Company registration number SC181264 (Scotland)
MEDICAL CENTRES SCOTLAND 2000 LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
PAGES FOR FILING WITH REGISTRAR
MEDICAL CENTRES SCOTLAND 2000 LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
MEDICAL CENTRES SCOTLAND 2000 LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2024
31 October 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investment property
5
79,403,800
79,405,184
Current assets
Debtors
6
4,447,735
4,427,769
Cash at bank and in hand
93,213
470,590
4,540,948
4,898,359
Creditors: amounts falling due within one year
7
(6,333,471)
(4,543,094)
Net current (liabilities)/assets
(1,792,523)
355,265
Total assets less current liabilities
77,611,277
79,760,449
Creditors: amounts falling due after more than one year
8
(19,783,188)
(23,638,173)
Provisions for liabilities
(4,450,298)
(4,450,298)
Net assets
53,377,791
51,671,978
Capital and reserves
Called up share capital
93
93
Revaluation reserve
30,249,747
30,249,747
Capital redemption reserve
7
7
Profit and loss reserves
23,127,944
21,422,131
Total equity
53,377,791
51,671,978
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
The financial statements were approved by the board of directors and authorised for issue on 24 January 2025 and are signed on its behalf by:
C M Hobden
Director
Company registration number SC181264 (Scotland)
MEDICAL CENTRES SCOTLAND 2000 LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -
1
Accounting policies
Company information
Medical Centres Scotland 2000 Limited is a private company limited by shares incorporated in Scotland. The registered office is 5 South Charlotte Street, Edinburgh, Scotland, EH2 4AN.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents rent receivable during the year and proceeds from property sales which are recognised at the point of legal completion.
Premiums charged on the lease of investment properties are recognised on a straight line basis over the length of the lease.
1.4
Investment property
Investment properties are carried at fair value determined annually by the directors with reference to external and internal valuers as appropriate and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the statement of comprehensive income.
Investment property under construction is valued as if complete with appropriate deductions for expected cost to complete and theoretical developer's margin on remaining costs. Borrowing costs incurred during the course of development are capitalised as part of investment property.
1.5
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.
MEDICAL CENTRES SCOTLAND 2000 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 3 -
1.6
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.
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, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.7
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.
1.8
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.
MEDICAL CENTRES SCOTLAND 2000 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 4 -
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.
1.9
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
1.10
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
1.11
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
MEDICAL CENTRES SCOTLAND 2000 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 5 -
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.
Investment property
Investment properties are valued to fair value annually by the directors with reference to third party valuations where available. The company recognises the property at fair value, defined as the estimated amount for which a property should exchange on the date of the valuation between a willing buyer and seller in an arm's length transaction. In considering the valuation, the relevant income streams are reviewed, deducting any non-recoverable costs to be incurred by the landlord to arrive at a net income. The income is then capitalised at a market yield which is derived from comparable transactions of similar properties observable in the market. Any refurbishment costs or other capital items are then deducted along with purchaser's costs to arrive at the fair value. The directors of the company asses the carrying value at each reporting date to ensure that the carrying value is adjusted to fair value.
3
Employees
The average monthly number of persons (excluding directors) employed by the company during the year was:
2024
2023
Number
Number
Total
4
Directors' remuneration
During the year directors received remuneration of £58,137 (2023: £41,765).
5
Investment property
2024
£
Fair value
At 1 November 2023
79,405,184
Disposals
(1,384)
At 31 October 2024
79,403,800
MEDICAL CENTRES SCOTLAND 2000 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
5
Investment property
(Continued)
- 6 -
The historical cost of the investment properties at the balance sheet date is £44,703,754 (2023: £44,705,138).
The investment properties were valued on the basis of fair value at 31 October 2024 by directors of the company with reference to third party valuations where available.
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
79,852
2,678
Amounts owed by group undertakings
4,366,533
4,126,400
Other debtors
1,350
298,691
4,447,735
4,427,769
There are no formal arrangements in place for the repayment of amounts owed by group undertakings.
Interest is not charged on these balances.
7
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
3,859,596
2,298,610
Trade creditors
16,342
Amounts owed to group undertakings
1,150,000
600,000
Corporation tax
25,192
424,390
Other taxation and social security
283,748
207,010
Other creditors
1,014,935
996,742
6,333,471
4,543,094
There are no formal arrangements in place for the repayment of amounts owed to group undertakings.
Interest is not charged on these balances.
8
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
19,783,188
23,638,173
MEDICAL CENTRES SCOTLAND 2000 LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
8
Creditors: amounts falling due after more than one year
(Continued)
- 7 -
Secured loans
A fixed charge is held over the freehold property owned by the company in respect of the bank loans with interest charged between 5% to 10% per annum.
Included within creditors: amounts falling due after more than one year is an amount of £10,208,068 (2023: £12,578,213) in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date.
9
Contingencies
The company acts as a guarantor for mortgages provided to Medical Centres Scotland Limited in relation to mortgages over its investment properties. Each mortgage is guaranteed from the date of the mortgage, and at present the maximum liability is £30,896,906 (2023: £32,686,219). The directors do not currently consider that any liability will arise.
10
Controlling party
The immediate parent company is Medical Centre Holdings Limited. The parent of the smallest group for which consolidated financial statements are drawn up is Hobden Capital Limited, a company registered in England and Wales. The registered address of Hobden Capital Limited is 54 Weymouth Street, London, W1G 6NU.
The ultimate controlling party is C M Hobden and E M Hobden.
11
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.
The auditor's report is unqualified and includes the following:
Opinion
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 October 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
Senior Statutory Auditor:
Giuseppe Scozzaro
Statutory Auditor:
Goodman Jones LLP
Date of audit report:
24 January 2025