Athona Limited
Annual Report and Financial Statements
For the year ended 31 July 2024
Company Registration No. 04854351 (England and Wales)
Athona Limited
Company Information
Directors
S D London
T London
Secretary
D Shoben
Company number
04854351
Registered office
Orbital House
20 Eastern Road
Romford
Essex
RM1 3PJ
Auditor
Moore Kingston Smith LLP
Orbital House
20 Eastern Road
Romford
Essex
RM1 3PJ
Business address
2nd Floor, Kingsgate House
1 King Edward Road
Brentwood
Essex
CM14 4HG
Athona Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 25
Athona Limited
Strategic Report
For the year ended 31 July 2024
Page 1

The directors present the strategic report and financial statements for the year ended 31 July 2024.

 

The principal activity of the company throughout the year was the operation of healthcare recruitment.

Review of the Business

The healthcare business reported turnover of £46,032,655 (2023: £59,873,750) for the year, which was 23.1% lower compared to the prior year. However, cost of sales were tightly monitored and controlled which resulted in the gross profit margin for the healthcare business increasing to 16.15% (2023: 15.00%), with gross profit of £7,433,894 (2023: £8,980,800). Despite a reduction in overhead expenses, EBIT was lower than the prior year for the healthcare business by £1,023,923.

 

In terms of compliance, the Locum Doctors, AHP and Nursing divisions have continued to maintain their high standards of compliance with the National Staffing Frameworks Workforce Alliance (formally CPP and CCS) and H.T.E. Following a successful audit of the business’s ISO9001:2015 Quality Management System which passed with no nonconformities identified we were recommended for continued registration.

 

The company values communication between senior management and employees on all matters affecting the welfare of the business. Monthly management meetings are held between the Directors and Business Managers to allow the free flow of information and ideas.

Principal Risks and Uncertainties

The company’s principal financial instruments comprise its trade debtors and trade creditors. The business finance agreement with RBS Invoice Finance Limited, through which it factors its trade debt, is secured by a fixed and floating charge over the assets of the company.

The company is aware of the risk of bad debt. The Directors have established relationships with clients and are also identifying any credit issues in a timely manner.

Financial Risk Management Objectives and Policies

The company seeks to manage and minimise financial risk by ensuring that sufficient funding is available at all times to meet foreseeable needs.

 

The company manages business risk by maintaining very strong relationships with clients, suppliers and employees, and also by making changes in response to market conditions in the recruitment industry.

Key Performance Indicators

The company's key performance indicators are as follows -

 

2024
2023
Turnover
£46,032,655
£59,873,750
Gross profit
£7,433,894
£8,980,800
Gross profit margin
16.15%
15.00%
EBIT
£995,351
£2,019,274
Athona Limited
Strategic Report (Continued)
For the year ended 31 July 2024
Page 2
Future Developments

The company is continuing to saturate current market sectors by increasing the candidate and client base within specific geographical regions. By moving into new market sectors, the aim is to minimise the risk of being dependent on the current sectors.

 

The company has historically dealt with clients in both public and private sectors, however currently and going forward we are seeing continued growth in our private sector clients.

 

The company has continued to support a number of Service Level Agreements during the year, and has maintained its sole supplier status for a number of clients.

 

Owing to the factors outlined above, the outlook for the company is very positive and strong for the future.

On behalf of the board

S D London
Director
24 February 2025
Athona Limited
Directors' Report
For the year ended 31 July 2024
Page 3

The directors present their report and financial statements for the year ended 31 July 2024.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £627,389 (2023: £418,539). 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:

S D London
T London
Auditor

In accordance with the company's articles, a resolution proposing that Moore Kingston Smith LLP be reappointed as auditor of the company 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.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of risk management and future developments.

Athona Limited
Directors' Report (Continued)
For the year ended 31 July 2024
Page 4
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.

On behalf of the board
S D London
Director
24 February 2025
Athona Limited
Independent Auditor's Report
To the Members of Athona Limited
Page 5
Opinion

We have audited the financial statements of Athona Limited (the 'company') for the year ended 31 July 2024 which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity, the Statement of Cash Flows 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 FRS 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.

Athona Limited
Independent Auditor's Report (Continued)
To the Members of Athona Limited
Page 6

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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.

Athona Limited
Independent Auditor's Report (Continued)
To the Members of Athona Limited
Page 7
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.

 

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

Athona Limited
Independent Auditor's Report (Continued)
To the Members of Athona Limited
Page 8

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Our approach was as follows:

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Paul Springfield (Senior Statutory Auditor)
for and on behalf of Moore Kingston Smith LLP
24 February 2025
Chartered Accountants
Statutory Auditor
Orbital House
20 Eastern Road
Romford
Essex
RM1 3PJ
Athona Limited
Statement of Comprehensive Income
For the year ended 31 July 2024
Page 9
2024
2023
Notes
£
£
Turnover
3
46,032,655
59,873,750
Cost of sales
(38,598,761)
(50,892,950)
Gross profit
7,433,894
8,980,800
Administrative expenses
(6,695,413)
(7,207,903)
Other operating income
256,870
246,377
Operating profit
4
995,351
2,019,274
Interest receivable and similar income
19,531
151
Interest payable and similar expenses
7
(116,452)
(178,897)
Profit before taxation
898,430
1,840,528
Tax on profit
8
(255,321)
(401,474)
Profit for the financial year
643,109
1,439,054

The statement of income and retained earnings has been prepared on the basis that all operations are continuing operations.

Athona Limited
Balance Sheet
As at 31 July 2024
Page 10
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
10
201,788
165,360
Tangible assets
11
121,230
75,859
Investments
12
3
3
323,021
241,222
Current assets
Debtors
14
5,170,713
10,643,619
Cash at bank and in hand
528,354
175,501
5,699,067
10,819,120
Creditors: amounts falling due within one year
15
(3,379,348)
(8,454,569)
Net current assets
2,319,719
2,364,551
Total assets less current liabilities
2,642,740
2,605,773
Provisions for liabilities
Deferred tax liability
18
(77,721)
(56,474)
(77,721)
(56,474)
Net assets
2,565,019
2,549,299
Capital and reserves
Called up share capital
19
32,000
32,000
Profit and loss reserves
2,533,019
2,517,299
Total equity
2,565,019
2,549,299
The financial statements were approved by the board of directors and authorised for issue on 24 February 2025 and are signed on its behalf by:
S D London
T  London
Director
Director
Company Registration No. 04854351
Athona Limited
Statement of Changes in Equity
For the year ended 31 July 2024
Page 11
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 August 2022
32,000
1,496,784
1,528,784
Year ended 31 July 2023:
Profit and total comprehensive income for the year
-
1,439,054
1,439,054
Dividends
9
-
(418,539)
(418,539)
Balance at 31 July 2023
32,000
2,517,299
2,549,299
Year ended 31 July 2024:
Profit and total comprehensive income for the year
-
643,109
643,109
Dividends
9
-
(627,389)
(627,389)
Balance at 31 July 2024
32,000
2,533,019
2,565,019
Athona Limited
Statement of Cash Flows
For the year ended 31 July 2024
Page 12
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
1,658,610
1,864,809
Interest received
4,542
-
0
Interest paid
(116,452)
(178,897)
Net income taxes paid
(339,865)
(742,580)
Net cash inflow from operating activities
1,206,835
943,332
Investing activities
Purchase of intangible assets
(89,420)
(164,765)
Purchase of tangible fixed assets
(91,839)
(30,766)
Advances of loans
(24,000)
(93,000)
Net cash used in investing activities
(205,259)
(288,531)
Financing activities
Payment of finance leases obligations
(21,334)
(78,258)
Dividends paid
(627,389)
(418,539)
Net cash used in financing activities
(648,723)
(496,797)
Net increase in cash and cash equivalents
352,853
158,004
Cash and cash equivalents at beginning of year
175,501
17,497
Cash and cash equivalents at end of year
528,354
175,501
Athona Limited
Notes to the Financial Statements
For the year ended 31 July 2024
Page 13
1
Accounting policies
Company information

Athona Limited is a private company limited by shares incorporated in England and Wales. The registered office is Orbital House, 20 Eastern Road, Romford, Essex, RM1 3PJ and the business address is Kingsgate House, 2nd Floor,1 King Edward Road, Brentwood, Essex, CM14 4HG.

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.

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 pound.

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 three subsidiary undertakings, being dormant £1 companies, are considered to be immaterial and the directors therefore have not prepared consolidated financial statements for the year under review.

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 and for a period of at least 12 months following approval of these financial statements. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided by medical professionals recruited by the company 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.

Turnover represents revenue earned under a variety of contracts to provide professional recruitment services. Turnover is recognised as earned when, and to the extent that, the firm obtains the right to consideration in exchange for its performance under these contracts.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are stated at cost less accumulated amortisation. Amortisation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following basis:

Computer software
25% straight line
Athona Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2024
1
Accounting policies
(Continued)
Page 14
1.5
Tangible fixed assets

Tangible fixed assets are stated at cost less depreciation. Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following basis:

Fixtures, fittings & equipment
25% straight line
Computer 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.

1.6
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.

1.7
Cash and cash equivalents

Cash and cash equivalents 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.

1.8
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.

Basic financial assets

Basic financial assets, which include trade and other receivables 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.

Basic financial liabilities

Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price and are subsequently carried at amortised cost using the effective interest rate method.

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.

Athona Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2024
1
Accounting policies
(Continued)
Page 15
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 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.

1.11
Retirement benefits

The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.

1.12
Share-based payments

The company has established an EMI share option scheme for eligible employees.

 

The fair value of equity-settled share based payments to employees is determined at the date of grant and is expensed on a straight-line basis over the vesting period based on the company’s estimate of shares or options that will eventually vest.

The company has no cash-settled share based payment arrangements.

1.13
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease.

Athona Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2024
Page 16
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.

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.

Useful economic life of intangible fixed assets

The annual amortisation charge for intangible assets is sensitive to changes in the estimated lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. See note 10 for the carrying amount of the intangible assets and note 1.4 for the useful economic lives for each class of asset.

Useful economic lives of tangible fixed assets

The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. See note 11 for the carrying amount of the tangible fixed assets and note 1.5 for the useful economic lives for each class of asset.

3
Turnover

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Rendering of services
46,032,655
59,873,750
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
46,032,655
59,873,750
Athona Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2024
Page 17
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
23,250
22,000
Depreciation of owned tangible fixed assets
46,468
5,046
Depreciation of tangible fixed assets held under finance leases
-
122,586
Amortisation of intangible assets
52,992
53,486
Operating lease charges
343,714
343,714
5
Employees

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

2024
2023
Number
Number
Directors
2
2
Sales
43
48
Administration
52
52
Total
97
102

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
4,336,057
4,928,037
Social security costs
448,357
529,920
Pension costs
57,299
60,478
4,841,713
5,518,435
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
42,269
41,727

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).

Athona Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2024
Page 18
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on finance leases
210
3,544
Finance charges on debt factoring facilities
116,195
175,353
116,405
178,897
Other finance costs:
Other interest
47
-
0
116,452
178,897
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
234,074
389,626
Deferred tax
Origination and reversal of timing differences
21,247
11,848
Total tax charge
255,321
401,474

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

2024
2023
£
£
Profit before taxation
898,430
1,840,528
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
224,608
460,132
Tax effect of expenses that are not deductible in determining taxable profit
29,970
8,764
Effect of change in corporation tax rate
-
0
(74,094)
Permanent capital allowances in excess of depreciation
(928)
5,146
Capital items expensed
1,671
1,526
Taxation charge for the year
255,321
401,474
Athona Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2024
Page 19
9
Dividends
2024
2023
£
£
Interim paid
627,389
418,539
10
Intangible fixed assets
Computer software
£
Cost
At 1 August 2023
584,417
Additions
89,420
At 31 July 2024
673,837
Amortisation and impairment
At 1 August 2023
419,057
Amortisation charged for the year
52,992
At 31 July 2024
472,049
Carrying amount
At 31 July 2024
201,788
At 31 July 2023
165,360
Athona Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2024
Page 20
11
Tangible fixed assets
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
Cost
At 1 August 2023
436,751
338,534
775,285
Additions
13,016
78,823
91,839
At 31 July 2024
449,767
417,357
867,124
Depreciation and impairment
At 1 August 2023
409,909
289,517
699,426
Depreciation charged in the year
11,101
35,367
46,468
At 31 July 2024
421,010
324,884
745,894
Carrying amount
At 31 July 2024
28,757
92,473
121,230
At 31 July 2023
26,842
49,017
75,859

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Plant and machinery
-
0
30,433
Depreciation charge for the year in respect of leased assets
-
122,586
12
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
13
3
3
Athona Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2024
Page 21
13
Subsidiaries

These financial statements are separate company financial statements for Athona Limited.

Details of the company's subsidiaries at 31 July 2024 are as follows:

Name of undertaking
Country
Nature of
Class of
% Held
business
shares held
Direct
Athona Doctors Limited
England and Wales
Dormant
Ordinary
100.00
Athona Health Limited
England and Wales
Dormant
Ordinary
100.00
Athona Clinical Services Limited
England and Wales
Dormant
Ordinary
100.00

All of the above subsidiaries have the same registered office of Orbital House, 20 Eastern Road, Romford, Essex, RM1 3PJ.

14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,055,277
8,804,918
Corporation tax recoverable
432,559
194,605
Other debtors
706,966
978,978
Prepayments and accrued income
975,911
665,118
5,170,713
10,643,619
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
16
-
0
2,839,501
Obligations under finance leases
17
-
0
21,334
Trade creditors
428,501
450,149
Corporation tax
117,174
-
0
Other taxation and social security
769,573
1,288,571
Other creditors
629,118
1,145,745
Accruals and deferred income
1,434,982
2,709,269
3,379,348
8,454,569
Athona Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2024
Page 22
16
Loans and overdrafts
2024
2023
£
£
Bank loans
-
0
2,839,501
Payable within one year
-
0
2,839,501

The company entered into a business finance agreement with RBS Invoice Finance Limited, through which it factors its trade debts. The agreement is secured by a fixed and floating charge over the assets of the company.

 

Included in bank loans and overdrafts is an amount owed to RBS Invoice Finance Limited of £nil (2023: £2,839,501).

17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
-
0
21,334
18
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
77,721
56,474
2024
Movements in the year:
£
Liability at 1 August 2023
56,474
Charge to profit or loss
21,247
Liability at 31 July 2024
77,721
Athona Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2024
18
Deferred taxation
(Continued)
Page 23

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

 

The company's deferred tax balances at the reporting date are taxed at an effective rate of 25% (2023: 25%).

 

19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
32,000
32,000
32,000
32,000

On 24 May 2017, five employees were issued a total of 1,692 share options at an exercise price of £10.86 per share. The options for all eligible employees are exercisable should the company be acquired, taken over or floated. The expiry date is ten years after the date the options were granted or at an earlier date should the employee cease to be an eligible employee. The share options carry neither rights to dividends nor voting rights. Two employees have since left employment which meant that their 846 share options lapsed meaning at the balance sheet date the total number of share options still in issue was 846.

 

On 21 March 2019, six employees were issued a total of 4,408 share options at an exercise price of £9.83 per share. The options for all eligible employees are exercisable should the company be acquired, taken over or floated. The expiry date is ten years after the date the options were granted or at an earlier date should the employee cease to be an eligible employee. The share options carry neither rights to dividends nor voting rights. Two employees have since left employment which meant that their 2,964 share options lapsed meaning at the balance sheet date the total number of share options still in issue was 1,444.

 

On 11 May 2021, five employees were issued a total of 6,090 share options at an exercise price of £5.58 per share. The options for all eligible employees are exercisable should the company be acquired, taken over or floated. The expiry date is ten years after the date the options were granted or at an earlier date should the employee cease to be an eligible employee. The share options carry neither rights to dividends nor voting rights. One employee has since left employment which meant that their 2,834 share options lapsed meaning at the balance sheet date, the total number of share options still in issue was 3,256.

 

The estimated fair value was calculated by applying the Black-Scholes option pricing model. The estimated fair value of the share options at the balance sheet date of £44,799 (2023: £41,009) has not been charged to the profit and loss account as the directors consider that it is not material to the financial statements.

 

After the balance sheet date, on 29 October 2024, the employee share options were exercised. 5,546 ordinary share of £1 each were issued for an exercise price of £41,551. Subsequent to this, 71% of the share capital was sold to the Athona Employee Ownership Trust.

Athona Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2024
Page 24
20
Retirement benefit schemes
Defined contribution schemes

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.

 

The charge to profit and loss in respect of defined contribution pension schemes was £57,299 (2023: £60,478).

Included within other creditors is an amount of £19,110 (2023: £23,116) due in outstanding pension contributions.

21
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
149,134
343,714
Between two and five years
-
0
149,134
149,134
492,848
22
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
898,235
1,153,337
Other information

The company is related to Athona Education Limited by virtue of common control under the directors S D London and T London. During the year, the company made a management charge of £246,550 (2023: £230,877) to Athona Education Limited. At the year end, included in other debtors is a balance of £254,543 (2023: £545,904) due from Athona Education Limited.

23
Events after the reporting date

After the balance sheet date on 29 October 2024, 5,546 additional ordinary £1 shares were issued when the employee share options were exercised. 71% of the company's share capital was then transferred to the Athona Employee Ownership Trust, the directors retained the remaining share capital.

Athona Limited
Notes to the Financial Statements (Continued)
For the year ended 31 July 2024
Page 25
24
Ultimate controlling party

During the year, the company was jointly controlled by the directors who together owned the entire share capital. After the balance date on 29 October 2024, 71% of the share capital was transferred to the Athona Employee Ownership Trust.

25
Directors' transactions

During the year dividends of £627,389 (2023: £418,539) were paid to the directors. At the the balance sheet date included in other debtors is an amount of £450,232 (2023: £426,232) due from the directors.

26
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
643,109
1,439,054
Adjustments for:
Taxation charged
255,321
401,474
Finance costs
116,452
178,897
Investment income
(19,531)
(151)
Amortisation and impairment of intangible assets
52,992
53,486
Depreciation and impairment of tangible fixed assets
46,468
127,632
Movements in working capital:
Decrease/(increase) in debtors
5,734,860
(58,419)
Decrease in creditors
(5,171,061)
(277,164)
Cash generated from operations
1,658,610
1,864,809
27
Analysis of changes in net funds/(debt)
1 August 2023
Cash flows
31 July 2024
£
£
£
Cash at bank and in hand
175,501
352,853
528,354
Borrowings excluding overdrafts
(2,839,501)
2,839,501
-
Obligations under finance leases
(21,334)
21,334
-
(2,685,334)
3,213,688
528,354
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