REGISTERED NUMBER: NI039068 (Northern Ireland) |
Group Strategic Report, |
Report of the Directors and |
Audited |
Consolidated Financial Statements |
for the Year Ended 31 January 2023 |
for |
DIRECT MEDICS LTD |
REGISTERED NUMBER: NI039068 (Northern Ireland) |
Group Strategic Report, |
Report of the Directors and |
Audited |
Consolidated Financial Statements |
for the Year Ended 31 January 2023 |
for |
DIRECT MEDICS LTD |
DIRECT MEDICS LTD (REGISTERED NUMBER: NI039068) |
Contents of the Consolidated Financial Statements |
FOR THE YEAR ENDED 31 JANUARY 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Company Cash Flow Statement | 17 |
Notes to the Cash Flow Statements | 18 |
Notes to the Consolidated Financial Statements | 20 |
DIRECT MEDICS LTD |
Company Information |
FOR THE YEAR ENDED 31 JANUARY 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
INDEPENDENT AUDITORS: |
Chartered Accountants |
Statutory Auditors |
Rathmore House |
52 St Patricks Avenue |
Downpatrick |
Co. Down |
BT30 6DS |
SOLICITORS: |
Northern Court |
16-18 Gloucester Street |
Belfast |
Northern Ireland |
BT1 4LS |
DIRECT MEDICS LTD (REGISTERED NUMBER: NI039068) |
Group Strategic Report |
FOR THE YEAR ENDED 31 JANUARY 2023 |
The directors present their strategic report of the company and the group for the year ended 31 January 2023. |
REVIEW OF BUSINESS |
The groups turnover increased by almost £9.2m when compared to the previous period. The gross profit margin was 11.8% (2022 : 10.5%). Total overheads increased from £3.9m in 2022 to £5.2m in 2023. The group made a profit after tax of £2,881,878 for the year ended 31 January 2023, compared to a profit of £2,260,316 for the previous year ended 31 January 2022. |
The group balance sheet remains strong with closing net assets of £10.2m compared to £7.3m in 2022. No dividends were awarded in the current year. The group has secure banking facilities and its cash flows from operations have historically been positive. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The group does not have significant exposure to business risks. The only business risks are financial risks. In the course of business the group has exposure to normal levels of risk on exchange rates, interest rates, credit transactions and liquidity. The board reviews and agrees policies for prudent management of these risks as follows: |
- Currency risk : the group's objective in relation to currency risk is to minimise the exposure to foreign exchange losses. Only one of the companies within the group trades in foreign currency and this is Euro denominated. As such currency risk is low and not significant to the performance of the group. |
- Finance and interest rate risk : the group's objective in relation to interest rate management is to minimise the impact of interest rate volatility on interest costs. In the current low interest rate environment the board considers that its current interest rate position is appropriate but this will continue to be reviewed and reassessed. |
- Liquidity and cash flow risk : the group's objective in relation to liquidity and cash flow management is to ensure that it has ready access to credit lines, significant headroom on its bank facilities and short term cash deposit arrangements. |
- Credit risk : the group has no significant concentrations of credit risk. Customers who wish to trade on credit terms are subject to strict verification procedures in advance of credit being granted and the balances owed and continually monitored. |
Group performance is monitored by KPIs relating to turnover growth, gross profitability and net profitability. |
DIRECT MEDICS LTD (REGISTERED NUMBER: NI039068) |
Group Strategic Report |
FOR THE YEAR ENDED 31 JANUARY 2023 |
SECTION 172(1) STATEMENT |
The Directors have acted in a way that they considered, in good faith, to be most likely to promote the success of the group for the benefit of its members as a whole, and in doing s had regard, amongst other matters, to: |
a) the likely consequence of any decision in the long term; |
b) the interest of the group's employees; |
c) the need to foster the groups business relationships with suppliers, customers and others; |
d) the impact of the groups operations on the community and the environment; |
e) the desirability of the group maintaining a reputation for high standards of business conduct; and |
f) the need to act fairly as between members of the group. |
The Directors have had regard to the matters set out in sections 172(1)(a)-(f) when discharging their Section 172 duties. |
The board are the custodians of the group, with a responsibility to create and sustain long-term value for shareholders and stakeholders by directing the affairs of the group and meeting its legitimate interests. Under this guiding principle, the board are committed to ensuring that our group values of customer-focus, high quality experience for our employees, trustworthiness and expertise are upheld at all times, thereby maintaining our competitive advantage and protecting the long-term value. In fulfilling the board's principle responsibility, our business strategy is reviewed on an ongoing basis and annual business operating plans are reviewed and approved by the board to ensure alignment with the vision, aims and objectives of the group. |
ON BEHALF OF THE BOARD: |
DIRECT MEDICS LTD (REGISTERED NUMBER: NI039068) |
Report of the Directors |
FOR THE YEAR ENDED 31 JANUARY 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 January 2023. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 January 2023. |
FUTURE DEVELOPMENTS |
The Directors are working to consolidate market share in Northern Ireland whilst increasing engagement with locums and healthcare providers in the rest of the UK and in Ireland. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 February 2022 to the date of this report. |
EMPLOYMENT OF DISABLED PERSONS |
Applications for employment by disabled persons are always fully considered, bearing in mind the respective aptitude and abilities of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment with the group continues and an appropriate working environment is provided. It is the policy of the group that the training, career development and promotion of a disabled person should, as far as possible, be identical to that of a person who is not impacted by a disability. |
ENGAGEMENT WITH EMPLOYEES |
The board understands the importance of our employees to the long-term success and sustainability of the group. The group has implemented a policy of remote and flexible working for administrative staff with training provided to all medical staff during on-boarding and periodically thereafter. |
Consultation with employees has continued at all levels with the aim of ensuring that views are taken into account when decisions are made that are likely to affect their interests. Regular meetings are held between local management and employees to allow a free flow of information and ideas. |
ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS |
The board understands that the impact of our operations is measured not just in the quality of the experience of our adminstative and medical staff, but in the longer-term impact on the healthcare sector throughout the UK and Ireland. The board are cognisant of the effect our operations have on healthcare professionals and the organisations with whom they work and we aim to make a positive contribution to the wider medical community through the use, where possible, of local labour and supply-chain partners. The board believes that working in partnership with customers, suppliers, subcontractors and other partners in a more sustainable way enables us to improve the quality of the recruitment process and make meaningful changes to our operational processes which will deliver greater efficiency and value. |
STREAMLINED ENERGY AND CARBON REPORTING |
As the group has not consumed more than 40,000kWh of energy in this reporting period, it qualified as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities. |
DIRECT MEDICS LTD (REGISTERED NUMBER: NI039068) |
Report of the Directors |
FOR THE YEAR ENDED 31 JANUARY 2023 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group 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; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, M.B.Mc Grady & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Direct Medics Ltd |
Opinion |
We have audited the financial statements of Direct Medics Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement, Company Cash Flow Statement and Notes to the Cash Flow Statements, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 January 2023 and of the group's 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. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Report of the Independent Auditors to the Members of |
Direct Medics Ltd |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Direct Medics Ltd |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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. In assessing and detecting irregularities such as fraud and non-compliance with laws and regulations we considered the following: |
- the matters discussed among the audit engagement team and any other relevant professionals regarding how and where fraud might occur in the financial statements and any potential indicators of fraud; |
- the nature of the industry and any laws and regulations applicable to the company and the industry; |
- the company's own assessment of the risk of fraud and other irregularities; |
- the company's policies and procedures in relation to: |
- how they identify and comply with all relevant laws and regulations and whether they are aware of |
any non-compliance; |
- how they detect and respond to risks of fraud and their knowledge of any actual, suspected or |
alleged fraud; and |
- the control environment within the company and how this mitigates risks of fraud and instances of |
non-compliance with laws and regulations. |
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 relation to misappropriation of assets. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. |
In response to the risk of material misstatement through irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- ensuring the engagement team had the appropriate knowledge and expertise in order to be able to identify and recognise any instances of fraud or non-compliance with laws and regulations; |
- we identified the laws and regulations applicable to the company through discussions with directors and management and from our knowledge and experience of the sector; and |
- ensuring the audit was carried out with a level of professional scepticism. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- enquiring of management concerns of actual and potential litigation and claims; |
- agreeing the financial statement disclosures to underlying supporting documentation to assess compliance with relevant laws and regulations; and |
- reviewing correspondence with HMRC and other relevant regulators and the company's legal advisors. |
To address the risk of fraud through management bias and override of controls, we: |
- perform analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- test the appropriateness of journal entries and other adjustments; |
- assess whether the judgements made in making accounting estimates are indicative of a potential bias; and |
Report of the Independent Auditors to the Members of |
Direct Medics Ltd |
- evaluate the business rationale of any significant transactions that are unusual or outside the normal course of business. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and significant component audit teams, and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
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 Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants |
Statutory Auditors |
Rathmore House |
52 St Patricks Avenue |
Downpatrick |
Co. Down |
BT30 6DS |
DIRECT MEDICS LTD (REGISTERED NUMBER: NI039068) |
Consolidated Income Statement |
FOR THE YEAR ENDED 31 JANUARY 2023 |
31/1/23 | 31/1/22 |
Notes | £ | £ |
TURNOVER | 73,495,322 | 64,297,334 |
Cost of sales | (64,804,335 | ) | (57,575,646 | ) |
GROSS PROFIT | 8,690,987 | 6,721,688 |
Administrative expenses | (5,207,473 | ) | (3,940,316 | ) |
3,483,514 | 2,781,372 |
Other operating income | 62,909 | 22,649 |
OPERATING PROFIT | 4 | 3,546,423 | 2,804,021 |
Interest receivable and similar income | 5,951 | 476 |
3,552,374 | 2,804,497 |
Interest payable and similar expenses | 5 | (18,525 | ) | (15,478 | ) |
PROFIT BEFORE TAXATION | 3,533,849 | 2,789,019 |
Tax on profit | 6 | (651,971 | ) | (528,704 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 2,881,878 | 2,260,315 |
DIRECT MEDICS LTD (REGISTERED NUMBER: NI039068) |
Consolidated Other Comprehensive Income |
FOR THE YEAR ENDED 31 JANUARY 2023 |
31/1/23 | 31/1/22 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 2,881,878 | 2,260,315 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
2,881,878 |
2,260,315 |
Total comprehensive income attributable to: |
Owners of the parent | 2,881,878 | 2,260,315 |
DIRECT MEDICS LTD (REGISTERED NUMBER: NI039068) |
Consolidated Balance Sheet |
31 JANUARY 2023 |
31/1/23 | 31/1/22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 | 446,778 | 403,011 |
Investments | 10 | - | - |
446,778 | 403,011 |
CURRENT ASSETS |
Debtors | 11 | 19,007,696 | 17,274,077 |
Cash at bank and in hand | 688,239 | 224,343 |
19,695,935 | 17,498,420 |
CREDITORS |
Amounts falling due within one year | 12 | 9,942,366 | 10,582,962 |
NET CURRENT ASSETS | 9,753,569 | 6,915,458 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
10,200,347 |
7,318,469 |
CAPITAL AND RESERVES |
Called up share capital | 13 | 2 | 2 |
Retained earnings | 14 | 10,200,345 | 7,318,467 |
SHAREHOLDERS' FUNDS | 10,200,347 | 7,318,469 |
The financial statements were approved by the Board of Directors and authorised for issue on 5 April 2024 and were signed on its behalf by: |
P O Mulvenna - Director |
Ms A Flannery - Director |
DIRECT MEDICS LTD (REGISTERED NUMBER: NI039068) |
Company Balance Sheet |
31 JANUARY 2023 |
31/1/23 | 31/1/22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Debtors | 11 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 13 |
Retained earnings | 14 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 2,679,534 | 2,076,087 |
The financial statements were approved by the Board of Directors and authorised for issue on |
DIRECT MEDICS LTD (REGISTERED NUMBER: NI039068) |
Consolidated Statement of Changes in Equity |
FOR THE YEAR ENDED 31 JANUARY 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 February 2021 | 2 | 7,270,246 | 7,270,248 |
Changes in equity |
Dividends | - | (2,240,000 | ) | (2,240,000 | ) |
Total comprehensive income | - | 2,260,315 | 2,260,315 |
Reserves on acquisition | - | 27,906 | 27,906 |
Balance at 31 January 2022 | 2 | 7,318,467 | 7,318,469 |
Changes in equity |
Total comprehensive income | - | 2,881,878 | 2,881,878 |
Balance at 31 January 2023 | 2 | 10,200,345 | 10,200,347 |
DIRECT MEDICS LTD (REGISTERED NUMBER: NI039068) |
Company Statement of Changes in Equity |
FOR THE YEAR ENDED 31 JANUARY 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 February 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 January 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 31 January 2023 |
DIRECT MEDICS LTD (REGISTERED NUMBER: NI039068) |
Consolidated Cash Flow Statement |
FOR THE YEAR ENDED 31 JANUARY 2023 |
31/1/23 | 31/1/22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,655,230 | (590,307 | ) |
Interest paid | (18,525 | ) | (15,478 | ) |
Tax paid | (571,136 | ) | (412,386 | ) |
Net cash from operating activities | 1,065,569 | (1,018,171 | ) |
Cash flows from investing activities |
Purchase of tangible fixed assets | (67,626 | ) | - |
- | 27,905 |
Interest received | 5,951 | 477 |
Net cash from investing activities | (61,675 | ) | 28,382 |
Cash flows from financing activities |
Amount introduced by directors | - | 2,000,100 |
Amount withdrawn by directors | (539,998 | ) | - |
Equity dividends paid | - | (2,240,000 | ) |
Net cash from financing activities | (539,998 | ) | (239,900 | ) |
Increase/(decrease) in cash and cash equivalents | 463,896 | (1,229,689 | ) |
Cash and cash equivalents at beginning of year |
2 |
224,343 |
1,454,032 |
Cash and cash equivalents at end of year | 2 | 688,239 | 224,343 |
DIRECT MEDICS LTD (REGISTERED NUMBER: NI039068) |
Company Cash Flow Statement |
FOR THE YEAR ENDED 31 JANUARY 2023 |
31/1/23 | 31/1/22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) |
Purchase of fixed asset investments | - | (100 | ) |
Interest received |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
New loans in year | ( |
) |
Amount introduced by directors | - | 2,000,100 |
Amount withdrawn by directors | (539,998 | ) | - |
Payments made on behalf of subsidiaries | ( |
) |
Equity dividends paid | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
1,426,087 |
Cash and cash equivalents at end of year | 2 | 312,367 | 82,132 |
DIRECT MEDICS LTD (REGISTERED NUMBER: NI039068) |
Notes to the Cash Flow Statements |
FOR THE YEAR ENDED 31 JANUARY 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
Group |
31/1/23 | 31/1/22 |
£ | £ |
Profit before taxation | 3,533,849 | 2,789,019 |
Depreciation charges | 23,859 | 10,334 |
Finance costs | 18,525 | 15,478 |
Finance income | (5,951 | ) | (476 | ) |
3,570,282 | 2,814,355 |
Increase in trade and other debtors | (1,733,619 | ) | (5,611,418 | ) |
(Decrease)/increase in trade and other creditors | (181,433 | ) | 2,206,756 |
Cash generated from operations | 1,655,230 | (590,307 | ) |
Company |
31/1/23 | 31/1/22 |
£ | £ |
Profit before taxation |
Depreciation charges |
Finance costs | 18,012 | 14,943 |
Finance income | (4,809 | ) | (209 | ) |
3,334,862 | 2,590,562 |
Increase in trade and other debtors | ( |
) | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations | ( |
) |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statements in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Group | Company |
Year ended 31 January 2023 |
31/1/23 | 1/2/22 | 31/1/23 | 1/2/22 |
£ | £ | £ | £ |
Cash and cash equivalents | 688,239 | 224,343 | 312,367 | 82,132 |
Year ended 31 January 2022 |
31/1/22 | 1/2/21 | 31/1/22 | 1/2/21 |
£ | £ | £ | £ |
Cash and cash equivalents | 224,343 | 1,454,032 | 82,132 | 1,426,087 |
DIRECT MEDICS LTD (REGISTERED NUMBER: NI039068) |
Notes to the Cash Flow Statements |
FOR THE YEAR ENDED 31 JANUARY 2023 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
Group |
At 1/2/22 | Cash flow | At 31/1/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 224,343 | 463,896 | 688,239 |
224,343 | 463,896 | 688,239 |
Total | 224,343 | 463,896 | 688,239 |
Company |
At 1/2/22 | Cash flow | At 31/1/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 82,132 | 230,235 | 312,367 |
82,132 | 312,367 |
Total | 82,132 | 230,235 | 312,367 |
DIRECT MEDICS LTD (REGISTERED NUMBER: NI039068) |
Notes to the Consolidated Financial Statements |
FOR THE YEAR ENDED 31 JANUARY 2023 |
1. | STATUTORY INFORMATION |
Direct Medics Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statemens are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £ |
DIRECT MEDICS LTD (REGISTERED NUMBER: NI039068) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
2. | ACCOUNTING POLICIES - continued |
Basis of consolidation |
In the parent company financial statements, the cost oof a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probably and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition fate. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment. |
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill. |
The consolidated group financial statements consist of the financial statements of the parent company Direct Medics Limited together with all entities controlled by the parent company (its subsidiaries) and the group's share of its interests in joint ventures and associates. |
All financial statements are made up to 31 January 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group. |
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. |
Medistaff Locum Recruitment Limited and Career Locum Group Limited has been included in the group financial statements using the purchase method of accounting. Accordingly, the group profit and loss account and statement of cash flows include the results and cash flows of Medistaff Locum Recruitment Limited and Career Locum Group Limited for the year. |
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influences, are treated as associates. |
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group's share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill. |
If the group's share of losses in a joint venture of associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate. |
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group's interest in the entity. |
DIRECT MEDICS LTD (REGISTERED NUMBER: NI039068) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Tangible fixed assets |
Freehold property | - |
Fixtures and fittings | - |
Computer equipment | - |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | EMPLOYEES AND DIRECTORS |
31/1/23 | 31/1/22 |
£ | £ |
Wages and salaries | 42,814,720 | 37,676,777 |
Social security costs | 6,867,457 | 4,442,112 |
Other pension costs | 523,038 | 405,322 |
50,205,215 | 42,524,211 |
DIRECT MEDICS LTD (REGISTERED NUMBER: NI039068) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
3. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
31/1/23 | 31/1/22 |
Medical and administration staff |
31/1/23 | 31/1/22 |
£ | £ |
Directors' remuneration | 28,400 | 26,400 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31/1/23 | 31/1/22 |
£ | £ |
Other operating leases | 15,694 | - |
Depreciation - owned assets | 23,859 | 10,334 |
Auditors' remuneration | 21,683 | 8,753 |
Foreign exchange differences | (23,590 | ) | 17,249 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31/1/23 | 31/1/22 |
£ | £ |
Bank interest | 18,525 | 15,478 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31/1/23 | 31/1/22 |
£ | £ |
Current tax: |
UK corporation tax | 651,971 | 528,704 |
Tax on profit | 651,971 | 528,704 |
7. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
DIRECT MEDICS LTD (REGISTERED NUMBER: NI039068) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
8. | DIVIDENDS |
31/1/23 | 31/1/22 |
£ | £ |
Ordinary Shares shares of 1 each |
Final | - | 2,240,000 |
9. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | and | Computer |
property | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 February 2022 | 516,683 | 78,272 | 116,845 | 711,800 |
Additions | - | - | 67,626 | 67,626 |
At 31 January 2023 | 516,683 | 78,272 | 184,471 | 779,426 |
DEPRECIATION |
At 1 February 2022 | 113,673 | 78,272 | 116,844 | 308,789 |
Charge for year | 10,334 | - | 13,525 | 23,859 |
At 31 January 2023 | 124,007 | 78,272 | 130,369 | 332,648 |
NET BOOK VALUE |
At 31 January 2023 | 392,676 | - | 54,102 | 446,778 |
At 31 January 2022 | 403,010 | - | 1 | 403,011 |
DIRECT MEDICS LTD (REGISTERED NUMBER: NI039068) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
9. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixtures |
Freehold | and | Computer |
property | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 February 2022 |
Additions |
At 31 January 2023 |
DEPRECIATION |
At 1 February 2022 |
Charge for year |
At 31 January 2023 |
NET BOOK VALUE |
At 31 January 2023 |
At 31 January 2022 |
10. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 February 2022 |
and 31 January 2023 |
NET BOOK VALUE |
At 31 January 2023 |
At 31 January 2022 |
DIRECT MEDICS LTD (REGISTERED NUMBER: NI039068) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
10. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Career Locum Group |
Registered office: England & Wales |
Nature of business: Recruitment |
% |
Class of shares: | holding |
Ordinary | 100.00 |
31/1/23 | 31/1/22 |
£ | £ |
Aggregate capital and reserves | 226,949 | 142,706 |
Profit for the year | 84,243 | 114,700 |
Medistaff Locum Recruitment |
Registered office: Republic of Ireland |
Nature of business: Recruitment |
% |
Class of shares: | holding |
Ordinary | 100.00 |
31/1/23 | 31/1/22 |
£ | £ |
Aggregate capital and reserves | 482,120 | 294,491 |
Profit for the year | 118,101 | 116,355 |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31/1/23 | 31/1/22 | 31/1/23 | 31/1/22 |
£ | £ | £ | £ |
Trade debtors | 16,028,621 | 13,719,273 |
Amounts owed by group undertakings | - | - |
Other debtors | 52,377 | 98,704 |
Prepayments and accrued income | 2,926,698 | 3,456,100 |
19,007,696 | 17,274,077 |
DIRECT MEDICS LTD (REGISTERED NUMBER: NI039068) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31/1/23 | 31/1/22 | 31/1/23 | 31/1/22 |
£ | £ | £ | £ |
Trade creditors | 7,751 | 12,310 |
Tax | 393,880 | 313,045 |
Social security and other taxes | 2,044,088 | 1,497,896 |
VAT | 1,826,711 | 1,647,413 | 1,771,190 | 1,596,232 |
Other creditors | 7,909 | - |
Directors' loan accounts | 3,460,324 | 4,000,322 | 3,460,324 | 4,000,322 |
Accrued expenses | 2,201,703 | 3,111,976 |
9,942,366 | 10,582,962 |
13. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31/1/23 | 31/1/22 |
value: | £ | £ |
Ordinary Shares | 1 | 2 | 2 |
14. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 February 2022 | 7,318,467 |
Profit for the year | 2,881,878 |
At 31 January 2023 | 10,200,345 |
Company |
Retained |
earnings |
£ |
At 1 February 2022 |
Profit for the year |
At 31 January 2023 |
DIRECT MEDICS LTD (REGISTERED NUMBER: NI039068) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 31 JANUARY 2023 |
15. | RELATED PARTY DISCLOSURES |
The group was under the control of its directors during the year. |
At year end, the parent company Direct Medics Limited was owed £65,369 by its subsidiary Career Locum Group Limited in respect of the payment of VAT and pension liabilities. |
With regard to the directors, they were owed £3,460,324 at the year end in interest free loans. |