Company registration number 10746789 (England and Wales)
WEBCARE GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
WEBCARE GROUP LIMITED
COMPANY INFORMATION
Directors
R Vali
H Vali
Secretary
S Fisher
Company number
10746789
Registered office
Unit 18 Britannia Way
Waters Meeting Road
Bolton
BL2 2HH
Auditor
Sumer Auditco Limited
Fourth Floor
Unit 5B, The Parklands
Bolton
BL6 4SD
WEBCARE GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 30
WEBCARE GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 1 -
The directors present the strategic report for the year ended 29 February 2024.
Review of the business
Webcare Group Limited is a wellness service company specialising in the provision of online, video and pharmacy services to patients. The company was founded in 2017 and is responsible for the online presence of Treated.com and serves as an umbrella organisation for HR Healthcare and GoodCare IT.
Our diverse in-house teams carry expertise and experience in a range of areas, including clinical excellence, web development and digital marketing; and it’s this collection of people working collaboratively that makes our organisation truly unique.
Online health is an emerging industry, and we’re proud to be leading the way by developing pioneering systems that make high quality, on-demand care a reality.
Since BREXIT, we have had to partner with other EU Pharmacies to eradicate any UK-EU cross border supply problems. These relationships have continued to be developed, engaging with new pharmacies and creating clearer understanding of our needs with existing ones. Post BREXIT and COVID has been challenging, though we are pleased to announce that in the post year end period, turnover has returned to pre-pandemic levels and growth is expected for 2025.
Effective cost controls and strong connections with pharmacies are a key management focus and strategies implemented have limited the gross profit margin decrease to only 2.7%. A key achievement in the year has been the successful establishment of Apotheek Life B.V. as a subsidiary company based in the EU, which facilitates direct dispensing to customers. It is expected that gross profit margins will improve in 2025, as business activity of Apotheek Life B.V grows.
Overall the group has reported a loss for the year of £0.5m before tax (2023: £0.8m). This is fundamentally due to challenging post BREXIT and COVID. The directors are confident that the group is recovery and a return to profitability is envisaged.
The group has significant net assets of £6.0m (2023: £6.3m), which places the group in a string and stable financial position, with sufficient reserves available to enable future opportunities to be taken, in-line with the groups business strategy.
Principal risks and uncertainties
Clinical safety and meeting territorial specific legal requirements is always a priority in the healthcare sector, more so in the digital healthcare arena.
Our CQC report outcomes still stands as good, and our GPHC report for the delivery of pharmacy services evidences standards met, demonstrating an improvement form the prior year.
Our proactive engagement with the regulators and our forward-thinking approach in meeting the regulatory requirements keeps us ahead of the industry in patient care delivery services. We continue to engage legal experts to support and ensure compliance with regulatory requirements.
The company continues to innovate and engage in regulated business and accordingly this brings risks related challenges in adhering to rules and regulations and thus such risk factors are proactively managed. We have robust practices and rigorous internal management controls. Our CEO and Management Team, together with clinicians and software professionals have vast experience in e-commerce, invest in research around new technologies and apply best practice to ensure our product stays ahead of our competitors.
From a financial perspective, the group have identified the following financial related risks, for which the directors review and agree policies to manage these risks.
WEBCARE GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 2 -
Principal risks and uncertainties (continued)
Liquidity risk
The group seeks to manage financial risk by ensuring liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably.
Foreign currency risk
The group's principal foreign currency exposures arose from trading with overseas companies. Fluctuations in exchange rates over the year have a minor impact on our results because of the self-hedging achieved by way of using foreign currency bank accounts for oversea trade (both sales and purchases), transacted in the local currency.
Key performance indicators
The group reviews and monitors its performance against a number of key performance indicators both financial and non-financial. The principal measures include revenue growth, maintaining service levels, improvement of profit margins, liquidity and net assets. These are reviewed by the management team and reported to the Board on a monthly basis.
The Directors have and will continue to monitor all of the KPI’s and daily operating controls and maintain a strong focus on increasing performance in all aspects of the business.
The main KPI’s and corresponding results are as follows:
Considering the challenging times, the Directors are pleased with the consistent level of turnover achieved in the year. Post year end, growth has been achieved in both revenue growth and gross profit margin, illustrating effective operational management and cost control. Collectively this is expected to ensure the group returns to profitability in the future.
The group has significant net current assets and net assets, evidencing strong liquidity and financial strength of the group.
R Vali
Director
4 December 2024
WEBCARE GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 3 -
The directors present their annual report and financial statements for the year ended 29 February 2024.
Principal activities
The principal activity of the group continued to be that the delivery of online asynchronous, video and pharmacy services to patients across multiple territories in the EU and certain parts of the world.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
R Vali
H Vali
Future developments
In previous years, the group developed websites, software systems and integration in order to facilitate launches in further territories across the global. This development will continue into 2025.
Reaching out into new territories means differing legal opinions and clinical pathways. For each of the territories there is a process to ensure that we meet the legal requirements of each of the countries and further develop a clinical framework with localised clinical experience that can support.
We continue to liaise with localised legal and clinical advisors as done in 2023/24. Our management team are skilled and experienced in bringing the required diverse teams together to facilitate further successful new service launches.
Auditor
Sumer Auditco Limited were appointed as auditor to the group and are deemed to be reappointed under section 487(2) of the Companies Act 2006.
WEBCARE GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 4 -
Statement of directors' responsibilities
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have 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 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 then 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 ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
On behalf of the board
R Vali
Director
4 December 2024
WEBCARE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WEBCARE GROUP LIMITED
- 5 -
Opinion
We have audited the financial statements of Webcare Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 29 February 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 29 February 2024 and of the group's loss 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
WEBCARE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WEBCARE GROUP LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept 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 directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent 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 parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The 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 discussions with the directors (as required by auditing standards) and discussed with the directors the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. The potential effect of these laws and regulations on the financial statements varies considerably.
Firstly, the group is subject to laws and regulations that directly affect the financial statements including financial reporting legislation and taxation legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.
Secondly, the group is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified the following areas as those most likely to have such an effect: laws related to employment, off-payroll working, CQC, GPhC, health & safety and data protection.
Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and inspection of regulatory and legal correspondence, if any. Through these procedures we did not become aware of any actual or suspected non-compliance.
WEBCARE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WEBCARE GROUP LIMITED
- 7 -
Owing to the inherent limitations 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. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained 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.
We design procedures in line with our responsibilities, outlined below to detect material misstatement due to fraud:
Matters are discussed amongst the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud
Identifying and assessing the design and effectiveness of controls that management have in place to prevent and detect fraud
Detecting and responding to the risks of fraud following discussions with management and enquiring as to whether management have knowledge of any actual, suspected or alleged fraud;
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
Caroline Snape (Senior Statutory Auditor)
For and on behalf of Sumer Auditco Limited
4 December 2024
Statutory Auditor
Fourth Floor
Unit 5B, The Parklands
Bolton
BL6 4SD
WEBCARE GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 8 -
2024
2023
as restated
Notes
£
£
Turnover
4
8,061,866
8,057,164
Cost of sales
(4,432,813)
(4,214,623)
Gross profit
3,629,053
3,842,541
Administrative expenses
(4,172,761)
(4,673,030)
Other operating expenses
-
(5,689)
Operating loss
5
(543,708)
(836,178)
Interest receivable and similar income
9
24,653
656
Interest payable and similar expenses
10
(5,212)
Loss before taxation
(519,055)
(840,734)
Tax on loss
11
193,810
259,018
Loss for the financial year
23
(325,245)
(581,716)
Other comprehensive income
Currency translation gain taken to retained earnings
3,858
52,759
Total comprehensive income for the year
(321,387)
(528,957)
Loss for the financial year is attributable to:
- Owners of the parent company
(325,244)
(581,883)
- Non-controlling interests
(1)
167
(325,245)
(581,716)
Total comprehensive income for the year is attributable to:
- Owners of the parent company
(321,386)
(529,124)
- Non-controlling interests
(1)
167
(321,387)
(528,957)
WEBCARE GROUP LIMITED
GROUP BALANCE SHEET
AS AT
29 FEBRUARY 2024
29 February 2024
- 9 -
29 February 2024
28 February 2023
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
12
722,387
879,796
Tangible assets
13
599,239
648,755
1,321,626
1,528,551
Current assets
Stocks
16
287,295
40,620
Debtors
17
2,221,442
1,704,504
Cash at bank and in hand
3,098,223
3,989,479
5,606,960
5,734,603
Creditors: amounts falling due within one year
18
(919,049)
(927,359)
Net current assets
4,687,911
4,807,244
Total assets less current liabilities
6,009,537
6,335,795
Provisions for liabilities
Deferred tax liability
20
11,440
16,311
(11,440)
(16,311)
Net assets
5,998,097
6,319,484
Capital and reserves
Called up share capital
22
117
117
Share premium account
23
2,000,016
2,000,016
Other reserves
23
1,906,663
1,906,663
Profit and loss reserves
23
2,091,009
2,412,395
Equity attributable to owners of the parent company
5,997,805
6,319,191
Non-controlling interests
292
293
Total equity
5,998,097
6,319,484
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on 4 December 2024 and are signed on its behalf by:
04 December 2024
R Vali
Director
Company registration number 10746789 (England and Wales)
WEBCARE GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 29 FEBRUARY 2024
29 February 2024
- 10 -
29 February 2024
28 February 2023
Notes
£
£
£
£
Fixed assets
Intangible assets
12
684,000
855,000
Tangible assets
13
258,027
260,777
Investments
14
18,529
18,529
960,556
1,134,306
Current assets
Debtors
17
1,597,030
1,223,345
Cash at bank and in hand
2,301,807
1,435,459
3,898,837
2,658,804
Creditors: amounts falling due within one year
18
(897,624)
(977,966)
Net current assets
3,001,213
1,680,838
Net assets
3,961,769
2,815,144
Capital and reserves
Called up share capital
22
117
117
Share premium account
23
1,999,983
1,999,983
Profit and loss reserves
23
1,961,669
815,044
Total equity
3,961,769
2,815,144
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,146,625 (2023 - £1,196,832 profit).
The financial statements were approved by the board of directors and authorised for issue on 4 December 2024 and are signed on its behalf by:
04 December 2024
R Vali
Director
Company registration number 10746789 (England and Wales)
WEBCARE GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
£
£
£
£
£
£
£
As restated for the period ended 28 February 2023:
Balance at 1 March 2022
117
2,000,016
1,906,663
2,930,917
6,837,713
126
6,837,839
Year ended 28 February 2023:
Loss for the year
-
-
-
(581,883)
(581,883)
167
(581,716)
Other comprehensive income:
Currency translation differences
-
-
-
52,759
52,759
-
52,759
Total comprehensive income
-
-
-
(529,124)
(529,124)
167
(528,957)
Transfers
-
-
-
10,602
10,602
-
10,602
Balance at 28 February 2023
117
2,000,016
1,906,663
2,412,395
6,319,191
293
6,319,484
Year ended 29 February 2024:
Loss for the year
-
-
-
(325,244)
(325,244)
(1)
(325,245)
Other comprehensive income:
Currency translation differences
-
-
-
3,858
3,858
-
3,858
Total comprehensive income
-
-
-
(321,386)
(321,386)
(1)
(321,387)
Balance at 29 February 2024
117
2,000,016
1,906,663
2,091,009
5,997,805
292
5,998,097
WEBCARE GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 March 2022
117
1,999,983
(381,788)
1,618,312
Year ended 28 February 2023:
Profit and total comprehensive income for the year
-
-
1,196,832
1,196,832
Balance at 28 February 2023
117
1,999,983
815,044
2,815,144
Year ended 29 February 2024:
Profit and total comprehensive income
-
-
1,146,625
1,146,625
Balance at 29 February 2024
117
1,999,983
1,961,669
3,961,769
WEBCARE GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 13 -
2024
2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
26
(245,943)
(673,940)
Interest paid
(5,212)
Income taxes refunded/(paid)
265,279
(30,488)
Net cash inflow/(outflow) from operating activities
19,336
(709,640)
Investing activities
Purchase of intangible assets
(16,071)
-
Purchase of tangible fixed assets
(14,487)
(11,995)
Proceeds from disposal of tangible fixed assets
-
5,689
Repayment of loans
(904,687)
(318,563)
Interest received
24,653
656
Net cash used in investing activities
(910,592)
(324,213)
Net decrease in cash and cash equivalents
(891,256)
(1,033,853)
Cash and cash equivalents at beginning of year
3,989,479
5,023,332
Cash and cash equivalents at end of year
3,098,223
3,989,479
WEBCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 14 -
1
Accounting policies
Company information
Webcare Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 18 Britannia Way, Waters Meeting Road, Bolton, BL2 2HH.
The group consists of Webcare Group Limited and all of its subsidiaries.
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.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
Section 7 ‘Statement 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 financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
WEBCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 15 -
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Webcare Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 29 February 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.5
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of pharmaceuticals is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer on dispatch of the goods.
Where sales are made through a 3rd party pharmacy who dispenses the prescription, the revenue is recognised at point that the performance obligations in relation to the product have been transferred to the dispenser.
At that point it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from licensing fees consists of the value of services provided by the company from its non principal activities, which are as follows:
Revenue from the use of the Treated domain;
Revenue from customer services from clients who use the Treated domain;
Revenue from IT support services from the use of the Treated domain.
From the customers use of the above services, the company will take a percentage from every sale and these are recognised at that point of sale through the Treated platform.
1.6
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
WEBCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 16 -
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
10% p.a. straight line
1.7
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:
Freehold land and buildings
1% p.a. straight line
Leasehold improvements
15% p.a. reducing balance
Fixtures and fittings
15% p.a. reducing balance
Computers
25% p.a. 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 recognised in the profit and loss account.
1.8
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.9
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
WEBCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 17 -
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.10
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.11
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.
1.12
Financial instruments
The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
WEBCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 18 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 group 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.13
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.14
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
WEBCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 19 -
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is 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.
1.15
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.
1.16
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.17
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
1.18
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
WEBCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 20 -
2
Judgements 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 of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Amortisation of software
The useful economic life of software, included within intangible fixed assets has to be estimated by the directors of the company to ensure an appropriate amortisation charge is recognised in the year. The amortisation charge is dependent on the period of time the company will derive economic benefit in the form of income, from the use of the software asset. The directors undertake a periodic review of the intangible assets to ensure the carrying value at a point in time, is fairly stated within the financial statements.
During the year, amortisation of £173,480 (2023: £171,000) has been charged.
Refer to note 11 for the carrying value of intangible fixed assets impacted by this key estimate.
3
Prior period adjustment
Reconciliation of changes in equity - group
1 March
28 February
2022
2023
£
£
Adjustments to prior year
-
(106,591)
Equity as previously reported
6,837,839
6,426,075
Equity as adjusted
6,837,839
6,319,484
Analysis of the effect upon equity
Profit and loss reserves
-
(106,591)
Reconciliation of changes in loss for the previous financial period
2023
£
Adjustments to prior year
(106,591)
Loss as previously reported
(475,125)
Loss as adjusted
(581,716)
WEBCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
3
Prior period adjustment
(Continued)
- 21 -
Notes to reconciliation
Corporation tax correction
During the year, a prior period adjustment has been processed to correct a £106,591 overstatement of the corporation tax refund due. This has reduced tax on loss and other debtors by the corresponding amount, resulting in an increase in the previously reported loss and a decrease in the previously report net assets, by £106,591.
Reclassification of advertising expenditure
During the year, advertising expenditure has been represented within cost of sales rather than administrative expenses. These reclassifications have decreased the gross profit reported for 2023 by £152,827 and decreased administrative expenses by the same amount. This reclassification has had no affect on previously stated retained profits or net assets.
4
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sale of pharmaceutical products
6,210,911
6,827,442
Licensing fees
1,850,955
1,229,722
8,061,866
8,057,164
2024
2023
£
£
Turnover analysed by geographical market
UK
3,439,785
2,423,312
Europe
4,484,898
5,607,288
North America
95,328
4,203
South America
382
112
Asia
41,473
22,249
8,061,866
8,057,164
2024
2023
£
£
Other revenue
Interest income
24,653
656
WEBCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 22 -
5
Operating loss
2024
2023
£
£
Operating loss for the year is stated after charging/(crediting):
Exchange losses/(gains)
135,062
(105,996)
Depreciation of owned tangible fixed assets
53,440
93,772
Loss on disposal of tangible fixed assets
10,563
5,689
Amortisation of intangible assets
173,480
171,000
Operating lease charges
132,850
167,607
6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
34,000
-
Audit of the financial statements of the company's subsidiaries
-
28,533
34,000
28,533
7
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Administration
66
60
15
15
Operations
5
5
5
5
Total
71
65
20
20
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
1,754,283
1,529,794
857,138
890,279
Social security costs
143,336
135,555
92,022
101,261
Pension costs
34,692
26,274
21,791
23,049
1,932,311
1,691,623
970,951
1,014,589
WEBCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 23 -
8
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
103,000
103,000
Company pension contributions to defined contribution schemes
1,761
1,761
104,761
104,761
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
9
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
24,653
656
10
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
-
5,212
11
Taxation
2024
2023
as restated
£
£
Current tax
UK corporation tax on profits for the current period
(188,939)
(343,459)
Deferred tax
Origination and reversal of timing differences
(4,871)
84,441
Total tax credit
(193,810)
(259,018)
WEBCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
11
Taxation
(Continued)
- 24 -
The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Loss before taxation
(519,055)
(840,734)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
(129,764)
(159,739)
Tax effect of expenses that are not deductible in determining taxable profit
82,500
61,865
Tax effect of utilisation of tax losses not previously recognised
(55,639)
Change in unrecognised deferred tax assets
(235,727)
Depreciation on assets not qualifying for tax allowances
9,162
8,190
Research and development tax credit
(210,620)
(343,459)
R&D expenditure enhancement
238,021
254,376
Other movements
52,618
(24,612)
Taxation credit
(193,810)
(259,018)
Deferred tax has been recognised at a rate of 25%. In October 2022, the government announced an increase in the corporation tax main rate from 19% to 25% for companies with profit over £250,000. There is a small company rate of 19% for taxable profits under £50,000 and marginal relief available for profits falling between £50,000 - £250,000 with effect from 1 April 2023.
12
Intangible fixed assets
Group
Software
£
Cost
At 1 March 2023
1,734,796
Additions
16,071
At 29 February 2024
1,750,867
Amortisation and impairment
At 1 March 2023
855,000
Amortisation charged for the year
173,480
At 29 February 2024
1,028,480
Carrying amount
At 29 February 2024
722,387
At 28 February 2023
879,796
WEBCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
12
Intangible fixed assets
(Continued)
- 25 -
Company
Software
£
Cost
At 1 March 2023 and 29 February 2024
1,710,000
Amortisation and impairment
At 1 March 2023
855,000
Amortisation charged for the year
171,000
At 29 February 2024
1,026,000
Carrying amount
At 29 February 2024
684,000
At 28 February 2023
855,000
More information on impairment movements in the year is given in note .
13
Tangible fixed assets
Group
Freehold land and buildings
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 March 2023
274,502
507,871
153,527
312,490
1,248,390
Additions
10,052
4,435
14,487
Disposals
(22,819)
(2,725)
(25,544)
At 29 February 2024
274,502
485,052
160,854
316,925
1,237,333
Depreciation and impairment
At 1 March 2023
13,725
263,584
58,148
264,178
599,635
Depreciation charged in the year
2,750
36,647
4,233
9,810
53,440
Eliminated in respect of disposals
(12,545)
(2,436)
(14,981)
At 29 February 2024
16,475
287,686
59,945
273,988
638,094
Carrying amount
At 29 February 2024
258,027
197,366
100,909
42,937
599,239
At 28 February 2023
260,777
244,287
95,379
48,312
648,755
WEBCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
13
Tangible fixed assets
(Continued)
- 26 -
Company
Freehold land and buildings
£
Cost
At 1 March 2023 and 29 February 2024
274,502
Depreciation and impairment
At 1 March 2023
13,725
Depreciation charged in the year
2,750
At 29 February 2024
16,475
Carrying amount
At 29 February 2024
258,027
At 28 February 2023
260,777
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
18,529
18,529
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 March 2023 and 29 February 2024
18,529
Carrying amount
At 29 February 2024
18,529
At 28 February 2023
18,529
WEBCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 27 -
15
Subsidiaries
Details of the company's subsidiaries at 29 February 2024 are as follows:
Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
HR Healthcare Limited
1
Private dispensing services
Ordinary
100.00
Apotheek Life B.V.
2
Private dispensing services
Ordinary
100.00
Goodcare IT Management Services Pvt Ltd
3
Software solution provider
Ordinary
100.00
Webcare Technologies Pvt Ltd
3
Holding company
Ordinary
100.00
Eve Adam Health IT Pvt Ltd
3
Private dispensing services
Ordinary
100.00
Webcare America LLC
4
Holding company
Ordinary
100.00
Eve Adam Health LLC
4
Private dispensing services
Ordinary
100.00
EveAdam Health Pty Ltd
5
Private dispensing services
Ordinary
100.00
Webcare Australia Pty Ltd
5
Holding company
Ordinary
100.00
Registered office addresses (all UK unless otherwise indicated):
1
Unit 18 Waters Meeting, Britannia Way, Bolton, United Kingdom, BL2 2HH
2
Industrieweg 4, 3606 AS Maarssen, Netherlands
3
10th Floor Mid-Town Complex, Jetalpur Road Vadara, India, 390007
4
175 Pearl Street, Suite 305, Brooklyn, New York, United States of America, 11201
5
Suite 2 28 Bayswater Road, Potts Point, New South Wales, Australia, 2011
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
287,295
40,620
17
Debtors
Group
Company
2024
2023
2024
2023
as restated
Amounts falling due within one year:
£
£
£
£
Trade debtors
489,360
591,742
361,745
548,035
Corporation tax recoverable
270,282
343,459
59,662
Amounts owed by group undertakings
-
-
1,099,505
632,262
Other debtors
1,322,172
680,852
Prepayments and accrued income
139,628
88,451
76,118
43,048
2,221,442
1,704,504
1,597,030
1,223,345
WEBCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 28 -
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
49,058
Trade creditors
365,225
417,556
78,360
171,199
Amounts owed to group undertakings
568,884
455,084
Corporation tax payable
3,163
Other taxation and social security
78,363
90,987
69,445
127,264
Other creditors
192,773
152,595
117,538
126,285
Accruals and deferred income
279,525
266,221
63,397
49,076
919,049
927,359
897,624
977,966
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank overdrafts
49,058
Payable within one year
49,058
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
11,440
16,311
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 March 2023
16,311
-
Credit to profit or loss
(4,871)
-
Liability at 29 February 2024
11,440
-
WEBCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
20
Deferred taxation
(Continued)
- 29 -
The deferred tax liability set out above predominately relates to accelerated capital allowances which are expected to release over the useful economic life of the associated tangible fixed assets.
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
34,692
26,274
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
As at the year-end, contributions due to the schemes in respect of the current reporting year were £7,871 (2023: £3,829).
22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of 0.001p each
5,833,334
5,833,334
58.33
58.33
B Ordinary shares of 0.001p each
5,833,334
5,833,334
58.33
58.33
11,666,668
11,666,668
116.66
116.66
A and B Ordinary shares of 0.001p each rank pari passu. Both classes carry full voting rights, rights to dividends and distribution on wind up. Dividends may however be declared on each class of share independently of each other.
23
Reserves
Share premium
The share premium account represents consideration received for shares issued above their nominal value, net of transaction costs.
Merger reserve
Merger relief was applied in relation to the shares issued for the acquisition of the subsidiaries, therefore the excess of the issue price of the shares over their nominal value has been taken to a separate non-distributable reserve rather than to the share premium.
24
Related party transactions
The company has taken advantage of the exemption available in accordance with Financial Reporting Standard 102 Section 33, not to disclose transactions entered into between two or more members of a group, where any subsidiary party to the transaction is wholly owned.
WEBCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 30 -
25
Directors' transactions
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Directors loan account
2.25
318,563
1,203,218
24,653
(323,184)
1,223,250
318,563
1,203,218
24,653
(323,184)
1,223,250
The overdrawn directors loan account noted above has been fully repaid after the year-end.
26
Cash absorbed by group operations
2024
2023
£
£
Loss after taxation
(325,245)
(581,716)
Adjustments for:
Taxation credited
(193,810)
(259,018)
Finance costs
5,212
Investment income
(24,653)
(656)
Loss on disposal of tangible fixed assets
10,563
-
Amortisation and impairment of intangible assets
173,480
171,000
Depreciation and impairment of tangible fixed assets
53,440
93,772
Impairment
-
116,135
Foreign exchange variances on consolidation of overseas subsidiaries
3,858
52,759
Other non-cash movements
-
14
Foreign exchange differences
-
(105,547)
Movements in working capital:
Increase in stocks
(246,675)
(8,999)
Decrease/(increase) in debtors
349,267
(61,379)
Decrease in creditors
(46,168)
(95,517)
Cash absorbed by operations
(245,943)
(673,940)
27
Analysis of changes in net funds - group
1 March 2023
Cash flows
29 February 2024
£
£
£
Cash at bank and in hand
3,989,479
(891,256)
3,098,223
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