Company registration number 03130118 (England and Wales)
SPENCER PRIVATE HOSPITALS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
SPENCER PRIVATE HOSPITALS LIMITED
COMPANY INFORMATION
Directors
G D Bailey
J Jenner
H F Risebrow
A Andreou
J A Yanni
A Heselwood
(Appointed 2 February 2024)
Company number
03130118
Registered office
1 & 3 Almond House
Betteshanger Road
Betteshanger
Deal
England
CT14 0EN
Auditor
Grant Thornton UK LLP
Statutory Auditor & Registered Accountant
Southampton Science Park
Chilworth
Southampton
SO16 7QJ
Business address
Spencer Private Hospital
Ramsgate Road
Margate
Kent
CT9 4BG
SPENCER PRIVATE HOSPITALS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 5
Independent auditor's report
6 - 9
Profit and loss account
10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Notes to the financial statements
14 - 30
SPENCER PRIVATE HOSPITALS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The Directors present the Strategic report for the year ended 31 March 2024.

Fair review of the business

The principal activity of Spencer Private Hospitals Limited (the company) is the provision of private healthcare services within East Kent. The original site in Margate, within the grounds of Queen Elizabeth & Queen Mother Hospital, Margate, Kent, consists of inpatient and outpatient facilities. The Ashford hospital site consists of an inpatient facility, with a separate outpatient facility. The company also has access to inpatient beds and outpatient rooms within the main hospital at Canterbury.

Principal risks and uncertainties facing the business

Management continually monitor the key risks facing the company, together with assessing the controls used and actions necessary in managing these risks. The board of Directors formally reviews and documents the principal risks facing the business at least annually.

The principal risks and uncertainties facing the company are as follows:

Development and financial performance during the year

As reported in the company’s Profit and loss account on page 10, turnover increased by £2.5m from £18.2m to £20.7m and profit before tax increased by £77K from £63K to £139K during the year.

The main drivers for the growth in turnover and profit were the expansion of services at the Canterbury site and the continued return to normal business activities across all sites after assisting the NHS in the Covid-19 pandemic response and subsequent bed pressures.

SPENCER PRIVATE HOSPITALS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Key performance indicators

Management use a range of performance measures to monitor and manage the business. The KPIs used to determine the progress and performance of the company are set out below:

Gross profit margin – A gross profit margin of 18% has been achieved (Prior year: 15%)

PLACE Inspection – Excellent (2022 - being the date of the last inspection: Excellent)

Infection Rates – Zero (2023: Zero)

CQC Inspection – Good rating and no improvements noted (2015 - being the date of the last formal CQC inspection: Good rating and no improvements noted). In line with Covid protocol CQC Engagement meetings have taken place regularly during the past years with no issues raised.

ISO9001:2015 – Maintained (2021 – being the date of the last assessment: Maintained)

ISO14001:2015 – Maintained (2022 – being the date of the last assessment: Maintained)

Food Hygiene Rating – Five (2022 - being the date of the last assessment: Five)

Financial position at the reporting date

The balance sheet shows that the company’s net assets at the year end have increased from £5.1m to £5.4m. The company has invested £32K (2023 £30K) in tangible fixed assets in the year.

 

On behalf of the board

G D Bailey
Director
15 October 2024
SPENCER PRIVATE HOSPITALS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

The Directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of Spencer Private Hospitals Limited (the company) is the provision of private hospital services in East Kent, with inpatient and outpatient facilities in Margate, Ashford and Canterbury. Both NHS and private patient treatments are carried out at each of the hospital sites. In addition to this the company provides assistance to the local NHS Trust in managing demand by means of the provision of beds.

Future developments

The company opened inpatient facilities at the Canterbury site in March 2022 and has seen steady growth in these services since that time. The company is considering a number of development opportunities. Staff wellbeing, retention of staff and strengthening and building relationships with medical professionals are key focus points. Staff and patient safety also remain a key focus. Infection control & social distancing measures continue to be monitored and reviewed regularly since the outbreak of the COVID-19 pandemic, to ensure that staff & patient safety are maintained at all times.

Qualifying third party indemnity provisions

The company has provided qualifying third party indemnity provisions in respect of its officers, including the Directors, which were in force during the year and at the date of this report.

Directors

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

G D Bailey
J Jenner
H F Risebrow
A Andreou
J A Yanni
A Heselwood
(Appointed 2 February 2024)
S J Baird
(Resigned 1 February 2024)
K M Spence
(Resigned 7 July 2023)
V C Purday
(Resigned 31 May 2023)
Results and dividends

The results for the year are set out on page 10.

No dividends were paid during the year (2023: £92,294). The Directors do not recommend payment of a final dividend.

SPENCER PRIVATE HOSPITALS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
Financial risk management

The company is subject to a number of financial risks including credit risk, cash flow and liquidity risk, inflation risk and interest rate risk. Financial risk is monitored via the management and committee structures and through adherence to the financial control framework set out in the company’s financial policies.

 

Credit risk

The company receives the majority of its income from NHS organisations. Processes are in place to ensure adherence to the related contract terms, good communication with NHS representatives and timely resolution of any issues.

 

Cashflow and liquidity risk

The company mitigates cashflow and liquidity risk through careful monitoring and forecasting of cashflows.

 

Inflation risk

The company is exposed to inflation risk due to the impact of inflation on staff costs and other direct and indirect expenses. This is monitored and managed through the company’s budgeting, reforecasting and forecasting processes.

 

Interest rate risk

The company is exposed to interest risk on group borrowings. The Directors do not consider this risk to be significant as a long-term repayment schedule is in place.

Matters covered in the strategic report

In accordance with section 414 of the Companies Act 2006 (Strategic Report and Directors' Report Regulations 2013), the company has chosen to include a Strategic report. The information covers the business review and principal risk and uncertainties.

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.

 

Although the company enjoys a close relationship with the ultimate parent, East Kent Hospitals University NHS Foundation Trust, the company manages its cash flow independently and does not seek financial support from the Trust.

 

The Trust continues to be in the Recovery Support Programme (formerly known as NHS England's Special Measures regime). Although the company is not dependent on the Trust for financial support, it is acknowledged that a proportion of the company's turnover stems from the Trust.

 

The Directors have reviewed the commercial performance of the company and the risk to the business, considering severe but plausible scenarios. The Directors have also considered macroeconomic factors including inflation and general economic conditions within the UK. The Directors have considered the strong relationship with the ultimate parent in regard to providing services, including theatre access, pathology and diagnostic services, the transfer of patients from the NHS Trust through the Inter Provider Transfer route, the provision of overflow beds to the Trust during periods of high demand, the increase in clinical professionals leaving their professions post Covid-19, the continuation of the standard and community contracts with the local ICB and the continued demand for private and NHS healthcare services as NHS waiting lists remain high nationwide. Having considered these factors the Directors have reasonable expectations that the risks derived from this situation can reasonably be regarded by the Directors as manageable business risks.

 

The Directors have reviewed the financial forecasts for at least 12 months from the date of these financial statements and the underlying assumptions used to prepare them. The Directors have satisfied themselves that the assumptions are fair and reasonable and reflect the prospects for the business.

 

Whilst there are still uncertainties around expectations of the future as the healthcare industry returns to business as normal, after making enquiries the Directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and opportunities to develop further. Accordingly, they continue to prepare the financial statements on a going concern basis.

SPENCER PRIVATE HOSPITALS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
Directors' responsibilities statement

The Directors are responsible for preparing the Strategic report, the Directors’ report and the financial statements in accordance with applicable law and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law they have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law, including FRS 102 ‘The Financial Reporting Standard’ applicable in the UK and Republic of Ireland).

Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs and 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 responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Events after the reporting period

There have been no significant events after the year end that would require adjustment or disclosure within these financial statements.

Statement of disclosure of information to the auditor

The Directors confirm that:

Auditor

In accordance with section 485 of the Companies Act 2006, a resolution proposing that Grant Thornton UK LLP be re-appointed will be put forward to the Board at a General Meeting.

On behalf of the board
G D Bailey
Director
15 October 2024
SPENCER PRIVATE HOSPITALS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SPENCER PRIVATE HOSPITALS LIMITED
- 6 -
Opinion

We have audited the financial statements of Spencer Private Hospitals Limited (the ‘company’) for the year ended 31 March 2024, which comprise the Profit and loss account, the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion:

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

We are responsible for concluding on the appropriateness of the Directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the company to cease to continue as a going concern.

 

In our evaluation of the Directors’ conclusions, we considered the inherent risks associated with the company's business model including effects arising from macro-economic uncertainties such as rising costs due to inflation, we assessed and challenged the reasonableness of estimates made by the Directors and the related disclosures and analysed how those risks might affect the company's financial resources or ability to continue operations over the going concern period.

 

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.

 

SPENCER PRIVATE HOSPITALS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SPENCER PRIVATE HOSPITALS LIMITED
- 7 -

Other information

The other information comprises the information included in the Annual report and financial statements, other than the financial statements and our auditor’s report thereon. The Directors are responsible for the other information contained within the Annual report and financial statements. 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements 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 the audit:

 

 

Matter on which we are required to report under the Companies Act 2006

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.

Matters on which we are required to report by exception

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 set out on page 5, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

 

In preparing the financial statements, the Directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

SPENCER PRIVATE HOSPITALS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SPENCER PRIVATE HOSPITALS LIMITED
- 8 -
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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:

 

 

 

 

 

 

 

- understanding of, and practical experience with, audit engagements of a similar nature and complexity, through appropriate training and participation;

 

- knowledge of the industry in which the company operates; and

 

- understanding of the legal and regulatory requirements specific to the company.

 

 

SPENCER PRIVATE HOSPITALS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SPENCER PRIVATE HOSPITALS LIMITED
- 9 -

 

 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Sophie Murton FCA
Senior Statutory Auditor
15 October 2024
for and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
Southampton
SPENCER PRIVATE HOSPITALS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
20,665,933
18,201,342
Cost of sales
(16,878,372)
(15,442,213)
Gross profit
3,787,561
2,759,129
Administrative expenses
(3,388,254)
(2,542,191)
Other operating income
3
4,829
4,829
Operating profit
4
404,136
221,767
Interest receivable and similar income
9
40,762
13,522
Other interest payable and similar expenses
8
(3,978)
(6,517)
Profit before taxation
440,920
228,772
Tax on profit
10
(139,326)
(62,634)
Profit for the financial year
301,594
166,138

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

The notes on pages 14 to 30 form part of these financial statements.

SPENCER PRIVATE HOSPITALS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
2023
£
£
Profit for the year
301,594
166,138
Other comprehensive income
Revaluation of tangible fixed assets
-
0
209,248
Total comprehensive income for the year
301,594
375,386

The notes on pages 14 to 30 form part of these financial statements.

SPENCER PRIVATE HOSPITALS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
35,906
2,871
Tangible assets
13
4,157,405
4,328,921
4,193,311
4,331,792
Current assets
Stocks
14
44,576
33,160
Debtors
15
5,181,184
3,971,836
Cash at bank and in hand
2,048,602
1,743,613
7,274,362
5,748,609
Creditors: amounts falling due within one year
16
(5,009,565)
(3,923,562)
Net current assets
2,264,797
1,825,047
Total assets less current liabilities
6,458,108
6,156,839
Creditors: amounts falling due after more than one year
17
(889,464)
(889,464)
Provisions for liabilities
21
(172,186)
(172,511)
Net assets
5,396,458
5,094,864
Capital and reserves
Called up share capital
22
560,000
560,000
Revaluation reserve
23
2,812,242
2,812,242
Profit and loss reserves
24
2,024,216
1,722,622
Total equity
5,396,458
5,094,864
The financial statements were approved by the board of Directors and authorised for issue on 15 October 2024 and are signed on its behalf by:
G D Bailey
Director
Company Registration No. 03130118

The notes on pages 14 to 30 form part of these financial statements.

SPENCER PRIVATE HOSPITALS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
560,000
2,602,994
1,648,778
4,811,772
Year ended 31 March 2023:
Profit for the year
-
-
166,138
166,138
Other comprehensive income:
Revaluation of tangible fixed assets
-
209,248
-
209,248
Total comprehensive income for the year
-
209,248
166,138
375,386
Dividends
11
-
-
(92,294)
(92,294)
Balance at 31 March 2023
560,000
2,812,242
1,722,622
5,094,864
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
301,594
301,594
Balance at 31 March 2024
560,000
2,812,242
2,024,216
5,396,458

The notes on pages 14 to 30 form part of these financial statements.

SPENCER PRIVATE HOSPITALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
1
Accounting policies
Company information

Spencer Private Hospitals Limited, the "company", is a private company limited by shares incorporated in England and Wales. The registered office is 1 & 3 Almond House, Betteshanger Road, Betteshanger, Deal, England, CT14 0EN.

 

The principal activity of the company continues to be the provision of hospital services within east Kent.

1.1
Accounting convention

Basis of preparation of financial statements

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

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

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

Financial reporting standard 102 – reduced disclosure exemptions

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 East Kent Hospitals University NHS Foundation Trust. These consolidated financial statements are available from its registered office, Trust Offices, Kent & Canterbury Hospital, Ethelbert Road, Canterbury, Kent, CT1 3NG.

SPENCER PRIVATE HOSPITALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
1.2
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.

Although the company enjoys a close relationship with the ultimate parent, East Kent Hospitals University NHS Foundation Trust, the company manages its cash flow independently and does not seek financial support from the Trust.

The Trust continues to be in the Recovery Support Programme (formerly known as NHS England's Special Measures regime). Although the company is not dependent on the Trust for financial support, it is acknowledged that a proportion of the company's turnover stems from the Trust.

The Directors have reviewed the commercial performance of the company and the risk to the business, considering severe but plausible scenarios. The Directors have also considered macroeconomic factors including inflation and general economic conditions within the UK. The Directors have considered the strong relationship with the ultimate parent in regard to providing services, including theatre access, pathology and diagnostic services, the transfer of patients from the NHS Trust through the Inter Provider Transfer route, the provision of overflow beds to the Trust during periods of high demand, the increase in clinical professionals leaving their professions post Covid-19, the continuation of the standard and community contracts with the local ICB and the continued demand for private and NHS healthcare services as NHS waiting lists remain high nationwide. Having considered these factors the Directors have reasonable expectations that the risks derived from this situation can reasonably be regarded by the Directors as manageable business risks.

The Directors have reviewed the financial forecasts together with the underlying assumptions under which they have been prepared forecast for at least 12 months from the date of the financial statements. The Directors have satisfied themselves that the assumptions are fair and reasonable and reflect the prospects for the business.

Whilst there are still uncertainties around expectations of the future as the healthcare industry returns to business as normal, after making enquiries the Directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and opportunities to develop further. Accordingly, they continue to prepare the financial statements on a going concern basis.

1.3
Turnover

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

 

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

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on 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.

Revenue from contracts is recognised at the fair value of the consideration received for those healthcare services provided in the normal course of business. Recognition of revenue & related costs is based on the date the service is provided.

SPENCER PRIVATE HOSPITALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
1.4
Intangible fixed assets other than goodwill

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

 

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

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

Software
over 5 years
1.5
Tangible fixed assets

Leasehold land and buildings are initially measured at cost and subsequently measured at valuation, net of depreciation and any impairment losses. Revaluation of leasehold land and buildings is carried out regularly, up to every five years, in line with the policies of the ultimate parent company, East Kent Hospital University NHS Foundation Trust.

 

All other tangible fixed assets are measured at cost, net of depreciation and any impairment losses.

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

Leasehold land and buildings
over 13.58 to 32.43 years
Plant and equipment
over 3 to 10 years depending on asset category
Motor vehicles
over 6 years

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 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.

 

SPENCER PRIVATE HOSPITALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
1.7
Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.

 

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately 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 and other short-term liquid investments with original maturities of three months or less.

1.9
Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities.

 

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

 

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

Basic financial assets

Basic financial assets, which include trade debtors, amounts owed by group undertakings, accrued income 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.

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.

SPENCER PRIVATE HOSPITALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
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.

Basic financial liabilities

Basic financial liabilities, including trade and other creditors, loans from group undertakings and other loans 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.

Derecognition of financial liabilities

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

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue 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 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.

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.

SPENCER PRIVATE HOSPITALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -
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
Retirement benefits

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

1.14
Leases

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

 

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

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

SPENCER PRIVATE HOSPITALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
2
Judgements and key sources of estimation uncertainty

In the preparation and presentation of the company’s financial statements, the Directors are required to make judgements, estimates and assumptions that effect the amounts reported for assets and liabilities as at the balance sheet date and amounts reported in the profit and loss account and statement of comprehensive income. However, although the estimates and underlying assumptions are reviewed on an ongoing basis, actual results may differ from those estimates.

Estimation uncertainty - assessing the indicators of impairment

The company considers whether leasehold land and building are impaired. Where an indication of impairment is identified, the recoverable value of the assets is estimated. Revaluation of leasehold land and buildings is carried out regularly, up to every five years. In the prior year, the basis for the fair value determination including the necessary estimates involved is the valuation by independent real estate valuation experts using recognised valuation techniques. The fair value is assessed by using market-based evidence for similar properties sold in the local area. No valuation was carried out in the current year. After considering the local market, the Directors believe that the fair value of the property did not materially change since prior year and remains appropriate.

At 31 March 2024, the carrying value of leasehold land and building was £3,903,453 (2023: £4,036,720).

Critical judgement in applying the entity's accounting policies - Valuation of group loan balances

At the end of the reported accounting period the ultimate controlling party, East Kent Hospital University NHS Foundation Trust (EKHUFT), was in the process of winding down Healthex Limited and formally transferring its assets directly to EKHUFT. It is expected that once this process has been completed the calculation of the balance of loans from group undertakings will be reviewed and potentially reduced due to a recalculation of the interest charged on the outstanding loan. However, as at the time of signing the financial statements the formal transfer of assets has not yet been completed, the balances on the old loans for a total value of £889,914 have been recognised.

The Directors concluded that there are no other critical judgements made in applying the company’s accounting policies that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities in the statutory accounts.

SPENCER PRIVATE HOSPITALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
3
Turnover and other operating income

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Rendering of services
20,665,933
18,201,342
2024
2023
£
£
Other operating income
Other income
4,829
4,829
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
20,665,933
18,201,342
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
200,193
173,665
Depreciation of tangible fixed assets held under finance leases
2,904
2,904
Amortisation of intangible assets
2,979
1,675
Operating lease charges
159,314
139,926
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Fees payable to the company's auditor and its associates for the audit of the company's annual financial statements
56,650
43,100
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
328,303
366,585
Company pension contributions to defined contribution schemes
9,875
10,679
Compensation for loss of office
51,381
-
0
389,559
377,264
SPENCER PRIVATE HOSPITALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
6
Directors' remuneration
(Continued)
- 22 -

The number of Directors, who are also the key management personnel, for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).

Remuneration disclosed above include the following amounts paid to the highest paid Director:
2024
2023
£
£
Remuneration for qualifying services
120,633
97,162
Company pension contributions to defined contribution schemes
8,085
5,492
7
Employees

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

2024
2023
Number
Number
Management
13
14
Administration and clerical
67
65
Nursing and clinical
51
48
Hotel services
13
12
144
139

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
4,174,526
3,845,517
Social security costs
398,488
380,600
Pension costs
105,306
97,381
4,678,320
4,323,498

Additionally agency staff costs of £3,662,245 (2023: £2,798,051) and self-employed staff costs of £88,076 (2023: £272,278) were incurred.

8
Interest payable and similar expenses
2024
2023
£
£
Interest on finance leases and hire purchase contracts
3,978
6,517
Disclosed on the profit and loss account as follows:
Other interest payable and similar expenses
3,978
6,517
SPENCER PRIVATE HOSPITALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
9
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
40,762
13,522
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
143,080
74,862
Adjustments in respect of prior periods
(3,429)
-
0
Total current tax
139,651
74,862
Deferred tax
Origination and reversal of timing differences
(325)
(12,228)
Total tax charge
139,326
62,634

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

2024
2023
£
£
Profit before taxation
440,920
228,772
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
110,230
43,467
Tax effect of expenses that are not deductible in determining taxable profit
(792)
3,042
Under/(over) provided in prior years
(3,429)
-
0
Depreciation in excess of capital allowances
33,642
26,013
Deferred tax
(325)
(12,228)
Overprovision in current year
-
0
2,340
Taxation charge for the year
139,326
62,634
11
Dividends
2024
2023
£
£
Interim paid
-
0
92,294

An ordinary dividend of £nil (£92,294) was paid to Healthex Limited during the year.

SPENCER PRIVATE HOSPITALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
12
Intangible fixed assets
Goodwill
Software
Total
£
£
£
Cost
At 1 April 2023
37,642
46,586
84,228
Additions
-
0
36,014
36,014
At 31 March 2024
37,642
82,600
120,242
Amortisation and impairment
At 1 April 2023
37,642
43,715
81,357
Amortisation charged for the year
-
0
2,979
2,979
At 31 March 2024
37,642
46,694
84,336
Carrying amount
At 31 March 2024
-
0
35,906
35,906
At 31 March 2023
-
0
2,871
2,871
13
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost or valuation
At 1 April 2023
4,036,720
961,397
17,424
5,015,541
Additions
-
0
31,581
-
0
31,581
Disposals
-
0
(54,645)
-
0
(54,645)
At 31 March 2024
4,036,720
938,333
17,424
4,992,477
Depreciation and impairment
At 1 April 2023
-
0
674,278
12,342
686,620
Depreciation charged in the year
133,267
66,926
2,904
203,097
Eliminated in respect of disposals
-
0
(54,645)
-
0
(54,645)
At 31 March 2024
133,267
686,559
15,246
835,072
Carrying amount
At 31 March 2024
3,903,453
251,774
2,178
4,157,405
At 31 March 2023
4,036,720
287,119
5,082
4,328,921
SPENCER PRIVATE HOSPITALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
13
Tangible fixed assets
(Continued)
- 25 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Motor vehicles
2,178
5,082

Land and buildings with a carrying amount of £4,036,720 were revalued at 31 March 2023 by Cushman and Wakefield, independent valuers not connected with the company on the basis of depreciated replacement cost. The valuation conforms to International Valuation Standards and was based on the cost of replacement of the asset with a modern equivalent. After considering the local market, the Directors believe that the fair value of the properties did not materially change since prior year and remain appropriate.

Leasehold land and buildings are carried at valuation. If leasehold land and buildings were measured using the cost model, the total amounts included would have been as follows:

2024
2023
£
£
Cost
3,057,540
3,057,540
Accumulated depreciation
(1,882,774)
(1,779,119)
Carrying value
1,174,766
1,278,421
14
Stocks
2024
2023
£
£
Finished goods and goods for resale
44,576
33,160

There is no significant difference between the replacement cost of the inventory and its carrying amount.

The carrying value of stocks are stated net of impairment losses totalling £NIL (2023 - £NIL). Impairment losses totalling £NIL (2023 - £NIL) were recognised in profit and loss.

SPENCER PRIVATE HOSPITALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,079,025
2,311,770
Amounts owed by group undertakings
1,407,809
764,835
Other debtors
1,661
1,001
Prepayments and accrued income
1,692,689
894,230
5,181,184
3,971,836

Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

16
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Other loans
19
450
450
Obligations under finance leases
18
-
0
5,678
Trade creditors
1,138,243
1,065,233
Amounts owed to group undertakings
2,497,772
1,624,427
Corporation tax
143,079
75,267
Other taxation and social security
102,262
87,751
Other creditors
40,306
43,383
Accruals and deferred income
1,087,453
1,021,373
5,009,565
3,923,562

Amounts owed to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

 

SPENCER PRIVATE HOSPITALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
17
Creditors: amounts falling due after more than one year
2024
2023
£
£
Loans from group undertakings incurring interest of 4% plus Bank of England Base Rate, unsecured
19
889,464
889,464
Analysis of the maturity of loans is given below:
2024
2023
Amounts due within one year
Other loans
450
450
Amounts falling due between one and five years
Loans from group undertakings
889,464
389,996
Amounts falling due after more than five years
Loans from group undertakings
-
499,468
889,914
889,914
18
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
-
0
5,678

Finance lease payments represent rentals payable by the company for certain fixed assets. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Hire purchase contracts are secured on the assets to which they relate.

19
Borrowings
2024
2023
£
£
Other loans
450
450
Loans from group undertakings
889,464
889,464
889,914
889,914
Payable within one year
450
450
Payable after one year
889,464
889,464
SPENCER PRIVATE HOSPITALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
19
Borrowings
(Continued)
- 28 -

The loan from group undertakings was from Healthex Limited and was repayable over 20 years until March 2028 incurring interest of 4% plus Bank of England Base Rate. East Kent Hospitals University NHS Foundation Trust (EKHUFT) as the direct parent of Healthex Limited and the ultimate parent of Spencer Private Hospitals Limited was also party to the loan agreement.

 

On 29 September 2020 Healthex Limited was dissolved, causing a default event. Therefore, the loan became immediately repayable to East Kent Hospitals University NHS Foundation Trust. East Kent Hospitals University NHS Foundation Trust entered into an interest waiver and payment break with Spencer Private Hospitals Limited on 1 November 2020.

 

On 1 March 2021 a new loan agreement for £532,154 incurring interest of 3% plus Bank of England Base Rate repayable over 10 years was entered into with East Kent Hospitals University NHS Foundation Trust.

 

However, due to an unsatisfactory winding up of Healthex Limited, actions were taken by East Kent Hospitals University NHS Foundation Trust to restore Healthex Limited and transfer its assets to East Kent Hospitals University NHS Foundation Trust prior to the implementation of the new loan arrangement.

 

Therefore the Directors of Spencer Private Hospitals Limited and East Kent Hospitals University NHS Foundation Trust have agreed a long term liability for the original loan amount should be shown in the financial statements pending the transfer of assets as whilst at the year-end Healthex Limited had been restored and a new loan agreement had been entered into, the process of transferring the assets of Healthex Limited to East Kent Hospitals University NHS Foundation Trust could possibly require the reinstatement of the original loan liability with Healthex Limited and unanticipated delays to the restoration of Healthex Limited and the transfer of its assets to East Kent Hospitals University NHS Foundation Trust may necessitate a review of the new loan agreement.

 

Both the existing and the proposed new arrangement are unsecured loans. Loans from group undertakings and other loans are unsecured.

20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
105,306
97,381

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. Contributions totalling £40,367 (2023: £43,277) were payable to the fund at the balance sheet date and are included in creditors.

SPENCER PRIVATE HOSPITALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 29 -
21
Provisions for liabilities - Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

2024
2023
Balances:
£
£
Accelerated capital allowances
172,186
172,511
2024
Movements in the year:
£
Liability at 1 April 2023
172,511
Credit to profit or loss
(325)
Liability at 31 March 2024
172,186

The deferred tax liability set out above is expected to reverse over the life of the qualifying assets being a period of 1 to 10 years and relates to accelerated capital allowances that are expected to mature within the same period.

22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
560,000
560,000
560,000
560,000

Each £1 Ordinary share ranks pari passu with regard to voting and dividend rights.

 

There is a single class of ordinary shares. There are no restrictions on dividends and the repayment of capital.

23
Revaluation reserve

Where tangible fixed assets are revalued, the cumulative increase in the fair value of the property at the date of revaluation in excess of any previous impairment losses is included in the revaluation reserve.

24
Profit and loss reserves

This reserve represents the accumulated profits and losses of the company.

SPENCER PRIVATE HOSPITALS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 30 -
25
Operating lease commitments
Lessee

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:

2024
2023
£
£
Within one year
146,833
160,288
Between two and five years
183,281
234,395
In over five years
394,895
402,144
725,009
796,827
Lessor

The operating leases represents the lease of part of the leasehold land and buildings to East Kent Hospitals University Foundation Trust.

At the reporting end date, the company had contracted with tenants for the following minimum lease payments:

2024
2023
£
£
Within one year
4,829
4,829
Between two and five years
19,316
19,316
In over five years
328,372
333,201
352,517
357,346
26
Related party transactions

The company is a wholly owned member of East Kent Hospitals University NHS Foundation Trust and as such has taken advantage of the exemption permitted by Section 33 Related Party Disclosures, not to provide disclosures of transactions entered into with other wholly owned members of the Group.

27
Ultimate controlling party

Spencer Private Hospitals Limited is fully owned by Healthex Limited, whose registered address is Rm 171016, Management Offices William Harvey Hospital, Kennington Road, Ashford, Kent, United Kingdom, TN24 0LZ.

 

The ultimate controlling party is East Kent Hospitals University NHS Foundation Trust, the parent company of Healthex Limited, whose registered office address is Trust Offices, Kent & Canterbury Hospital, Ethelbert Road, Canterbury, Kent, CT1 3NG.

 

East Kent Hospitals University NHS Foundation Trust is also the parent company of the largest and smallest group for which the group accounts are prepared. The consolidated accounts of the group can be found at the registered office address above.

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