REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST MAY 2024 |
FOR |
MEDSOL GROUP LTD |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST MAY 2024 |
FOR |
MEDSOL GROUP LTD |
MEDSOL GROUP LTD (REGISTERED NUMBER: 04522585) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST MAY 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Income Statement | 10 |
Other Comprehensive Income | 11 |
Balance Sheet | 12 |
Statement of Changes in Equity | 13 |
Notes to the Financial Statements | 14 |
MEDSOL GROUP LTD |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31ST MAY 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
& Registered Auditors |
162-164 High Street |
Rayleigh |
Essex |
SS6 7BS |
BANKERS: |
Coventry DSC |
Harry Weston Road |
Binley |
Coventry |
CV3 2TQ |
MEDSOL GROUP LTD (REGISTERED NUMBER: 04522585) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST MAY 2024 |
The directors present their strategic report for the year ended 31st May 2024. |
Medsol Group Ltd continues to operate as a specialist provider of medical recruitment services, supplying temporary and permanent healthcare professionals to both private and NHS healthcare facilities across the United Kingdom. Our services play a vital role in addressing critical staffing challenges within the healthcare sector. |
REVIEW OF BUSINESS |
The financial results for the year show: |
- Revenue decreased by 5.8% to £28.4m (2023: £26.8m) |
- Gross profit decreased to £3.8m (2023: £4.2m) |
- Operating profit decreased to £331k (2023: £989k) |
- Gross margin reduced to 13.5% (2023: 15.6%) |
The reduction in financial performance reflects challenging market conditions, including: |
- Increased competition in the healthcare recruitment sector |
- Pricing pressures from framework agreements |
- Rising operational costs, particularly in compliance and technology infrastructure |
- Impact of broader economic conditions on healthcare spending |
STRATEGIC DEVELOPMENTS |
In response to these challenges, management has implemented several strategic initiatives: |
1. Digital Transformation |
- Investment in new computer systems and infrastructure (£13.9k invested in 2024) |
- Implementation of AI-driven analytic tools to improve operational efficiencies |
- Enhanced automation of recruitment processes |
2. Framework Position Strengthening |
- Maintained key positions on Health Trust Europe and Crown Commercial Service frameworks |
- Enhanced relationships with private healthcare providers through PSL arrangements |
- Focus on quality metrics to maintain preferred supplier status |
3. Cost Management |
- Implementation of stringent cost control measures |
- Review and optimisation of internal processes |
- Investment in automation to reduce administrative costs |
4. Service Diversification |
- Expansion into new medical specialities |
- Geographic expansion of service coverage |
FUTURE OUTLOOK |
Despite the challenging year, the Board remains confident about the future prospects of the business, based on: |
- Strong fundamental demand for healthcare staffing services |
- Implemented efficiency improvements beginning to show results |
- Robust pipeline of opportunities through framework agreements |
- Strategic investments in technology and infrastructure |
MEDSOL GROUP LTD (REGISTERED NUMBER: 04522585) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST MAY 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Principle Risks and uncertainties |
In the UK, the medical recruitment businesses, like any other businesses, face certain risks and uncertainties. The Company acknowledges the below risks as well as ensuring they take steps to reduce these: |
Regulatory Compliance: The healthcare industry is subject to strict regulations and compliance requirements. The medical recruitment business must ensure adherence to laws and regulations related to healthcare staffing, data protection, patient privacy, and licensing. Failure to comply with these regulations can result in legal and financial consequences. To reduce this risk the group ensures to: |
- Stay updated with healthcare regulations and guidelines, ensuring ongoing compliance. |
- Establish robust internal policies and procedures to ensure adherence to regulatory requirements. |
- Conduct regular audits and train employees on compliance protocols. |
- Engage legal and regulatory experts to provide guidance and support. |
Talent Acquisition and Retention: Recruiting and retaining qualified healthcare professionals can be challenging. The demand for skilled healthcare personnel, such as physicians, nurses, and therapists, often exceeds supply. These businesses must navigate competitive markets, implement effective recruitment strategies, and provide attractive compensation and career development opportunities to attract and retain top talent. To reduce this risk the group ensures that: |
- Develop comprehensive recruitment strategies to attract qualified healthcare professionals. |
- Enhance employee benefits, incentives, and career development opportunities. |
- Foster a positive work culture and invest in employee engagement initiatives. |
- Implement retention programs, such as mentorship, ongoing training, and performance recognition. |
Economic and Financial Factors: Economic fluctuations, funding cuts, and changes in healthcare policies can impact the financial stability and viability of medical recruitment and insourcing businesses. Economic downturns or reductions in healthcare budgets may lead to decreased demand for services or increased pricing pressure, affecting revenue and profitability. To reduce this risk we: |
- Diversify service offerings to reduce dependency on a single revenue stream. |
- Establish financial contingency plans to mitigate economic downturns. |
- Monitor and analyse market trends and adjust pricing strategies accordingly. |
- Develop partnerships or collaborations to enhance financial stability. |
Legislative and Policy Changes: Changes in healthcare legislation, government policies, or reimbursement models can significantly impact the operations and financial viability of these businesses. It is crucial to monitor and adapt to any regulatory or policy shifts, ensuring compliance and adjusting business strategies accordingly. The group ensures to: |
- Monitor relevant government websites and industry associations for updates on legislation and policies. |
- Engage with legal and compliance professionals to ensure proactive compliance. |
- Conduct regular reviews of internal processes and adapt to new regulations promptly. |
- Participate in industry discussions and advocate for favourable policies through industry associations. |
Reputation and Patient Safety: Patient safety and the reputation of the medical recruitment business are paramount. Any negative incidents, such as malpractice claims, breaches of data privacy, or lapses in quality control, can severely damage the reputation of these businesses. Maintaining rigorous quality standards, robust risk management practices, and strong governance frameworks are essential to safeguarding patient safety and maintaining a positive reputation. The company takes this very seriously and ensures to: |
- Implement robust quality control processes and adhere to recognized industry standards. |
- Invest in continuous professional development for employees to maintain high-quality service delivery. |
- Establish strong risk management frameworks to identify and mitigate potential risks. |
Liquidity risk: Reducing liquidity risk is crucial for the company to ensure their financial stability and ability to meet short-term obligation as well as showing financial health, stability, and the ability to navigate unforeseen circumstances, enhancing the company's reputation and credibility. To reduce this risk the Group: |
- Develop robust cash flow forecasting models to project inflows and outflows accurately as well as monitoring cash flow patterns regularly to identify potential shortfalls or surpluses. Where possible the company will always Implement effective cash flow management practices, such as optimising payment terms, negotiating favourable terms with suppliers, and managing working capital efficiently. |
MEDSOL GROUP LTD (REGISTERED NUMBER: 04522585) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31ST MAY 2024 |
- Monitor and Manage debt levels by Regularly reviewing and manage the company's debt levels to ensure it remains within manageable limits as well as evaluate the cost and terms of existing debt and explore opportunities to refinance or renegotiate debt agreements to improve liquidity and reduce interest expenses. |
ENVIRONMENTAL AND SOCIAL RESPONSIBILITY |
The company remains committed to: |
- Reducing environmental impact through digitalisation |
- Supporting local healthcare communities |
- Promoting diversity and inclusion in healthcare staffing |
- Investment in staff development and training |
ON BEHALF OF THE BOARD: |
MEDSOL GROUP LTD (REGISTERED NUMBER: 04522585) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31ST MAY 2024 |
The directors present their report with the financial statements of the company for the year ended 31st May 2024. |
PRINCIPAL ACTIVITY |
Medsol Group Ltd continues to operate as a specialist provider of medical recruitment services, supplying temporary and permanent healthcare professionals to both private and NHS healthcare facilities across the United Kingdom. Our services play a vital role in addressing critical staffing challenges within the healthcare sector. |
DIVIDENDS |
During the period total interim dividends of £6,311 per share were paid. The directors recommend that no final |
dividend be paid. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1st June 2023 to the date of this report. |
FINANCIAL INSTRUMENTS |
Financial risk management |
The group's operations expose it to a variety of financial risks that include the effect of changes in liquidity risk and |
interest rate risk. The group has in place a risk management programme that seeks to limit the adverse effects on the financial performance of the group by monitoring levels of debt finance and the related finance costs. |
Given the size of the group, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the group's finance department. |
Liquidity risk |
The group actively maintains a mixture of long-term and short-term debt finance that is designed to ensure the group has sufficient available funds for operations and planned extensions. |
Interest rate cash flow risk |
The group only has interest bearing liabilities. |
Credit risk |
The group has implemented policies that require appropriate credit checks on potential customers in the private sector before sales are made. The amount of exposure to individual customers is subject to a limit, which is reassessed regularly by the board. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
MEDSOL GROUP LTD (REGISTERED NUMBER: 04522585) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31ST MAY 2024 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
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 AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, ESW Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MEDSOL GROUP LTD |
Opinion |
We have audited the financial statements of Medsol Group Ltd (the 'company') for the year ended 31st May 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, 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). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31st May 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. |
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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MEDSOL GROUP LTD |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on pages five and six, 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 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. |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
The company is subject to numerous laws and regulations that could reasonably be expected to have a material effect on the financial statements. From our general commercial experience and discussion with management, we identified the following laws and regulations; healthcare provider regulations, employment and agency workers laws and regulations, health and safety, employment taxes, financial reporting and distributable profits. |
Our audit procedures to address potential fraud and non-compliance with laws and regulations included: |
- Enquiry of management and staff |
- Review of legal documentation and correspondence |
- Analytical review to identify unexpected account movements and investigation of variances |
- Assessment of potential management override by review of journals and unusual accounting entries |
- Identification and review of transactions with related parties |
- Review of year end cut-off and after date transactions |
- Reconciliation of intercompany balances |
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 Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
MEDSOL GROUP LTD |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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 |
Chartered Accountants |
& Registered Auditors |
162-164 High Street |
Rayleigh |
Essex |
SS6 7BS |
MEDSOL GROUP LTD (REGISTERED NUMBER: 04522585) |
INCOME STATEMENT |
FOR THE YEAR ENDED 31ST MAY 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
OPERATING PROFIT | 5 |
Interest payable and similar expenses | 6 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 7 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
MEDSOL GROUP LTD (REGISTERED NUMBER: 04522585) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31ST MAY 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
MEDSOL GROUP LTD (REGISTERED NUMBER: 04522585) |
BALANCE SHEET |
31ST MAY 2024 |
2024 | 2023 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
CURRENT ASSETS |
Debtors | 11 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 12 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 15 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 16 |
Capital redemption reserve | 17 |
Retained earnings | 17 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
MEDSOL GROUP LTD (REGISTERED NUMBER: 04522585) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31ST MAY 2024 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1st June 2022 | ( |
) |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31st May 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | ( |
) |
Balance at 31st May 2024 |
MEDSOL GROUP LTD (REGISTERED NUMBER: 04522585) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31ST MAY 2024 |
1. | STATUTORY INFORMATION |
Medsol Group Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Financial Reporting Standard 102 - reduced disclosure exemptions |
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements: |
- Section 4 'Statement of Financial Position' - Reconciliation of the opening and closing number of shares; |
- Section 7 'Statement of Cash Flows' - Presentation of a statement of cash flow and related notes and disclosures; |
- Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instrument Issues' - Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income; |
- Section 33 'Related Party Disclosures' - Compensation for key management personnel. |
Turnover |
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and trade discounts. |
Turnover from the rendering of services is recognised in the period in which the service has been completed. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Other intangible assets are being amortised evenly over their estimated useful life of 10 years. |
Tangible fixed assets |
Fixtures and fittings | - |
Computer equipment | - |
Impairment of fixed assets |
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the group estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
MEDSOL GROUP LTD (REGISTERED NUMBER: 04522585) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MAY 2024 |
2. | ACCOUNTING POLICIES - continued |
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 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 trade and other 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. |
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 trade and other creditors and bank loans, 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. |
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Equity instruments |
Equity instruments issued by the company are recorded at the fair value of 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. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
£ | £ |
MEDSOL GROUP LTD (REGISTERED NUMBER: 04522585) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MAY 2024 |
3. | TURNOVER - continued |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
The average number of employees during the year was as follows: |
2024 | 2023 |
Agency workers | 37 | 62 |
Management | 4 | 9 |
Administration | 15 | 8 |
Sales | 40 | 24 |
2024 | 2023 |
£ | £ |
Directors' remuneration |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
2024 | 2023 |
£ | £ |
Depreciation - owned assets |
Other intangible assets amortisation |
Auditors' remuneration |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
HMRC fines and interest |
MEDSOL GROUP LTD (REGISTERED NUMBER: 04522585) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MAY 2024 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
Effects of: |
Capital allowances in excess of depreciation | ( |
) | - |
Depreciation in excess of capital allowances | - |
Deferred tax | 760 | (317 | ) |
Change in tax rates | - | (48,790 | ) |
Total tax charge | 70,455 | 194,973 |
8. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary shares of £1 each |
Interim |
MEDSOL GROUP LTD (REGISTERED NUMBER: 04522585) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MAY 2024 |
9. | INTANGIBLE FIXED ASSETS |
Other |
intangible |
assets |
£ |
COST |
At 1st June 2023 |
and 31st May 2024 |
AMORTISATION |
At 1st June 2023 |
Amortisation for year |
At 31st May 2024 |
NET BOOK VALUE |
At 31st May 2024 |
At 31st May 2023 |
10. | TANGIBLE FIXED ASSETS |
Fixtures |
and | Computer |
fittings | equipment | Totals |
£ | £ | £ |
COST |
At 1st June 2023 |
Additions |
At 31st May 2024 |
DEPRECIATION |
At 1st June 2023 |
Charge for year |
At 31st May 2024 |
NET BOOK VALUE |
At 31st May 2024 |
At 31st May 2023 |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Prepayments and accrued income |
MEDSOL GROUP LTD (REGISTERED NUMBER: 04522585) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MAY 2024 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Social security and other taxes |
Other creditors |
Factor advance | 1,794,398 | 3,029,195 |
Accruals and deferred income |
13. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
14. | SECURED DEBTS |
The following secured debts are included within creditors: |
2024 | 2023 |
£ | £ |
Factor advance | 1,794,398 | 3,029,195 |
The factor advance is secured by a fixed and floating charge dated 24 August 2017 over the company's assets. |
Company overdraft facilities are secured by a fixed and floating charge dated 15 June 2020 over the company's assets, and cross guarantees given by all of the group members. |
15. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax | 5,957 | 5,197 |
Deferred |
tax |
£ |
Balance at 1st June 2023 |
Provided during year |
Balance at 31st May 2024 |
MEDSOL GROUP LTD (REGISTERED NUMBER: 04522585) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31ST MAY 2024 |
16. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |
17. | RESERVES |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1st June 2023 | 607,005 |
Profit for the year |
Dividends | ( |
) | ( |
) |
Movement in period | 533,425 | (533,425 | ) | - |
At 31st May 2024 | 188,241 |
18. | CONTINGENT LIABILITIES |
The company has given a guarantee against the bank overdraft facilities to other group members. |
19. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
20. | PARENT COMPANY |
The company's immediate and ultimate parent undertaking is GPS Medsol Holdings Limited, a company incorporated in England and Wales which is the smallest and largest group for which consolidated accounts including Medsol Group Limited are prepared. The consolidated accounts of GPS Medsol Holdings Limited are available from its registered office, Amlin House, 90-96 Victoria Road, Chelmsford, CM1 1QU |