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Registration number: 06829860

Oak Tree Mobility Limited

Annual Report and Financial Statements

for the Year Ended 29 February 2024

image-name
 

Oak Tree Mobility Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 9

Statement of Comprehensive Income

10

Statement of Financial Position

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13 to 27

 

Oak Tree Mobility Limited

Company Information

Directors

Mr A Wood

Mr T Powell

Registered office

St James Court
9/12 St James Parade
Bristol
BS1 3LH

Auditors

Westcotts (SW) LLP
80 Oxford Street
Burnham-On-Sea
Somerset
TA8 1EF

 

Oak Tree Mobility Limited

Strategic Report for the Year Ended 29 February 2024

The directors present their strategic report for the year ended 29 February 2024.

Fair review of the business

As in prior years the principal activity of the company remained that of the sale and installation of mobility products, primarily rise and recline chairs, adjustable beds and bath lifts.

The directors are pleased to report a very successful year of trading. The results show a turnover of £24.8m and a profit before tax of £1.93m for the financial year (comparative 12 months £25m and loss of £5.9m respectively). The strong financial performance is driven by numerous business improvement initiatives and projects executed during the year. Those actions have helped improved gross margin 6.5% to 26.3% which alone increased gross profit £0.4m from the same level of turnover. It is the director’s opinion that these improvements are now embedded in the business and will continue to benefit the business moving forward.

A well-deserved thanks to our colleagues for their dedication, passion and professionalism in a year of organisational changes and also our suppliers and partners with whom we continue to work in close partnership. As a consumer facing business where success is based so much on human interaction, our people and partners are our greatest asset, and the directors extend their gratitude to all our colleagues for their exceptional resourcefulness and innovative ideas which have enabled us to deliver a strong set of results.

Last year’s Director’s Report acknowledged the UK mobility sector has faced enormous challenges, being at the sharp end of both widespread input cost inflation and downward pressure on the consumer disposable incomes, especially older consumers who spend a higher proportion of their (often fixed) incomes on food and energy. The backdrop to this year has been much the same and our success has also been achieved in the face of these considerable ongoing challenges. As part of a wider group the company continued to guard against the persistent and broad-based cost inflation by pro-actively driving operational improvements and cost management whilst simultaneously increasing the company’s self-sufficiency in chairs from its own manufacturing operations, so de-risking the operational supply chain further.

Cash generation improved considerably during the year, despite revenues and volumes on a like-for-like basis being relatively flat, reflecting a strong core proposition and the strategic focus to build a more profitable platform for future growth. In the year the company disposed of its freehold property which further strengthened the company’s financial position. At the year-end cash at the bank stood at £3.17m representing an increase of £2.7m in the year, with £1.00m generated from the sale of the property.

The company specialises in mobility products for the over 70's, primarily riser recliners chairs, adjustable beds and bath lifts and its business model revolves around sales conducted in the customer’s home. The mobility market is highly competitive across all sales channels and the company differentiates itself through investing into the brand positioning and into a highly motivated sales and marketing team supported by outstanding customer services, as demonstrated by high scores on review sites such as Trustpilot and Google.

 

Oak Tree Mobility Limited

Strategic Report for the Year Ended 29 February 2024 (continued)

During the year the directors specifically focussed on a strategy of:
1) margin enhancing initiatives.
2) driving operational efficiencies through cost control, process review and other mitigating activities.
3) enhancing self-sufficiency in chairs manufacturing and
4) strengthening employee engagement across the company.

This strategy has started to yield results in the year, but more importantly the process of continual improvement will generate greater rewards going forward. The directors are pleased with the results and future prospects of the company. The core customer base is resilient and continues to value our quality products and personal service on offer. Looking ahead the company is well placed to benefit from the strategic changes over the next 12 months and beyond.
 

Principal risks and uncertainties

The company faces a number of business risks in its day-to-day operations and future developments. These risks are identified and continually reviewed at senior management and director level and mitigations are maintained to manage them.

Risks that could potentially have the most impact on the company are outline below, together with mitigation actions.

Margin erosion - The current global economic situation resulting in rising prices of raw materials and wages which knock-on impact to delivery costs could lead to the erosion of profit margins in the short to medium term. The company will not seek to win business at any price and will consider increasing sales prices with which are sustainable to customer affordability. Working closely with a range of suppliers maintain competitive pricing.

Supply chain - Again, the current global economic situation is impacting on the supply chain with customers expecting quick order fulfilment. The company builds strong relationships with high quality suppliers from procurement to delivery to balance short leads times and low stock levels. Any interruptions are quickly detected to enable mitigation such as increased deliveries and diverting suppliers.

Competition in our markets - The company operates in a competitive market environment and the development of new product ranges is key to success. Customer care is a top priority which can be seen from maintaining high online reviews and efficient marketing and advertising.

Approved and authorised by the Board on 30 October 2024 and signed on its behalf by:
 

.........................................
Mr A Wood
Director

.........................................
Mr T Powell
Director

 

Oak Tree Mobility Limited

Directors' Report for the Year Ended 29 February 2024

The directors present their report and the financial statements for the year ended 29 February 2024.

Directors of the company

The directors who held office during the year were as follows:

Mr A Wood

Mr T Powell

Financial instruments

Objectives and policies

The company does not enter into any hedging transactions.

Price risk, credit risk, liquidity risk and cash flow risk

The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are conducted in sterling.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 30 October 2024 and signed on its behalf by:
 


Mr A Wood
Director


Mr T Powell
Director

 

Oak Tree Mobility Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

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

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Oak Tree Mobility Limited

Independent Auditor's Report to the Members of Oak Tree Mobility Limited

Opinion

We have audited the financial statements of Oak Tree Mobility Limited (the 'company') for the year ended 29 February 2024, which comprise the Statement of Comprehensive Income, Statement of Financial Position, 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 the financial statements:

give a true and fair view of the state of the company's affairs as at 29 February 2024 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 director's 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 original financial statements were authorised for issue.

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

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

In connection with our audit of the financial statements, 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 or a material misstatement of the other information. 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.

 

Oak Tree Mobility Limited

Independent Auditor's Report to the Members of Oak Tree Mobility Limited (continued)

Opinion on other matter prescribed by the Companies Act 2006

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

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [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.

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

We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the directors and other management. We communicated identified laws and regulations throughout our team, and remained alert to any indications of non-compliance throughout the audit.

 

Oak Tree Mobility Limited

Independent Auditor's Report to the Members of Oak Tree Mobility Limited (continued)

The company is subject to laws and regulations that govern the preparation of the financial statements including financial reporting legislation, and other companies legislation. The company is also subject to other laws and regulations where the consequences of non-compliance could have a material impact on the amounts or disclosures within the financial statements, including employment, anti-bribery, anti-money laundering and certain aspect of companies legislation.

Owing to the inherent limitation of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. In any audit, there remains a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

Conclude 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 Auditor’s Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors’ Report. However, future events or conditions may cause the company to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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

 

Oak Tree Mobility Limited

Independent Auditor's Report to the Members of Oak Tree Mobility Limited (continued)

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.

......................................
David Wright (Senior Statutory Auditor)
For and on behalf of Westcotts (SW) LLP, Statutory Auditor

80 Oxford Street
Burnham-On-Sea
Somerset
TA8 1EF

4 November 2024

 

Oak Tree Mobility Limited

Statement of Comprehensive Income for the Year Ended 29 February 2024

Note

Period ended
12 months
2024
£

(As restated)

Period ended
18 months
2023
£

Turnover

3

24,797,490

37,575,822

Cost of sales

 

(18,279,944)

(28,280,447)

Gross profit

 

6,517,546

9,295,375

Administrative expenses

 

(5,063,563)

(8,247,608)

Other operating income

4

227,499

86,442

Operating profit

6

1,681,482

1,134,209

Exceptional items

25

237,724

(9,896,768)

Other interest receivable and similar income

7

29,284

2,971

Interest payable and similar expenses

8

(17,546)

(81,955)

   

249,462

(9,975,752)

Profit/(loss) before tax

 

1,930,944

(8,841,543)

Tax on profit/(loss)

12

(431,142)

2,121,814

Profit/(loss) for the financial year

 

1,499,802

(6,719,729)

The above results were derived from continuing operations.

For details of the prior period restatement see Note 29.

The company has no recognised gains or losses for the year other than the results above.

 

Oak Tree Mobility Limited

(Registration number: 06829860)
Statement of Financial Position as at 29 February 2024

Note

2024
£

(As restated)

2023
£

Fixed assets

 

Intangible assets

13

13,200

-

Tangible assets

14

36,168

957,364

 

49,368

957,364

Current assets

 

Stocks

15

283,721

417,171

Debtors

16

2,300,541

3,968,225

Cash at bank and in hand

 

3,165,887

450,540

 

5,750,149

4,835,936

Creditors: Amounts falling due within one year

18

(6,781,104)

(8,258,100)

Net current liabilities

 

(1,030,955)

(3,422,164)

Total assets less current liabilities

 

(981,587)

(2,464,800)

Provisions for liabilities

19

(1,047)

(17,636)

Net liabilities

 

(982,634)

(2,482,436)

Capital and reserves

 

Called up share capital

10

10

Profit and loss account

23

(982,644)

(2,482,446)

Shareholders' deficit

 

(982,634)

(2,482,436)

For details of the prior period restatement see Note 29.

Approved and authorised by the Board on 30 October 2024 and signed on its behalf by:
 


Mr A Wood
Director


Mr T Powell
Director

 

Oak Tree Mobility Limited

Statement of Changes in Equity for the Year Ended 29 February 2024

Share capital
£

Profit and loss account
£

Total
£

At 1 March 2023

10

(2,482,446)

(2,482,436)

Profit for the year

-

1,499,802

1,499,802

At 29 February 2024

10

(982,644)

(982,634)

Share capital
£

Profit and loss account
£

Total
£

At 1 September 2021

10

4,237,283

4,237,293

Loss for the year

-

(6,719,729)

(6,719,729)

At 28 February 2023

10

(2,482,446)

(2,482,436)

 

Oak Tree Mobility Limited

Notes to the Financial Statements for the Year Ended 29 February 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
St James Court
9/12 St James Parade
Bristol
BS1 3LH

Principal activity

The principal activity of the company is that of the sale and installation of mobility products, primarily rise and recline chairs, adjustable beds and bath lifts.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The financial statements are prepared in sterling which is the functional currency of the entity.

 

Oak Tree Mobility Limited

Notes to the Financial Statements for the Year Ended 29 February 2024 (continued)

2

Accounting policies (continued)

Summary of disclosure exemptions

This company is a qualifying entity for the purpose 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 the exemptions from the following disclosure requirements:
• Section 7 'Statements of Cash Flows': Presentation of a Statement of Cash Flow and related notes and disclosures.
• Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instrument Issues': Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit and loss and in other comprehensive income.
• Section 26 'Share Based Payment': Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
• Section 33 'Related Party Disclosures,: Compensation for key management personnel..

Name of parent of group

These financial statements are consolidated in the financial statements of World Class Finance Limited, the company name changed on 4 July 2024 to Salus Healthcare Group Ltd.

The financial statements of World Class Finance Limited (as of 4 July 2024, company name changed to Salus Healthcare Group Ltd) may be obtained from Unit 12 Parc Business Treorci, Treorci, Rhondda Cynon Taf, Wales, CF42 6DL.

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.

 

Oak Tree Mobility Limited

Notes to the Financial Statements for the Year Ended 29 February 2024 (continued)

2

Accounting policies (continued)

Judgements

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

The company recognises revenue when:
The significant risk and rewards of ownership have transferred to the buyer (usually on despatch of the goods)
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Exceptional items

Exceptional items are disclosed separately in the financial statements in order to provide further understanding of the financial performance of the entity. They are material items of income or expense that have been shown separately because of their nature or amount.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

 

Oak Tree Mobility Limited

Notes to the Financial Statements for the Year Ended 29 February 2024 (continued)

2

Accounting policies (continued)

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehhold land and buildings

0-15% straight line

Plant and machinery

25% straight line

Fixtures, fittings and equipment

25% straight line

Motor vehicles

25% straight line

Computer equipment

25% straight line

Impairment

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Intangible assets

Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at a revalued amount, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Software

20% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. In the statement of financial position, bank overdrafts are shown within borrowing or current liabilities

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Costs include all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition. .

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are 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.

 

Oak Tree Mobility Limited

Notes to the Financial Statements for the Year Ended 29 February 2024 (continued)

2

Accounting policies (continued)

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the Statement of Financial Position and the amount of the provision as an expense.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Recognition and measurement
A financial asset or a financial liability is recognised only when the company becomes party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

3

Turnover

The analysis of the company's turnover for the year from continuing operations is as follows:

Period ended
12 months
2024
£

Period ended
18 months
2023
£

Sale of goods

24,797,490

37,575,822

 

Oak Tree Mobility Limited

Notes to the Financial Statements for the Year Ended 29 February 2024 (continued)

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

Period ended
12 months
2024
£

Period ended
18 months
2023
£

Rental income

-

68,577

Management charges

203,230

-

Other operating income

24,269

17,865

227,499

86,442

5

Other gains and losses

The analysis of the company's other gains and losses for the year is as follows:

Period ended
12 months
2024
£

Period ended
18 months
2023
£

Loss on disposal of tangible assets (not including property)

(3,320)

-

The property disposal gain has been included in Exceptional items, see Note 25.

6

Operating profit

Arrived at after charging/(crediting)

Period ended
12 months
2024
£

Period ended
18 months
2023
£

Depreciation expense

76,952

135,174

Amortisation expense

-

66,599

Loss on disposal of tangible assets (not including property)

3,320

-

7

Other interest receivable and similar income

Period ended
12 months
2024
£

Period ended
18 months
2023
£

Interest income on bank deposits

29,284

2,971

 

Oak Tree Mobility Limited

Notes to the Financial Statements for the Year Ended 29 February 2024 (continued)

8

Interest payable and similar expenses

Period ended
12 months
2024
£

Period ended
18 months
2023
£

Interest on bank overdrafts and borrowings

18

-

Interest on obligations under finance leases and hire purchase contracts

-

37,603

Interest expense on other finance liabilities

17,528

44,352

17,546

81,955

9

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

Period ended
12 months
2024
£

Period ended
18 months
2023
£

Wages and salaries

2,862,003

4,165,840

Social security costs

293,611

431,252

Pension costs, defined contribution scheme

147,617

213,139

Other employee expense

108,362

242,435

3,411,593

5,052,666

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Administration and support

14

15

Sales

51

54

Marketing

7

7

Management

4

4

76

80

 

Oak Tree Mobility Limited

Notes to the Financial Statements for the Year Ended 29 February 2024 (continued)

10

Directors' remuneration

The directors' remuneration for the year was as follows:

Period ended
12 months
2024
£

Period ended
18 months
2023
£

Remuneration

301,432

546,352

Settlement on resignation

-

67,500

Contributions paid to money purchase schemes

13,416

27,318

314,848

641,170

In respect of the highest paid director:

2024
£

2023
£

Remuneration

149,901

237,000

Company contributions to money purchase pension schemes

7,576

11,850

11

Auditors' remuneration

Period ended
12 months
2024
£

Period ended
18 months
2023
£

Audit of the financial statements

16,500

15,000


 

12

Taxation

Tax charged/(credited) in the statement of comprehensive income

Period ended
12 months
2024
£

(As restated)

Period ended
18 months
2023
£

Deferred taxation

Arising from origination and reversal of timing differences

431,142

(2,121,814)

 

Oak Tree Mobility Limited

Notes to the Financial Statements for the Year Ended 29 February 2024 (continued)

12

Taxation (continued)

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of 24.41% (2023 - 19%).

The differences are reconciled below:

2024
£

2023
£

Profit/(loss) before tax

1,930,944

(8,841,543)

Corporation tax at standard rate

471,309

(1,679,893)

Effect of expense not deductible in determining taxable profit (tax loss)

(43,270)

59,061

Deferred tax (credit)/expense from unrecognised temporary difference from a prior period

(7,306)

557

Deferred tax expense/(credit) relating to changes in tax rates or laws

10,409

(501,539)

Total tax charge/(credit)

431,142

(2,121,814)

For details of the prior period restatement see Note 29.

 

Oak Tree Mobility Limited

Notes to the Financial Statements for the Year Ended 29 February 2024 (continued)

13

Intangible assets

Software
 £

Total
£

Cost or valuation

At 1 March 2023

819,859

819,859

Additions acquired separately

13,200

13,200

At 29 February 2024

833,059

833,059

Amortisation

At 1 March 2023

819,859

819,859

At 29 February 2024

819,859

819,859

Carrying amount

At 29 February 2024

13,200

13,200

14

Tangible assets

Land and buildings
£

Fixtures and fittings
£

Plant and machinery
£

Office equipment
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 March 2023

1,398,988

226,270

25,442

549,489

9,893

2,210,082

Additions

-

-

-

4,141

-

4,141

Disposals

(1,398,988)

(6,240)

(11,500)

(11,157)

(3,638)

(1,431,523)

At 29 February 2024

-

220,030

13,942

542,473

6,255

782,700

Depreciation

At 1 March 2023

527,358

206,028

18,690

497,687

2,955

1,252,718

Charge for the year

44,577

7,853

860

23,433

229

76,952

Eliminated on disposal

(571,935)

(3,198)

(5,805)

(5,271)

3,071

(583,138)

At 29 February 2024

-

210,683

13,745

515,849

6,255

746,532

Carrying amount

At 29 February 2024

-

9,347

197

26,624

-

36,168

At 28 February 2023

871,630

20,242

6,752

51,802

6,938

957,364

Included within the net book value of land and buildings above is £Nil (2023 - £871,630) in respect of freehold land and buildings and £Nil (2023 - £Nil) in respect of long leasehold land and buildings.
 

 

Oak Tree Mobility Limited

Notes to the Financial Statements for the Year Ended 29 February 2024 (continued)

14

Tangible assets (continued)

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

2024
£

2023
£

Motor vehicles

-

6,938

   

15

Stocks

2024
£

2023
£

Finished goods and goods for resale

283,721

417,171

16

Debtors

Current

Note

2024
£

(As restated)

2023
£

Trade debtors

 

46,938

28,280

Other debtors

 

203,932

1,510,676

Prepayments

 

345,745

277,615

Deferred tax assets

12

1,703,926

2,151,654

   

2,300,541

3,968,225

For details of the prior period restatement see Note 29.

Details of non-current trade and other debtors

£1,703,926 (2023: £2,151,654) of deferred tax assets is classified as non current.

17

Cash and cash equivalents

2024
£

2023
£

Cash at bank

3,165,887

450,540

 

Oak Tree Mobility Limited

Notes to the Financial Statements for the Year Ended 29 February 2024 (continued)

18

Creditors

Note

2024
£

2023
£

Due within one year

 

Trade creditors

 

1,683,952

2,367,327

Amounts due to related parties

26

1,142,732

1,100,416

Social security and other taxes

 

70,818

463,027

Outstanding defined contribution pension costs

 

9,288

-

Other payables

 

12,308

13,878

Accruals

 

1,136,199

1,593,238

Payments received on account

 

2,725,807

2,720,214

 

6,781,104

8,258,100

19

Provisions for liabilities

Deferred tax
£

Total
£

At 1 March 2023

17,636

17,636

Increase (decrease) in existing provisions

(16,589)

(16,589)

At 29 February 2024

1,047

1,047

20

Deferred tax

The deferred tax included in the statement of financial position is as follows:

Note

29/02/24
£

28/02/23
£

Included in debtors

16

1,703,926

2,151,654

Included in provisions

19

(1,047)

(17,636)

   

1,702,879

2,134,018

The deferred tax account consists of the tax effect of timing differences in respect of:

 

Oak Tree Mobility Limited

Notes to the Financial Statements for the Year Ended 29 February 2024 (continued)

20

Deferred tax (continued)

29/02/24
£

28/02/23
£

Accelerated capital allowances

(1,047)

(17,636)

Short term timing differences

98,278

98,278

Tax losses

1,605,648

2,053,376

 

1,702,879

2,134,018

21

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £147,617 (2023 - £213,139).

Contributions totalling £9,288 (2023 - £Nil) were payable to the scheme at the end of the year and are included in creditors.

22

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary of £1 each

10

10

10

10

       

23

Reserves

Profit and loss account

This reserve records retained earnings and accumulated losses.

24

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

13,015

26,030

Later than one year and not later than five years

-

13,015

13,015

39,045

 

Oak Tree Mobility Limited

Notes to the Financial Statements for the Year Ended 29 February 2024 (continued)

24

Obligations under leases and hire purchase contracts (continued)

The amount of non-cancellable operating lease payments recognised as an expense during the year was £126,499 (2023 - £258,959).

25

Exceptional items

The exceptional items in the current year relate to the gain on the sale of the property of £272,946, less an accrual of £35,222 for expected further costs in connection with the sale.

The exceptional items in the prior year relate to the following; bad debts written off after the administration of Middleton Mobility Limited totalling £7,757,459, costs relating to the administration of Middleton Mobility Limited totalling £872,170, the release of the advertising prepayment totalling £141,687, stock, employment and restructuring costs totalling £877,470, and other costs of £247,983.

26

Related party transactions

Summary of transactions with parent

World Class Finance Limited (parent company) (as of 4 July 2024, company name changed to Salus Healthcare Group Ltd)
 As at the year-end the Company were owed £195,110 by World Class Finance Limited (as of 4 July 2024, company name changed to Salus Healthcare Group Ltd). At the previous year-end the Company owed £162,928 to World Class Finance Limited (as of 4 July 2024, company name changed to Salus Healthcare Group Ltd). No interest is payable on this balance.
 

Summary of transactions with other related parties

RG42 Limited (common ownership)
 During the period, the company made purchases from RG42 Limited of £3,235,862 (2023: £3,092,625), the company also charged RG42 Limited a management charge of £203,230 and recharged insurance costs of £12,853 and vehicle hire costs of £6,763. At the period end, the company owed £1,337,842 (2023: £937,488) to RG42 Limited.
 

27

Parent and ultimate parent undertaking

The company's immediate parent is World Class Finance Limited, incorporated in England and Wales.

 The most senior parent entity producing publicly available financial statements is World Class Finance Limited. These financial statements are available upon request from Unit 12 Parc Business Treorci, Treorci, Rhondda Cynon Taf, Wales, CF42 6DL.

 The ultimate controlling party is the directors, by virtue of their ownership of World Class Finance Limited.

Subsequent to the year-end on 4 July 2024 World Class Finance Ltd changed company name to Salus Healthcare Group Ltd.

 

Oak Tree Mobility Limited

Notes to the Financial Statements for the Year Ended 29 February 2024 (continued)

28

Outstanding charges

There were four outstanding charges at the year-end. Three with Barclays Bank and one with DBW Investments Ltd. Further detail of these is publicly available on Companies House.

29

Prior period restatement

On review of tax losses held at the prior year end, the deferred tax asset was understated by £303,376.