Company registration number 10942013 (England and Wales)
AGH SOLUTIONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
AGH SOLUTIONS LIMITED
COMPANY INFORMATION
Directors
Mr M A Atherton
Ms M T Hudson
Mr M S Chandler
(Appointed 30 October 2023)
Company number
10942013
Registered office
Airedale General Hospital
Skipton Road
Steeton
Keighley
BD20 6TD
Auditor
Azets Audit Services Limited
12 King Street
Leeds
LS1 2HL
AGH SOLUTIONS LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 7
Independent auditor's report
8 - 10
Profit and loss account
11
Balance sheet
12
Statement of changes in equity
13
Notes to the financial statements
14 - 29
AGH SOLUTIONS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present their strategic report on the affairs of the company for the year ended 31 March 2024.

Principal activities

AGH Solutions Limited ("the company") is a company wholly owned by Airedale NHS Foundation Trust. The company’s registered office is Airedale General Hospital, Skipton Road, Steeton, Keighley, BD20 6TD.

 

The company was formed on 1st September 2017 with trading commencing on 12th February 2018. These accounts represent the year ended 31st March 2024.

 

The principal activity of the company is to provide managed hospital estates, facilities, procurement, and other related services. As part of the agreement to provide managed healthcare services, the company operates a long-term lease arrangement with Airedale NHS Foundation Trust for its healthcare buildings and land. Legal title of the land and properties is held by this company, whilst the lease agreement transfers all the risks and rewards incidental to ownership of the assets to Airedale NHS Foundation Trust and therefore this asset has been recognised as a finance lease receivable in these financial statements.

 

The company also receives rental income from other shorter term leases which are in the hospital properties, as well as income related to delivery of services to other NHS Trusts in relation to Sterile Services and Procurement Services.

Review of the business

During the year ended 31 March 2024 the company's results are in line with management expectations. The company saw a significant increase in the value of interest generated through cash balances held at the bank compared to the prior year. This was due to a combination of moving to an interest generating bank account late in 2022/23, and the increase in interest rates during the year.

 

The company entered into twelve-year contract for the provision of a fully managed service to provide radiology equipment and maintenance to support the hospital services. This is shown under note 10 of the accounts.

 

The directors are confident that these results together with the strong balance sheet and secure contractual position with Airedale NHS Foundation Trust mean that the company is well positioned for the future.

AGH SOLUTIONS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Principal risks and uncertainties

AGH Solutions Board review key risks monthly. The company is required to ensure that any key risks are aligned with the risk management arrangements for Airedale NHS Foundation Trust to ensure that compliance with national regulation is adhered to on a consolidated level.

 

Financial Risk Management

The company's activities expose it to a variety of financial risks, such as market risk, credit risk and liquidity risk.

 

Market risk

The objective of market risk management is to manage and control market risk exposures within acceptable parameters while optimising the return on risk.

 

Foreign exchange risk

The company does not hold any balances at year end in currencies other than Sterling, the presentational and functional currency of the company, and therefore does not have an exposure to foreign exchange risk.

 

Price risk

The company does not actively trade in markets and therefore is not exposed to either commodity price or equity price risks.

 

Interest rate risk

Interest rate risk is the possibility that changes in interest rates will result in higher financing costs or reduced income from the company's interest bearing financial assets and liabilities. As the loan is fixed interest there is no risk associated with changes in interest rates. The interest rate risk arising on interest income is immaterial and the company does not currently consider it necessary to actively manage interest rate risk.

 

Credit risk

Credit risk is the risk of suffering financial loss should the company's customers, clients or counterparties fail to fulfil their contractual obligations to the company. The company's core business is primarily the supply of an Operated Healthcare Facility to its parent company. As a result, the company is not exposed to any material third party credit risk as the majority of receivables are from related companies.

 

Liquidity risk

Liquidity risk is the risk that the company is unable to meet its obligations when they fall due as a result of cash requirements from contractual commitments or other cash flows. The company manages liquidity by maintaining sufficient cash with banks to meet its on-going commitments.

Future developments

During 2024/25, the company will continue to work with Airedale NHS Foundation Trust on the multi-year remedial work to maintain the hospital buildings, along with supporting its long term Estates strategy. The company will also support bidding for any substantial capital money that becomes available from the government or other bodies, particularly in support of sustainability. It was also announced in May 2023 that Airedale Hospital would be rebuilt as part of the government’s New Hospital Programme. AGH Solutions continue to support the Trust as required to facilitate the delivery of this new provision, and work is now underway to provide technical and other professional support into a variety of individual programmes of work as part of the enabling works for the New Hospital Programme, along with support for the long-term plans for the new hospital.

 

Further relevant service tenders will be explored to provide similar services to other NHS bodies, along with comprehensive and ongoing profit improvement plan focused on margin enhancement. A further key strategic aim of the company is to grow its footprint outside the current major contracts, and this will be explored further through strategic discussions with both local authorities and other NHS organisations in the local area regarding future shared developments and provision of facilities. The establishment of local Integrated Care Systems (ICS) also provides potential opportunities, through collaboration with other local service providers and the potential for development of shared-use facilities.

 

AGH SOLUTIONS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Key performance indicators

The financial results for the period are set out in detail in the following accounts. All results relate to the year ended 31 March 2024.

 

The focus of the Board of Directors is balanced across several key metrics to assess financial performance against expectations monthly. These are Gross Profit Margin, Net Profit, Net Profit Margin, Current Ratio and Liquidity Days.

 

2023/24

2022/23

Gross Profit Margin

8.04%

7.10%

Net Profit (£'000)

1,391

851

Net Profit Margin

4.21%

2.90%

Current Ratio

2.19

2.11

 

The gross profit of £2,657,673 (2023: £2,082,060) resulted from turnover of £33,071,243 (2023: £29,380,024) and cost of sales of £30,413,570 (2023: £27,297,964). Corporation tax charge for the year was £744,017 (2023: £345,541) and profit for the year was £1,390,961 (2023: £851,198). The final cash position was a balance of £8,167,927 (2023: £10,208,800) at the end of the year.

 

The directors also consider key non-financial Key Performance Indicators, including staff vacancy rates and absence rate reports.

On behalf of the board

Mr M A Atherton
Director
27 November 2024
AGH SOLUTIONS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

The directors present their audited financial statements of AGH Solutions Limited for the year ended 31 March 2024.

Results and dividends

The results for the year ended 31 March 2024 are set out on page 11. The profit for the year ended 31 March 2024 amounted to £1,390,961 (2023: £851,198) per the profit and loss account.

The directors do not recommend the payment of a dividend (2023: £nil).

Directors

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

Mr M A Atherton
Ms M T Hudson
Mr M S Chandler
(Appointed 30 October 2023)
Mr A Rahman
(Resigned 3 October 2023)
Mr T Murch
(Resigned 13 July 2023)
Qualifying third party indemnity provisions

As permitted by the Articles of Association, the company has made third party indemnity provisions for the benefit of its directors which were made during the year. These provisions remain in force at the reporting date.

Political donations

The company made no political donations nor incurred any political expenditure during the year (2023: £nil).

Disabled persons

The directors are committed to providing reasonable assistance to employees who are or who become disabled, making reasonable adjustments wherever possible, and where appropriate obtaining specialist advice.

The directors consider applications for employment from disabled persons where the requirements of the job can be adequately fulfilled by a disabled person. Where existing employees become disabled, it is the company's policy wherever practicable to provide continuing employment under normal terms and conditions and to provide training and career development and promotion to disabled employees wherever appropriate.

Employee involvement

Following on from the Recognition Agreement in March 2019 with our Trade Union partners, we continue to engage, share, and consult upon various employment practices at regular staff partnership forums. We work with regional and local representatives employed by AGH Solutions from the three Trade Unions, GMB, Unison and Unite. The previously negotiated three-year pay settlement agreed in 2021 has now come to an end, and positive discussions are underway with Trade Union partners with a view to agreeing a new multi-year agreement.

 

We engage with our employees on a regular basis, through a variety of forums. Examples include regular departmental team meetings, informal group huddles and 121s for staff with their line managers. The senior team regularly undertake “back to the floor” sessions across the services, spending time with the teams and listening to feedback on what works well and where improvements are required. A regular newsletter is also published monthly and circulated to all staff. We continue to monitor our staff engagement and wellbeing through an annual Staff Survey, with reviews undertaken and action plans created to support the continuous improvement approach.

 

Group listening sessions have continued to take place across the organisation. The sessions attended by members of the Senior Management Team take place at times which include differing shift patterns, including weekends and evenings to ensure true engagement with our workforce. The sessions have helped us in improving how we lead, manage, and support our staff. Our leaders are visible, approachable and ensure staff have opportunities to provide feedback.

AGH SOLUTIONS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
Business relationships

The directors endeavour to forge strong relationships with suppliers built on honesty, fairness, and mutual respect. We meet with key suppliers on a regular basis and take reasonable steps to ensure our suppliers comply with our standards, such as those relating to environmental responsibility, modern slavery, data protection, human rights, and ethics. We also aim to act responsibly in our engagement with regulators and insurers, we respond quickly and fully to any queries.

 

Community and environment

The company’s approach is to use its position of strength to create positive change for the people and communities with which we interact, giving back wherever it can. We want to leverage our expertise and enable our people to support the communities around us. We recognise our responsibilities to achieve good environmental practice and to continue to strive for improvement in areas of environmental impact. We are committed to energy efficiency improvement and continue to take steps in a continuous improvement strategy.

 

Culture and values

The directors recognise the importance of having the right corporate culture. Our long-term success depends on achieving our strategic goals in the right way, so we look after the best interests of our employees, customers, and other stakeholders. Our mission for transforming the standards within the healthcare environment across the globe through innovation and manufacturing excellence and our vision of reducing risk and enhancing dignity. We have carefully developed a common set of expected behaviours based on our corporate values which are embedded within the day-to-day activities of the company.

 

Going concern

The company is funded primarily by loans from its parent undertaking, Airedale NHS Foundation Trust. The company has long term contracts in place which are expected to generate income and cash will be more than sufficient to pay its liabilities as they are due.

 

The directors review the financial forecasts over a rolling 12 month period into the future and they remain consistent with the performance expected as part of its financial plan. The directors are confident that it will continue to generate sufficient income to offset its liabilities over the rolling 12 month period and into the future.

 

The directors, therefore, after making enquiries, have a reasonable expectation that the company has adequate resources to continue in operational existence for the near future. Accordingly, they continue to prepare the annual report and accounts on a going concern basis.

 

Auditor

Azets Audit Services Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Energy and carbon report

During the 2023-24 financial period, AGH Solutions produced 6,296.909 Tonnes of co2 through the usage of gas, electricity and work related travel. This gives an intensity ratio of 0.097 Tonnes co2 per m2 of AGH Solutions site. This is shown below.

2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Gas combustion
27,127,208
28,072,838
- Electricity purchased
2,127,208
1,792,564
29,254,416
29,865,402
AGH SOLUTIONS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
5,525.57
5,719.56
- Fuel consumed for owned transport
158.61
158.61
5,684.18
5,878.17
Scope 2 - indirect emissions
- Electricity purchased
491.47
414.15
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the
2.13
36.61
Total gross emissions
6,177.78
6,328.94
Intensity ratio
Tonnes CO2 per m2
0.0097
0.11
Quantification and reporting methodology

The basis for these calculations are from metered usage for utilities, plus details of miles travelled, for both company owned, and private vehicles used for work related journeys. The carbon emissions of the company owned vehicles is based on vehicle type, with a private vehicle usage based on that of an average car, split between petrol and diesel.

 

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2 per m2.

Measures taken to improve energy efficiency

During the year, further work has been undertaken to look at the most carbon efficient way of replacing works vehicles. Further EV vehicles have been ordered and delivered to replace smaller, lower range EV vehicles. Further efficiencies are planned as and when vehicles become due for replacement.

 

AGH Solutions has overseen the completion of an additional admin block on the hospital site. This has been built to modern building standards, including high levels of insulation, solar generating capacity and heating/cooling through heat pumps. This is a considerable improvement when compared to the rest of the hospital site, which in the main dates to the 1970s.

 

AGH Solutions have lobbied and amended the group travel policy to include sustainable travel for all educational travel, where mileage is needed for ICE vehicles this is scrutinised to minimise travel. The 2024 travel survey is currently out during the months of July and August and will feed the active travel plan for 2024/25, the plan will monitor the views of all commuting staff as well as facilities to promote active travel. An active travel day was completed in June last year and saw additional take up in the cycle to work schemes and use of public transport for commuting. Additional to active travel the group has completed its guidance on agile working and promotes agile working where applicable to roles, reducing the overall commuting to Airedale sites.

 

During the year, more meetings have been set up using video technology, meaning a considerable reduction in miles travelled compared to the previous year. Plans include a review of the car parking provision to incentivise more active travel to site. AGH Solutions continue to chair and coordinate the group EcoawAire group, providing a voice to all staff employed by both the company and the wider group and have seen many sustainable projects being presented and encouraged through the group, such as: regular updates on the two year energy efficiency programme, application for funding for additional bike shelters and maintenance, applications for funding for electric bike facilities on site, onsite staff herb garden, public transport discounts, provision of staff lockers for active travellers, sustainability training for managers and consideration of sustainability within corporate induction programme, contribution towards the trusts climate change and adaption risk assessments and plans, plastic free and zero waste initiatives.

AGH SOLUTIONS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

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

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 company’s auditor 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 company’s auditor is aware of that information.

On behalf of the board
Mr M A Atherton
Director
27 November 2024
AGH SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF AGH SOLUTIONS LIMITED
- 8 -
Opinion

We have audited the financial statements of AGH Solutions Limited (the 'company') for the year ended 31 March 2024 which comprise the profit and loss account, the balance sheet, the statement of changes in equity 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 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

Other information

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:

AGH SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF AGH SOLUTIONS LIMITED
- 9 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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'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.

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.

AGH SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF AGH SOLUTIONS LIMITED
- 10 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Use of our report

This report is made solely to the company’s member 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 member, those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Jessica Lawrence (Senior Statutory Auditor)
For and on behalf of Azets Audit Services Limited
27 November 2024
Chartered Accountants
Statutory Auditor
12 King Street
Leeds
LS1 2HL
AGH SOLUTIONS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
2023
Notes
£
£
Turnover
3
33,071,243
29,380,024
Cost of sales
(30,413,570)
(27,297,964)
Gross profit
2,657,673
2,082,060
Administrative expenses
(904,424)
(1,039,228)
Operating profit
4
1,753,249
1,042,832
Interest receivable and similar income
7
1,068,480
780,507
Interest payable and similar expenses
8
(686,751)
(626,600)
Profit before taxation
2,134,978
1,196,739
Tax on profit
9
(744,017)
(345,541)
Profit and total comprehensive income for the financial year
1,390,961
851,198

The Statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

AGH SOLUTIONS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 12 -
2024
2023
Notes
£
£
£
£
Non-current assets
Right-of-use assets
10
7,069,276
50,332
Finance lease receivables
12
20,631,334
21,450,328
Current assets
Finance lease receivables
12
828,443
764,484
Stocks
11
1,748,103
1,564,504
Debtors
13
12,892,392
9,375,942
Cash at bank and in hand
8,167,927
10,208,800
23,636,865
21,913,730
Creditors: amounts falling due within one year
15
(10,770,263)
(10,394,780)
Net current assets
12,866,602
11,518,950
Total assets less current liabilities
40,567,212
33,019,610
Creditors: amounts falling due after more than one year
15
(23,506,751)
(17,203,395)
Provisions for liabilities
Other provisions
19
(32,665)
(179,380)
Net assets
17,027,796
15,636,835
Capital and reserves
Called up share capital
21
8,891,108
8,891,108
Profit and loss reserves
8,136,688
6,745,727
Total equity
17,027,796
15,636,835
The financial statements were approved by the board of directors and authorised for issue on 27 November 2024 and are signed on its behalf by:
Mr M A Atherton
Director
Company registration number 10942013
AGH SOLUTIONS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2022
8,891,108
5,894,529
14,785,637
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
851,198
851,198
Balance at 31 March 2023
8,891,108
6,745,727
15,636,835
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
1,390,961
1,390,961
Balance at 31 March 2024
8,891,108
8,136,688
17,027,796
AGH SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
1
Accounting policies
Company information

AGH Solutions Limited is a private company limited by shares incorporated in England and Wales. The registered office is Airedale General Hospital, Skipton Road, Steeton, Keighley, BD20 6TD. The company's principal activities and nature of its operations are disclosed in the directors' report.

1.1
Accounting convention

The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.

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 £1.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS:

Where required, equivalent disclosures are given in the group accounts of Airedale NHS Foundation Trust.The group accounts of Airedale NHS Foundation Trust are available to the public and can be obtained as set out in note 22.

1.2
Going concern

The company is funded primarily by loans from its parent undertaking, Airedale NHS Foundation Trust. The company has long term contracts in place which are expected to generate income and cash will be more than sufficient to pay its liabilities as they are due.true

The directors review the financial forecasts over a rolling 12 month period into the future and they remain consistent with the performance expected as part of its financial plan. The directors are confident that it will continue to generate sufficient income to offset its liabilities over the rolling 12 month period and into the future.

The directors, therefore, after making enquiries, have a reasonable expectation that the company has adequate resources to continue in operational existence for the near future. Accordingly, they continue to prepare the annual report and accounts on a going concern basis.

1.3
Turnover

Turnover comprimises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company's activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

AGH SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -

The company recognises revenue from the following major sources:

1.4
Right of use assets

Right-of-use assets are depreciated over the shorter period of the lease term and the useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects that the company expects to exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset.

Right of Use Asset
12 years
1.5
Impairment of tangible and intangible assets

At each reporting end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

 

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.

1.6
Stocks

Stocks are stated at the lower of cost and net realisable value. Cost comprimises direct materials.

Stocks held include medicial equipment, parts held for maintenance of equipment and items used for the provision of patient care in a healthcare setting. At each reporting date, stocks are assessed for impairment. Stocks are impaired if they have become obsolete and have no net realisable value. At this point the carrying value is reduced to zero, and the impairment loss is recognised in profit or loss.

1.7
Cash at bank and in hand

Cash and cash equivalents 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.

AGH SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
1.8
Financial assets

Financial assets are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.

 

At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.

Financial assets at fair value through profit or loss

When any of the above-mentioned conditions for classification of financial assets is not met, a financial asset is classified as measured at fair value through profit or loss. Financial assets measured at fair value through profit or loss are recognized initially at fair value and any transaction costs are recognised in profit or loss when incurred. A gain or loss on a financial asset measured at fair value through profit or loss is recognised in profit or loss, and is included within finance income or finance costs in the statement of income for the reporting period in which it arises.

Financial assets held at amortised cost

Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.

Impairment of financial assets

Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.

 

The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

 

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.

1.9
Financial liabilities

The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.

 

 

Financial liabilities at fair value through profit or loss

All borrowings are initially recorded at the amount of proceeds received, net of transaction costs. Borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on the 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 finance costs.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.

AGH SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -

All borrowings are initially recorded at the amount of proceeds received, net of transaction costs. Borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on the 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 finance costs.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.

Other financial liabilities

Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

AGH SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
1.12
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event and it is probable that the company will be required to settle that obligation, and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

 

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

1.13
Retirement benefits

Pension costs

Past and present employees are covered by the provisions of the two NHS Pension Schemes. Details of the benefits payable and rules of the Schemes can be found on the NHS Pensions website at www.nhsbsa.nhs.uk/pensions. Both are unfunded defined benefit schemes that cover NHS employers, GP practices and other bodies, allowed under the direction of the Secretary of State in England and Wales. They are not designed to be run in a way that would enable NHS bodies to identify their share of the underlying scheme assets and liabilities. Therefore each scheme is accounted for as if it were a defined contribution scheme: the cost to the NHS body of participating in each scheme is taken as equal to the contributions payable to that scheme for the accounting period.

a) Accounting valuation

A valuation of scheme liability is carried out annually by the scheme actuary (currently the Government Actuary's Department) as at the end of the reporting period. This utilises an actuarial assessment for the previous accounting period in conjunction with updated membership and financial data for the current reporting period, and are accepted as providing suitably robust figures for financial reporting purposes. The valuation of scheme liability as at 31 March 2024, is based on valuation data as 31 March 2023, updated to 31 March 2024 with summary global member and accounting data. In undertaking this actuarial assessment, the methodology prescribed in IAS 19, relevant FReM interpretations, and the discount rate prescribed by HM Treasury have also been used.

Employer's pension cost contributions are charged to operating expenses as and when they become due.

In order that the defined benefit obligations recognised in the financial statements do not differ materially from those that would be determined at the reporting date by a formal actuarial valuation, the FReM requires that "the period between formal valuations shall be four years, with approximate assessments in intervening years". An outline of these is as follows:

Additional pension liabilities arising from early retirements are not funded by the scheme except where the retirement is due to ill-health. The full amount of the liability for the additional costs is charged to the operating expenses at the time the Trust commits itself to the retirement, regardless of the method of payment.

The latest assessment of the liabilities of the scheme is contained in the report of the scheme actuary, which forms part of the annual NHS Pension Scheme (England and Wales) Pension Accounts. These accounts can be viewed on the NHS Pensions website and are published annually. Copies can also be obtained from The Stationery Office.

AGH SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -

b) Full actuarial (funding) valuation

The purpose of this valuation is to assess the level of liability in respect of the benefits due under the schemes (taking into account their recent demographic experience), and to recommend contribution rates payable by employees and employers.

The last actuarial valuation undertaken for the NHS Pension Scheme was completed as at 31 March 2016. The results of this valuation set the employer contribution rate payable from April 2019. The Department of Health and Social Care have recently laid Scheme Regulations confirming that the employer contribution rate will increase to 20.6% of pensionable pay from this date.

The 2016 funding valuation was also expected to test the cost of the Scheme relative to the employer cost cap set following the 2012 valuation. Following a judgment from the Court of Appeal in December 2018 Government announced a pause to that part of the valuation process pending conclusion of the continuing legal process.

c) Scheme provisions

The NHS Pension Scheme provides defined benefits, which are illustrated below. This list is an illustrative guide only, and is not intended to detail all the benefits provided by the scheme or the specific conditions that must be met before these benefits can be obtained.

Annual pensions

The 1995 and 2008 schemes are 'final salary' schemes. Annual pensions are normally based on 1/80th for the 1995 section and on the best of the last three years pensionable service and 1/60th for the 2008 section of reckonable pay per year of membership. Members who are practitioners as defined by the Scheme regulations have their annual pensions based upon total pensionable earnings over the relevant pensionable service.

With effect from 1 April 2008 members can choose to give up some of their annual pension for an additional tax free lump sum, up to a maximum amount permitted under HMRC rules. This new provision is known as 'pension commutation'.

With effect from 1 April 2015 the 2015 Pension scheme was introduced for all employees currently in the NHS pension Scheme. Except for employees who at 1 April 2012 were already over their normal pension age or 10 years or less from their normal pension age and in active membership on both 1 April 2012 and 31 March 2015 who received full protection in their previous scheme. For employees who were more than 10 years but less than 13 years and 5 months from their normal pension age at the 1 April 2012 and in active membership on both 1 April 2012 and 31 March 2015, tapering relief was applied. The Scheme is based on a 1/54th of the annual salary index linked to the employees State retirement age.

AGH SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 20 -

Pensions indexation

Annual increases are applied to pension payments at rates defined by the Pensions (Increase) Act 1971.

Lump sum allowance

A lump sum is payable dependent on the scheme or schemes the employee is a member of at the date of retirement.

Ill health retirement

Early payment of a pension, with enhancement in certain circumstances, is available to members of the scheme who are permanently incapable of fulfilling their duties or regular employment effectively through illness or infirmity.

Death benefits

A death gratuity for death in service will be paid dependent on the scheme or schemes the employee is a member of at the date of death.

Transfer between funds

Scheme members have the option to transfer their pension between the NHS Pension Scheme and another scheme when they move into or out of NHS employment.

Alternative Pension Scheme - National Employment Savings Trust

Following the Pensions Act 2008, AGH Solutions had a duty to provide a pension scheme for employees who are ineligible to join the NHS Pension Scheme. This includes all employees who did not transfer under TUPE at the formation of the company.

AGH Solutions has selected NEST as its partner to meet the duty. The scheme operated by NEST on the AGH Solution's behalf is a defined contribution scheme, employers contributions are charged to operating expenses as and when they become due. The combined contribution rate is 8% from 1st April 2019.

1.14
Leases

At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Tangible fixed assets are included within right-of-use assets, apart from those that meet the definition of investment property.

Initial application

The company assesses whether a contract is or contains a lease, at inception of the contract. The company recognises a right of use asset and a corresponding lease liability with respect of all lease arrangements in which it is the lessee, except for short-term leases (defined as leases with a term of 12 months or less) and leases of low value assets (such as mobile phones and photocopiers). For these leases, the company recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed.

Lease liability

The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.

AGH SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 21 -

The company remeasures the lease liability (and makes a corresponding adjustment to the related right of use asset) whenever:

The company did not make any such adjustments during the periods presented.

Right of use asset

The right of use asset compromise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day, less any lease incentives received. They are subsequently measured at cost less accumulated depreciation and impairment losses.

Whenever the company incurs an obligation for costs to dismantle and remove a leased asset, restore the site on which it is located or restore the underlying asset to the condition required by the terms in of the lease, a provision is recognised and measured under IAS37. To the extend that costs relate to a right of use asset, the costs are included in the related right-of-use asset.

Depreciation starts at the commencement date of the lease.

When the company acts as a lessor, leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees, over the major part of the economic life of the asset. All other leases are classified as operating leases. If an arrangement contains lease and non-lease components, the company applies IFRS 15 to allocate the consideration in the contract. When the company is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately, classifying the sub-lease with reference to the right-of-use asset arising from the head lease instead of the underlying asset.

The company applies IAS 36 to determine whether a right of use asset is impaired and accounts for any identified impairment loss as described in the 'Property, Plant and Equipment' policy.

Variable rents that do not depend on an index or rate are not included in the measurement of the lease liabiltiy and the right of use asset. The related payments are recognised as an expense in the period in which the event or condition that triggers those payments occurs and are included in 'Administrative expenses' in the income statement.

As a practical expedient, IFRS 16 permits a lessee not to separate non-lease components as a single arrangement. The company has not used this practical expedient. For a contract that contains a lease component and one or more additional lease or non-lease components, the company allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components.

AGH SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
2
Critical accounting estimates and judgements

In the application of the company’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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Key sources of estimation uncertainty
Deferred Tax Asset

The recognition of a deferred tax asset in relation to the accumulated tax losses across the group was an area in which management had to utilise their judgement. When an entity has suffered losses in the current or prior reporting periods and recognises a deferred tax asset in excess of the amount of taxable temporary differences that are expected to reverse, this implies that the utilisation of this asset is dependent on the probability of future taxable profits of which is this based on the assumptions made by management.

3
Turnover

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

2024
2023
£
£
Turnover analysed by class of business
Income from patient care activities
25,829,317
24,941,675
Service provision
3,078,052
2,970,421
Rental income
87,144
83,394
Support services
4,076,730
1,384,534
33,071,243
29,380,024

All revenue is derivied from sales in the UK.

4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
28,500
23,500
Depreciation on right of use assets
194,427
99,479
Cost of inventories recognised as an expense
11,234,426
10,049,055
AGH SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
5
Employees

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

2024
2023
Number
Number
Admin and clerical
54
43
Executive Directors
1
2
Healthcare Scientist
8
7
Maintenance
46
45
Non-Executive Directors
2
2
Support Staff
249
230
Total
360
329

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
11,826,810
11,221,440
Social security costs
972,540
777,640
Pension costs
732,883
766,681
Agency costs
786,354
1,093,282
14,318,587
13,859,043
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
164,762
230,478
Company pension contributions to defined contribution schemes
4,506
18,010
169,268
248,488

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 2).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
151,908
143,667
Company pension contributions to defined contribution schemes
4,506
4,310
AGH SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
339,210
7,799
Interest receivable from group companies
729,270
772,708
Total income
1,068,480
780,507
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on other loans
686,751
626,600
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
578,008
358,817
Deferred tax
Origination and reversal of temporary differences
166,009
(13,276)
Total tax charge
744,017
345,541

The charge for the year can be reconciled to the profit per the profit and loss account as follows:

2024
2023
£
£
Profit before taxation
2,134,978
1,196,739
Expected tax charge based on a corporation tax rate of 25.00% (2023: 19.00%)
533,745
227,380
Effect of expenses not deductible in determining taxable profit
(41,407)
(75,362)
Other non-reversing timing differences
(698)
(13,276)
Effect of finance lease
248,962
206,799
Fixed asset differences
3,415
-
Taxation charge for the year
744,017
345,541
AGH SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
10
Right of Use Asset
Right of Use Asset
£
Cost
At 1 April 2023
290,621
Additions
7,213,371
Disposals
(55,699)
At 31 March 2024
7,448,293
Accumulated depreciation and impairment
At 1 April 2023
240,289
Charge for the year
194,427
Eliminated on disposal
(55,699)
At 31 March 2024
379,017
Carrying amount
At 31 March 2024
Right-of-use assets
7,069,276
At 31 March 2023
Right-of-use assets
50,332
11
Stocks
2024
2023
£
£
Finished goods
1,748,103
1,564,504
12
Finance lease receivables
2024
2023
£
£
Gross amounts receivable under finance leases:
Within one year
828,443
764,484
In two to five years
3,603,571
3,485,688
Over five years
17,027,762
17,964,640
Total undiscounted lease payments receivable
21,459,776
22,214,812
Net investment
21,459,776
22,214,812
AGH SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
12
Finance lease receivables
(Continued)
- 26 -

Finance lease receivables are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2024
2023
£
£
Current assets
828,443
764,484
Non-current assets
20,631,333
21,450,328
21,459,776
22,214,812

The group enters into finance leasing arrangements for certain of its buildings and equipment. The average term of finance leases entered into is 25 years.

 

The interest rate inherent in the leases is fixed at the contract date for all of the lease term. The average effective interest rate contracted approximates 3.3% per annum.

 

The directors of the company estimate the loss allowance on finance lease receivables at the end of the reporting period to an amount equal to lifetime ECL. None of the finance lease receivables at the end of the reporting period is past due, and taking into account the historical default experience and future prospects of the industries in which the lessees operate, together with the value of collaterals held over these finance lease receivables, the directors of the company consider that no finance lease receivables is impaired.

 

There has been no change in the estimation techniques or significant assumptions made during the current reporting period in assessing the loss allowance for finance lease receivables.

13
Debtors
Due within one year
Due after one year
2024
2023
2024
2023
£
£
£
£
Trade debtors
188,692
181,940
-
-
Provision for bad and doubtful debts
(166)
(10,411)
-
-
188,526
171,529
-
-
Amount owed by parent undertaking
9,258,054
4,780,917
-
0
-
0
Finance lease receivables (note 12)
828,443
764,484
20,631,333
21,450,328
Other debtors
136,340
785,952
-
-
Prepayments and accrued income
1,005,145
1,167,207
-
-
11,416,508
7,670,089
20,631,333
21,450,328
Deferred tax asset
-
-
2,304,328
2,470,337
11,416,508
7,670,089
22,935,661
23,920,665

Amounts owed by group undertakings are unsecured, repayable on demand and do not bear interest. The directors consider the carrying value and the fair value of the above receivables to be the same.

AGH SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
14
Loans and overdrafts
Due within one year
Due after one year
2024
2023
2024
2023
£
£
£
£
Borrowings held at amortised cost:
Loans from parent undertaking
656,620
634,415
16,546,774
17,203,395

This reflects a loan held with the parent organisation, secured against the lease held by AGH Solutions Limited. The loan is to be repaid over a period of 25 years, and incurs a fixed interest rate of 3.5% per annum.

15
Creditors
Due within one year
Due after one year
2024
2023
2024
2023
Notes
£
£
£
£
Loans and overdrafts
14
656,620
634,415
16,546,774
17,203,395
Creditors
16
7,488,048
6,710,637
-
0
-
0
Corporation tax
281,646
159,759
-
-
Other taxation and social security
2,097,651
2,889,969
-
-
Lease liabilities
17
246,298
-
6,959,977
-
10,770,263
10,394,780
23,506,751
17,203,395
16
Creditors
2024
2023
£
£
Trade creditors
4,918,504
2,759,655
Amount owed to parent undertaking
191,948
-
0
Accruals and deferred income
2,361,386
3,751,423
Other creditors
16,210
199,559
7,488,048
6,710,637
17
Lease liabilities
2024
2023
Maturity analysis
£
£
Within one year
669,300
-
In two to five years
2,579,372
-
In over five years
6,749,268
-
Total undiscounted liabilities
9,997,940
-
Future finance charges and other adjustments
(2,791,665)
-
Lease liabilities in the financial statements
7,206,275
-
AGH SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
17
Lease liabilities
(Continued)
- 28 -

Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:

2024
2023
£
£
Current liabilities
246,298
-
Non-current liabilities
6,959,977
-
7,206,275
-
18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.

Fixed asset timing differences
Short term timing differences
Total
£
£
£
Asset at 1 April 2022 and 1 April 2023
337,340
2,132,997
2,470,337
Deferred tax movements in current year
Charge/(credit) to profit or loss
63,522
102,487
166,009
Asset at 31 March 2024
273,818
2,030,510
2,304,328
19
Provisions for liabilities
2024
2023
£
£
32,665
179,380
Movements on provisions:
£
At 1 April 2023
179,380
Additional provisions in the year
32,665
Utilisation of provision
(179,380)
At 31 March 2024
32,665
AGH SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 29 -
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
732,883
766,681

The company operates a defined contribution pension scheme for qualifying employees only. The assets of the scheme are held separately from those of the company in an independently administered fund.

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares at £1 each of £1 each
8,891,108
8,891,108
8,891,108
8,891,108
22
Controlling party

As at the year end, the immediate and ultimate controlling parent of the company is Airedale NHS Foundation Trust. Airedale NHS Foundation Trust, is the smallest and largest group of undertakings into which AGH Solutions Limited is consolidated. Copies of Airedale NHS Foundation Trust financial statements can be obtained from Airedale General Hospital, Skipton Road, Steeton, Keighley, West Yorkshire, BD20 6TD.

2024-03-312023-04-01Mr M A AthertonMs M T HudsonMr M S ChandlerMr A RahmanMr T MurchfalsefalseCCH SoftwareiXBRL Review & Tag 2024.2109420132023-04-012024-03-3110942013bus:Director12023-04-012024-03-3110942013bus:Director22023-04-012024-03-3110942013bus:Director32023-04-012024-03-3110942013bus:Director42023-04-012024-03-3110942013bus:Director52023-04-012024-03-3110942013bus:RegisteredOffice2023-04-012024-03-31109420132024-03-31109420132022-04-012023-03-3110942013core:ContinuingOperations2023-04-012024-03-3110942013core:RetainedEarningsAccumulatedLosses2023-04-012024-03-3110942013core:RetainedEarningsAccumulatedLosses2022-04-012023-03-31109420132023-03-3110942013core:ShareCapital2024-03-3110942013core:ShareCapital2023-03-3110942013core:RetainedEarningsAccumulatedLosses2024-03-3110942013core:RetainedEarningsAccumulatedLosses2023-03-31109420132022-03-3110942013core:FinancialInstrumentsFairValueThroughProfitOrLoss2023-04-012024-03-3110942013core:Held-to-maturityFinancialAssets2023-04-012024-03-3110942013core:FinancialInstrumentsDesignatedFairValueThroughProfitOrLoss2023-04-012024-03-3110942013core:MotorVehicles2023-03-3110942013core:MotorVehicles2024-03-3110942013core:MotorVehicles2023-04-012024-03-3110942013core:CurrentFinancialInstruments2024-03-3110942013core:CurrentFinancialInstruments2023-03-3110942013core:Non-currentFinancialInstruments2024-03-3110942013core:Non-currentFinancialInstruments2023-03-3110942013core:WithinOneYear2024-03-3110942013core:WithinOneYear2023-03-3110942013core:AfterOneYear2024-03-3110942013core:AfterOneYear2023-03-3110942013bus:PrivateLimitedCompanyLtd2023-04-012024-03-3110942013bus:FRS1012023-04-012024-03-3110942013bus:Audited2023-04-012024-03-3110942013bus:FullAccounts2023-04-012024-03-31xbrli:purexbrli:sharesiso4217:GBP