Company registration number 13207926 (England and Wales)
VIVA HEALTH LABORATORIES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
VIVA HEALTH LABORATORIES LIMITED
COMPANY INFORMATION
Directors
Mr P Watts
Mr R Dicuffa
Mr O Morgan
(Appointed 22 August 2022)
Company number
13207926
Registered office
The Stables
New Lodge, Drift Lodge
Winkfield
Windsor
Berks
SL4 4RR
Auditor
Alliotts LLP
Manfield House
1 Southampton Street
London
WC2R 0LR
VIVA HEALTH LABORATORIES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 24
VIVA HEALTH LABORATORIES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

 

The directors present the strategic report for the year ended 31 March 2023.

Review of the business

Viva Health Laboratories Ltd (VHL) was established during the Covid-19 pandemic as a specialist science driven private laboratory, providing high performance and accurate turn-around of Covid testing. Supported by its own in-house technology, courier pick up service and logistics, its growth was exponential. The business constantly evolved its unique intellectual property, integrating services and solutions to optimise the flow of Covid-19 test samples into the laboratory. Its primary customer was Your Doctor Film and Media, a company that was also part of the Your Doctor Group.

VHL was at the forefront of the Covid-19 screening and sample testing revolution that was required to combat Covid in the workplace if society, and in this case, the film industry was going to return to work safely. These societal requirements developed under the watchful eye of UK and EU government regulation.

Principal risks and uncertainties

VHL’s strong reliance on a single customer involved in providing a Covid screening service to a single market vertical, meant that VHL was always highly exposed to the nuances of government regulation and its impact on the primary end user marketplace.

During 2022, the directors developed a business strategy to reduce the commercial exposure risk that the business carried. Reducing the risks associated with, the reliance on a dominant single customer, working in a single market vertical and utilising a single testing type was essential for the longevity of the business.

Following a strategic market opportunity review, it was decided that VHL should develop a more balanced business model, centred on the broader and more traditional blood science pathology services required by the UK’s clinical community. The costs of the investment in robotic technologies to achieve this were considered high and there was no guarantee that these new services would find a ready market. Additionally, once the investment in robotics and IT infrastructure had been established so that blood science testing could be offered to a wider clinical community, the existing laboratory staff would require retraining and broadening with specialist expertise in the blood science field - another high cost and risk for the business to bear as it tried to establish a network of new customers in this arena as a new market entrant.

The capital required to make these strategic investments and to fund cashflow while the business was in transition would be provided by VHL’s parent company Your Doctor Holdings. It is understood that this capital would be provided from the existing resources of the holdings company, the director’s own resources and if the Group could demonstrate traction in a post Covid-19 world, potentially from external shareholders.

Development and performance

During the latter stages of 2022 and early into 2023, VHL’s strategy began to deliver early results. Its disruptive business model that included high-touch customer service, combined with fast test turn-around times and competitive pricing developed a positive market awareness. This strategy resulted in new customers starting to use the comprehensive testing services on offer. Further investment was made in the development of straight through processing technology, linking clinical systems directly into the company’s own logistics and laboratory management systems. This investment enabled a faster and more flexible flow of clinical orders and test results to be returned to the patient via their practitioner. VHL’s focus on accuracy and speed, often sending results within a few hours of the blood samples being taken, provides VHL with many unique advantages when marketing to new customers.

Key performance indicators

There are three financial KPIs that the company monitors on a monthly basis; revenues, gross profit and operating profit.

These financial KPIs are reported in the statement of comprehensive income and broadly reflect a business in transition. During this period, turnover fell to £5.28m from £13.12m with gross profits falling to £3.13m from £6.76m in the previous year. Operating profits fell from £4.67m to a loss of £3.95m during the accounting period. Once the business has cleared through the challenges of this transition period it will be a more balanced company with a more sustainable outlook for the future.

VIVA HEALTH LABORATORIES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -

On behalf of the board

Mr P Watts
Director
13 January 2025
VIVA HEALTH LABORATORIES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2023.

Principal activities

The principal activity of the company continued to be that of medical consulting and testing.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

Mr P Watts
Mr R Dicuffa
Mr O Morgan
(Appointed 22 August 2022)
Mr J Hill
(Appointed 22 August 2022 and resigned 31 July 2024)
Mr R Cashmore
(Appointed 22 August 2022 and resigned 31 May 2023)
Auditor

Alliotts LLP 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.

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.

VIVA HEALTH LABORATORIES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr P Watts
Director
13 January 2025
VIVA HEALTH LABORATORIES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF VIVA HEALTH LABORATORIES LIMITED
- 5 -
Opinion

We have audited the financial statements of Viva Health Laboratories Limited (the 'company') for the year ended 31 March 2023 which comprise the statement of comprehensive income, 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 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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:

VIVA HEALTH LABORATORIES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF VIVA HEALTH LABORATORIES LIMITED (CONTINUED)
- 6 -
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.

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.

 

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

VIVA HEALTH LABORATORIES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF VIVA HEALTH LABORATORIES LIMITED (CONTINUED)
- 7 -

To address the risk of fraud through management bias and override of controls, we:

Audit respsonse to risks identified

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Other matters which we are required to address

In the previous accounting period the directors took advantage of audit exemption under S477 of the Companies Act. Therefore the comparative figures in respect of the prior period to 31 March 2022 were not subject to audit.

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.

Nicholas Nicolaou FCCA (Senior Statutory Auditor)
For and on behalf of Alliotts LLP, Statutory Auditor
Chartered Accountants
Manfield House
1 Southampton Street
London
WC2R 0LR
13 January 2025
VIVA HEALTH LABORATORIES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
Year
Period
ended
ended
31 March
31 March
2023
2022
(unaudited)
Notes
£
£
Turnover
3
5,284,515
13,125,081
Cost of sales
(2,155,310)
(6,362,789)
Gross profit
3,129,205
6,762,292
Administrative expenses
(7,075,281)
(2,089,152)
Operating (loss)/profit
5
(3,946,076)
4,673,140
Interest payable and similar expenses
8
(162)
-
0
(Loss)/profit before taxation
(3,946,238)
4,673,140
Tax on (loss)/profit
9
746,036
(880,613)
(Loss)/profit for the financial year
(3,200,202)
3,792,527

The profit and loss account has been prepared on the basis that all operations are continuing operations.

VIVA HEALTH LABORATORIES LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 9 -
2023
2022
(unaudited)
Notes
£
£
£
£
Fixed assets
Intangible assets
11
49,099
-
0
Tangible assets
12
178,384
111,802
Investments
13
1
-
0
227,484
111,802
Current assets
Stocks
15
-
626,798
Debtors
16
601,344
4,393,471
Cash at bank and in hand
44,546
75,296
645,890
5,095,565
Creditors: amounts falling due within one year
17
(236,353)
(1,393,498)
Net current assets
409,537
3,702,067
Total assets less current liabilities
637,021
3,813,869
Provisions for liabilities
Deferred tax liability
18
44,596
21,242
(44,596)
(21,242)
Net assets
592,425
3,792,627
Capital and reserves
Called up share capital
20
100
100
Profit and loss reserves
592,325
3,792,527
Total equity
592,425
3,792,627

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 13 January 2025 and are signed on its behalf by:
Mr P Watts
Director
Company registration number 13207926 (England and Wales)
VIVA HEALTH LABORATORIES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 17 February 2021
-
0
-
0
-
Period ended 31 March 2022:
Profit and total comprehensive income
-
3,792,527
3,792,527
Issue of share capital
20
100
-
100
Balance at 31 March 2022 (unaudited)
100
3,792,527
3,792,627
Year ended 31 March 2023:
Loss and total comprehensive income
-
(3,200,202)
(3,200,202)
Balance at 31 March 2023
100
592,325
592,425
VIVA HEALTH LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
1
Accounting policies
Company information

Viva Health Laboratories Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Stables, New Lodge, Drift Lodge, Winkfield, Windsor, Berks, SL4 4RR.

1.1
Reporting period

The comparative period represents the period from company incorporation on 17 February 2021 up to 31 March 2022 to align with other companies in the group.

1.2
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

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

The financial statements present information about the company as an individual entity and not about its group. The company and its subsidiary undertaking comprise a medium-sized group. The company has not prepared group accounts on the basis that is subsidiary is dormant and has since the year end been dissolved.

1.3
Going concern

The financial statements are prepared on a going concern basis, notwithstanding the company having made a loss for the year before tax of £3,946,238. In considering the appropriateness of the going concern basis management have considered budgets and forecasts that have been prepared for future trading of the company, the general state of the wider economy and the availability of external financing. Funding for the company is obtained from its ultimate parent company and the continued operation of the company is dependent on the funds, favourable trading terms, and operational support provided by the group.true

 

In considering the appropriateness of the basis of preparation of these financial statements the directors have noted that the Group has indicated that for a period of at least twelve months from the signing of these financial statements it will continue to make available such funds as are needed by the company in order to support its continued operations and meet its liabilities.

 

As with any company placing reliance on other group entities for financial support, the directors acknowledge that there can be no certainty that the support from Group will continue, although at the date of approval of these financial statements they have no reason to believe that it will not do so. Written support of such continued support for the next twelve months from the date of signing of the financial statement has been received and therefore these financial statements have been prepared on a going concern basis.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

VIVA HEALTH LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 12 -

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
33% straight line
1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
Over the life of the lease
Plant and equipment
50% straight line
Fixtures and fittings
50% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.7
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8
Impairment of fixed assets

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

VIVA HEALTH LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 13 -

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.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

VIVA HEALTH LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 14 -
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

VIVA HEALTH LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

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

1.13
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 liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

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

VIVA HEALTH LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.16
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

2
Judgements and key sources of estimation uncertainty

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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Property, plant and equipment

Property, plant and equipment are recorded at cost less accumulated depreciation. Judgement is required to determine whether there are indicators of impairment of the company’s tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.

Inventories

Inventories are valued at the lower of cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks. Calculation of these provisions requires judgements to be made, which include forecast consumer demand, the promotional, competitive and economic environment and inventory loss trends.

Intercompany receivables recovery

Judgement is required to determine whether there are indicators of impairment of the company’s intercompany receivable balances. Factors taken into consideration in reaching such a decision include the economic viability, group support and expected future financial performance of the various entities.

VIVA HEALTH LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 17 -
Key sources of estimation uncertainty

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

Property, plant and equipment

Property, plant and equipment are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Inventory provisioning

When considering the inventory provision, management considers the nature and condition of the inventory, as well as applying assumptions around anticipated saleability of inventory held and recent sales performance of inventory lines.

3
Turnover
2023
2022
£
£
(unaudited)
Turnover analysed by class of business
Sale of medical services
5,284,515
13,125,081
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
5,284,515
13,125,081
4
Exceptional item

A provision of £5,115,323 has been included in the financial statements for the year ended 31 March 2023 in respect of intercompany receivables with Your Doctor Film and Media Limited, a company which since the year end has ceased trading and is in the process of liquidation. The directors consider the debtor to be irrecoverable, therefore include a provision at the year end.

VIVA HEALTH LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
5
Operating (loss)/profit
2023
2022
(unaudited)
Operating (loss)/profit for the year is stated after charging:
£
£
Exchange losses
238
-
0
Fees payable to the company's auditor for the audit of the company's financial statements
13,000
-
0
Depreciation of owned tangible fixed assets
108,325
15,972
Amortisation of intangible assets
9,820
-
Bad debt provision (note 4)
5,115,323
-
Impairment of stocks recognised or reversed
115,014
-
0
Operating lease charges
19,145
21,365
6
Employees

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

2023
2022
(unaudited)
Number
Number
38
26

Their aggregate remuneration comprised:

2023
2022
(unaudited)
£
£
Wages and salaries
1,226,199
1,409,220
Social security costs
127,543
147,221
Pension costs
24,307
15,588
1,378,049
1,572,029
7
Directors' remuneration
2023
2022
(unaudited)
£
£
Remuneration for qualifying services
89,167
-
0
8
Interest payable and similar expenses
2023
2022
(unaudited)
£
£
Other interest
162
-
0
VIVA HEALTH LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 19 -
9
Taxation
2023
2022
(unaudited)
£
£
Current tax
UK corporation tax on profits for the current period
-
0
859,371
Adjustments in respect of prior periods
(769,390)
-
0
Total current tax
(769,390)
859,371
Deferred tax
Origination and reversal of timing differences
23,354
21,242
Total tax (credit)/charge
(746,036)
880,613

The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
(unaudited)
£
£
(Loss)/profit before taxation
(3,946,238)
4,673,140
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(749,785)
887,897
Tax effect of expenses that are not deductible in determining taxable profit
20,880
(7,284)
Permanent capital allowances in excess of depreciation
(40,485)
-
0
Change in deferred tax rate
6,709
-
0
Fixed asset timing differences
16,645
-
0
Taxation (credit)/charge for the year
(746,036)
880,613

 

VIVA HEALTH LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 20 -
10
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
(unaudited)
Notes
£
£
In respect of:
Stocks
15
115,014
-
0
Recognised in:
Cost of sales
115,014
-
11
Intangible fixed assets
Software
£
Cost
At 1 April 2022 (unaudited)
-
0
Additions
58,919
At 31 March 2023
58,919
Amortisation and impairment
At 1 April 2022 (unaudited)
-
0
Amortisation charged for the year
9,820
At 31 March 2023
9,820
Carrying amount
At 31 March 2023
49,099
At 31 March 2022 (unaudited)
-
0
VIVA HEALTH LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
12
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 April 2022 (unaudited)
-
0
127,774
-
0
127,774
Additions
6,433
148,679
19,795
174,907
At 31 March 2023
6,433
276,453
19,795
302,681
Depreciation and impairment
At 1 April 2022 (unaudited)
-
0
15,972
-
0
15,972
Depreciation charged in the year
1,340
106,610
375
108,325
At 31 March 2023
1,340
122,582
375
124,297
Carrying amount
At 31 March 2023
5,093
153,871
19,420
178,384
At 31 March 2022 (unaudited)
-
0
111,802
-
0
111,802
13
Fixed asset investments
2023
2022
(unaudited)
Notes
£
£
Investments in subsidiaries
14
1
-
0
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 April 2022 (unaudited)
-
Additions
1
At 31 March 2023
1
Carrying amount
At 31 March 2023
1
At 31 March 2022
-

During the year the company acquired 1 £1 ordinary share in subsidiary company Biolab 2022 Limited.

VIVA HEALTH LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 22 -
14
Subsidiaries

Details of the company's subsidiaries at 31 March 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Biolab 2022 Limited
The Stables, New Lodge, Drift Road, Winkfield, Windsor, England, SL4 4RR
Ordinary Shares
100.00

Following the year end, in May 2024, Biolab 2022 Limited was dissolved.

15
Stocks
2023
2022
(unaudited)
£
£
Raw materials and consumables
-
626,798

All stock was written-off after the year end due to the stock going out of date. Therefore a full provision of £115,014 has been made against the stock at the year end.

16
Debtors
2023
2022
(unaudited)
Amounts falling due within one year:
£
£
Trade debtors
41,695
2,443
Corporation tax recoverable
420,018
-
0
Amounts owed by group undertakings
56,222
4,291,197
Other debtors
50,564
-
0
Prepayments and accrued income
32,845
99,831
601,344
4,393,471
17
Creditors: amounts falling due within one year
2023
2022
(unaudited)
£
£
Trade creditors
204,999
832,224
Corporation tax
-
0
349,371
Other taxation and social security
-
0
25,264
Accruals and deferred income
31,354
186,639
236,353
1,393,498
VIVA HEALTH LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
(unaudited)
Balances:
£
£
Accelerated capital allowances
44,596
21,242
2023
Movements in the year:
£
Liability at 1 April 2022 (unaudited)
21,242
Charge to profit or loss
23,354
Liability at 31 March 2023
44,596

The deferred tax liability set out above is expected to reverse within 5 years and relates to accelerated capital allowances that are expected to mature within the same period.

19
Retirement benefit schemes
2023
2022
(unaudited)
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
24,307
15,588

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

20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
21
Events after the reporting date

Following the year end the company has provided security via a legal charge over its assets as part of a funding agreement provided to its parent company, Your Doctor Holdings Limited, by its directors.

 

Additionally, in May 2024, the subsidiary entity Biolab 2022 Limited was dissolved.

VIVA HEALTH LABORATORIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
22
Related party transactions

The following amounts were outstanding at the reporting end date:

2023
2022
(unaudited)
Amounts due from related parties
£
£
Other related parties
56,222
4,291,197
Other information

At the year end a provision of £5,115,323 has been made against intercompany debtors.

 

The company has taken advantage of the exemption under FRS 102, para 33.1A, stating that details need not be given in respect of transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly-owned by such a member.

23
Ultimate controlling party

The parent company is Your Doctor Holdings Limited whose registered office is The Stables, New Lodge, Drift Road, Winkfield, Windsor, SL4 4RR.

 

The ultimate parent company is Your Doctor Employee Trust Limited, a company limited by guarantee without share capital. There is no individual controlling party.

2023-03-312022-04-01falsefalsefalseCCH SoftwareCCH Accounts Production 2024.301Mr P WattsMr R DicuffaMr O MorganMr J HillMr R Cashmore132079262022-04-012023-03-3113207926bus:Director12022-04-012023-03-3113207926bus:Director22022-04-012023-03-3113207926bus:Director32022-04-012023-03-3113207926bus:Director42022-04-012023-03-3113207926bus:Director52022-04-012023-03-3113207926bus:RegisteredOffice2022-04-012023-03-31132079262023-03-31132079262021-02-172022-03-3113207926core:RetainedEarningsAccumulatedLosses2021-02-172022-03-3113207926core:RetainedEarningsAccumulatedLosses2022-04-012023-03-3113207926core:OtherResidualIntangibleAssets2023-03-3113207926core:OtherResidualIntangibleAssets2022-03-3113207926core:ComputerSoftware2023-03-3113207926core:ComputerSoftware2022-03-31132079262022-03-3113207926core:LeaseholdImprovements2023-03-3113207926core:PlantMachinery2023-03-3113207926core:FurnitureFittings2023-03-3113207926core:LeaseholdImprovements2022-03-3113207926core:PlantMachinery2022-03-3113207926core:FurnitureFittings2022-03-3113207926core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3113207926core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-3113207926core:ShareCapital2023-03-3113207926core:ShareCapital2022-03-3113207926core:RetainedEarningsAccumulatedLosses2023-03-3113207926core:RetainedEarningsAccumulatedLosses2022-03-3113207926core:ShareCapital2021-02-1613207926core:RetainedEarningsAccumulatedLosses2021-02-1613207926core:ShareCapital2021-02-172022-03-3113207926core:IntangibleAssetsOtherThanGoodwill2022-04-012023-03-3113207926core:ComputerSoftware2022-04-012023-03-3113207926core:LeaseholdImprovements2022-04-012023-03-3113207926core:PlantMachinery2022-04-012023-03-3113207926core:FurnitureFittings2022-04-012023-03-311320792612022-04-012023-03-311320792612021-02-172022-03-3113207926core:UKTax2022-04-012023-03-3113207926core:UKTax2021-02-172022-03-311320792622022-04-012023-03-311320792622021-02-172022-03-3113207926core:ComputerSoftware2022-03-3113207926core:ComputerSoftwarecore:ExternallyAcquiredIntangibleAssets2022-04-012023-03-3113207926core:LeaseholdImprovements2022-03-3113207926core:PlantMachinery2022-03-3113207926core:FurnitureFittings2022-03-31132079262022-03-3113207926core:Non-currentFinancialInstruments2023-03-3113207926core:Non-currentFinancialInstruments2022-03-3113207926core:CurrentFinancialInstruments2023-03-3113207926core:CurrentFinancialInstruments2022-03-3113207926bus:PrivateLimitedCompanyLtd2022-04-012023-03-3113207926bus:FRS1022022-04-012023-03-3113207926bus:Audited2022-04-012023-03-3113207926bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP