Company registration number 07071689 (England and Wales)
MEDILINK CONSULTING LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
MEDILINK CONSULTING LTD
COMPANY INFORMATION
Directors
A Marshall
M Levene
D Masterson
Company number
07071689
Registered office
Jupiter House
The Drive
Great Warley
Brentwood
CM13 3BE
Auditor
Hillier Hopkins LLP
Chartered Accountants and Statutory Auditor
249 Silbury Boulevard
Milton Keynes
Bucks
MK9 1NA
Business address
Jupiter House
The Drive
Great Warley
Brentwood
CM13 3BE
MEDILINK CONSULTING LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Statement of income and retained earnings
9
Balance sheet
10
Statement of cash flows
11
Notes to the financial statements
12 - 26
MEDILINK CONSULTING LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -
The directors present the strategic report for the year ended 31 March 2023.
Fair review of the business
The company's key financial and other performance indicators during the year were as follows:
Unit 2023 2022
Turnover £000 20,168 12,882
Gross profit margin % 22.5 24.4
Operating profit £000 274 446
The business is in a stable position and looking to grow further by the introduction of a HR function internally, bringing in junior recruiters and apprentices to lower overall company payroll costs. This will allow the business to future proof itself and increase Gross Profit with the new hires.
Although cash in hand is low at the reporting date, the company uses a debt factoring facility to meet it's working capital requirements. This is included in current bank loans and overdrafts. Total profit reserves in the business have significantly decreased due to the dividends voted to shareholders in the year to 31 March 2023. We do not expect this level of dividend to be repeated in future periods.
If in the future there are cashflow issues, the directors are confident that the business and related group can provide financial support to manage any short-term cashflow shortfalls as the business continues to grow. At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.
Principal risks and uncertainties
The principal risks and uncertainties faced by the company are those faced by many businesses of our size and structure within the recruitment market. The ongoing strike action experienced in the public sector has proved a challenge, but we are working with our clients to ensure we are supporting them through this time of need.
When looking at market trends, there is less demand for certain staffing specialties in the medical industry. By thinking strategically and identifying future market trends, we can engage with the correct candidates to satisfy our clients.
Competition with other recruitment agencies in our sector is something to monitor, to ensure we are not left behind. Solidifying internal process' will improve efficiency and customer service, allowing us the future proof relationships with candidates and clients.
Future developments
The directors do not anticipate any significant changes in the activities of the company in the foreseeable future.
People
The success of the company is largely dependent upon the recruitment and retention of our employees. We have hired a training and development manager, ensuring that our employees are upskilled and continue to generate value. We expect that upskilling our training staff will provide will help them identify new opportunities to generate revenue.
Financial risks
The company finances its activities by way of a factoring facility. Other financial assets and liabilities, such as trade debtors and trade creditors, arise directly from the company's operating activities.
The main financial risks facing the business are the availability of funds to meet business needs and credit risk in respect of customer receivables.
The directors are confident that the banking facilities currently in place are more than adequate for the company’s working capital requirements. The company is not exposed to any significant currency risks. The directors are satisfied that credit risk is adequately managed.
MEDILINK CONSULTING LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
D Masterson
Director
13 March 2024
MEDILINK CONSULTING LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
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 the provision of recruitment services.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £860,806. 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:
A Marshall
M Levene
D Masterson
J Jones
(Resigned 3 July 2023)
F France
(Appointed 26 May 2022 and resigned 30 August 2023)
Auditor
In accordance with the company's articles, a resolution proposing that Hillier Hopkins LLP be reappointed as auditor of the company 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
D Masterson
Director
13 March 2024
MEDILINK CONSULTING LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
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.
MEDILINK CONSULTING LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MEDILINK CONSULTING LTD
- 5 -
Opinion
We have audited the financial statements of Medilink Consulting Ltd (the 'company') for the year ended 31 March 2023 which comprise the statement of income and retained earnings, the balance sheet, 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.
MEDILINK CONSULTING LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MEDILINK CONSULTING LTD
- 6 -
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.
MEDILINK CONSULTING LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MEDILINK CONSULTING LTD
- 7 -
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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
the nature of the industry and sector, control environment and business performance including the remuneration incentives and pressures of key management;
the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. We consider the results of our enquiries of management about their own identification and assessment of the risks of irregularities;
any matters we identified having obtained and reviewed the Company’s documentation of their policies and procedures relating to:
identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. We focused on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act and relevant tax legislation.
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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.
Other matters
The comparative figures in these financial statements are unaudited, due to the prior period financial statement being unaudited, as the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
MEDILINK CONSULTING LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MEDILINK CONSULTING LTD
- 8 -
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.
Alexander Fuller BA(Hons) BFP ACA (Senior Statutory Auditor)
For and on behalf of Hillier Hopkins LLP
14 March 2024
Chartered Accountants
Statutory Auditor
249 Silbury Boulevard
Milton Keynes
Bucks
MK9 1NA
MEDILINK CONSULTING LTD
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
20,168,168
12,882,473
Cost of sales
(15,639,488)
(9,733,889)
Gross profit
4,528,680
3,148,584
Administrative expenses
(4,254,945)
(2,816,291)
Other operating income
113,280
Operating profit
4
273,735
445,573
Interest receivable and similar income
7
5,646
360
Interest payable and similar expenses
8
(174,576)
(61,043)
Profit before taxation
104,805
384,890
Tax on profit
9
(1,782)
(76,204)
Profit for the financial year
103,023
308,686
Retained earnings brought forward
849,168
804,482
Dividends
10
(860,806)
(264,000)
Retained earnings carried forward
91,385
849,168
The profit and loss account has been prepared on the basis that all operations are continuing operations.
The notes on pages 12 to 26 form part of these financial statements.
MEDILINK CONSULTING LTD
BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
11
33,635
Tangible assets
12
722,510
285,050
Investments
13
100
100
756,245
285,150
Current assets
Debtors
15
4,047,841
4,027,707
Cash at bank and in hand
23,812
307,077
4,071,653
4,334,784
Creditors: amounts falling due within one year
16
(3,836,027)
(3,122,852)
Net current assets
235,626
1,211,932
Total assets less current liabilities
991,871
1,497,082
Creditors: amounts falling due after more than one year
17
(763,348)
(593,702)
Provisions for liabilities
Deferred tax liability
20
137,038
54,112
(137,038)
(54,112)
Net assets
91,485
849,268
Capital and reserves
Called up share capital
22
100
100
Profit and loss reserves
91,385
849,168
Total equity
91,485
849,268
The financial statements were approved by the board of directors and authorised for issue on 13 March 2024 and are signed on its behalf by:
D Masterson
Director
Company Registration No. 07071689
MEDILINK CONSULTING LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
26
1,315,254
(946,836)
Interest paid
(16,388)
(8,884)
Income taxes paid
(42,844)
(224,689)
Net cash inflow/(outflow) from operating activities
1,256,022
(1,180,409)
Investing activities
Purchase of intangible assets
(37,120)
Purchase of tangible fixed assets
(601,062)
(147,715)
Proceeds from disposal of subsidiaries
(100)
Interest received
5,646
360
Net cash used in investing activities
(632,536)
(147,455)
Financing activities
Repayment of bank loans
(135,000)
(151,250)
Payment of finance leases obligations
454,747
(5,923)
Loans due from/(repaid to) directors
(72,292)
(27,950)
Interest paid
(158,188)
(52,159)
Dividends paid
(860,806)
(264,000)
Net cash used in financing activities
(771,539)
(501,282)
Net decrease in cash and cash equivalents
(148,053)
(1,829,146)
Cash and cash equivalents at beginning of year
(1,408,535)
420,611
Cash and cash equivalents at end of year
(1,556,588)
(1,408,535)
Relating to:
Cash at bank and in hand
23,812
307,077
Bank overdrafts included in creditors payable within one year
(1,580,400)
(1,715,612)
MEDILINK CONSULTING LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
1
Accounting policies
Company information
Medilink Consulting Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Jupiter House, The Drive, Great Warley, Brentwood, CM13 3BE.
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
The business is in a stable position and looking to grow further by the introduction of a HR function internally, bringing in junior recruiters and apprentices to lower overall company payroll costs. This will allow the business to future proof itself and increase Gross Profit with the new hires.true
Although cash in hand is low at the reporting date, the company uses a debt factoring facility to meet its working capital requirements. This is included in current bank loans and overdrafts. Total profit reserves in the business have significantly decreased due to the dividends voted to shareholders in the year to 31 March 2023. We do not expect this level of dividend to be repeated in future periods.
The company reported net current assets £235,626 at the balance sheet date; this included amounts owed by related parties of £686,543. The directors are of the opinion these related party balances are fully recoverable, and if called upon, can provide financial support to manage any short-term cashflow shortfalls as the business continues to grow. At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from service fee contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
MEDILINK CONSULTING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 13 -
1.4
Intangible fixed assets other than goodwill
Intangible fixed assets other than goodwill are initially measured at cost and subsequently measured at cost or valuation, net of amortisation and any impairment losses.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
3 years straight line
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:
Leasehold improvements
5 years straight line
Fixtures and fittings
4 years straight line
Computers
3 years straight line
Motor vehicles
3 years straight line
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.
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
MEDILINK CONSULTING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 14 -
1.7
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.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
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.
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.
MEDILINK CONSULTING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
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.
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.
MEDILINK CONSULTING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
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.
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
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
MEDILINK CONSULTING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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.
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.
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.
In preparing these financial statements, the directors have not identified any critical accounting judgements or key sources of estimation uncertainty.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Temporary sales
20,084,802
12,848,689
Permanenet sales
83,366
33,784
20,168,168
12,882,473
MEDILINK CONSULTING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
3
Turnover and other revenue
(Continued)
- 18 -
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
20,168,168
12,882,473
2023
2022
£
£
Other revenue
Interest income
5,646
360
Grants received
-
113,280
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
308
(77)
Government grants
-
(113,280)
Fees payable to the company's auditor for the audit of the company's financial statements
25,000
Depreciation of owned tangible fixed assets
53,686
10,361
Depreciation of tangible fixed assets held under finance leases
108,333
40,041
Loss on disposal of tangible fixed assets
1,583
-
Amortisation of intangible assets
3,485
-
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
51
57
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
2,687,041
1,917,161
Social security costs
333,099
218,287
Pension costs
23,783
16,472
3,043,923
2,151,920
MEDILINK CONSULTING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 19 -
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
836,887
265,976
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
324,818
91,569
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
5,646
360
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
27,514
16,617
Interest on invoice finance arrangements
89,487
28,675
117,001
45,292
Other finance costs:
Interest on finance leases and hire purchase contracts
41,187
6,867
Other interest
16,388
8,884
174,576
61,043
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
40,045
Adjustments in respect of prior periods
(42,344)
Total current tax
(42,344)
40,045
Deferred tax
Origination and reversal of timing differences
44,126
36,159
Total tax charge
1,782
76,204
MEDILINK CONSULTING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
9
Taxation
(Continued)
- 20 -
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
104,805
384,890
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
19,913
73,129
Tax effect of expenses that are not deductible in determining taxable profit
16,082
6,606
Unutilised tax losses carried forward
38,641
Capital allowances in excess of depreciation
(117,440)
(37,439)
Deferred tax movement
44,126
76,204
Loss on disposal of fixed assets
301
Temporary timing differences
159
48
Losses carried back
(42,344)
Taxation charge for the year
1,782
76,204
10
Dividends
2023
2022
£
£
Paid in year
860,806
264,000
11
Intangible fixed assets
Software
£
Cost
At 1 April 2022
Additions
37,120
At 31 March 2023
37,120
Amortisation and impairment
At 1 April 2022
Amortisation charged for the year
3,485
At 31 March 2023
3,485
Carrying amount
At 31 March 2023
33,635
At 31 March 2022
MEDILINK CONSULTING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
12
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2022
127,768
16,936
27,824
196,058
368,586
Additions
462,686
5,579
132,797
601,062
Disposals
(26,695)
(26,695)
At 31 March 2023
563,759
22,515
160,621
196,058
942,953
Depreciation and impairment
At 1 April 2022
25,112
3,273
14,732
40,419
83,536
Depreciation charged in the year
70,848
5,283
20,536
65,352
162,019
Eliminated in respect of disposals
(25,112)
(25,112)
At 31 March 2023
70,848
8,556
35,268
105,771
220,443
Carrying amount
At 31 March 2023
492,911
13,959
125,353
90,287
722,510
At 31 March 2022
102,656
13,663
13,092
155,639
285,050
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2023
2022
£
£
Motor vehicles
89,955
154,962
Computers
38,032
Leasehole improvements
396,524
-
524,511
154,962
13
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
14
100
100
14
Subsidiaries
Details of the company's subsidiaries at 31 March 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
MLCG Ltd
UK
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
MEDILINK CONSULTING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
14
Subsidiaries
(Continued)
- 22 -
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
MLCG Ltd
100
15
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,465,225
2,325,685
Corporation tax recoverable
62,473
Amounts owed by group undertakings
468,796
403,127
Other debtors
406,069
1,036,924
Prepayments and accrued income
606,478
261,971
4,009,041
4,027,707
Deferred tax asset (note 20)
38,800
4,047,841
4,027,707
16
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
18
1,715,400
1,828,112
Obligations under finance leases
19
145,750
18,149
Trade creditors
186,842
352,115
Corporation tax
20,129
42,844
Other taxation and social security
891,392
429,144
Other creditors
196,879
191,078
Accruals and deferred income
679,635
261,410
3,836,027
3,122,852
Invoice discounting facilities are secured by way of a fixed and floating charge over the company and shareholder, owned now or in the future.
17
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
18
303,750
461,250
Obligations under finance leases
19
459,598
132,452
763,348
593,702
MEDILINK CONSULTING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
18
Loans and overdrafts
2023
2022
£
£
Bank loans
438,750
573,750
Debt factoring account
1,580,400
1,715,612
2,019,150
2,289,362
Payable within one year
1,715,400
1,828,112
Payable after one year
303,750
461,250
The long-term loans are secured by fixed charges over the company and shareholder, owned now or in the future.
19
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
145,750
150,601
In two to five years
459,598
605,348
150,601
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is between 3 and 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Balances:
£
£
£
£
Accelerated capital allowances
137,038
54,112
-
-
Tax losses
-
-
38,641
-
Timing differences
-
-
159
-
137,038
54,112
38,800
-
MEDILINK CONSULTING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
20
Deferred taxation
(Continued)
- 24 -
2023
Movements in the year:
£
Liability at 1 April 2022
54,112
Charge to profit or loss
44,126
Liability at 31 March 2023
98,238
The deferred tax asset set out above is expected to reverse within three years and relates to the utilisation of tax losses against future expected profits of the same period. The deferred tax liability set out above is expected to reverse within three years and relates to accelerated capital allowances that are expected to mature within the same period.
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
23,783
16,472
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 within independently administered funds.
22
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 1p each
-
10,000
-
100
Ordinary A of 1p each
8,500
-
85
-
Ordinary B of 1p each
924
-
9
-
Ordinary C of 1p each
576
-
6
-
10,000
10,000
100
100
In the year to 31 March 2023, Medilink Consulting undertook a change in share structure. The 10,000 1p Ordinary shares were replaced by alphabet shares, with the same aggregative value.
These alphabet shares rank pari-passu.
MEDILINK CONSULTING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 25 -
23
Operating lease commitments
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
206,495
89,925
Between two and five years
789,955
158,493
966,450
248,418
24
Related party transactions
At the reporting date, the company was owed £217,747 (2022: £975,266) by the shareholders.
At the reporting date, the company was owed £100,242 (2022: £27,950) by key management personnel.
At the reporting date, the company was owed £468,796 (2022: £403,127) by its fellow group.
The remuneration and dividends paid to the shareholders is as follows
MBA Raja - Shareholder
Remuneration: £15,299
BIK: £2,216
Dividends: £350,813
MSA Raja - Ultimate controlling party
Remuneration: £36,478
BIK: £4,458
Mehdi Holdings Ltd - Parent company
Dividends: £509,993
25
Ultimate controlling party
The company was controlled throughout the year by Mehdi Holdings Limited, the parent company.
The parent company address is PO Box 501, The Nexus Building, Broadway, Letchworth Garden City, SG6 9BL. Consolidated financial statements for Mehdi Holdings Ltd can be found on Company's House.
The company is exempt from the requirement to produce consolidated accounts on the grounds it is consolidated by its parent.
The ultimate controlling party was MSA Raja, shareholder.
MEDILINK CONSULTING LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 26 -
26
Cash generated from/(absorbed by) operations
2023
2022
£
£
Profit for the year after tax
103,023
308,686
Adjustments for:
Taxation charged
1,782
76,204
Finance costs
174,576
61,043
Investment income
(5,646)
(360)
Loss on disposal of tangible fixed assets
1,583
-
Amortisation and impairment of intangible assets
3,485
Depreciation and impairment of tangible fixed assets
162,019
50,402
Movements in working capital:
Decrease/(increase) in debtors
153,431
(1,912,220)
Increase in creditors
721,001
469,409
Cash generated from/(absorbed by) operations
1,315,254
(946,836)
27
Analysis of changes in net debt
1 April 2022
Cash flows
New finance leases
31 March 2023
£
£
£
£
Cash at bank and in hand
307,077
(283,265)
-
23,812
Bank overdrafts
(1,715,612)
135,212
-
(1,580,400)
(1,408,535)
(148,053)
-
(1,556,588)
Borrowings excluding overdrafts
(573,750)
135,000
-
(438,750)
Obligations under finance leases
(150,601)
46,235
(500,982)
(605,348)
(2,132,886)
33,182
(500,982)
(2,600,686)
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