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Registered number: 05057928









MYLOCUM LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
MYLOCUM LIMITED
 
 
COMPANY INFORMATION


Directors
R A Nathan 
P N Nathan 




Company secretary
P N Nathan



Registered number
05057928



Registered office
Neptune House
8-11 Clements Court

Ilford

Essex

IG1 2QZ




Trading Address
Neptune House
8-11 Clements Court

Clements Lane

Ilford

Essex

IG1 2QZ






Independent auditors
Pers & Co London LLP
Chartered Accountants & Statutory Auditor

3 The Shrubberies

George Lane

South Woodford

London

E18 1BG





 
MYLOCUM LIMITED
 

CONTENTS



Page
Strategic Report
1 - 2
Directors' Report
3
Directors' Responsibilities Statement
4
Independent Auditors' Report
5 - 8
Statement of Comprehensive Income
9
Balance Sheet
10
Statement of Changes in Equity
11
Statement of Cash Flows
12
Analysis of Net Debt
13
Notes to the Financial Statements
14 - 25


 
MYLOCUM LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present their strategic report and financial statements for the year ended 31 December 2022.

Business review
 
The principal activity of the company continued to be the placement of temporary and permanent staff in the heathcare sector.

Principal risks and uncertainties
 
Having reviewed future prospects, the company's directors have concluded that the principal risks and uncertainties that will be faced in 2024 and beyond remain similar to those faced in 2023. The company is a framework approved agency which adheres to regulation and stringent audit requirements. Our compliance team are proficient with the regulatory guidelines of the frameworks and the NHS, and are our policies and processes are maintained to reflect real-time changes of legislation.
One of the biggest risks is the ongoing review of national agency spending which is currently a significant component of the NHS budget. However the shortage of healthcare professionals continue to rise, resulting in increased demands for agencies. There is also a substantial backlog of patient services resulting from the pandemic, which remains high priority on the NHS’ agenda and Labour’s manifesto.

Financial key performance indicators
 
Turnover decreased to £15,875,375  (2022: £19,900,366)
Gross profit was £3,135,681 (2022: £3,840,250)
Profit before tax was £33,678 (2022: £703,569)
The business performed satisfactorily in the year in a challenging environment with turnover decreasing from the record high turnover achieved in 2022. This result is largely due to a decrease in agency pay rates and subsequent margins, as well as an industry-wide reduction in demand of certain staff specialties.
The directors are confident that the recent downturn can be reversed in the current year through diversifying our service offering and to continue to deliver on our strategic expansion plans, including reviewing our operating model for efficiency opportunities.
The directors consider that the company will continue to operate on a going concern basis. The current liquidity position and the cash-flow projections for the next 12 months do not indicate any liquidity issues or need of any cash injections to run the business.

Other key performance indicators
 
The directors are committed to promoting the health, safety and welfare of their staff and continue to ensure appropriate measures are undertaken in this regard.
The directors are mindful of environmental issues and have sought to minimize the impact of the company’s activities on the environment.

Page 1

 
MYLOCUM LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


This report was approved by the board and signed on its behalf.


R A Nathan
Director

Date: 12 September 2024

Page 2

 
MYLOCUM LIMITED
 
 
 
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.

Principal activity

The principal activity of the company continued to be that of the recruitment and placement of Healthcare Staff.

Results and dividends

The profit for the year, after taxation, amounted to £25,261 (2022 - £580,406).

Dividends paid during the year was £180,000 (2022: £45,000)

Directors

The directors who served during the year were:

R A Nathan 
P N Nathan 

Future developments

It is the intention of the directors to continue to grow the business in a challenging environment.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the company since the year end.

Auditors

The auditorsPers & Co London LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 12 September 2024 and signed on its behalf.
 


R A Nathan
Director

Page 3

 
MYLOCUM LIMITED
 
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors are responsible for preparing the Strategic Report, the 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the company's financial statements and then apply them consistently;

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Page 4

 
MYLOCUM LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MYLOCUM LIMITED
 

Opinion


We have audited the financial statements of Mylocum Limited (the 'company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 5

 
MYLOCUM LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MYLOCUM LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion 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 Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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 Directors' Responsibilities Statement set out on page 4, 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.


Page 6

 
MYLOCUM LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MYLOCUM LIMITED (CONTINUED)


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 an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- the engagement partner ensured sufficient appropriate competence, skills and capabilities in audit team to identify or recognise non-compliance with applicable laws and regulations;
- we identified applicable laws and regulations to the company through discussions with the directors and other management, and from our commercial knowledge and experience;
- we focussed on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental, health and safety legislation, NHS framework rules and regulations; and
we assessed the extent of compliance with laws and reguulations identified above through making enquires of management and inspecting legal correspondence as applicable.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with law and regulations.
To address the risk of fraud through management bias and override of controls, we
- performed analytical procedures to identify any unusual or unexpected relationships;
- assessed whether judgements and assumptions made in determining the accounting estimates where indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with law and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC, relevant regulators including Health and Safety Executive, and the company's legal advisors.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

Page 7

 
MYLOCUM LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF MYLOCUM LIMITED (CONTINUED)



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 Auditors' 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 2006Our 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 Auditors' 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.




Pers Aswani (Senior Statutory Auditor)
  
for and on behalf of
Pers & Co London LLP
 
Chartered Accountants
Statutory Auditor
  
3 The Shrubberies
George Lane
South Woodford
London
E18 1BG

12 September 2024
Page 8

 
MYLOCUM LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 3 
15,875,375
19,900,366

Cost of sales
  
(12,739,694)
(16,060,116)

Gross profit
  
3,135,681
3,840,250

Administrative expenses
  
(3,020,835)
(3,045,657)

Operating profit
 4 
114,846
794,593

Interest receivable and similar income
 8 
5,907
96

Interest payable and similar expenses
 9 
(87,075)
(91,120)

Profit before tax
  
33,678
703,569

Tax on profit
 10 
(8,417)
(123,163)

Profit for the financial year
  
25,261
580,406

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 14 to 25 form part of these financial statements.

Page 9

 
MYLOCUM LIMITED
REGISTERED NUMBER: 05057928

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 12 
53,958
81,232

  
53,958
81,232

Current assets
  

Debtors: amounts falling due within one year
 13 
3,168,674
3,345,757

Cash at bank and in hand
 14 
719,115
808,154

  
3,887,789
4,153,911

Creditors: amounts falling due within one year
 15 
(2,741,126)
(2,791,520)

Net current assets
  
 
 
1,146,663
 
 
1,362,391

Total assets less current liabilities
  
1,200,621
1,443,623

Creditors: amounts falling due after more than one year
 16 
-
(88,263)

  

Net assets
  
1,200,621
1,355,360


Capital and reserves
  

Called up share capital 
 19 
9,000
9,000

Capital redemption reserve
  
1,000
1,000

Profit and loss account
  
1,190,621
1,345,360

  
1,200,621
1,355,360


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 12 September 2024.

R A Nathan
Director

The notes on pages 14 to 25 form part of these financial statements.

Page 10

 
MYLOCUM LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£


At 1 January 2022
9,000
1,000
809,954
819,954


Comprehensive income for the year

Profit for the year
-
-
580,406
580,406


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(45,000)
(45,000)



At 1 January 2023
9,000
1,000
1,345,360
1,355,360


Comprehensive income for the year

Profit for the year
-
-
25,261
25,261


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(180,000)
(180,000)


At 31 December 2023
9,000
1,000
1,190,621
1,200,621


The notes on pages 14 to 25 form part of these financial statements.

Page 11

 
MYLOCUM LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
25,261
580,406

Adjustments for:

Depreciation of tangible assets
40,184
33,342

Interest paid
87,075
91,120

Interest received
(5,907)
(96)

Taxation charge
8,417
123,163

Decrease in debtors
177,083
229,932

Increase/(decrease) in creditors
66,827
(216,082)

Corporation tax (paid)/received
(119,809)
63,638

Net cash generated from operating activities

279,131
905,423


Cash flows from investing activities

Purchase of tangible fixed assets
(12,910)
(86,526)

Interest received
5,907
96

Net cash from investing activities

(7,003)
(86,430)

Cash flows from financing activities

Repayment of loans
(94,092)
(212,638)

Dividends paid
(180,000)
(45,000)

Interest paid
(87,075)
(91,120)

Net cash used in financing activities
(361,167)
(348,758)

Net (decrease)/increase in cash and cash equivalents
(89,039)
470,235

Cash and cash equivalents at beginning of year
808,154
337,919

Cash and cash equivalents at the end of year
719,115
808,154


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
719,115
808,154

719,115
808,154


The notes on pages 14 to 25 form part of these financial statements.

Page 12

 
MYLOCUM LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

808,154

(89,039)

719,115

Debt due after 1 year

(88,263)

88,263

-

Debt due within 1 year

(1,617,845)

(275,516)

(1,893,361)


(897,954)
(276,292)
(1,174,246)

The notes on pages 14 to 25 form part of these financial statements.

Page 13

 
MYLOCUM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Mylocum Limited is a private company, limited by shares, incorporated in England and Wales. The registered office is Neptune House 8-11 Clements Court, Clements Lane, Ilford, Essex IG1 2QZ

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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.

The following principal accounting policies have been applied:

 
2.2

Going concern

The accounts have been prepared on a going concern basis as the directors have assessed that the company has sufficient cash resources and facilities to continue to trade for the forseeable future including at least 12 months from the approval date of these financial statements.

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.4

Operating leases: the company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 14

 
MYLOCUM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.6

Finance costs

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.

 
2.7

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.8

Pensions

Defined contribution pension plan

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 profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the company in independently administered funds.

 
2.9

Taxation

Tax is recognised in profit or loss 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 income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.

 
2.10

Tangible fixed 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.

Page 15

 
MYLOCUM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.10
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Fixtures and fittings
-
25%
Office equipment
-
33%

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.

 
2.11

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.12

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

 
2.13

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.14

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

 
2.15

Financial instruments

The company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
Page 16

 
MYLOCUM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.15
Financial instruments (continued)


Financial instruments are recognised in the company's Balance Sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing
Page 17

 
MYLOCUM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.15
Financial instruments (continued)

transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

 
2.16

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 18

 
MYLOCUM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Healthcare sector
15,875,375
19,900,366

15,875,375
19,900,366


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
15,875,375
19,900,366

15,875,375
19,900,366


All turnover arose within the United Kingdom.


4.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Other operating lease rentals
146,860
146,139


5.


Auditors' remuneration

During the year, the company obtained the following services from the company's auditors:


2023
2022
£
£

Fees payable to the company's auditors for the audit of the company's financial statements
16,000
17,900
Page 19

 
MYLOCUM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
2,499,876
4,545,717

Social security costs
148,836
168,536

Cost of defined contribution scheme
24,247
96,611

2,672,959
4,810,864


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Staff
45
46



Locums
64
98

109
144


7.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
160,000
185,000

Company contributions to defined contribution pension schemes
4,800
55,550

164,800
240,550


During the year retirement benefits were accruing to 2 directors (2022 - 2) in respect of defined contribution pension schemes.


8.


Interest receivable

2023
2022
£
£


Other interest receivable
5,907
96

5,907
96

Page 20

 
MYLOCUM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Interest payable and similar expenses

2023
2022
£
£


Other loan interest payable
87,075
91,120

87,075
91,120


10.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
11,771
123,163

Adjustments in respect of previous periods
(3,354)
-


8,417
123,163


Total current tax
8,417
123,163

Factors affecting tax charge for the year

The tax assessed for the year is the same as (2022 - the same as) the standard rate of corporation tax in the UK of 23.5% (2022 - 19%) as set out below:

2023
2022
£
£


Profit on ordinary activities before tax
33,678
703,569


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
7,914
133,678

Effects of:


Capital allowances for year in excess of depreciation
(2,851)
(10,515)

Adjustments to tax charge in respect of prior periods
3,354
-

Total tax charge for the year
8,417
123,163


Factors that may affect future tax charges

The rate of corporation tax increased from 19% to 25% on 1 April 2023 where taxable profits exceed £50,000.

Page 21

 
MYLOCUM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Dividends

2023
2022
£
£


Dividends
180,000
45,000

180,000
45,000


12.


Tangible fixed assets





Fixtures and fittings
Office equipment
Total

£
£
£



Cost or valuation


At 1 January 2023
30,294
206,771
237,065


Additions
3,600
9,310
12,910



At 31 December 2023

33,894
216,081
249,975



Depreciation


At 1 January 2023
26,642
129,191
155,833


Charge for the year on owned assets
2,720
37,464
40,184



At 31 December 2023

29,362
166,655
196,017



Net book value



At 31 December 2023
4,532
49,426
53,958



At 31 December 2022
3,652
77,580
81,232


13.


Debtors

2023
2022
£
£


Trade debtors
2,245,845
2,772,027

Other debtors
367,921
99,876

Prepayments and accrued income
554,908
473,854

3,168,674
3,345,757


Page 22

 
MYLOCUM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
719,115
808,154

719,115
808,154



15.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank loans
88,263
94,092

Trade creditors
482,686
394,504

Corporation tax
11,771
123,163

Other taxation and social security
223,077
410,805

Other creditors
1,815,648
1,539,731

Accruals and deferred income
119,681
229,225

2,741,126
2,791,520


Included in other creditors is a factoring loan account amounting to £1,805,098 (2022 - £1,523,753) which is secured by way of charges over the trade debtors of the company.


16.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
-
88,263

-
88,263


Page 23

 
MYLOCUM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
88,263
94,092


88,263
94,092


Amounts falling due 2-5 years

Bank loans
-
88,263


-
88,263


88,263
182,355



18.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets measured at fair value through profit or loss
2,964,960
3,580,181




Financial assets measured at fair value through profit or loss comprise trade debtors and cash at bank and in hand.


19.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



9,000 (2022 - 9,000) Ordinary shares shares of £1.00 each
9,000
9,000


Page 24

 
MYLOCUM LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

20.


Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company  in an independently administered fund. The pension cost charge represents contributions payable by the company  to the fund and amounted to £24,247 (2022 - £96,611).


21.


Commitments under operating leases

At 31 December 2023 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
120,000
120,000

Later than 1 year and not later than 5 years
220,000
340,000

340,000
460,000


22.


Related party transactions

Included in other debtors is £367,921 (2022: £99,876) due from companies under common control. There is no fixed repayment terms or interest on these loans.
During the year the company paid outsourcing costs amounting to £461,611 (2022: £425,936) to a company in which a director of the company has a material interest.

 
Page 25