Company Registration No. 10957214 (England and Wales)
Cheers Health Care Limited
Annual report and financial statements for the period ended 31 December 2023
Cheers Health Care Limited
Company information
Directors
Dr A I Gunasekara
Dr S K Srivastava
Secretary
Dr A I Gunasekara
Company number
10957214
Registered office
34 Castle Hill
Maidenhead
Berkshire
United Kingdom
SL6 4JJ
Independent auditor
TC Group
1st Floor
Ocean Village Innovation Centre
Ocean Way
Southampton
Hampshire
United Kingdom
SO14 3JZ
Cheers Health Care Limited
Contents
Page
Directors' report
1
Directors' responsibilities statement
2
Independent auditor's report
3 – 6
Income statement
7
Statement of financial position
8
Notes to the financial statements
9 – 16
Cheers Health Care Limited
Directors' report
For the period ended 31 December 2023
The directors present their annual report and financial statements for the period ended 31 December 2023.
Principal activities
The principal activity of the company continued to be that of the sale of healthcare goods via online retail.
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
Dr A I Gunasekara Dr S K Srivastava
Auditor
TC Group were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed 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 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.
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
..............................
..............................
Dr A I Gunasekara
Dr S K Srivastava
Director
Director
Date: 23 September 2024
Page 1
Cheers Health Care Limited
Directors' responsibilities statement
For the period ended 31 December 2023
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 prepared the company financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 ‘The financial reporting standard applicable in the UK and Republic of Ireland', and applicable law).
Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
state whether applicable United Kingdom Accounting Standards, comprising FRS 102 have been followed, subject to any material departures disclosed and explained in the financial statements;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for 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 also 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.
Page 2
Cheers Health Care Limited
Independent auditor's report
To the member of Cheers Health Care Limited
Opinion
We have audited the financial statements of Cheers Health Care Limited (the 'company') for the period ended
31 December 2023
31 December 2023
which comprise the income statement, the statement of financial position 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:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the period then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor'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.
Page 3
Cheers Health Care Limited
Independent auditor's report (continued)
To the member of Cheers Health Care Limited
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:
the information given in the directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the directors' report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and from the requirement to prepare a strategic report.
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.
Page 4
Cheers Health Care Limited
Independent auditor's report (continued)
To the member of Cheers Health Care Limited
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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Identifying and assessing risks related to irregularities:
We obtained an understanding of the legal and regulatory frameworks that are applicable to the
Company in the context of the sector and countries in which it operates and determined that the most significant frameworks which are directly relevant so specific assertions in the financial statements are those that relate to the reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK.
We understood how the company is complying with those frameworks by making enquiries of
management and those responsible for legal and compliance procedures. We corroborated our enquiries through review of board minutes, legal correspondence, and discussions with those charged with governance.
We assess the susceptibility of the company financial statements to material misstatement, including how fraud might occur, by discussion with management from various parts of the business to understand where they considered there was a susceptibility to fraud. We considered the procedures and controls that the company has established to prevent and detect fraud, and how these are monitored by management, and also any enhanced risk factors such as performance targets.
Based on our understanding, we designed our audit procedures to identify any non-compliance with laws and regulation identified in the paragraphs above.
We also performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.
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.
Page 5
Cheers Health Care Limited
Independent auditor's report (continued)
To the member of Cheers Health Care Limited
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.
Richard Gillespie, FCCA Senior Statutory Auditor
For and on behalf of TC Group
Date: 23 September 2024
Chartered Accountants
Statutory Auditors
1st Floor
Ocean Village Innovation Centre Ocean Way
Southampton Hampshire United Kingdom SO14 3JZ
Page 6
Cheers Health Care Limited
Income statement
For the period ended 31 December 2023
Year
ended
31 December
2023
Period
ended
31 Dec
2022
Notes
£
£
Turnover
4,012,977
3,258,429
Cost of sales
(2,841,900)
(1,902,856)
Gross profit
1,171,077
1,355,573
Administrative expenses
(1,222,380)
(1,100,734)
Operating profit
(51,303)
254,839
Interest payable and similar expenses
(66,268)
(28,214)
Profit before taxation
(117,571)
226,625
Tax on profit
4
-
-
Profit for the financial period
(117,571)
226,625
The income statement has been prepared on the basis that all operations are continuing operations.
Page 7
Cheers Health Care Limited
Statement of financial position
As at 31 December 2023
Fixed assets
Tangible assets
Notes
5
31 December
£
2023
£
567
31 December
£
2022
£
1,247
Current assets
Stocks
6
917,765
975,019
Debtors
7
247,566
242,709
Cash at bank and in hand
146,616
276,702
1,311,947
1,494,430
Creditors: amounts falling due within one year
8
(295,123)
(688,236)
Net current assets
1,016,824
806,194
Total assets less current liabilities
1,017,391
807,441
Creditors: amounts falling due after
more than one year
9
(489,503)
(161,982)
Net assets
527,888
645,459
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
527,788
645,359
Total equity
527,888
645,459
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on
23 September 2024
23 September 2024
and are signed on its behalf by:
..............................
..............................
Dr A I Gunasekara
Dr S K Srivastava
Director
Director
Company Registration No. 10957214
Page 8
Cheers Health Care Limited
Notes to the financial statements
For the period ended 31 December 2023
1
Accounting policies Company information
Cheers Health Care Limited operates the sale of healthcare goods via online retail.
The company is a private company limited by shares incorporated in England and Wales. The registered office is 34 Castle Hill, Maidenhead, Berkshire, United Kingdom, SL6 4JJ.
1.1
Reporting period
The figures presented for the current year are for the year to 31 December 2023. The prior year figures are for the 14 month period from 1 November 2021 to 31 December 2022 so are not entirely comparable.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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.
1.3
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company 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.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods provided in the sale of healthcare goods, and is shown net of VAT and other sales related taxes.
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 dispatch 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.
Page 9
Cheers Health Care Limited
Notes to the financial statements (continued)
For the period ended 31 December 2023
1 Accounting policies (continued)
1.5
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:
Computers
3 year straight line
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.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined on the first-in, first-out (FIFO) 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.
Page 10
Cheers Health Care Limited
Notes to the financial statements (continued)
For the period ended 31 December 2023
1 Accounting policies (continued)
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.
1.8
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.
1.9
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 statement of financial position 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 at bank and in hand, 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.
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.
Page 11
Cheers Health Care Limited
Notes to the financial statements (continued)
For the period ended 31 December 2023
1 Accounting policies (continued)
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.
1.10
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.
1.11
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 income statement 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.
Page 12
Cheers Health Care Limited
Notes to the financial statements (continued)
For the period ended 31 December 2023
1 Accounting policies (continued)
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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.
1.12
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.
1.13
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Critical accounting 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.
Page 13
Cheers Health Care Limited
Notes to the financial statements (continued)
For the period ended 31 December 2023
3
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2023
2022
Number
Number
Total
2
2
4
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
-
5
Tangible fixed assets
Plant and machinery etc.
£
Cost
At 1 January 2023
2,040
Additions
-
At 31 December 2023
2,040
Depreciation and impairment
At 1 January 2023
793
Depreciation charged in the period
680
At 31 December 2023
1,473
Carrying amount
At 31 December 2023
567
Page 14
Cheers Health Care Limited
Notes to the financial statements (continued)
For the period ended 31 December 2023
6
Stocks
2023
2022
£
£
Goods for resale
917,765
975,019
917,765
975,019
There is no significant difference between the replacement cost of the inventory and its carrying amount
7
Debtors
2023
2022
Amounts falling due within 1 year
£
£
Trade debtors
59,990
75,099
Amounts owed by group undertakings
175,767
-
Prepayments
10,309
-
Other debtors
3,500
167,610
247,566
242,709
8
Creditors: amounts falling due within 1 year
2023
2022
£
£
Bank loans and overdrafts
63,903
50,751
Trade creditors
1,327
1,151
Amounts owed to group undertakings
160,651
592,782
Corporation tax
-
-
Other taxation and social security
26,461
27,901
Other creditors
42,781
15,651
295,123
688,236
Page 15
Cheers Health Care Limited
Notes to the financial statements (continued)
For the period ended 31 December 2023
9
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
92,044
161,982
Amounts due to group undertalings
397,459
-
489,503
161,982
The company has a loan of £250,000 bearing interest at a rate of 12.69% per annum, repayable by 60 instalments with final repayment date by March 2026.
The company has a fixed and floating charge for all present and future assets in reference to the trademark with the parent company.
The company has a loan from the intermediate controlling parent, Gravitiq LLC, with interest payable on the principal at the rate of interest percentage charged to the intermediate controlling company by the external lending party, the loan will be repaid as per demand in instalments period beginning on 26 September 2022.
The company's intermediate controlling parent has a loan secured on the company's assets, including cash at bank of current carrying value of £55,000 (2022: £204,000). The loan is instantly repayable in the event of default on any payment of interest or principal, bankruptcy or insolvency, loss of security and contract breaches. In any of those cases, the lender has a claim over the assets specified above, in any order chosen by the lender, to the extent necessary to settle the outstanding value of the debt.
10
Related party transactions
The company has taken advantage of the exemption available in section 1AC.35 of FRS102 from the requirement to disclose transactions with group companies on the grounds that the company is the parent of a wholly owned subsidiary within the group.
11
Parent company
The immediate parent company is Gravitiq UK Acquisitions Limited, whose registered office is 34 Castle Hill, Maidenhead, SL6 4JJ, which is subsequently owned by Gravitiq LLC, an intermediate controlling company incorporated in the United States of America
The Directors regard Gravitiq Holdings Inc a company incorporated in Delaware, United States of America as the Company's ultimate controlling party. Copies of their financial statements are available from 1209 Orange Street, Wilmington, DE 19801.
Page 16
Cheers Health Care Limited
Detailed income statement
For the period ended 31 December 2023
Year
Period
ended
ended
31 December
31 December
2023
£
£
2022
£
£
Turnover
£
Sales of goods
4,012,977
3,258,429
Cost of sales
Direct costs
2,841,900
1,902,856
Total cost of sales
(2,841,900)
(1,902,856)
Gross profit
1,171,077
1,355,573
Administrative expenses
Subcontract labour
-
503
Staff welfare
(1,356)
5,409
Commissions payable
3,595
1,463
Management charge - group
324,253
275,302
Premises insurance
3,357
5,609
Travelling expenses
7,126
3,169
Accommodation and subsistence
2,098
4,855
Postage, courier and delivery charges
148
2,256
Professional subscriptions
12,958
26,399
Legal and professional fees
13,034
20,897
Consultancy fees
6,285
4,546
Accountancy
13,871
33,083
Bank charges
4,623
7,501
Advertising
815,043
706,436
Website costs
680
632
Telecommunications
2,130
2,095
Sundry expenses
7,580
4,935
Depreciation
680
793
Profit or loss on foreign exchange
6,275
(5,149)
(1,222,380)
(1,100,734)
Operating profit
(51,303)
254,839
Page 17
Cheers Health Care Limited
Detailed income statement (continued)
For the period ended 31 December 2023
Year
Period
ended
ended
31 December
31 December
2023
2022
£
£
£
£
Interest payable and similar expenses
Bank interest on loans and overdrafts
24,976
23,411
Group interest on loans
41,292
4,803
(66,268)
(28,214)
Profit before taxation
(117,571)
226,625
This page does not form part of the financial statements on which the auditors have reported.
Page 18
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