Registered number:
FOR THE YEAR ENDED 31 MARCH 2024
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HEALTHSHARE LIMITED
COMPANY INFORMATION
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HEALTHSHARE LIMITED
CONTENTS
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HEALTHSHARE LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
Healthshare Group is an Integrated Independent Service Provider {ISP) delivering Physiotherapy, MSK (musculoskeletal), Chronic Pain, Orthopaedics, Rheumatology, Podiatry and Women's Health Services across its Community Services division, with Endoscopy, MRI, CT, Ultrasound, X-Ray, DEXA, lnterventional Radiology and Day-Case Surgical procedures across its Diagnostics and HM Prisons Healthcare Division.
The company serves over 500,000 NHS patients per annum across 40 partner agencies including Integrated Care Systems (ICS), Primary Care Networks (PCN) and Secondary Care NHS Trust partners while supporting Her Majesty's Prisons Service in delivering onsite community care and diagnostics services to prisons nationwide. The company continues to grow its reputation as a leader in innovative pathway design and delivery and has successfully established itself across the healthcare landscape as a 'Full Pathway Solution’ provider within a community setting. This position has been illustrated by supporting local trusts and CCGs with the delivery of full pathway across Rheumatology, Day Case Orthopaedic Surgery, Ophthalmology, lnterventional Pain and Dermatology services allowing us to combine our clinical workforce, diagnostics and surgical infrastructure to support these service lines. To support a full pathway solution Healthshare has made historic capital investment into its established surgical day case and diagnostics estates in Northwest London and Norwich. These sites continue to increase their support for their respective ICB’s. The Winchester site was fully divested in Feb-24. Diagnostics division revenues have grown over the last year across mobiles, prison and industry with further expansion into Community Diagnostics Centres with partner agencies. The ability to accelerate the growth of the diagnostics division is reflected in the company's ability to successfully recruit and retain high quality radiographers and sonographers leading to a strong pipeline of work and has been reflected in the award of the NEL Diagnostics contract which commenced Apr-24. Healthshare has continued to support partner agencies in transferring patient care backlogs into our services to ensure ongoing care for patients most at risk. We continue to see volumes rise and expect diagnostics and surgical backlog work to grow. This collaborative approach has allowed us to extent our service provision into more complex services such as Cancer Surveillance as a trusted partner with Acute Trusts and ICS's. There is a growing need to support the NHS from a clinical pathway, and our ability to offer this solution within our Day Case Surgical, Diagnostic and Clinical Community setting sets us apart from our competitors and will ensure continued growth moving forward.
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HEALTHSHARE LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
The results for continuing operations for the period which are set out in the Statement of Comprehensive Income show an operating profit before non-recurring items and amortisation of £3,650,601 (2023: £2,833,131).
This increase in operating profit occurred due to the divestment of the Winchester Diagnostic Centre across the site itself and Head Office support along with additional costs to support business growth which has been returning on investment and will continue to do so in the year ending Mar-25. On 19 January 2024, the Group sold its holding in the associated undertaking Orpington Endoscopy Solutions Limited for cash consideration of £250,000. Activities to be discontinued During the financial year end March 2023, a decision was taken to sell the Healthshare Clinic Winchester and its associated assets. COVID had impacted the speed at which the site was able to support itself and in order for the business to focus on sustainability and growth of the rest of the business a divestment was deemed necessary. Separate sale agreements for the assets and the business were signed on the 23 February 2024, the sale of the assets completing on that date. The business sale was subject to a condition requiring CQC approval, which was received in September 2024, the sale becoming effective at that date. The buyer undertook to rebate any trading losses to the Company in that intervening period.
The business, in common with every other business, is subject to several risks and uncertainties which are monitored by the company's board of directors and sub-committees. The key business risks and uncertainties affecting the group are considered to relate to uncertainty on the commissioning environment linked to the disestablishment of CCG's and the formation of new Integrated Care Systems, quality compliance in an environment with increasing regulation, staff resourcing in a highly competitive labour market and uncertainty as to long term funding levels by H.M. Govt for the NHS.
Normalised pro forma revenues and EBITDA of the Group:
*EBITDA on continuing operations before non-recurring costs. As part of corporate monthly reporting the Directors use Key Performance Indicators (KPIs) to assist in the understanding of the development, performance and position of the business of the group. The KPIs used by the company to measure its own performance include:
∙turnover in line with expectations;
∙EBITDA 2% above expectation due to strong cost control; and
∙operating cash flow conversion in line with expectations.
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HEALTHSHARE LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
The Directors believe that they have effectively implemented their duties under section 172 of the Companies Act 2006. The Directors have considered the long-term strategy of the Company to generate value for the shareholders by providing full clinical pathways that combine clinical expertise, diagnosis and therapeutic and interventional treatment options and consider that this strategy will continue to deliver long term success to the Company and its stakeholders.
The Directors recognise the importance of wider stakeholders in delivering their strategy and achieving sustainability within the Company and the wider Group. The main stakeholders in the Company are considered to be the ultimate shareholders, suppliers and customers and employees. Their importance to the business is considered below.
∙Employees
Our staff are treated with respect and dignity. Clear objectives are set for staff performance and staff are appraised against these. The Company ensures that our staff are able to work in a suitable environment to achieving those goals in a fair and equitable manner. The Company encourages the involvement of employees in its management through regular departmental meeting and employee representatives’ meetings to ensure that employees are made aware of any changes in the business and their input is fully considered. The Company provides job opportunities to disabled and able bodied people on the merit of their aptitude for a job role. Should an existing employee become disabled, then every effort will be made to adapt the role, support and provide retraining, so as they may continue their employment with the Company.
∙Suppliers and Customers
Our purpose is to deliver high quality service to all our customers, who are at the heart of everything we do. Our customers require that products are supplied at the right price commensurate with service, on time delivery and consistency of quality and supply. We have a key role of Group Customer Experience Director to foster and oversee relationships with our customers. The Customer Experience team ensure regular contact and communication with all our customers, and we continually assess our service performance through KPI measurement processes. We have long term contracts in place with our strategic suppliers and jointly manage performance through monitoring of relevant KPls. We ensure suppliers are aware of our requirements and the standards we expect. Our purchasing teams work closely with the suppliers to ensure regular communication, timely orders and regular forecast requirements. Our suppliers expect a healthy relationship, financial stability to meet our commitments and adherence to both anti-bribery and anti-modern slavery laws. We work closely with our suppliers to provide feedback on performance and regularly benchmark cost and performance.
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HEALTHSHARE LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
The Company is regulated by the Care Quality Commission (CQC) who perform regular inspections over a 5 year cycle, however these can be conducted at any time irrespective of current quality ratings and are normally unannounced. In order to maintain good quality clinical care we continually monitor and audit outcomes as appropriate and conduct regular customer satisfaction surveys. During the year the company had one inspection which was rated good, however the Directors recognise the importance of continuous improvements and, as such, the company continues its efforts to provide a high level of service at all times.
This report was approved by the board and signed on its behalf.
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HEALTHSHARE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
The directors present their report and the financial statements for the year ended 31 March 2024.
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements 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 financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the year, after taxation, amounted to £1,201,605 (2023 - loss £7,440,906).
A dividend of £400,000 (2023: £400,000) has been approved and paid for the year end 31 March 2023.
The directors who served during the year were:
The external market for the Company's services is expected to remain competitive going forwards and the directors remain confident of the Company's prospects for the medium and long term.
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HEALTHSHARE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
Healthshare Ltd is pleased to report its current UK based annual energy usage and associated annual greenhouse gas ('GHG') emissions pursuant to the Companies (Directors Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018 ('the 2018 Regulations’) that came into force 1 April 2019.
Organisational boundary In accordance with the 2018 Regulations, the energy use and associated greenhouse gas emissions are for those assets owned or operated in the UK only. This includes 3 diagnostic treatment centres, head office, a referral management centre and a number of rented/ leased clinical premises used to give face to face physiotherapy, together with company and personal vehicles used for business mileage ('grey fleet'). Reporting period The annual reporting period is 1 April to 31 March each year and carbon emissions are aligned to this period. A suitable overall metric has been established, which allows our stakeholders to review at a glance our performance in this area. Due to the significant growth levels achieved by the business over recent years, it was decided CO2 per £000 sales turnover continues to be the most relevant measure. On this basis, the metric was 8.4 for the year (2023 - 8.5). The increase in emissions in the year is related to increased levels of activity in the year. The prior year was also impacted by COVID measures, increasing the year on year variance. Energy efficiency action during the current financial year
Healthshare group has a designated board level Environmental Officer and board to ward strategy to actively implement and manage Environmental projects.
The 2019 Government Environmental Reporting Guidelines and the GHG Protocol Corporate Accounting and Reporting Standard (revised edition} were followed. The 2021 UK Government GHG Conversion Factors for Company Reporting were used in emissions calculations.
The electricity and gas consumption has been compiled from invoice records. Sample milage and fuel claims were used to calculate energy usage associated with company cars and the grey fleet. Commuting has been estimated based on a sample of commuting journeys. Generally gross calorific values were used except for grey fleet mileage energy calculations as per Government GHG Conversion Factors.
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HEALTHSHARE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
The associated emissions are divided into mandatory and voluntary emissions under the 2018 Regulations, then further divided into the direct combustion of fuels and the operation of facilities (scope 1), indirect emissions from purchased electricity (scope 2) and further indirect emissions that occur as a consequence of Trust activities but occur from sources not owned or controlled by the organization (scope 3).
Energy efficiency action planning
The company publishes an annual Carbon Reduction Plan to illustrate company initiatives contributing towards delivering a net zero target for 2040. On an annual basis high-level policy and projects pipeline is implemented and overseen by our Net Zero Lead.
Certain items required under Schedule 7 to be disclosed in the Directors' Report are set out in the Strategic Report in accordance with S.414C(II) of the Companies Act 2006; these being the Group's principle risks and uncertainties, and aspects of employee, supplier and customer engagement which are contained within the s172 statement.
During the financial year ended March 2025, a new contract was awarded to Healthshare Diagnostics, supporting this contract two MRI machine was purchased using asset finance.
As shown in note 26, on 30 May 2024, the Company repurchased 1,723 Ordinary B shares for consideration of £20,004. On 24 June 2024, the Company allotted 7,401 Ordinary B shares for unpaid consideration of £85,926. The aggregate nominal value of the shares was £7,401. On the 20 December 2024, 100% of all share classes were acquired by Crossco (1469) Limited, registered in the United Kingdom, whose registered office address is The Light Box, Quorum Business Park, Benton Lane, Newcastle upon Tyne, NE12 8EU. As of this date and at the date of approval of these accounts, there is no ultimate controlling party. As part of acquisition, all loan notes disclosed in note 22 were redeemed in final full satisfaction of the same.
The auditor, MHA, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
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HEALTHSHARE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
This report was approved by the board and signed on its behalf.
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HEALTHSHARE LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HEALTHSHARE LIMITED
We have audited the financial statements of Healthshare Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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 in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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 or the 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.
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HEALTHSHARE LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HEALTHSHARE LIMITED (CONTINUED)
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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group 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 Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
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HEALTHSHARE LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HEALTHSHARE LIMITED (CONTINUED)
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 Group 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:
∙enquiry of management around actual and potential litigation claims;
∙enquiry of entity staff to identify any instances of non-compliance with laws and regulations;
∙performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and revising accounting estimates for bias;
∙reviewing minutes of meetings of those charged with governance; and
∙reviewing financial statement disclosures and testing to supporting documentation to assess compliance
with applicable laws and regulations.
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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's Report.
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HEALTHSHARE LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF HEALTHSHARE LIMITED (CONTINUED)
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Statutory Auditor
Maidstone
United Kingdom MHA is the trading name of MHA Macintyre Hudson LLP, a limited liability partnership registered in England and Wales (registered number OC312313).
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HEALTHSHARE LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
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HEALTHSHARE LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
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HEALTHSHARE LIMITED
REGISTERED NUMBER: 06896144
CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2024
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HEALTHSHARE LIMITED
REGISTERED NUMBER: 06896144
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 24 to 52 form part of these financial statements.
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HEALTHSHARE LIMITED
REGISTERED NUMBER: 06896144
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
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HEALTHSHARE LIMITED
REGISTERED NUMBER: 06896144
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 24 to 52 form part of these financial statements.
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HEALTHSHARE LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
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HEALTHSHARE LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
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HEALTHSHARE LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
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HEALTHSHARE LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
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HEALTHSHARE LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2024
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HEALTHSHARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Healthshare Limited is a private company limited by shares incorporated in England and Wales in the United Kingdom. The address of the registered office is Suite 9, 20 Churchill Square, Kings Hill, West Malling, Kent, ME19 4YU.
The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £1.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases. All subsidiary undertakings shown in note 16 have been consolidated. In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102.
The Group has recovered from the constraints and challenges presented by the COVID pandemic, and with the divestment of the loss-making operations in Winchester, is trading on an upward trajectory. Bank debt has been repaid in the year, and the remaining external debt is shareholder loan notes, which are being repaid in accordance with agreed terms. This is relfected in the Group's forecasts, on the basis of which the directors have assessed that there are no significant doubts in the company's ability to continue as a going concern.
As a result, the financial statements have been prepared on a going concern basis.
Page 24
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HEALTHSHARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Grants of a revenue nature are recognised in the Consolidated Statement of Comprehensive Income in the same period as the related expenditure.
Page 25
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HEALTHSHARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Page 26
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HEALTHSHARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Goodwill
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives as follows:
Depreciation is provided on the following basis:
Medical equipment is depreciated at 10%-25% reducing balance and 3-12 years straight line.
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Page 27
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HEALTHSHARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The Consolidated Statement of Comprehensive Income includes the Group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the Group. In the Consolidated Balance Sheet, the interests in associated undertakings are shown as the Group's share of the identifiable net assets, including any unamortised premium paid on acquisition. Any premium on acquisition is dealt with in accordance with the goodwill policy.
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HEALTHSHARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Page 29
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HEALTHSHARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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.
Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Page 30
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HEALTHSHARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
(a) Useful economic lives of tangible assets The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and physical condition of the assets. See Note 15 for the carrying amount of tangible assets, and Note 2.15 for the useful economic lives for each class of assets. (b) Impairment of tangible fixed assets Management assesses annually whether there are indicators of impairment of the Group's tangible fixed assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset. No impairment has been identified in the year (2023: none). (c) Impairment of investments and goodwill Management assesses annually whether there are indicators of impairment of the Group's investments and goodwill. Factors taken into consideration in reaching such a decision include the economic viability and the current and expected future financial performance of the investments. Goodwill is amortised over a period of 10 years, being the directors best estimate of its useful expected life. No impairment has been identified in the year (2023: none). (d) Provisions for doubtful debts The directors are required to make an assessment as to the recoverability of trade debtors. Provisions are recognised against trade debtors where required.
Page 31
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HEALTHSHARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Page 32
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HEALTHSHARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Page 33
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HEALTHSHARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Page 34
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HEALTHSHARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
11.Taxation (continued)
There were no factors that may affect future tax charges.
Page 35
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HEALTHSHARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Page 36
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HEALTHSHARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Page 37
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HEALTHSHARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
14.Intangible assets (continued)
Page 38
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HEALTHSHARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Page 39
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HEALTHSHARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
15.Tangible fixed assets (continued)
Page 40
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HEALTHSHARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
15.Tangible fixed assets (continued)
Page 41
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HEALTHSHARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
15.Tangible fixed assets (continued)
Page 42
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HEALTHSHARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Page 43
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HEALTHSHARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Page 44
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HEALTHSHARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Page 45
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HEALTHSHARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
The bank loans arewere secured by HSBC plc by means of first fixed and floating charges over all current and future assets of all group undertakings, along with composite unlimited multilateral guarantees given by all group undertakings. Additionally HSBC plc has the right of group set-off.
Other loans comprise shareholder loan notes which are secured by means of fixed and floating charges over all assets in the Company and NNS Leasing Ltd, with an interest rate of 10% pa and are redeemable in tranches up to March 2026. Obligations under finance lease and hire purchase contracts are secured against the assets to which the contracts relate.
Page 46
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HEALTHSHARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Page 47
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HEALTHSHARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Page 48
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HEALTHSHARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Page 49
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HEALTHSHARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Share premium account
Capital redemption reserve
Profit and loss account
The business sale was subject to a condition requiring CQC approval, which was received in September 2024, the sale of the business becoming effective at that date. The buyer undertook to rebate any trading losses to the Company in that intervening period. To assist comprehension, the operations of the Healthshare Clinic Winchester have been shown as a separate column in the Consolidated Statement of Comprehensive Income for both years. This includes the release of the onerous contracts provision for trading to 23 February 2024, following which any losses are offset by the buyer's rebate. On 19 January 2024, the Group sold its holding in the associated undertaking Orpington Endoscopy Solutions Limited for cash consideration of £250,000. On the 20 December 2024, 100% of all share classes were acquired by Crossco (1469) Limited, registered in the United Kingdom, whose registered office address is The Light Box, Quorum Business Park, Benton Lane, Newcastle upon Tyne, NE12 8EU. As of this date and at the date of approval of these accounts, there is no ultimate controlling party. As part of acquisition, all loan notes disclosed in note 22 were redeemed in final full satisfaction of the same.
Finance costs of £433,043 on other loans were omitted in the prior year. These costs have now been recognised, reducing the net assets of the Company and the Group by the stated amount.
Obligations under finance lease and hire purchase were understated in a subsidiary company by £210,509 in the prior year. This has now been corrected, reducing the reserves of the Group by the stated amount.
Page 50
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HEALTHSHARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
The Group operates a
Contributions totalling £
Page 51
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HEALTHSHARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
There are no controlling parties by means of their shareholdings in the Company.
Page 52
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