charged going forward.
Included within bank loans is a loan of £1,450,000, repayable by instalments, on which interest is charged at a rate of 2.24% above base rate and will be charged going forward.
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
164,707
182,013
Short term timing differences
(11,154)
(6,494)
153,553
175,519
18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
71,693
58,628
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
10,000,000
10,000,000
10,000,000
10,000,000
NATIONWIDE HEALTHCARE PROVIDERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
20
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
321,948
321,948
Between two and five years
697,554
1,019,502
1,019,502
1,341,450
21
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
During the year the company rented properties from R Ahmed and family, a related party, at a cost of £355,039 (2022; £486,663).
During the year the company paid Dr M C Hallen, a director, a total of £104,004 (2022: £103,410) for the provision of clinical services as a self-employed Dental Associate. At the year end a balance of £18,339 (2022: £14,468) was owed to Dr M C Halle.
During the year the company paid Dr A K V Alfredsson, a director, a total of £111,565 (2022: £115,158) for the provision of clinical services as a self-employed Dental Associate. At the year end a balance of £19,297 (2022: £14,963) was owed to Dr A K V Alfredsson.
Included within other loans due within one year is a balance of £154,316 (2022: £1,401,450) provided by Dr J Ahmad, a director. No interest is charged on this balance.
The following amounts were outstanding at the reporting end date:
NATIONWIDE HEALTHCARE PROVIDERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
21
Related party transactions
(Continued)
- 24 -
Included within other debtors due within one year is a balance of £5,329,000 (2022: £5,304,000) owed by The Players Property Company Limited, a company in which Dr J Ahmad is also a director. No interest is charged on this balance.
Also included within other debtors due within one year is a balance of £8,230,942 (2022: £7,980.727) owed by Hyson Green Limited, a company in which Dr J Ahmad is also a director. No interest is charged on this balance.
Also included within other debtors due within one year is a balance of £1,951,954 (2022: £1,647,517) owed by Hyson Green Developments Limited, a company in which Dr J Ahmad is also a director. No interest is charged on this balance.
Also included within other debtors due within one year is a balance of £3,086,510 (2022: £3,094,5499) owed by The Medina Family Limited, a company in which Dr J Ahmad is also a director. No interest is charged on this balance.
Also included within other debtors due within one year is a balance of £80,000 (2022: £270,288) owed by Hyson Green Lettings Limited, a company in which Dr J Ahmad is also a director. No interest is charged on this balance.
Included within other creditors is a balance of £942,534 (2022: £950,835) owed to The Student Lodge Studio Lettings Company Limited, a company in which Dr J Ahmad is also a director.
An unsecured loan was advanced to Hyson Green Limited, a company under common control, for £1,450,000 in August 2016. the loan is repayable by installments and interest is charged at 2.24% above base rate. the balance at the year end was £1,007,656 (2022: £1,134,556). Interest income of £43,471 (2022: £17,983) has been recognised in respect of this loan.
22
Ultimate controlling party
Dr J Ahmad is the company's controlling party by virtue of his directorship and shareholding.
23
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
3,466,715
3,843,464
Adjustments for:
Taxation charged
826,925
972,813
Finance costs
94,094
22,604
Investment income
(43,471)
(18,124)
Gain on disposal of tangible fixed assets
-
(3,237)
Depreciation and impairment of tangible fixed assets
256,665
274,657
Movements in working capital:
Increase in debtors
(582,524)
(2,397,344)
(Decrease)/increase in creditors
(623,269)
1,028,363
Cash generated from operations
3,395,135
3,723,196
NATIONWIDE HEALTHCARE PROVIDERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 25 -
24
Analysis of changes in net funds/(debt)
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
766,651
1,596,211
2,362,862
Borrowings excluding overdrafts
(2,265,431)
159,725
(2,105,706)
(1,498,780)
1,755,936
257,156
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