Company registration number 07571998 (England and Wales)
MANCHESTER HIP AND KNEE LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
MANCHESTER HIP AND KNEE LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
MANCHESTER HIP AND KNEE LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
3
16,510
21,744
Investment properties
4
2,462,752
2,462,752
Investments
5
3,035,962
1,578,912
5,515,224
4,063,408
Current assets
Debtors
7
447,985
347,583
Cash at bank and in hand
1,013,582
1,106,107
1,461,567
1,453,690
Creditors: amounts falling due within one year
8
(348,919)
(292,213)
Net current assets
1,112,648
1,161,477
Total assets less current liabilities
6,627,872
5,224,885
Provisions for liabilities
9
(160,841)
(5,436)
Net assets
6,467,031
5,219,449
Capital and reserves
Called up share capital
10
10
Profit and loss reserves
6,467,021
5,219,439
Total equity
6,467,031
5,219,449
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 March 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
MANCHESTER HIP AND KNEE LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2024
31 March 2024
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 12 November 2024 and are signed on its behalf by:
Mr Winston Kim
Director
Company Registration No. 07571998
MANCHESTER HIP AND KNEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
1
Accounting policies
Company information
Manchester Hip and Knee Limited is a private company limited by shares incorporated in England and Wales. The registered office is 22 Bow Green Road, Bowdon, Altrincham, WA14 3LX.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Turnover
Revenue derived from the provision of medical services is recognised in the period in which the medical services are physically performed.
Revenue derived from renting out the company's investment properties is recognised on a receivable basis.
Distributions from fixed asset investments are recognised when received. Interest earned on fixed asset investments is recognised on a receivable basis.
1.3
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
25% reducing balance
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.4
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.5
Fixed asset investments
Investments in shares are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in profit or loss. Transaction costs are expensed to profit or loss as incurred.
MANCHESTER HIP AND KNEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 4 -
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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 creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.8
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.
MANCHESTER HIP AND KNEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 5 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.9
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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
4
4
MANCHESTER HIP AND KNEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
3
Tangible fixed assets
Fixtures and fittings
Motor vehicles
Total
£
£
£
Cost
At 1 April 2023
15,751
50,790
66,541
Additions
2,418
2,418
Disposals
(11,119)
(11,119)
At 31 March 2024
7,050
50,790
57,840
Depreciation and impairment
At 1 April 2023
10,077
34,720
44,797
Depreciation charged in the year
1,569
4,018
5,587
Eliminated in respect of disposals
(9,054)
(9,054)
At 31 March 2024
2,592
38,738
41,330
Carrying amount
At 31 March 2024
4,458
12,052
16,510
At 31 March 2023
5,674
16,070
21,744
4
Investment property
2024
£
Fair value
At 1 April 2023 and 31 March 2024
2,462,752
The investment property was professionally valued as at the balance sheet date by PK3 Agency. The valuations on a market value for existing use basis were not materially different to the carrying value, which is not materially different to cost.
5
Fixed asset investments
2024
2023
£
£
Listed investments
3,035,962
1,578,912
MANCHESTER HIP AND KNEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
5
Fixed asset investments
(Continued)
- 7 -
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 April 2023
1,578,912
Additions
1,023,562
Valuation changes
626,859
Foreign exchange losses
(7,738)
Disposals
(185,633)
At 31 March 2024
3,035,962
Carrying amount
At 31 March 2024
3,035,962
At 31 March 2023
1,578,912
6
Director's advances, credits and guarantees
During the year, the company made aggregate advances to a director of £290,962 (2023 - £236,992) and £241,376 (2023 - £257,085) was repaid. At the year end, the director owed the company £296,950 (2023 - £241,376). Interest was charged on these amounts at a rate of 2.25% (2023 - 2.00%) and is included in the year end balances. The amounts are repayable on demand.
7
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
121,963
72,586
Other debtors
296,950
241,376
Prepayments and accrued income
29,072
33,621
447,985
347,583
8
Creditors: amounts falling due within one year
2024
2023
£
£
Obligations under finance leases
24,143
Trade creditors
5,083
4,704
Corporation tax
315,511
234,114
Other taxation and social security
23,537
24,578
Accruals and deferred income
4,788
4,674
348,919
292,213
MANCHESTER HIP AND KNEE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
8
Creditors: amounts falling due within one year
(Continued)
- 8 -
The finance lease balance of £nil (2023 - £24,143) is in respect of a motor vehicle hire purchase and is secured against the asset itself.
9
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
4,127
5,436
Investments
156,714
-
160,841
5,436
2024
Movements in the year:
£
Liability at 1 April 2023
5,436
Charge to profit or loss
155,405
Liability at 31 March 2024
160,841
10
Events after the reporting date
After the balance sheet date, but prior to the date of signing this report, the company has restructured. The company is now wholly-owned by J3kim Holdings Limited with registered office address of, 22 Bow Green Road, Altrincham, Cheshire, WA14 3LX.
The investment properties and listed investments are to be transferred to other entities in the group parented by J3kim Holdings Limited. The company's ordinary trading activity has continued unaffected by the restructure.