Company Registration No. 02548131 (England and Wales)
MEDICAL-LEGAL APPOINTMENTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
PAGES FOR FILING WITH REGISTRAR
LB GROUP
The Octagon
Suite E2, 2nd Floor
Middleborough
Colchester
CO1 1TG
MEDICAL-LEGAL APPOINTMENTS LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 8
MEDICAL-LEGAL APPOINTMENTS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2024
31 May 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
59,615
45,204
Current assets
Stocks
123,117
111,251
Debtors
5
10,475,704
9,980,464
Cash at bank and in hand
6,647
3,721
10,605,468
10,095,436
Creditors: amounts falling due within one year
6
(7,065,029)
(8,010,010)
Net current assets
3,540,439
2,085,426
Total assets less current liabilities
3,600,054
2,130,630
Provisions for liabilities
(13,323)
(9,434)
Net assets
3,586,731
2,121,196
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
3,586,631
2,121,096
Total equity
3,586,731
2,121,196
The notes on pages 10 to 16 form part of these financial statements.
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 3 February 2025 and are signed on its behalf by:
C J Chatterton
Director
Company Registration No. 02548131
MEDICAL-LEGAL APPOINTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 2 -
1
Accounting policies
Company information
Medical-Legal Appointments Limited is a private company limited by shares incorporated in England and
Wales under the Companies Act 2006. The address of the registered office is given on the Company
Information page and the nature of the Company's operations and its principal activities are set out in the
Director's Report.
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. The principal accounting policies adopted are set out below.
1.2
Going concern
The Directors have prepared detailed budgets and cash flows based on the circumstances known at the time of their preparation for a period beyond the next 12 months. The budgets and cash flows take into account management’s expectations of road traffic accident volumes and instruction volumes that will be achieved based on past performance, and its continued increase in sales in relation to housing disrepair and noise induced hearing loss expert evidence reports. true
The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future.
The Company is a subsidiary undertaking of FL360 Limited and a party to the group banking facilities. FL360 Limited continue to receive the support with new and increased facility levels from their banking partner. Therefore, after considering reasonably worst case downside scenarios, the Directors have a reasonable expectation that the Company can meet its obligations as the fall due. For these reasons, the financial statements have been prepared on a going concern basis.
1.3
Turnover
Turnover represents the fair value of the consideration receivable for goods and services provided in
the normal course of business, net of trade discounts, VAT and other sales related taxes.
Turnover relates to the provision of medical reports and rehabilitation services predominantly to the legal profession. Turnover Is recognised at the point of delivery of the service with fair value provision (see note 2) made as appropriate.
Turnover is generated in the United Kingdom and from one class of business.
MEDICAL-LEGAL APPOINTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 3 -
1.4
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 land and buildings
25% straight line
Plant and equipment
25% straight line
Fixtures and fittings
25% straight line
Office equipment
25% 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.
1.5
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 company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
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.
1.6
Stocks
Stock represents work in progress, which is the cost incurred in respect of cases which have not been completed and invoiced at the reporting date. This cost will include the own labour and overhead costs incurred at the year end but not yet invoiced, in respect of cases ongoing at the reporting date.
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.
1.7
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-LEGAL APPOINTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 4 -
1.8
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 statement of financial position 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.
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.
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.
MEDICAL-LEGAL APPOINTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 5 -
1.9
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.
1.10
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 income statement 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 income statement, 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.
1.11
Leases
Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight-line basis over the lease term.
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.
Fair value provision
Judgement is required on the adequacy of fair value provision held against trade debtors. The Group makes provisions for waivered referrals and expected recoveries using reliable past source data based on the average attrition rate.
MEDICAL-LEGAL APPOINTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 6 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
26
24
4
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Office equipment
Total
£
£
£
£
£
Cost
At 1 June 2023
33,674
24,130
28,366
78,728
164,898
Additions
30,553
30,553
At 31 May 2024
33,674
24,130
28,366
109,281
195,451
Depreciation and impairment
At 1 June 2023
33,674
22,317
28,366
35,337
119,694
Depreciation charged in the year
574
15,568
16,142
At 31 May 2024
33,674
22,891
28,366
50,905
135,836
Carrying amount
At 31 May 2024
1,239
58,376
59,615
At 31 May 2023
1,813
43,391
45,204
5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
9,449,444
9,400,942
Amounts owed by group undertakings
17,611
17,669
Other debtors
1,008,649
561,853
10,475,704
9,980,464
Amounts owed by group undertakings are interest free and repayable on demand.
MEDICAL-LEGAL APPOINTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 7 -
6
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
2,790,524
3,570,232
Trade creditors
2,595,990
2,712,650
Amounts owed to group undertakings
752,068
853,860
Corporation tax
13,393
144,269
Other taxation and social security
32,435
30,661
Other creditors
880,619
698,338
7,065,029
8,010,010
Amounts owed to group undertakings are interest free and repayable on demand.
At the statement of financial position date, RBS Invoice Finance Limited held a fixed and floating charge dated 3rd August 2018 over all the property or undertaking of the company.
7
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
13,323
9,434
2024
Movements in the year:
£
Liability at 1 June 2023
9,434
Charge to profit or loss
3,889
Liability at 31 May 2024
13,323
8
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 was unqualified.
Senior Statutory Auditor:
Shaun Roberts
Statutory Auditor:
LB Group Limited (Colchester)
MEDICAL-LEGAL APPOINTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 8 -
9
Financial commitments, guarantees and contingent liabilities
The company, along with other subsidiary undertakings, is a party to an invoice financing arrangement. The company has provided a debenture in favour of the lender. The company had an overdrawn balance of £2,790,524 at the year end. The total group borrowing under this facility as at 31 May 2024, was £24,505,078. (2023 - £20,561,260).
10
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
52,580
158,302
11
Related party transactions
The Company has taken advantage of the exemption in section 1AC.35 of FRS 102 not to disclose transactions with other wholly owned subsidiaries within the group headed by FL 360 Limited.
12
Parent company
The immediate parent, and ultimate controlling parent, is FL 360 Limited, a company incorporated in England and Wales. The registered address of FL 360 Limited is Speed Medical House, Matrix Park,Chorley, Lancashire, PR7 7NA.
FL 360 Limited is the smallest and largest group in which the Company’s results are consolidated. The Company is registered at the same address as the Company, as given on the Company Information page.The consolidated accounts of this Company are available to the public and may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.
The ultimate controlling party is Dr Rajnish Luthra.