Registration number:
for the
Year Ended 31 December 2023
Schoen Clinic London Ltd
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Profit and Loss Account |
|
Balance Sheet |
|
Statement of Changes in Equity |
|
Notes to the Financial Statements |
Schoen Clinic London Ltd
Company Information
Directors |
A G Davey J C Nel |
Company secretary |
S Findlay |
Registered office |
|
Auditors |
|
Schoen Clinic London Ltd
Strategic Report for the Year Ended 31 December 2023
The directors present their Strategic Report and the financial statements for the year ended 31 December 2023.
Principal activity
During the period, Schoen Clinic London Ltd operated as a specialist orthopaedic and spine hospital making it unique in the private healthcare market in London. Significant investment and thought has been given to the design of the hospital where patients can access an extensive range of specialist services as part of one pathway and under the care and oversight of a multidisciplinary team. Schoen Clinic is well known as one of the healthcare leaders for collecting meaningful data and enhancing outcomes through their recognised value-based pathway approach.
On 1 March 2023, Schoen Clinic London Ltd. entered into an agreement to sell the orthopaedic hospital business to Fortius Group Limited. This followed the strategic decision to focus the Schoen Clinic UK Group on growth and expansion in the Mental Health services sector. The sale completed on 26 May 2023.
Business review
The company’s revenues are generated by treatment of patients in a hospital setting. Expenses were mainly incurred for personnel costs and administrative expenses.
Key performance indicators
The company measures its performance mainly by using the following KPIs:
Financial KPIs |
Unit |
2023 |
2022 |
Turnover |
£ |
11,559,553 |
24,361,410 |
EBITDA** |
£ |
(10,253,894) |
(12,543,179) |
Loss for the financial year |
£ |
(5,587,569) |
(36,079,221) |
**EBITDA is earnings before exceptional items, interest, taxation, depreciation and amortisation.
Schoen Clinic London Ltd
Strategic Report for the Year Ended 31 December 2023
Principal risks and uncertainties, financial instruments and exposure to risk
Economic and competition risks
Schoen Clinic London Ltd operates in the market, provides services mainly to self-funding and insured patients. This market is consolidated and highly competed. Whilst there is steady demand and growth of 5-6% p.a. in terms of patient volume, this is dependent on continued stability in the macroeconomic environment and international healthcare trends. Schoen Clinic London Ltd mitigates these risks through (i) a diversified patient mix across payor type and nationality, (ii) a highly differentiated proposition with services delivered by world renowned surgeons, (iii) a unique operating model with employed surgeons and (iv) continued dedication to quality and transparency of patient outcomes.
Legislative risks
The regulatory framework is closely monitored and with a dedicated Medical Director on the governance committee, senior oversight of all operations has been instilled within and throughout the business. We continue to monitor the findings from the Paterson Inquiry and will implement the recommendations ensuring that patient safety and learning stays at the core of what we do.
We continued to engage with the CQC through regular engagement meetings. The CQC remain satisfied with progress around all aspects of the regulation. The Clinic remains rated Good overall.
Financial instruments risk
Schoen Clinic London Ltd is completely integrated into the Schoen Clinic Group 5-year planning and quarterly forecast process. If the company is not able to generate sufficient funds to realise its investment program, the necessary funds will be provided by the parent company.
Since 2018 the company has been integrated into the Group’s cash pooling system, which operates on a rolling loan facility basis.
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.
Liquidity risk
The company has been integrated into the group cash pooling system in order to secure access to funds if needed. The company also aims to mitigate liquidity risk by managing cash generation and applying cash collection measures throughout the UK group.
Approved by the
Director
Director
Schoen Clinic London 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 of the company
The directors who held office during the year were as follows:
Disclosure of information to the auditors
Each director has taken the 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.
Going concern
Following the sale of the hospital on 26th May 2023, the intention of the directors is to maintain the Company and continue trading by way of future acquisitions and the directors consider this to be the most probable outcome for its operations. Until such point as the Company completes acquisitions, the directors are confident that the Company can continue to meet its financial obligations as they fall due by way of support from Schoen Klinik SE, its ultimate parent company.
On the basis of continued financial support from its parent and as a result of the intention to continue trading, the directors consider the application of the going concern basis of accounting to be appropriate and these financial statements have been prepared accordingly.
Reappointment of auditors
Hazlewoods LLP have expressed their willingness to continue in office.
Approved by the
Director
Director
Schoen Clinic London Ltd
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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 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.
Schoen Clinic London Ltd
Independent Auditor's Report to the Members of Schoen Clinic London Ltd
Opinion
We have audited the financial statements of Schoen Clinic London 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 London Ltd
Independent Auditor's Report to the Members of Schoen Clinic London 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 set out on page 5, 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 London Ltd
Independent Auditor's Report to the Members of Schoen Clinic London 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 London Ltd
Profit and Loss Account for the Year Ended 31 December 2023
Note |
2023 |
2022 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Exceptional items |
7,340,590 |
(20,336,428) |
|
Other operating income |
|
|
|
Operating loss |
(2,527,793) |
(35,865,851) |
|
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 London Ltd
(Registration number: 09982537)
Balance Sheet as at 31 December 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Intangible assets |
- |
|
|
Tangible assets |
- |
|
|
- |
|
||
Current assets |
|||
Stocks |
- |
|
|
Debtors: Amounts falling due within one year |
1,317,015 |
7,515,787 |
|
Debtors: Amounts falling due after more than one year |
3,780,000 |
- |
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
(32,838,031) |
(37,188,928) |
|
Provisions |
(430,288) |
(11,179,922) |
|
Net current liabilities |
( |
( |
|
Net liabilities |
( |
( |
|
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 London 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 London 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.
Accounting policies |
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.
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
These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.
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 disclosure exemptions
The company has not presented a cash flow statement on the grounds that the company is a wholly owned subsidiary and a group cash flow statement is included in the financial statements of the ultimate parent company.
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 Seestraese 5A, 83209 Prien Am Chiemsee, Germany.
Going concern
Following the sale of the hospital on 26th May 2023, the intention of the directors is to maintain the Company and continue trading by way of future acquisitions and the directors consider this to be the most probable outcome for its operations. Until such point as the Company completes acquisitions, the directors are confident that the Company can continue to meet its financial obligations as they fall due by way of support from Schoen Klinik SE, its ultimate parent company.
On the basis of continued financial support from its parent and as a result of the intention to continue trading, the directors consider the application of the going concern basis of accounting to be appropriate and these financial statements have been prepared accordingly.
Schoen Clinic London Ltd
Notes to the Financial Statements for the Year Ended 31 December 2023
Judgements and estimation uncertainty
These financial statements do not contain any significant judgements or estimation uncertainty other than those involving estimations listed below. |
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:
Where there are indicators of impairment of individual assets, the company performs impairment tests based on fair value less costs to sell or a value in use calculation. The fair value less costs to sell calculation is based on available data from binding sales transactions in an arm's length transaction on similar assets or observable market prices less incremental costs for disposing of the asset.
Management estimation is required to determine the amount of deferred tax assets that can be recognised, based on likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company. The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.
Foreign currency transactions and balances
Functional and presentation currency
The company's functional and presentational currency is GBP.
Transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Government grants
Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.
Schoen Clinic London Ltd
Notes to the Financial Statements for the Year Ended 31 December 2023
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
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 taxable income.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Assets under construction |
Not yet depreciated |
Leasehold improvements |
Life of the lease (approximately 18 years) |
Fixtures and fittings |
8% to 33% on cost |
Stamp duty land tax |
Life of the lease (approximately 18 years) |
Technical medical equipment |
10% 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 the Income Statement.
Intangible assets
Intangible assets acquired separately from a business are capitalised at cost. Intangible assets (excluding development costs) created within the business are not capitalised and expenditure is charged against profits in the year in which it is incurred.
Subsequent to initial recognition, intangible assets are stated at cost less accumulated amortisation and accumulated impairment losses. Intangible assets are amortised on a straight-line basis over their estimated useful lives. The carrying value of intangible assets is reviewed for impairment if events or changes in circumstances indicate the carrying value may not be recoverable.
The useful economic life of the intangible assets of the company (solely Software) is 3 years.
If there are indicators that the residual value or useful life of an intangible asset has changed since the most recent annual reporting period previous estimates shall be reviewed and, if current expectations differ the residual value, amortisation method or useful life shall be amended. Changes in the expected useful life shall be accounted for as a change in accounting estimate.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Schoen Clinic London Ltd
Notes to the Financial Statements for the Year Ended 31 December 2023
Trade debtors
Trade debtors are amounts due from customers for services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.
Stocks
Stocks are stated at the lower of cost and net realisable value. Cost includes all costs incurred in bringing each stock item to it's present location and condition. Net realisable value is based on the most recent purchase price. There are no significant differences between carrying amount and replacement cost.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Schoen Clinic London Ltd
Notes to the Financial Statements for the Year Ended 31 December 2023
Financial instruments
Classification
Recognition and measurement
Impairment
A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
Schoen Clinic London 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 |
|
Medical services |
|
|
The total turnover of the company has been derived from its principal activity wholly undertaken in the United Kingdom.
Exceptional items |
2023 |
2022 |
|
Exceptional items |
(7,340,590) |
20,336,428 |
Exceptional items in the current year relate to the release of a deferred rent accrual which following the disposal of the hospital during the year.
Exceptional expenses in the prior year related to the impairment of leasehold assets down to their recoverable amounts following the sale of the assets post year end.
Other operating income |
The analysis of the company's other operating income for the year is as follows:
2023 |
2022 |
|
Other operating income |
|
|
Operating loss |
Arrived at after charging/(crediting)
2023 |
2022 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Foreign exchange losses |
|
|
Operating lease expense - property |
|
|
Profit on disposal of trade and assets |
(1,648,578) |
- |
Interest payable and similar expenses |
2023 |
2022 |
|
Interest expense on other finance liabilities |
|
|
Schoen Clinic London 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 monthly number of employees, including the directors, during the year was as follows:
2023 |
2022 |
|
Average employees |
|
|
Auditors' remuneration |
2023 |
2022 |
|
Audit of the financial statements |
|
|
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 expense relating to changes in tax rates or laws |
|
- |
(Decrease)/increase from tax losses for which no deferred tax asset was recognised |
( |
|
Tax increase from effect of capital allowances and depreciation |
|
|
Tax decrease from other short-term timing differences |
- |
( |
Total tax charge/(credit) |
- |
- |
Schoen Clinic London Ltd
Notes to the Financial Statements for the Year Ended 31 December 2023
Intangible assets |
Computer software |
|
Cost or valuation |
|
At 1 January 2023 |
|
Additions |
|
Disposals |
( |
At 31 December 2023 |
- |
Amortisation |
|
At 1 January 2023 |
|
Amortisation charge |
|
Amortisation eliminated on disposals |
( |
At 31 December 2023 |
- |
Carrying amount |
|
At 31 December 2023 |
- |
At 31 December 2022 |
|
Tangible assets |
Land and buildings |
Furniture, fittings and equipment |
Total |
|
Cost |
|||
At 1 January 2023 |
|
|
|
Additions |
- |
|
|
Disposals |
( |
( |
( |
At 31 December 2023 |
- |
- |
- |
Depreciation |
|||
At 1 January 2023 |
|
|
|
Charge for the year |
|
|
|
Eliminated on disposal |
( |
( |
( |
At 31 December 2023 |
- |
- |
- |
Carrying amount |
|||
At 31 December 2023 |
- |
- |
- |
At 31 December 2022 |
|
|
|
Stocks |
2023 |
2022 |
|
Raw materials and consumables |
- |
|
Schoen Clinic London Ltd
Notes to the Financial Statements for the Year Ended 31 December 2023
Debtors |
2023 |
2022 |
|
Trade debtors |
|
|
Amounts owed by group undertakings |
- |
|
Other debtors |
|
|
Prepayments and accrued income |
- |
|
|
|
|
Less non-current portion |
( |
- |
Total current trade and other debtors |
|
|
Details of non-current trade and other debtors
£3,780,000 (2022 -£Nil) of Other debtors is classified as non current.
Creditors |
Note |
2023 |
2022 |
|
Due within one year |
|||
Trade creditors |
|
|
|
Amounts due to group undertakings |
|
|
|
Social security and other taxes |
|
|
|
Other creditors |
|
|
|
Accrued expenses |
|
|
|
Provisions |
430,288 |
11,179,922 |
|
|
|
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
|||
No. |
£ |
No. |
£ |
|
|
|
3 |
|
3 |
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Schoen Clinic London Ltd
Notes to the Financial Statements for the Year Ended 31 December 2023
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
2023 |
2022 |
|
Not later than one year |
- |
|
Later than one year and not later than five years |
- |
|
Later than five years |
- |
|
- |
|
Parent and ultimate parent undertaking |
The company's immediate parent is