Registration number:
Oakhill Management (Preston) Limited
for the Year Ended 29 February 2024
Oakhill Management (Preston) Limited
Contents
Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Consolidated Profit and Loss Account |
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Consolidated Statement of Comprehensive Income |
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Consolidated Balance Sheet |
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Balance Sheet |
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Consolidated Statement of Changes in Equity |
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Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Statement of Cash Flows |
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Notes to the Financial Statements |
Oakhill Management (Preston) Limited
Company Information
Directors |
Mr M Murphy Ms T Towers Mrs JA Lee Mr G J Hinnigan Mr P Acton |
Registered office |
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Auditors |
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Oakhill Management (Preston) Limited
Strategic Report for the Year Ended 29 February 2024
The directors present their strategic report for the year ended 29 February 2024.
Principal activity
The principal activity of the group is the provision of veterinary services.
Fair review of the business
The year ended 29 February 2024 has been another year of growth across the group as shown by the increase in turnover achieved in the year. However, gross profit margin has fell slightly.
The continued growth has been achieved by investing in both our staff and our facilities to ensure a high level of customer service from our talented and experienced team.
The group's continued aim is to grow the business further and maintain high service levels.
The group's key financial and other performance indicators during the year were as follows:
Financial KPIs |
Unit |
2024 |
2023 |
Gross Profit Margin |
% |
73 |
74 |
Employment costs: Turnover |
% |
43 |
40 |
Staff costs: FTE |
109 |
95 |
Principal risks and uncertainties
Consolidation in the industry continues, with the larger corporate entities now being joined by investors from the US and beyond. This means that competition has become more intense, and there is a constant need to keep up to date in terms of equipment, branch appearances and digital capabilities. To counter this, the group has continued its investment in equipment, refurbishments and the development of its staff.
The needs of the more demanding customer are constantly being evaluated and opportunities created. The group is committed to improve engagement with its clients by providing more services, better facilities and to improve communication.
The wider economic environment continues to be challenged due to the impacts of Brexit and Covid-19. The group is satisfied that it's resources and level of borrowing is adequate to counter any possible adverse effects. The veterinary industry has been relatively insulated from economic turbulence in the past due in part to the increase in the use of pet insurance and activities not necessarily related to footfall such as pet health plans.
Oakhill Management (Preston) Limited
Strategic Report for the Year Ended 29 February 2024
Section 172(1) statement
The Directors understand the business, strategic targets and ever-changing market and environment that the company operates in. Strategic decisions are taken at board level, where the Directors take decisions they believe are in the best interests of the company, members and stakeholders. The board meets every month to discuss current topics across all areas of the business. They receive an overview of the current financial performance and discuss matters of importance during the board meetings.
The Directors recognise that the employees are fundamental and are integral to the business to deliver strategic ambitions. The success of the business depends on attracting, retaining, and motivating employees. Directors ensure that the company does the upmost to be a responsible employer considering pay, benefits, upkeep of health and safety requirements, and workplace environments. When making decisions, the Directors factor the implication of decisions on the employees where it is relevant and possible to do so.
The Directors recognise that in order to achieve its strategic objectives, it must have strong relationships with its customers and suppliers. The Directors receive regular information and feedback from business operations that inform them how current and emerging relationships are developing. The Directors actively seek and receive third party information indicating performance from a customer point of view. The Directors also receive regular updates on supplier activities and contract management topics.
The Directors will take into account the impact of the company's operations on the community and environment in any decision-making process where it is necessary to do. The Directors are fully aware of their legal responsibilities and obligations, including company policies which are designed to uphold the core values of Oakhill Veterinary Centre, and ensure all stakeholders conduct themselves as it would expect. By following these principles and guidelines, the business is conducted with the upmost integrity. Regular internal reviews take place, which help ensure that the guidelines are followed and identify any areas or processes that can be improved.
The Directors consider the best possible action in its decision-making process to deliver their strategy. When making these decisions the Directors act as fairly as they can for all members however this can mean that sometimes certain stakeholder interests may not be fully aligned.
The Board understand their duties and responsibilities individually and collectively. They have acted in accordance with their duties codified in law, which include their duty to act in a way in which they consider would be most likely to promote the success of the company to the benefit of its members whilst considering the stakeholders of the company and matters set out in section 172 (1) of the Companies Act 2006.
Approved by the
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Oakhill Management (Preston) Limited
Directors' Report for the Year Ended 29 February 2024
The directors present their report and the for the year ended 29 February 2024.
Directors of the group
The directors who held office during the year were as follows:
Dividends
The Directors recommend a final dividend payment of £351,120 be made in respect of the financial year ended 29 February 2024 (2023: £420,903). This dividend has not been recognised as a liability in the financial statements.
Financial instruments
Objectives and policies
The group's principal financial assets are its bank balances, fixed assets and debtors. The group's credit risk is primarily attributable to its trade debtors. To mitigate this credit risk, the group uses a combination of internal credit control functions and external debt collection agencies. The accounts presented in the balance sheet are net of provisions for doubtful debts. The group does not purchase any significant goods or services in foreign currencies.
Price risk, credit risk, liquidity risk and cash flow risk
The group is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest risk on any floating rate borrowings. In order to maintain liquidity and ensure that sufficient funds are available for ongoing operations and future developments, the group uses a mixture of long-term and short-term debt finance.
Research and development
The Directors are committed to fostering innovation and ensuring the company remains at the forefront of its industry through ongoing research and development (R&D) activities. During the year 29 February 2024 the company undertook several significant R&D projects aimed at enhancing and revolutionising small animal, farm animal, and equine medical treatments. The Directors believe that these investments are crucial for maintaining the company’s competitive edge and driving future growth. We are confident that our continued focus on R&D will result in significant benefits, including the enhancement of our market position as well as improved medical care for our patients.
Future developments
The Directors expect the business to continue operating along similar lines to the current year for the next financial year. The Directors remain focused on maintaining operational efficiency and financial stability while carefully monitoring external factors that may affect future performance.
Oakhill Management (Preston) Limited
Directors' Report for the Year Ended 29 February 2024
Disclosure of information to the auditor
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 auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved by the
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Oakhill Management (Preston) 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 group and the company and of the profit or loss of the group 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 UK 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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Oakhill Management (Preston) Limited
Independent Auditor's Report to the Members of Oakhill Management (Preston) Limited
Opinion
We have audited the financial statements of Oakhill Management (Preston) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 29 February 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, Statement of Cash Flows, 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 group's and of the parent 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 group 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 group'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.
Oakhill Management (Preston) Limited
Independent Auditor's Report to the Members of Oakhill Management (Preston) Limited
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company 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 6], 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We considered the nature of the company's industry and its control environment, and reviewed the company's documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities. |
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We obtained an understanding of the legal and regulatory frameworks that the company operates in, and identified the key laws and regulation that: |
|
• |
had a direct effect on the determination of material amounts and disclosures in the financial statements. These included UK Companies Act, pensions legislation, tax legislation; and |
• |
do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. These included the company's compliance with the RCVS regulations applicable to all practices and qualified nurses, GDPR, Veterinary Surgeons Act 1966, Animal Welfare Act 2006, Veterinary Medicines Regulations 2013 and The Animal Act 1986. |
Oakhill Management (Preston) Limited
Independent Auditor's Report to the Members of Oakhill Management (Preston) Limited
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements. |
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In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business. |
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In addition to the above, our procedures to respond to the risks identified included the following: |
|
• |
reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
• |
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
• |
enquiring of management and external legal counsel concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and |
• |
reading minutes of meetings of those charged with governance |
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.
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.
For and on behalf of
Calyx House
South Road
Somerset
TA1 3DU
Oakhill Management (Preston) Limited
Consolidated Profit and Loss Account for the Year Ended 29 February 2024
Note |
2024 |
2023 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit |
|
|
|
Loss on financial assets at fair value through profit and loss |
( |
- |
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar expenses |
( |
( |
|
(270,727) |
(136,539) |
||
Profit before tax |
|
|
|
Tax on profit |
|
( |
|
Profit for the financial year |
|
|
|
Profit/(loss) attributable to: |
|||
Owners of the company |
|
|
The group has no recognised gains or losses for the year other than the results above.
Oakhill Management (Preston) Limited
Consolidated Statement of Comprehensive Income for the Year Ended 29 February 2024
2024 |
2023 |
|
Profit for the year |
|
|
Total comprehensive income for the year |
|
|
Total comprehensive income attributable to: |
||
Owners of the company |
|
|
Oakhill Management (Preston) Limited
(Registration number: 13194134)
Consolidated Balance Sheet as at 29 February 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
Other financial assets |
10,000 |
10,000 |
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets/(liabilities) |
|
( |
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Retained earnings |
|
|
|
Equity attributable to owners of the company |
|
|
|
Shareholders' funds |
|
|
Approved and authorised by the
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Oakhill Management (Preston) Limited
(Registration number: 13194134)
Balance Sheet as at 29 February 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Investments |
|
|
|
Creditors: Amounts falling due within one year |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Share premium reserve |
|
|
|
Shareholders' funds |
|
|
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company made a profit after tax for the financial year of £351,120 (2023 - profit of £420,153).
Approved and authorised by the
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Oakhill Management (Preston) Limited
Consolidated Statement of Changes in Equity for the Year Ended 29 February 2024
Equity attributable to the parent company
Share capital |
Profit and loss account |
Total |
|
At 1 March 2023 |
|
|
|
Profit for the year |
- |
|
|
Total comprehensive income |
- |
|
|
Dividends |
- |
( |
( |
At 29 February 2024 |
|
|
|
Share capital |
Profit and loss account |
Total |
|
At 1 March 2022 |
|
|
|
Profit for the year |
- |
|
|
Total comprehensive income |
- |
|
|
Dividends |
- |
( |
( |
At 28 February 2023 |
|
|
|
Oakhill Management (Preston) Limited
Statement of Changes in Equity for the Year Ended 29 February 2024
Share capital |
Share premium |
Retained earnings |
Total |
|
At 1 March 2023 |
|
|
- |
|
Profit for the year |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
At 29 February 2024 |
|
|
- |
|
Share capital |
Share premium |
Retained earnings |
Total |
|
At 1 March 2022 |
|
|
- |
|
Profit for the year |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
At 28 February 2023 |
366 |
3,609,419 |
- |
3,609,785 |
Oakhill Management (Preston) Limited
Consolidated Statement of Cash Flows for the Year Ended 29 February 2024
Note |
2024 |
2023 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Changes in fair value of property |
|
- |
|
Loss/(profit) on disposal of tangible assets |
|
( |
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
( |
|
|
|
|
||
Working capital adjustments |
|||
Increase in stocks |
( |
( |
|
Increase in debtors |
( |
( |
|
(Decrease)/increase in creditors |
( |
|
|
Cash generated from operations |
|
|
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
|
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Proceeds from bank borrowing draw downs |
|
- |
|
Repayment of bank borrowing |
( |
( |
|
Payments to finance lease creditors |
- |
( |
|
Dividends paid |
( |
- |
|
Old directors loan account |
- |
(277,816) |
|
Directors drawings |
- |
(496,095) |
|
Shareholder drawings |
- |
(286,123) |
|
Net cash flows from financing activities |
( |
( |
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
Cash and cash equivalents at 1 March |
|
|
|
Cash and cash equivalents at 29 February |
777,637 |
521,799 |
Oakhill Management (Preston) Limited
Statement of Cash Flows for the Year Ended 29 February 2024
Note |
2024 |
2023 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Finance income |
( |
( |
|
Net cash flow from operating activities |
- |
( |
|
Cash flows from investing activities |
|||
Interest received |
- |
|
|
Dividend income |
|
- |
|
Net cash flows from investing activities |
|
|
|
Cash flows from financing activities |
|||
Dividends paid |
( |
( |
|
Net increase/(decrease) in cash and cash equivalents |
- |
- |
|
Cash and cash equivalents at 1 March |
- |
- |
|
Cash and cash equivalents at 29 February |
- |
- |
Oakhill Management (Preston) Limited
Notes to the Financial Statements for the Year Ended 29 February 2024
General information |
The company is a private company limited by share capital, incorporated in England and Wales (registered number 13194134).
The address of its registered office is:
These financial statements were authorised for issue by the
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 have been prepared in accordance with Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the UK 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.
Oakhill Management (Preston) Limited
Notes to the Financial Statements for the Year Ended 29 February 2024
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 29 February 2024.
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Revenue recognition
Turnover represents the amounts, excluding value added tax, derived from the provision of goods and services to customers during the year.
Oakhill Management (Preston) Limited
Notes to the Financial Statements for the Year Ended 29 February 2024
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 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 on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
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 |
Leasehold improvements |
15% reducing balance |
Fixtures & fittings |
15% reducing balance |
Motor vehicles |
25% reducing balance |
Investment property
Goodwill
Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and 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 |
Goodwill |
5% straight line |
Investments
Investments in equity shares where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in the profit or loss account. Investments in equity shares where fair value cannot be measured reliably are measured at cost less impairment.
Oakhill Management (Preston) Limited
Notes to the Financial Statements for the Year Ended 29 February 2024
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, 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.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to sell.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Oakhill Management (Preston) Limited
Notes to the Financial Statements for the Year Ended 29 February 2024
Dividends
Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Judgements in applying accounting policies and key sources of estimation uncertainty |
In the application of the Group’s accounting policies, the directors are required to make judgements, estimates, and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period in which the estimate is revised where the revision affects only tat period, or in the period of the revision and future periods where the revision affects both current and future periods.
The Group holds investment properties which are valued annually by Directors. During the year, the Directors elected to obtain a formal valuation. The valuations were made by the Directors and the property consultant Eddisons Real Estate & Business Valuers, on an open market value for existing use basis. The Directors understand that the value of the properties require judgements and estimations.
The Group assesses on an ongoing basis the requirement to recognise provisions. Where the Directors consider that an obligation based on past events exists and it can be reliably measured, a provision is recorded.
Turnover |
The analysis of the group's revenue for the year from continuing operations is as follows:
2024 |
2023 |
|
Turnover |
|
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
2024 |
2023 |
|
Miscellaneous other operating income |
|
|
Other gains and losses |
The analysis of the group's other gains and losses for the year is as follows:
2024 |
2023 |
|
(Loss)/gain on disposal of Tangible assets |
( |
|
Oakhill Management (Preston) Limited
Notes to the Financial Statements for the Year Ended 29 February 2024
Operating profit |
Arrived at after charging/(crediting)
2024 |
2023 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Operating lease expense - plant and machinery |
|
|
Loss/(profit) on disposal of property, plant and equipment |
|
( |
Other interest receivable and similar income |
2024 |
2023 |
|
Interest income on bank deposits |
|
|
Other finance income |
|
|
|
|
Interest payable and similar expenses |
2024 |
2023 |
|
Interest on bank overdrafts and borrowings |
|
|
Interest on obligations under finance leases and hire purchase contracts |
- |
|
Interest expense on other finance liabilities |
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2024 |
2023 |
|
Wages and salaries |
|
|
Other employee expense |
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
2024 |
2023 |
|
Other departments |
|
|
|
|
Oakhill Management (Preston) Limited
Notes to the Financial Statements for the Year Ended 29 February 2024
Auditors' remuneration |
2024 |
2023 |
|
Audit fees |
|
|
Non-audit services |
|
|
43,634 |
49,267 |
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
2024 |
2023 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
( |
- |
(196,609) |
225,188 |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
|
Tax (receipt)/expense in the income statement |
( |
|
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2024 |
2023 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Decrease in UK and foreign current tax from adjustment for prior periods |
( |
- |
Tax decrease from effect of capital allowances and depreciation |
( |
( |
Decrease from effect of different UK tax rates on some earnings |
( |
- |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
- |
Deferred tax expense relating to changes in tax rates or laws |
- |
|
Tax increase from changes in pension fund prepayment |
|
|
Tax decrease from effect of adjustment in research and development tax credit |
( |
- |
Tax increase in relation to deferred tax |
|
- |
Further item of tax decrease |
( |
( |
Total tax (credit)/charge |
( |
|
Oakhill Management (Preston) Limited
Notes to the Financial Statements for the Year Ended 29 February 2024
Intangible assets |
Group
Goodwill |
Total |
|
Cost or valuation |
||
At 1 March 2023 |
|
|
At 29 February 2024 |
|
|
Amortisation |
||
At 1 March 2023 |
|
|
Amortisation charge |
|
|
At 29 February 2024 |
|
|
Carrying amount |
||
At 29 February 2024 |
|
|
At 28 February 2023 |
|
|
Oakhill Management (Preston) Limited
Notes to the Financial Statements for the Year Ended 29 February 2024
Tangible assets |
Group
Land and buildings |
Fixtures and fittings |
Motor vehicles |
Total |
|
Cost or valuation |
||||
At 1 March 2023 |
|
|
|
|
Revaluations |
( |
- |
- |
( |
Additions |
|
|
|
|
Disposals |
( |
( |
( |
( |
At 29 February 2024 |
|
|
|
|
Depreciation |
||||
At 1 March 2023 |
|
|
|
|
Charge for the year |
|
|
|
|
Eliminated on disposal |
( |
( |
( |
( |
At 29 February 2024 |
|
|
|
|
Carrying amount |
||||
At 29 February 2024 |
|
|
|
|
At 28 February 2023 |
|
|
|
|
Included within the net book value of land and buildings above is £2,232,266 (2023 - £2,298,362) in respect of freehold land and buildings and £810,499 (2023 - £891,835) in respect of long leasehold land and buildings.
Prior year adjustment – reclassification of investment property |
During the current financial year, it was identified that the consolidated financial statements for the year ended 29 February 2023 did not reflect the correct classification of properties held by Oakhill Holdings (Preston) Limited. The properties, which are rented to another group company (Oakhill Veterinary Centre Limited), were previously classified as investment properties within the consolidated financial statements. However, under the group accounting policy, such properties should be reclassified to freehold buildings in the consolidated accounts as they are owner-occupied from the perspective of the group.
This reclassification has no impact on the group’s profit or net assets for the prior year, but affects the presentation within the consolidated statement of financial position. Comparative figures for the prior year have been restated to reflect this adjustment as follows:
• The carrying amount of investment property as at 29 February 2023 has decreased by £2,298,362
• The carrying amount of freehold buildings as at 29 February 2023 has increased by £2,298,362
This adjustment aligns the presentation with the requirements of FRS 102 and the group’s accounting policy for such properties.
Oakhill Management (Preston) Limited
Notes to the Financial Statements for the Year Ended 29 February 2024
Investments |
Company
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2024 |
2023 |
|||
Subsidiary undertakings |
||||
|
Langley Lane
England |
|
|
|
|
Langley Lane
England |
|
|
|
Other financial assets |
Group
Financial assets at fair value through profit and loss |
Total |
|
Non-current financial assets |
||
Cost or valuation |
||
At 1 March 2023 |
10,000 |
10,000 |
At 29 February 2024 |
10,000 |
10,000 |
Carrying amount |
||
At 29 February 2024 |
|
10,000 |
Oakhill Management (Preston) Limited
Notes to the Financial Statements for the Year Ended 29 February 2024
Stocks |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Stock |
|
|
- |
- |
Debtors |
Group |
Company |
||||
Current |
Note |
2024 |
2023 |
2024 |
2023 |
Trade debtors |
|
|
- |
- |
|
Amounts owed by related parties |
|
- |
- |
- |
|
Other debtors |
|
|
- |
- |
|
Prepayments |
|
|
- |
- |
|
Corporation tax asset |
|
- |
- |
- |
|
|
|
- |
- |
Cash and cash equivalents |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Cash on hand |
|
|
- |
- |
Cash at bank |
|
|
- |
- |
|
|
- |
- |
Oakhill Management (Preston) Limited
Notes to the Financial Statements for the Year Ended 29 February 2024
Creditors |
Group |
Company |
||||
Note |
2024 |
2023 |
2024 |
2023 |
|
Due within one year |
|||||
Bank loans and overdrafts |
|
|
- |
- |
|
Trade creditors |
|
|
- |
- |
|
Amounts owed to group undertakings and undertakings in which the company has a participating interest |
- |
- |
|
|
|
Social security and other taxes |
|
|
- |
- |
|
Outstanding defined contribution pension costs |
|
|
- |
- |
|
Other payables |
|
|
- |
- |
|
Accruals |
|
|
- |
- |
|
Corporation tax |
- |
225,123 |
- |
- |
|
|
|
|
|
||
Due after one year |
|||||
Bank loans and overdrafts |
|
|
- |
- |
Provisions for liabilities |
Group
Deferred tax |
Total |
|
At 1 March 2023 |
|
|
Increase (decrease) in existing provisions |
|
|
At 29 February 2024 |
|
|
|
Oakhill Management (Preston) Limited
Notes to the Financial Statements for the Year Ended 29 February 2024
Share capital |
Allotted, called up and fully paid shares
2024 |
2023 |
|||
No. |
£ |
No. |
£ |
|
|
|
183 |
|
183 |
|
|
27 |
|
27 |
|
|
27 |
|
27 |
|
|
27 |
|
27 |
|
|
27 |
|
27 |
Ordinary F of £0.01 each |
2,660 |
27 |
2,660 |
27 |
Ordinary G of £0.01 each |
1,260 |
13 |
1,260 |
13 |
Ordinary H of £0.01 each |
1,260 |
13 |
1,260 |
13 |
Ordinary I of £0.01 each |
1,260 |
13 |
1,260 |
13 |
Ordinary J of £0.01 each |
1,260 |
13 |
1,260 |
13 |
|
|
|
|
Oakhill Management (Preston) Limited
Notes to the Financial Statements for the Year Ended 29 February 2024
Loans and borrowings |
Non-current loans and borrowings
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Bank borrowings |
|
|
- |
- |
Current loans and borrowings
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Bank borrowings |
|
|
- |
- |
Company
Bank borrowings
Bank loans have a carrying amount at year end of £ Security is given by way of a fixed charge over all company assets. |
Commitments |
Group
Other financial commitments
The total amount of other financial commitments not provided in the financial statements was £
Oakhill Management (Preston) Limited
Notes to the Financial Statements for the Year Ended 29 February 2024
Related party transactions |
Group
Advances to directors |
|
Summary of transactions with other related parties
During the period S Millward went overdrawn on their shareholder's loan account. The maximum overdrawn balance during the year was £63,248 (2023 - £39,209). At the year end the amount outstanding from Mr S Millward was £35,000 (2023 - £3,198). No interest was paid on this balance, and no security has been provided. All transactions with related parties are conducted at arm's length and on normal commercial terms.
At the reporting date, the company had outstanding balances owed by entities that are Personal Investment Companies (PICs) owned by directors and/or shareholders of the company. In aggregate, the amount owed by Director-owned PICs was £72,247. A further £27,263 was owed by Shareholder-owned PICs. No interest was paid on these balances, and no security has been provided for them. All transactions with related parties are conducted at arm's length and on normal commercial terms.