Company registration number 08650525 (England and Wales)
OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
COMPANY INFORMATION
Directors
Mr A Higgins
Mr G A Rimmington
Company number
08650525
Registered office
Tenant Hall
Blenheim Grove
Leeds
United Kingdom
LS2 9ET
Auditor
BHP LLP
New Chartford House
Centurion Way
Cleckheaton
Bradford
West Yorkshire
BD19 3QB
OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 33
OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

At Optimum Medical, our commitment to excellence is encapsulated in our company motto: “Constantly Creating Better.” Our vision is to build “The Most People-Focused Healthcare Company,” becoming the trusted service and brand that individuals turn to whenever they need a medical device.

As an organisation, we are dedicated to nurturing a strong, people-focused culture. This strategic report outlines our recent achievements, ongoing initiatives, and future plans, all aimed at reinforcing our commitment to our employees, customers, and the broader community.

Review of the business

In 2023, we returned to a 12-month financial year, compared to 15 and 18 months in 2022 and 2021. Revenue grew by over 15% compared to 2022 (12-month comparative), driven by the Vyne Dispensing appliance contractors (DAC) and e-commerce business to consumer (B2C) segments.

We continue to invest in systems, processes, and technology to ensure future growth and operational efficiency. Our focus remains on the core urology business and B2C segment. The directors are confident in our ability to maintain and improve customer focus, growth, and offerings, supported by ongoing investments in our people and systems.

Principal risks and uncertainties

The principal risks facing the company include inflation (both for product and amenities) and currency fluctuations. Inflation has increased our day-to-day operational costs, with product and shipping costs rising due to the conflict in the Middle East. We have offset these pressures by driving efficiencies across the business.

We manage foreign exchange (FX) rate exposure by trading in GBP, EUR, and USD with both suppliers and customers, and have a hedging strategy in place for additional exposure.

Key performance indicators (KPI's)

The directors monitor selected KPI's both financial and non-financial to monitor business performance and efficiency.

 

Financial

The business saw substantial revenue growth in 2023, primarily from the B2C segment. This, along with controlled administration expenses and managed FX exposure, positively impacted operating profit. However, the gross profit percentage was reduced due to lower margins in the B2C DAC area compared to the business to business (B2B) area.

 

Non Financial        

Our ambition is to lead the industry in sustainable practices, setting an example for the medical sector. Although we are at the beginning of this journey, we are making significant strides, supported by a dedicated workforce committed to our community and environment. While not formally tracked as a corporate strategy, this commitment to environmental and social responsibility is evident in our actions. This aligns with our values and is demonstrated by initiatives such as our new sustainable local delivery service, our 2023 partnership with Leeds Hospitals Charity, and significant reduction in shipping emissions.

Customer satisfaction is a key objective and is reported monthly. Our scores have increased, and our Trustpilot rating remains at 4.9. We are ranked as the number 1 Medical Supply Store and number 2 Medical Equipment Supplier in the UK online. Our nursing service is now Care Quality Commission (CQC) registered with a ‘Good’ rating from our first audit.

We use a range of metrics to measure performance across all customer touch points, with the overall score being the average of these metrics. Metrics are only included if they reflect customer concerns, such as product availability rather than warehouse stock levels. Metrics are reviewed monthly, and any falling below 95% of the target require corrective action.

OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

Our people

In our 2023 employee engagement survey, we achieved a 95% satisfaction and motivation score, a 4% increase from the previous survey. Notably, 96% agreed that the company’s culture is positive, and a significant majority feel valued and supported. We have implemented several initiatives to enhance engagement and well-being, including a wellness program, charity work, and mental health support, with 97% of employees reporting that Optimum Medical cares about their physical and mental well-being.

Diversity and Inclusion

Our workforce is composed of 54% women, 43% men and 3% non-binary individuals which indicates we have a higher-than-average representation of women and non-binary compared to the national average statistics (ONS). In the past 12 months 30% of new hires have been aged between 18-26 and 33% aged 46-55, highlighting our strong focus on both younger and older age groups in the workplace. Additionally, 11% of our overall employees come from minority ethnic backgrounds.

Talent Development

We invested over 800 hours in training our employees last year, demonstrating our commitment to continuous learning. This year, we implemented the ‘Optimum Road to Success’ career progression framework, supporting internal mobility through mentorship, apprenticeships, and professional qualification courses. We also offer coaching to help employees achieve their career goals.

Leadership Team

Our senior leadership team, composed of experienced professionals from diverse industries, is dedicated to driving innovation and growth. We are proud to have a balanced mix of male and female directors. To ensure continuous improvement and alignment with our objectives, we hold monthly “Constantly Creating Better” managerial meetings and comprehensive off-site gatherings, known as “Infinity and Beyond,” focusing on future succession and business growth over the next 3-5 years. Insights from these meetings are shared with the entire company during our monthly all-hands update to ensure transparency and a people-focused approach.

On behalf of the board

Mr A Higgins
Director
20 September 2024
OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company and group continued to be that of manufacturing medical products for the global healthcare market, and fulfilling prescriptions of medical products for the UK market.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £223,598. The directors do not recommend payment of a further dividend.

 

On 21 June 2023, the Company acquired a 27.5% stake in Nephrostomy UK Ltd. See note 14 for further details.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr A Higgins
Mr G A Rimmington
Financial instruments
Objectives and policies

The group utilises appropriate financial instruments in order to carry out its business activities in an effective manner.

The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.

Foreign currency risk

The group’s principal foreign currency exposures arise from trading with overseas companies. Group policy permits but does not demand that these exposures may be hedged in order to fix the cost in sterling. This hedging activity involves the use of foreign exchange forward contracts.

Credit risk

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Auditor

In accordance with the company's articles, a resolution proposing that BHP LLP be reappointed as auditor of the group will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr A Higgins
Mr G A Rimmington
Director
Director
20 September 2024
OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the company website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
- 6 -
Opinion

We have audited the financial statements of Optimum Medical Solutions Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, 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 or intentional misrepresentations, or through collusion.

We focused on laws and regulations, relevant to the company, which could give rise to a material misstatement in the financial statements. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management, and review of legal expenses. There are inherent limitations in the audit procedures described 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 would become aware of it.

As part of our audit, we addressed the risk of management override of internal controls, including testing of journals and review of nominal ledger. We evaluated whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters which we are required to address

Comparative information in the financial statements is derived from the company's prior period financial statements which were not audited.

OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
- 8 -

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.

Jamie Williams (Senior Statutory Auditor)
For and on behalf of BHP LLP
20 September 2024
Chartered Accountants
Statutory Auditor
New Chartford House
Centurion Way
Cleckheaton
Bradford
West Yorkshire
BD19 3QB
OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Year
15 months
ended
ended
31 December
31 December
2023
2022
Notes
£
£
Turnover
3
18,295,392
20,839,850
Cost of sales
(11,931,889)
(12,263,119)
Gross profit
6,363,503
8,576,731
Administrative expenses
(5,767,521)
(7,537,592)
Other operating income
7,963
11,855
Operating profit
4
603,945
1,050,994
Share of profits of associates
12
9,661
-
Interest receivable and similar income
6
42,653
72,698
Interest payable and similar expenses
7
(1,720)
(22,334)
Profit before taxation
654,539
1,101,358
Tax on profit
8
(140,334)
(155,799)
Profit for the financial year
514,205
945,559
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
10
801,648
899,809
Other intangible assets
10
658,795
800,317
Total intangible assets
1,460,443
1,700,126
Tangible assets
11
587,789
546,514
Investments
12
106,141
-
0
2,154,373
2,246,640
Current assets
Stocks
15
4,980,374
4,779,167
Debtors
16
6,888,353
7,111,355
Cash at bank and in hand
4,560,452
2,787,838
16,429,179
14,678,360
Creditors: amounts falling due within one year
17
(4,008,677)
(2,654,821)
Net current assets
12,420,502
12,023,539
Total assets less current liabilities
14,574,875
14,270,179
Creditors: amounts falling due after more than one year
18
(19,924)
(28,302)
Provisions for liabilities
Deferred tax liability
20
99,144
76,677
(99,144)
(76,677)
Net assets
14,455,807
14,165,200
Capital and reserves
Called up share capital
23
4
4
Profit and loss reserves
14,455,803
14,165,196
Total equity
14,455,807
14,165,200

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 20 September 2024 and are signed on its behalf by:
20 September 2024
Mr A Higgins
Mr G A Rimmington
Director
Director
Company registration number 08650525 (England and Wales)
OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
12
143,877
143,877
Current assets
Debtors
16
11,991,350
11,991,350
Creditors: amounts falling due within one year
17
(96,744)
(96,744)
Net current assets
11,894,606
11,894,606
Net assets
12,038,483
12,038,483
Capital and reserves
Called up share capital
23
4
4
Profit and loss reserves
12,038,479
12,038,479
Total equity
12,038,483
12,038,483

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £223,598 (2022 - £117,500 profit).

The financial statements were approved by the board of directors and authorised for issue on 20 September 2024 and are signed on its behalf by:
20 September 2024
Mr A Higgins
Mr G A Rimmington
Director
Director
Company registration number 08650525 (England and Wales)
OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2021
4
13,337,137
13,337,141
Period ended 31 December 2022:
Profit and total comprehensive income
-
945,559
945,559
Dividends
9
-
(117,500)
(117,500)
Balance at 31 December 2022
4
14,165,196
14,165,200
Year ended 31 December 2023:
Profit and total comprehensive income
-
514,205
514,205
Dividends
9
-
(223,598)
(223,598)
Balance at 31 December 2023
4
14,455,803
14,455,807
OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2021
4
12,038,479
12,038,483
Period ended 31 December 2022:
Profit and total comprehensive income for the period
-
117,500
117,500
Dividends
9
-
(117,500)
(117,500)
Balance at 31 December 2022
4
12,038,479
12,038,483
Year ended 31 December 2023:
Profit and total comprehensive income
-
223,598
223,598
Dividends
9
-
(223,598)
(223,598)
Balance at 31 December 2023
4
12,038,479
12,038,483
OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
28
2,604,730
(1,377,536)
Interest paid
(1,720)
(22,334)
Income taxes paid
(271,575)
(287,814)
Net cash inflow/(outflow) from operating activities
2,331,435
(1,687,684)
Investing activities
Purchase of intangible assets
-
(98,722)
Purchase of tangible fixed assets
(308,696)
(161,509)
Proceeds from disposal of tangible fixed assets
53,750
-
Purchase of subsidiaries, net of cash acquired
-
(1,043,095)
Investment in associates
(96,480)
-
Repayment of loans
(18,536)
-
Interest received
42,653
72,698
Net cash used in investing activities
(327,309)
(1,230,628)
Financing activities
Payment of finance leases obligations
(7,914)
(5,452)
Dividends paid to equity shareholders
(223,598)
(117,500)
Net cash used in financing activities
(231,512)
(122,952)
Net increase/(decrease) in cash and cash equivalents
1,772,614
(3,041,264)
Cash and cash equivalents at beginning of year
2,787,838
5,829,102
Cash and cash equivalents at end of year
4,560,452
2,787,838
OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

Optimum Medical Solutions Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Tenant Hall, Blenheim Grove, Leeds, United Kingdom, LS2 9ET.

 

The group consists of Optimum Medical Solutions Group Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Optimum Medical Solutions Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

The directors have prepared forecasts and cashflow covering the year to 31 December 2025. These show that the Group has sufficient profitability and cashflow in order to trade through this period and beyond. The Group has no external bank debt apart from leases which are secured on the assets to which they relate. At the time of approving the financial statements, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on delivery of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.8
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Patents & licences
10 years straight line basis
Website
3 years straight line basis
1.9
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
Depreciated straight line over the length of the lease
Plant and equipment
4 years straight line basis
Fixtures and fittings
4 years straight line basis
Motor vehicles
4 years straight line basis

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.10
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.11
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.12
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the weighted average cost (WAC) method.

 

Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.13
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.14
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
Derecognition of financial liabilities

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

1.15
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.16
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.17
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.18
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
1.19
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.20
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Stock valuation

Management estimates the net realisable values of stock, taking into account the most reliable evidence available at each reporting date. Stock is valued at the lower of cost and net realisable value. Included within stock there are various provisions for obsolete and slow moving stocks, which requires estimation over future expected usage.

OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Optimum Medical
15,083,065
18,322,842
Vyne
2,927,577
1,967,876
Hunter Urology
-
549,132
Other
284,750
-
18,295,392
20,839,850
2023
2022
£
£
Turnover analysed by geographical market
UK
11,071,084
12,126,470
Europe
3,519,714
4,259,929
Rest of world
3,704,594
4,453,451
18,295,392
20,839,850
2023
2022
£
£
Other revenue
Interest income
42,653
72,698
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
18,420
(53,449)
Research and development costs
60,074
56,390
Fees payable to the group's auditor for the audit of the group's financial statements
32,850
30,980
Depreciation of owned tangible fixed assets
213,646
335,178
Loss on disposal of tangible fixed assets
25
-
Amortisation of intangible assets
239,683
238,176
Operating lease charges
458,656
528,837
OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
5
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Direct staff
7
5
-
-
Administration
63
65
-
-
Management
2
2
-
-
Total
72
72
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,803,177
3,636,042
-
0
-
0
Social security costs
237,067
342,950
-
-
Pension costs
53,536
67,025
-
0
-
0
3,093,780
4,046,017
-
0
-
0
6
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
42,653
72,698
7
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
-
1,603
Interest on invoice finance arrangements
-
0
6,881
Interest on finance leases and hire purchase contracts
1,720
1,774
Other interest
-
12,076
Total finance costs
1,720
22,334
OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
195,336
243,291
Adjustments in respect of prior periods
(78,461)
(55,286)
Total UK current tax
116,875
188,005
Foreign current tax on profits for the current period
992
3,992
Total current tax
117,867
191,997
Deferred tax
Origination and reversal of timing differences
22,467
(36,198)
Total tax charge
140,334
155,799

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
654,539
1,101,358
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
153,948
209,258
Tax effect of expenses that are not deductible in determining taxable profit
10,292
10,468
Change in unrecognised deferred tax assets
11,603
695
Adjustments in respect of prior years
(78,461)
(55,286)
Group relief
-
0
(33,373)
Permanent capital allowances in excess of depreciation
33,287
21,455
Effect of overseas tax rates
2,616
11,437
Deferred tax adjustments in respect of prior years
643
(8,855)
Other
6,406
-
0
Taxation charge
140,334
155,799
9
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
223,598
117,500
OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
10
Intangible fixed assets
Group
Goodwill
Patents & licences
Website
Total
£
£
£
£
Cost
At 1 January 2023 and 31 December 2023
981,610
901,146
241,426
2,124,182
Amortisation and impairment
At 1 January 2023
81,801
203,646
138,609
424,056
Amortisation charged for the year
98,161
90,000
51,522
239,683
At 31 December 2023
179,962
293,646
190,131
663,739
Carrying amount
At 31 December 2023
801,648
607,500
51,295
1,460,443
At 31 December 2022
899,809
697,500
102,817
1,700,126
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
11
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
126,854
605,053
220,408
193,863
1,146,178
Additions
21,998
6,754
11,498
268,446
308,696
Disposals
-
0
(18,014)
-
0
(101,750)
(119,764)
At 31 December 2023
148,852
593,793
231,906
360,559
1,335,110
Depreciation and impairment
At 1 January 2023
73,283
322,102
118,138
86,141
599,664
Depreciation charged in the year
20,078
103,117
34,191
56,260
213,646
Eliminated in respect of disposals
-
0
(275)
-
0
(65,714)
(65,989)
At 31 December 2023
93,361
424,944
152,329
76,687
747,321
Carrying amount
At 31 December 2023
55,491
168,849
79,577
283,872
587,789
At 31 December 2022
53,571
282,951
102,270
107,722
546,514
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
143,877
143,877
Investments in associates
14
106,141
-
0
-
0
-
0
106,141
-
0
143,877
143,877
Movements in fixed asset investments
Group
Shares in associates
£
Cost or valuation
At 1 January 2023
-
Investment in associate
96,480
Share of profits of associate
9,661
At 31 December 2023
106,141
Carrying amount
At 31 December 2023
106,141
At 31 December 2022
-
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
143,877
Carrying amount
At 31 December 2023
143,877
At 31 December 2022
143,877
OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
13
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Address
Class of
% Held
shares held
Direct
Indirect
Optimum Medical Solutions Leeds Limited
England
Ordinary shares
100.00
-
Ou Mei Shun Medical Device (Shanghai) Co., Ltd
China
Ordinary shares
100.00
-
OMS West Africa Limited
Nigeria
Ordinary
99.00
-
Optimum Australasia Pty Ltd
Australia
Ordinary shares
100.00
-
Optimum Medical Solutions Limited
England
Ordinary shares
-
100.00
My Vyne Limited
England
Ordinary shares
-
100.00
Optimum Medical Solutions GmbH
Germany
Ordinary shares
100.00
-
Hunter Urology Ltd
Engalnd
Ordinary
-
100.00

Registered office addresses (all UK unless otherwise indicated):

1,5,6,8
Tennant Hall, Blenheim Grove, Leeds, LS2 9ET
2
Room 6729, No. 1440, Middle of Yanan RD, Jingan District, Shanghai City, China
3
1st Floor, Rio Plaza, 233 Muri Okunola Street, Victoria Island, Lagos State, Nigeria
4
Level 4, 470 Church Street, North Parramatta, NSW 2151, Australia
7
c/o Warth & Klein Grant Thornton AG, Ulmenstrasse 37-39, 60325 Frankfurt am Main, Germany

The results of all subsidiary undertakings are included in the consolidated accounts for the group on a comparable period.

14
Associates

Details of associates at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Nephrostomy UK Limited
High Barn, High Barn Road, Leatherhead, Surrey, KT24 5PR
Ordinary
28
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
4,980,374
4,779,167
-
0
-
0
OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,416,740
2,326,271
-
0
-
0
Unpaid share capital
2
2
-
0
-
0
Amounts owed by group undertakings
-
-
11,991,350
11,991,350
Other debtors
3,557,951
4,127,751
-
0
-
0
Prepayments and accrued income
913,660
657,331
-
0
-
0
6,888,353
7,111,355
11,991,350
11,991,350

Amounts owed by group undertakings are interest free and repayable on demand.

17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
19
8,379
7,915
-
0
-
0
Trade creditors
1,239,256
900,176
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
96,744
96,744
Corporation tax payable
31,913
185,621
-
0
-
0
Other taxation and social security
985,330
61,649
-
-
Government grants
21
-
0
1,009
-
0
-
0
Other creditors
53,623
501,474
-
0
-
0
Accruals and deferred income
1,690,176
996,977
-
0
-
0
4,008,677
2,654,821
96,744
96,744

Obligations under finance leases of £8,379 (2022 - £7,915) are secured by fixed charges over the assets they relate to.

Amounts owed to group undertakings are interest free and repayable on demand.

18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
19
19,924
28,302
-
0
-
0

Obligations under finance leases of £19,924 (2022 - £28,302) are secured by fixed charges over the assets they relate to.

OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
19
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
8,379
7,915
-
0
-
0
In two to five years
19,924
28,302
-
0
-
0
28,303
36,217
-
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

20
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
99,144
76,677
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
76,677
-
Charge to profit or loss
22,467
-
Liability at 31 December 2023
99,144
-

Of the deferred tax liability set out above, £53,000 is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature in the same period.

21
Government grants
Group
Company
2023
2022
2023
2022
£
£
£
£
Arising from government grants
-
1,009
-
-
OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
53,536
67,025

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
4
4
4
4
24
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
338,586
674,340
-
-
Between two and five years
758,713
1,381,914
-
-
1,097,299
2,056,254
-
-
25
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Purchases
Purchases
2023
2022
£
£
Group
Other related parties - under common control
347,988
368,626
OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
25
Related party transactions
(Continued)
- 32 -

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Group
Other related parties
34,577
-

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Other related parties - under common control
3,400,712
3,943,758
26
Directors' transactions

Advances or credits have been granted by the group to its directors as follows:

Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Mr A Higgins -
-
(799)
121,804
(111,799)
9,206
Mr G A Rimmington -
-
(675)
121,804
(111,799)
9,330
(1,474)
243,608
(223,598)
18,536
27
Audit exemption provided to certain UK Group subsidiaries

The Company is providing certain wholly owned UK subsidiaries (as disclosed in note 13 and which are included within these Group consolidated financial statements) with guarantee of their respective debts in the form prescribed by Section 479C of the Companies Act 2006 ('the Act') such that they can claim exemption from requiring an audit in accordance with Section 479A of the Act. These guarantees cover all of the outstanding actual and contingent liabilities of these companies at 31 December 2023:

 

Optimum Medical Solutions Leeds Limited        Company number 08591848

 

OPTIMUM MEDICAL SOLUTIONS GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
28
Cash generated from/(absorbed by) group operations
2023
2022
£
£
Profit for the year after tax
514,205
945,559
Adjustments for:
Share of results of associates and joint ventures
(9,661)
-
Taxation charged
140,334
155,799
Finance costs
1,720
22,334
Investment income
(42,653)
(72,698)
Loss on disposal of tangible fixed assets
25
-
Amortisation and impairment of intangible assets
239,683
238,176
Depreciation and impairment of tangible fixed assets
213,646
335,178
Movements in working capital:
Increase in stocks
(201,207)
(2,230,251)
Decrease/(increase) in debtors
241,538
(395,208)
Increase/(decrease) in creditors
1,508,109
(371,089)
Decrease in deferred income
(1,009)
(5,336)
Cash generated from/(absorbed by) operations
2,604,730
(1,377,536)
29
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
2,787,838
1,772,614
4,560,452
Obligations under finance leases
(36,217)
7,914
(28,303)
2,751,621
1,780,528
4,532,149
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