Registration number:
for the
Year Ended 31 December 2023
Schoen Clinic UK Ltd
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Independent Auditor's Report |
|
Profit and Loss Account |
|
Balance Sheet |
|
Statement of Changes in Equity |
|
Notes to the Financial Statements |
Schoen Clinic UK Ltd
Company Information
Directors |
A G Davey J C Nel |
Company secretary |
S Findlay |
Registered office |
|
Auditors |
|
Schoen Clinic UK Ltd
Strategic Report for the Year Ended 31 December 2023
The directors present their strategic report for the year ended 31 December 2023.
Principal activity
The principal activity of the company is to act as a holding company and provide administrative services to the Schoen Clinic Group companies in the UK. These Group companies are (i) Schoen Clinic London Ltd and (ii) Newbridge Care Systems Limited.
Fair review of the business
The Schoen Clinic Group has grown in recent years and as a result, Schoen Clinic UK Ltd has increased in scale to support the Group companies. Following the sale of the orthopaedic hospital in London, Schoen Clinic UK is focusing on growth in the Mental Health sector.
Schoen Clinic UK Ltd generates revenue through levies for its services to the subsidiaries. Expenses incurred are primarily for personnel and administrative costs.
Key performance Indicators
Performance indicators play a key role in how Management and the Board monitor and manage Schoen Clinic UK Ltd and the Group companies. These performance indicators cover financial, operational, quality and risk metrics. These are monitored and reported on a monthly basis through the management accounts and quality dashboards and reviewed by the senior leadership team and Board.
For Schoen Clinic UK Ltd specifically, performance is measured in reference to the Group companies and their ability to pay management charges to appropriately cover costs.
Overall, the Directors are satisfied with the performance of Schoen Clinic UK Ltd during the financial year and are preparing for future growth of the Schoen Clinic Group in the UK.
On 1 March 2023, Schoen Clinic London Ltd entered into an agreement to seel the orthopaedic hospital business to Fortius Group Limited. This followed the strategic decision to focus the Schoen Clinic UK Group and expansion in the Mental Health services sector. The sale completed on 26 May 2023.
Schoen Clinic UK Ltd
Strategic Report for the Year Ended 31 December 2023
Principal risks and uncertainties
Economic and competition risks of the subsidiaries
The Group companies are exposed to some economic and competition risks given the markets in which they operate.
The majority NHS funded sites within Newbridge Care Systems Limited, in York and Birmingham, are mainly subject to changes in NHS commissioning and service reconfiguration. The NHS is increasingly looking to keep mental health inpatient placements as local as possible, with out of area placements only being made if a patient requires a specialised service that cannot be provided locally. Whilst this presents an element of risk to the York and Birmingham sites (where a number of placements are from out of area), this risk is mitigated by the highly specialised services offered and the lack of capacity available at this level of acuity. In Birmingham, the risk is being further mitigated by the development of a private patient offering, thus diversifying the payor mix.
Schoen Clinic sites continue to actively participate in all partnerships with NHS Provider Collaboratives and has productive working relationships with these commissioners.
The private clinic in Chelsea is not subject to any NHS related commissioning risks.
Credit risk
Credit risks are mitigated through the management team overseeing and ensuring there are robust processes, knowledge and resources available in order to run the businesses and to avoid debt and shortfalls. Credit risks are deemed very low.
Approved by the
Director
Director
Schoen Clinic UK Ltd
Directors' Report for the Year Ended 31 December 2023
The directors present their report and the financial statements for the year ended 31 December 2023.
Directors' responsibilities statement
The directors are responsible for preparing the Strategic Report, Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
• | select suitable accounting policies and apply them consistently; |
• | make judgements and accounting estimates that are reasonable and prudent; |
• | state whether applicable UK Accounting Standards has been followed, subject to any material departures disclosed and explained in the financial statements; and |
• | 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.
Results and dividends
The loss for the year, after taxation, amounted to £13,776,611 (2022 - £104,909,280).
Directors of the company
The directors who held office during the year were as follows:
Future developments
Future developments include work strengthening the corporate governance framework and key appointments of experienced senior Directors.
Information included in the Strategic Report
The company has chosen in accordance with Section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out within the company's Strategic Report the Company's Strategic Report Information Required. This includes information that would have been included in the business review and details of the principal risks and uncertainties.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Schoen Clinic UK Ltd
Directors' Report for the Year Ended 31 December 2023
Going concern
At the balance sheet date, the company had net current liabilities of £30,388,907 (2022 - £16,618,500) after making a loss for 2023 of £13,776,611 (2022 - £104,909,280).
The directors have considered the application of the going concern basis of accounting taking into consideration the current and projected UK Group trading performance which is expected to generate significant profit and cash flows over the next five years and beyond. The company obtained a letter of support from Schoen Klinik SE, its ultimate parent company, which consists of financial support to the company for the period of at least 12 months from the date of approval of financial statements. The Directors have also considered the financial ability of Schoen Klinik SE to support the company, Schoen Klinik SE has a strong balance sheet and significant liquidity headroom.
Based on these assumptions, the directors have no reason to believe that a material uncertainty exists that may cause significant doubt about the ability of the company to continue as a going concern or its ability to fulfil its financial obligations. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements.
Reappointment of auditors
Hazlewoods LLP have expressed their willingness to continue in office.
Approved by the
Director
Director
Schoen Clinic UK Ltd
Independent Auditor's Report to the Members of Schoen Clinic UK Ltd
Opinion
We have audited the financial statements of Schoen Clinic UK Ltd (the 'company') for the year ended 31 December 2023, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its loss 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 auditor 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 original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Schoen Clinic UK Ltd
Independent Auditor's Report to the Members of Schoen Clinic UK Ltd
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page -1, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Extent to which the audit was capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We considered the nature of the company’s industry and its control environment and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
Schoen Clinic UK Ltd
Independent Auditor's Report to the Members of Schoen Clinic UK Ltd
In common with all audits conducted in accordance with ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:
• |
reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
• |
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud; |
• |
enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and |
• |
reading minutes of meetings of those charged with governance. |
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an 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.
For and on behalf of
Windsor House
Bayshill Road
GL50 3AT
Schoen Clinic UK Ltd
Profit and Loss Account for the Year Ended 31 December 2023
Note |
2023 |
2022 |
|
Turnover |
|
|
|
Gross profit |
|
|
|
Administrative expenses |
(6,752,434) |
(4,510,603) |
|
Exceptional items |
(13,312,989) |
(103,315,039) |
|
Operating loss |
(14,256,202) |
(103,597,340) |
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar charges |
( |
( |
|
Loss before tax |
( |
( |
|
Taxation |
- |
- |
|
Loss for the financial year |
( |
( |
The above results were derived from continuing operations.
The company has no other comprehensive income for the year.
Schoen Clinic UK Ltd
(Registration number: 10761642)
Balance Sheet as at 31 December 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Net (liabilities)/assets |
( |
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Share premium reserve |
|
|
|
Profit and loss account |
( |
( |
|
Total equity |
( |
|
Approved and authorised by the
Director
Director
Schoen Clinic UK Ltd
Statement of Changes in Equity for the Year Ended 31 December 2023
Share capital |
Share premium |
Profit and loss account |
Total |
|
At 1 January 2023 |
|
|
( |
|
Loss for the year |
- |
- |
( |
( |
At 31 December 2023 |
|
|
( |
( |
Share capital |
Share premium |
Profit and loss account |
Total |
|
At 1 January 2022 |
|
|
( |
|
Loss for the year |
- |
- |
( |
( |
New share capital subscribed |
- |
|
- |
|
At 31 December 2022 |
|
|
( |
|
Schoen Clinic UK Ltd
Notes to the Financial Statements for the Year Ended 31 December 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
Accounting policies |
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Summary of disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
- the requirements of Section 4 Statement of Financial Position paragraph 4.12(a)(iv);
- the requirements of Section 7 Statement of Cash Flows;
- the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
- the requirements of Section 11 Financial Instruments paragraphs 11.39 to 11.48A;
- the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.29;
- the requirements of Section 33 Related Party Disclosures paragraph 33.7.
Name of parent of group
These financial statements are consolidated in the financial statements of Schoen Klinik SE.
The financial statements of Schoen Klinik SE may be obtained from Schoen Klinik SE, Seestrasee SA, 83209 Prien Am Chiemsee, Germany.
Exemption from preparing group accounts
The financial statements contain information about Schoen Clinic UK Ltd as an individual company and do not contain consolidated financial information as the parent of a group.
The company is exempt under section 401 of the Companies Act 2006 from the requirement to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, Schoen Klinik SE, a company incorporated in Germany.
Schoen Clinic UK Ltd
Notes to the Financial Statements for the Year Ended 31 December 2023
Going concern
At the balance sheet date, the company had net current liabilities of £30,388,907 (2022 - £16,618,500) after making a loss for 2023 of £13,776,611 (2022 - £104,909,280).
The directors have considered the application of the going concern basis of accounting taking into consideration the impact of current and projected UK Group trading performance which is expected to generate significant profit and cash flows over the next five years and beyond. The company obtained a letter of support from Schoen Klinik SE, its ultimate parent company, which consists of financial support to the company for the period of at least 12 months from the date of approval of financial statements. The Directors have also considered the financial ability of Schoen Klinik SE to support the company, Schoen Klinik SE has a strong balance sheet and significant liquidity headroom.
Based on these assumptions, the directors have no reason to believe that a material uncertainty exists that may cause significant doubt about the ability of the company to continue as a going concern or its ability to fulfil its financial obligations. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements.
Tangible assets
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Fixtures and fittings |
8% to 33% on cost |
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Investments
Investments in subsidiaries are measured at cost less accumulated impairment losses.
The company assesses at each reporting date whether an investment may be impaired. If any such indication exists the company calculates the recoverable amount of the investment. The recoverable amount of an investment is the higher of its fair value less costs to sell and its value in use. If the recoverable amount is less than its carrying amount, the carrying amount of the investment is impaired and it is reduced to its recoverable amount through an impairment in profit and loss.
An impairment loss recognised for an investment is reversed in a subsequent period if and only if the reasons for the impairment loss have ceased to apply.
Schoen Clinic UK Ltd
Notes to the Financial Statements for the Year Ended 31 December 2023
Financial instruments
Classification
Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.
Cash and cash equivalents in the balance sheet comprise cash at banks and in hand.
Recognition and measurement
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Impairment
For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flow discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
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.
Foreign currency transactions and balances
Functional and presentation currency
The company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non- monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Income Statement except when deferred in other comprehensive income as qualifying cash flow hedges.
Finance income and costs policy
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Leases
Rentals paid under operating leases are charged to the Income Statement on a straight line basis over the lease term.
Schoen Clinic UK Ltd
Notes to the Financial Statements for the Year Ended 31 December 2023
Defined contribution pension obligation
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the Income Statement when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
Interest income
Interest income is recognised in profit or loss using the effective interest method.
Tax
Tax is recognised in the Income Statement, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of Financial Position date, except that:
• The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
• Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Judgements
The preparation of the financial statements required management to make judgements, estimates and assumptions that effect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Key sources of estimation uncertainty
Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:
Impairment of investments
Investments are held at their carrying value. At each reporting date the company assesses whether an investment may be impaired. If any such indication exists, the company calculated the recoverable amount of the investment.
The directors have undertaken a detailed impairment review of the company’s investment in Newbridge Care Systems Limited using estimated forecast cash flows derived from the detailed forecast plan extending to a period of 5 years from the balance sheet date. In performing their review, a number of significant estimates and assumptions have been used, including a risk adjusted discount rate of 4.5% and utilisation rates increasing significantly in FY25 and annually thereafter resulting from changes in strategy. EBITDA in year 5 is predicted to exceed of £3.8m. Using these factors, the directors have demonstrated a recoverable amount of the investment exceeding its carrying value of £20.7m with headroom of £56.4m.
The directors recognise however, that the critical judgements applied in arriving at this value in use are subject to estimation uncertainty that would result in substantial variations in the estimated value in use. As such, sensitivities have been applied to each key judgement to illustrate the impact on value in use. None of the sensitivities applied resulted in the value in use being below carrying value.
Schoen Clinic UK Ltd
Notes to the Financial Statements for the Year Ended 31 December 2023
Turnover |
The analysis of the company's turnover for the year from continuing operations is as follows:
2023 |
2022 |
|
Management charges |
|
|
The analysis of the company's turnover for the year by market is as follows:
2023 |
2022 |
|
UK |
|
|
Operating loss |
Arrived at after charging:
2023 |
2022 |
|
Depreciation expense |
|
|
Operating lease expense - property |
|
|
Auditors' remuneration |
2023 |
2022 |
|
Audit of the financial statements |
|
|
Exceptional items |
2023 |
2022 |
|
Impairment of investments |
- |
88,352,273 |
Impairment of amounts receivable from group undertaking |
13,312,989 |
14,962,766 |
Other interest receivable and similar income |
2023 |
2022 |
|
Interest receivable from group undertakings |
4,271,053 |
159,612 |
Interest payable and similar expenses |
2023 |
2022 |
|
Interest payable to group undertakings |
|
|
Schoen Clinic UK Ltd
Notes to the Financial Statements for the Year Ended 31 December 2023
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2023 |
2022 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
2023 |
2022 |
|
Administration and support |
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2023 |
2022 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
607,620 |
521,818 |
In respect of the highest paid director:
2023 |
2022 |
|
Remuneration |
|
|
Taxation |
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2023 |
2022 |
|
Loss before tax |
( |
( |
Corporation tax at standard rate |
( |
( |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Deferred tax credit relating to changes in tax rates or laws |
( |
( |
Increase from tax losses for which no deferred tax asset was recognised |
|
|
Tax decrease from effect of capital allowances and depreciation |
( |
( |
Total tax charge/(credit) |
- |
- |
Schoen Clinic UK Ltd
Notes to the Financial Statements for the Year Ended 31 December 2023
Tangible assets |
Furniture, fittings and equipment |
|
Cost |
|
At 1 January 2023 |
|
Additions |
|
At 31 December 2023 |
|
Depreciation |
|
At 1 January 2023 |
|
Charge for the year |
|
At 31 December 2023 |
|
Carrying amount |
|
At 31 December 2023 |
|
At 31 December 2022 |
|
Schoen Clinic UK Ltd
Notes to the Financial Statements for the Year Ended 31 December 2023
Investments |
2023 |
2022 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost |
|
At 1 January 2023 and at 31 December 2023 |
|
Impairment |
|
At 1 January 2023 and at 31 December 2023 |
|
Carrying amount |
|
At 31 December 2022 and at 31 December 2023 |
|
On 26 May 2023, Schoen Clinic London Ltd, a subsidiary of the company, disposed of its trade and assets to Fortius Group Limited. Following this disposal, Schoen Clinic London Ltd temporarily ceased trading and as a result, an impairment has been recognised to reflect the deemed recoverable value of this investment.
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2023 |
2022 |
|||
Subsidiary undertakings |
||||
|
147 Chester Road
|
|
|
|
|
147 Chester Road
|
|
|
|
Subsidiary undertakings |
Schoen Clinic London Ltd The principal activity of Schoen Clinic London Ltd is |
Newbridge Care Systems Limited The principal activity of Newbridge Care Systems Limited is |
Debtors |
2023 |
2022 |
|
Amounts owed by related parties |
|
|
Other debtors |
|
|
Prepayments |
|
|
8,440,086 |
22,529,193 |
Schoen Clinic UK Ltd
Notes to the Financial Statements for the Year Ended 31 December 2023
Creditors |
2023 |
2022 |
|
Due within one year |
||
Trade creditors |
|
|
Amounts due to related parties |
|
|
Social security and other taxes |
|
|
Other creditors |
|
- |
Accrued expenses |
|
|
|
|
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
|||
No. |
£ |
No. |
£ |
|
|
|
1.04 |
|
1.04 |
Reserves |
Share premium account
This reserve records the value paid in excess of the nominal value of the share capital of the company.
Profit and loss account
This reserve records retained earnings and accumulated losses attributable to the shareholders of the group company, Schoen Clinic UK Limited.
|
Parent and ultimate parent undertaking |
The parent of the smallest group in which these financial statements are consolidated is
The address of Schoen Klinik SE is: