Company registration number SC697523 (Scotland)
SDC CLINICS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
SDC CLINICS LIMITED
COMPANY INFORMATION
Directors
Mr P J Friel
Mr C J Friel
Company number
SC697523
Registered office
20 Blythswood Square
Glasgow
G2 4BG
Auditor
Azets Audit Services
Titanium 1
Kings Inch Place
Renfrew
United Kingdom
PA4 8WF
SDC CLINICS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 31
SDC CLINICS LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 1 -

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

 

The directors, in preparing this strategic report, have complied with section 414C of the Companies Act 2006.

Principal activities

The principal activity of the company is the provision of dental services at its clinics throughout Scotland. The company is wholly owned by SDC Group Limited.

Business review and future developments

The company changed its year end to align with the seasonality of the business, resulting in an extended 17-month accounting period ending 31 December 2023 (2022: year ending 31 July 2022). The period to 31 December 2023 represents the first period of trading for the company following the hive up of clinics in July 2022.

 

Turnover for the period ended 31 December 2023 was £14,448,073 and Profit before tax for the period was £793,870. EBITDA for the period ended 31 December 2023 was £2,044,855 (2022: £nil).

 

During the period, the group appointed a Chief Executive Officer, Lynn Hood, for the first time to allow the directors to focus on strategic clinical matters, expand the group’s dental services and make future acquisitions. As part of the change in leadership structure, the group also invested in its Head Office support function including Finance, HR, Marketing, Recruitment and Facilities to ensure that it is best able to capitalise on the opportunities presented both within its existing clinics and from future growth plans.

 

We acquired three new clinics during the period - Belhaven, Barrhead and Gorbals - which were all hived up into the company, supplementing the hive up of 4 other practices from existing subsidiaries. The clinics had existing NHS and private patients and all new clinics have positively impacted the company’s results since acquisition.

 

Post period end the parent company has acquired one further clinic which has been hived up, and the company now operates twenty one practices throughout Scotland with overall performance in line with expectations.

Principal risks and uncertainties

The management of the business and the execution of the company’s strategy are subject to a number of risks and uncertainties set out below, together with the company’s approach to monitoring and mitigation.

 

Recruitment and retention of Associate Dentists and Clinical Staff

The company’s ability to recruit and retain Associate Dentists (self employed) and Clinical Staff (employed) is essential to its continuing operations and future growth. The group has invested in its recruitment team and now has two full time dedicated recruiters who focus on the specific requirements of each vacant post. The group offers competitive packages for both Associate Dentists and Clinical Staff.

 

The company has built up a reputation in the Scottish market for being a leader in learning and development opportunities for Associate Dentists, and this continues to be an area of focus for the future.

    

Clinical Standards

The company is regulated by NHS Scotland and is held to high levels of clinical standards. Regular clinic inspections take place and if required standards are not met, the clinics could be closed and there would be a negative impact on the company’s reputation in the market. The directors are committed to ensuring clinical standards are met and provide support to the clinical teams.

 

Growth Strategy

As the company continues to grow, each potential acquisition is assessed by experienced Directors and supplemented by External advisors as necessary to ensure it meets the company's principal criteria.

SDC CLINICS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 2 -
Key performance indicators

The directors and board consider company financial KPIs in the evaluation of business performance on a regular basis.

 

 

2023 (17 month period)

2022

Turnover

£14,448,073

£nil

EBITDA

£2,044,855

£nil

 

In addition, the company’s cashflow is carefully monitored to ensure sufficient funds for ongoing operations and covenant compliance. Through regular reporting of revenue and profitability, the board is kept well informed of progress. The board believe these indicators are performing as expected based on the current plan.

Financial instruments

The company's financial risk management objectives are to ensure there is sufficient working capital and cash flow to meet its operating needs and to ensure there is sufficient support for its growth strategy. This is achieved through careful management of cash resources and by obtaining bank facilities and investor funding.

 

The company's principal financial instruments are inter-company loans from its parent entity, SDC Group Limited. SDC Group's principal financial instruments are bank loans, loan notes and equity from its investors. Such financial instruments are utilised to fund clinic acquisitions and for working capital.

 

Bank loans are secured by floating charge, inter-company guarantees and standard security over properties owned by related parties. They are subject to market rate interest. Loan notes are unsecured and are repayable in installments between 2026 and 2028. They are subject to a return based on interest and a redemption premium.

 

The company is exposed to interest rate risk with regards to its facilities. It is subject to minimal credit risk and no forex risk. No treasury transactions or derivatives are entered into.

On behalf of the board

Mr C J Friel
Director
16 August 2024
SDC CLINICS LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 3 -

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

Results and dividends

The results for the period are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

Mr P J Friel
Mr C J Friel
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the period. These provisions remain in force at the reporting date.

Post reporting date events

Details with regards to events ocurring post reporting date can be found in note 23 to the financial statements.

Auditor

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial instruments and risk.

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 company’s auditor 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 company’s auditor is aware of that information.

On behalf of the board
Mr C J Friel
Director
16 August 2024
SDC CLINICS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 4 -

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 company and of the profit or loss of the company 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

SDC CLINICS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF SDC CLINICS LIMITED
- 5 -
Opinion

We have audited the financial statements of SDC Clinics Limited (the 'company') for the period ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

SDC CLINICS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF SDC CLINICS LIMITED
- 6 -
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:

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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

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.

SDC CLINICS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF SDC CLINICS LIMITED
- 7 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Other matters which we are required to address

The corresponding figures in the prior period are unaudited.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Alan Brown
Senior Statutory Auditor
For and on behalf of Azets Audit Services
21 August 2024
Chartered Accountants
Statutory Auditor
Titanium 1
Kings Inch Place
Renfrew
United Kingdom
PA4 8WF
SDC CLINICS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 8 -
Period
Period
ended
ended
31 December
31 July
2023
2022
as restated
Notes
£
£
Turnover
3
14,448,073
-
Cost of sales
(8,619,069)
-
0
Gross profit
5,829,004
-
Administrative expenses
(6,043,710)
-
0
Other operating income
1,008,562
-
0
Operating profit
4
793,856
-
Interest receivable and similar income
14
-
0
Other gains and losses
6
-
(774,692)
Profit/(loss) before taxation
793,870
(774,692)
Tax on profit/(loss)
7
62,500
-
0
Profit/(loss) for the financial period
856,370
(774,692)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

SDC CLINICS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
31 December 2023
31 July 2022
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
9
9,688,936
803,980
Tangible assets
10
2,306,850
1,347,776
Investments
11
3,858,881
17,790
15,854,667
2,169,546
Current assets
Stocks
13
263,836
77,448
Debtors
14
1,465,111
455,245
Cash at bank and in hand
1,494,805
542,111
3,223,752
1,074,804
Creditors: amounts falling due within one year
15
(18,590,821)
(3,953,812)
Net current liabilities
(15,367,069)
(2,879,008)
Total assets less current liabilities
487,598
(709,462)
Creditors: amounts falling due after more than one year
16
(261,667)
(13,185)
Provisions for liabilities
Deferred tax liability
18
-
0
51,945
-
(51,945)
Net assets/(liabilities)
225,931
(774,592)
Capital and reserves
Called up share capital
20
100
100
Profit and loss reserves
225,831
(774,692)
Total equity
225,931
(774,592)
The financial statements were approved by the board of directors and authorised for issue on 16 August 2024 and are signed on its behalf by:
Mr C J Friel
Director
Company Registration No. SC697523
SDC CLINICS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 31 July 2022:
Balance at 1 June 2022
100
-
0
100
Period ended 31 July 2022:
Loss and total comprehensive income for the period
-
(774,692)
(774,692)
Balance at 31 July 2022
100
(774,692)
(774,592)
Period ended 31 December 2023:
Profit and total comprehensive income for the period
-
856,370
856,370
Transfer on business combination
-
144,153
144,153
Balance at 31 December 2023
100
225,831
225,931
SDC CLINICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information

SDC Clinics Limited is a private company limited by shares incorporated in Scotland. The registered office is 20 Blythswood Square, Glasgow, G2 4BG.

1.1
Reporting period

The financial statements are presented for a period of seventeen months from 1 August 2022 to 31 December 2023 following the extension of the company's accounting reference date. As such, amounts presented in the financial statements (including related notes) are not entirely comparable with the comparative figures, which covered a two month period.

1.2
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. The principal accounting policies adopted are set out below.

This 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:

 

 

The financial statements of the company are consolidated in the financial statements of SDC Group Limited. These consolidated financial statements are available from its registered office, 20 Blythswood Square, Glasgow, G2 4BG.

1.3
Prior period adjustment

The nature and amounts of prior period adjustments are disclosed in Note 26 of these financial statements.

SDC CLINICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.4
Business combinations

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.

 

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.

1.5
Going concern

The directors are required to prepare the statutory financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. true

 

In satisfaction of their responsibility, the directors have considered the company's ability to meet its liabilities as they fall due. This assessment considers its principal risks and uncertainties and is dependent on a number of factors including financial performance and available financial resources.

 

To this end, the directors have reviewed the company's cash flow forecasts, and associated risks and sensitivities. These forecasts consist of the company's annual forecast to December 2024 and its projections extending out to 2027.

 

The company continues unabated with its buy and build growth model, supported by its investors.

 

The key factors underpinning the directors’ assessment of going concern are as follows:

 

Based on this assessment, and with the continued support of its parenty entity and investors, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and have concluded it is appropriate for the financial statements to be prepared on a going concern basis.

SDC CLINICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.6
Turnover

Revenue 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 principally relates to services provided in the course of dentistry.

 

Private and NHS dental revenue is recognised by reference to the stage of completion of the service performed during the course of treatment.

 

Revenue from the sale of ancillary goods is recognised when the significant risks and rewards of ownership of the goods have passed to the customer.

1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses 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
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:

Freehold land and buildings
2% Straight Line
Leasehold land and buildings
Over the length of the lease
Leasehold improvements
Over the length of the lease
Plant and equipment
25% Reducing Balance
Fixtures and fittings
25% Reducing Balance
IT Equipment
25% Reducing Balance

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 credited or charged to profit or loss.

1.9
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

SDC CLINICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -

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

1.10
Impairment of fixed assets

At each reporting period end date, the company 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.

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.

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.

1.11
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. 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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

1.12
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.

SDC CLINICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.13
Financial instruments

The company 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 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 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.

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 company 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 company after deducting all of its liabilities.

SDC CLINICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
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.

Derecognition of financial liabilities

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

1.14
Equity instruments

Equity instruments issued by the company 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 company.

1.15
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

SDC CLINICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
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 when the company has 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.

1.16
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.

1.17
Retirement benefits

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

1.18
Leases

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 leases 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.

SDC CLINICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 18 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’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 and estimates

The following judgements and estimates have had the most significant effect on amounts recognised in the financial statements.

Business combinations

There are various estimates and judgements applied in the company's business combinations. These include:

 

Fair values of assets & liabilities acquired in business combinations are assessed by Management based on their knowledge of the industry and physical conditions of the assets acquired.

 

The purchase price allocation and classification of directly attributable costs are determined by Management based on their knowledge and experience.

 

The fair value of contingent consideration is estimated by Management based on the estimated future profitability of the acquired business.

 

Management apply their accounting policy for business combinations to hive up transactions occurring in the period.

 

The businesses originally acquired by the SDC group during 2022 and hived up during the period have their goodwill value established based on the fair value of the net assets at the time of the original acquisitions. The goodwill recognised at the date of hive up is therefore the amortised amount of consolidated goodwill arising with the difference adjusting equity reserves.

SDC CLINICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 19 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Provision of dental services
14,448,073
-
2023
2022
£
£
Other revenue
Interest income
14
-
Dental practice allowances
660,130
-
Rent and rates reimbursements
338,585
-
Other income
9,847
-

All turnover arose within the United Kingdom and is attributable to the principal activity as disclosed within the directors report.

4
Operating profit
2023
2022
Operating profit for the period is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
50,000
-
0
Depreciation of owned tangible fixed assets
627,176
-
Impairment of owned tangible fixed assets
18,649
-
0
Amortisation of intangible assets
622,394
-
Operating lease charges
548,644
-
5
Employees

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

2023
2022
Number
Number
Practice staff
88
-
0

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,423,613
-
0
Social security costs
180,653
-
Pension costs
42,455
-
0
2,646,721
-
0
SDC CLINICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 20 -
6
Amounts written off investments
2023
2022
£
£
Impairment provision on loans
-
(774,692)

Other gains and losses represents impairment provisions on inter-company debt.

7
Taxation
2023
2022
£
£
Current tax
Adjustments in respect of prior periods
12,947
-
0
Deferred tax
Adjustment in respect of prior periods
(75,447)
-
0
Total tax credit
(62,500)
-
0

The actual (credit)/charge for the period can be reconciled to the expected charge/(credit) for the period based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit/(loss) before taxation
793,870
(774,692)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 22.19% (2022: 19.00%)
176,160
(147,191)
Tax effect of expenses that are not deductible in determining taxable profit
51
147,191
Group relief
(317,007)
-
0
Under/(over) provided in prior years
(62,500)
-
0
Deferred tax not recognised
(225,467)
-
0
Remeasurement of deferred tax
25,343
-
0
Other tax adjustments
78,054
-
0
Permanent fixed asset timing differences
262,866
-
0
Taxation credit for the period
(62,500)
-
SDC CLINICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 21 -
8
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£
£
In respect of:
Property, plant and equipment
10
18,649
-
0
Recognised in:
Administrative expenses
18,649
-

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

9
Intangible fixed assets
Goodwill
£
Cost
At 1 August 2022
1,134,709
Additions - external business combinations
2,119,846
Additions - arising on hive up
7,387,504
At 31 December 2023
10,642,059
Amortisation and impairment
At 1 August 2022
330,729
Amortisation charged for the period
622,394
At 31 December 2023
953,123
Carrying amount
At 31 December 2023
9,688,936
At 31 July 2022
803,980
SDC CLINICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 22 -
10
Tangible fixed assets
Freehold land and buildings
Leasehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
IT Equipment
Total
£
£
£
£
£
£
£
Cost
At 1 August 2022
14,070
596,774
38,000
1,679,466
135,246
218,500
2,682,056
Additions
-
0
453,529
-
0
458,936
274,295
7,533
1,194,293
Business combinations
-
0
3,631
-
0
454,087
898,207
60,376
1,416,301
Transfers
(14,070)
69,860
(38,000)
(17,790)
-
0
-
0
-
0
At 31 December 2023
-
0
1,123,794
-
0
2,574,699
1,307,748
286,409
5,292,650
Depreciation and impairment
At 1 August 2022
2,558
124,096
3,800
985,568
70,398
147,860
1,334,280
Depreciation charged in the period
-
0
186,999
-
0
325,660
90,290
24,227
627,176
Impairment losses
-
0
16,628
-
0
-
0
2,021
-
0
18,649
Transfers
(2,558)
1,242
(3,800)
5,116
-
0
-
0
-
0
Business combinations
-
0
-
0
-
0
160,156
800,411
45,128
1,005,695
At 31 December 2023
-
0
328,965
-
0
1,476,500
963,120
217,215
2,985,800
Carrying amount
At 31 December 2023
-
0
794,829
-
0
1,098,199
344,628
69,194
2,306,850
At 31 July 2022
11,512
472,678
34,200
693,898
64,848
70,640
1,347,776
SDC CLINICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 23 -
11
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
12
3,841,091
-
0
Unlisted investments
17,790
17,790
3,858,881
17,790
Movements in fixed asset investments
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 August 2022
-
17,790
17,790
Additions - changes in contingent consideration
300,000
-
300,000
Additions - business combination
1,405,177
-
1,405,177
Transfers in
9,577,658
-
9,577,658
Transfers out
(7,441,744)
-
(7,441,744)
At 31 December 2023
3,841,091
17,790
3,858,881
Carrying amount
At 31 December 2023
3,841,091
17,790
3,858,881
At 31 July 2022
-
17,790
17,790

During the period, the company's parent entity transferred its investments in its subsidiaries to the company.

 

The company has applied the principles of acquisition accounting for business combinations to the hive up of trade and assets from the subsidiaries to the company during the period.

 

As such, an adjustment is made to the cost of investment and goodwill recognised based on the fair values of net assets at the date of original acquisition by the group.

SDC CLINICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 24 -
12
Subsidiaries

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

Name of undertaking
Class of
% Held
shares held
Direct
Bishopton Dental Clinic Limited
Ordinary
100.00
Cardonald Dental Clinic Limited
Ordinary
100.00
Culloden Dental Clinic Limited
Ordinary
100.00
Dumfries Dental Clinic Limited
Ordinary
100.00
Hazel House Dental Clinic Limited
Ordinary
100.00
Inverness Dental Clinic Limited
Ordinary
100.00
Linlithgow Dental Clinic Limited
Ordinary
100.00
Lochthorn Dental Clinic Limited
Ordinary
100.00
Oban Dental Clinic Limited
Ordinary
100.00
SDC Newlands Limited
Ordinary
100.00
Shotts Dental Clinic Limited
Ordinary
100.00
Stoneyfield Dental Clinic Limited
Ordinary
100.00
Winchburgh Dental Clinic Limited
Ordinary
100.00
Hilton Dental Clinic Limited
Ordinary
100.00
Philip Friel Dentist Limited
Ordinary
100.00
Castle House Dental Practice Limited
Ordinary
100.00
Scotdent Clinics Limited
Ordinary
100.00
Granite City Clinic Limited
Ordinary
100.00
Mathewson Dental Practice Limited
Ordinary
100.00
Belhaven Dental Limited
Ordinary
100.00

All of the above subsidiaries are registered at 20 Blythswood Square, Glasgow, G2 4BG.

 

Belhaven Dental Limited was acquired by share purchase agreement during the period and its trade and assets hived up to the company. The trade and assets of two other practices (Barrhead and Gorbals) were also acquired by business purchase agreement.

 

The trade and assets of Castle House Dental Practice Limited, Scotdent Clinics Limited, Granite City Clinic Limited and Mathewson Dental Practice Limited were all hived up to the company during the period.

 

All acquisitions and hive ups were accounting for under the acquisition method of accounting.

 

Following hive up of the trade and assets to the company, all subsidiaries are now dormant.

13
Stocks
2023
2022
£
£
Raw materials and consumables
263,836
77,448
SDC CLINICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 25 -
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
567,453
229,147
Corporation tax recoverable
-
0
4,496
Other debtors
788,976
135,570
Prepayments and accrued income
108,682
86,032
1,465,111
455,245
15
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Other borrowings
17
-
0
22,356
Trade creditors
383,015
345,570
Amounts owed to group undertakings
17,252,222
3,161,607
Corporation tax
104,761
-
0
Other taxation and social security
767
21,686
Other creditors
93,333
-
0
Accruals and deferred income
756,723
402,593
18,590,821
3,953,812
16
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Other borrowings
17
-
0
13,185
Other creditors
261,667
-
0
261,667
13,185

Other creditors represents deferred consideration payable on business combinations during the period.

17
Loans and overdrafts
2023
2022
£
£
Other loans
-
0
35,541
Payable within one year
-
0
22,356
Payable after one year
-
0
13,185
SDC CLINICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 26 -
18
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Arising on business combination
-
51,945
2023
Movements in the period:
£
Liability at 1 August 2022
51,945
Credit to profit or loss
(75,447)
Arising on business combination
23,502
Liability at 31 December 2023
-
19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
42,455
-

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
100
100
100
100
SDC CLINICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 27 -
21
Acquisitions

Acquisition 1

On 26 June 2023 the company acquired the business, trade and assets of Barrhead Dental Practice and Gorbals Dental Practice.

Fair Value
£
Property, plant and equipment
72,740
Current assets
5,000
Total identifiable net assets
77,740
Goodwill
770,450
Total consideration
848,190
Satisfied by:
£
Cash
797,740
Transaction costs
50,450
848,190

All goodwill is being amortised over its anticipated useful life of ten years. Since the date of acquisition, the businesses have contibuted £412,699 in Revenue and £67,217 in profit to the company.

Acquisition 2
On 29 July 2023, the company acquired the business, trade and assets of Mathewson Dental Practice Limited, Scotdent Clinics Limited, Granite City Clinic Limited and Castle House Dental Practice Limited.
Fair Value
£
Property, plant and equipment
308,912
Current assets
2,183,652
Cash and cash equivalents
113,066
Current liabilities
(729,749)
Total identifiable net assets
1,875,881
Adjustment to equity
(144,153)
Goodwill arising on hive up
7,387,504
Total consideration
9,119,232
SDC CLINICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
21
Acquisitions
(Continued)
- 28 -
Satisfied by:
£
Inter-company loans
9,119,232

The businesses were originally acquired by the SDC group during 2022. As such, the goodwill value is established based on the fair value of the net assets at the time of the original acquisitions. The goodwill recognised at the date of hive up is therefore the amortised amount of consolidated goodwill arising with the difference adjusting equity reserves. All goodwill is being amortised over its anticipated useful life of ten years.

Since the date of hive up, the businesses have contibuted £2,335,776 in Revenue and £483,940 in profit to the company.

Acquisition 3

On 18 August 2023 the company acquired 100% of the share capital of Belhaven Dental Practice Limited and hived up the business, trade and assets of the company on the same day.

Fair Value
£
Property, plant and equipment
28,955
Current assets
50,630
Cash and cash equivalents
31,153
Current liabilities
(54,957)
Total identifiable net assets
55,781
Goodwill
1,349,396
Total consideration
1,405,177
Satisfied by:
£
Cash
1,000,000
Deferred and contingent consideration
355,000
Transaction costs
50,177
1,405,177

All goodwill is being amortised over its anticipated useful life of ten years. Since the date of acquisition, the business has contibuted £416,732 in Revenue and £57,080 in profit to the company.

SDC CLINICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 29 -
22
Operating lease commitments
Lessee

Operating lease payments represent rentals payable by the company for its properties. Lease terms are on average a term of 15 years. No contingent rents are payable.

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

2023
2022
£
£
Within one year
499,717
250,743
Between two and five years
1,740,998
902,597
In over five years
2,416,295
1,357,635
4,657,010
2,510,975
23
Events after the reporting date

The company entered into business combinations for initial consideration of £1,215,500.

SDC CLINICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 30 -
24
Related party transactions
Transactions with related parties

During the period the company entered into the following transactions with related parties:

Purchases
Purchases
2023
2022
£
£
Other related parties
376,833
-
2023
2022
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
12,584,990
1,584,220
Entities over which the entity has control, joint control or significant influence
4,667,232
1,577,386

The following amounts were outstanding at the reporting end date:

2023
2023
2023
Balance
Provision
Net
Amounts due from related parties
£
£
£
Entities over which the entity has control, joint control or significant influence
829,572
829,572
-
2022
2022
2022
Balance
Provision
Net
Amounts due in previous period
£
£
£
Entities over which the entity has control, joint control or significant influence
774,692
774,692
-
Other information

Purchases from Other related parties relate to property rentals paid to an entity under common ownership.

 

Balances due from Entities over which the entity has control, joint control or significant influence and balances due to Entities with control, joint control or significant influence over the company relate to inter-company loans. All inter-company loans are interest free and due on demand.

 

The company has taken advantage of exemption, under terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland,' not to disclose related party transactions with wholly owned subsidiaries within the group.

 

At the period end, the directors owed the company £14,962 in loans. Loans are provided interest free and due on demand.

SDC CLINICS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 31 -
25
Ultimate controlling party

The company is a wholly owned subsidiary of SDC Group Limited, a company incorporated in Scotland. Its registered office is 20 Blythswood Square, Glasgow, G2 4BG.

 

SDC Group Limited is the largest group into which the entity is consolidated. Copies of the group accounts can be obtained publicly from Companies House.

26
Prior period adjustment

The comparative period has been restated to impair inter-company loans which were not provided for in the prior period in error.

 

The impact on the comparative period results is shown below.

Reconciliation of changes in equity
1 June
31 July
2022
2022
£
£
Adjustments to prior period
Provision against inter-company debt
-
(774,692)
Reclassification of inter-company debtor
-
127,325
Reclassification of inter-company creditor
-
(127,325)
Total adjustments
-
(774,692)
Equity as previously reported
100
100
Equity as adjusted
100
(774,592)
Analysis of the effect upon equity
Profit and loss reserves
-
(774,692)
Reconciliation of changes in profit/(loss) for the previous financial period
2022
£
Adjustments to prior period
Provision against inter-company debt
(774,692)
Profit as previously reported
-
Loss as adjusted
(774,692)
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