REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE PERIOD 1 OCTOBER 2022 TO 31 MARCH 2024 |
FOR |
FIRST OPTION HEALTHCARE LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE PERIOD 1 OCTOBER 2022 TO 31 MARCH 2024 |
FOR |
FIRST OPTION HEALTHCARE LIMITED |
FIRST OPTION HEALTHCARE LIMITED (REGISTERED NUMBER: 09741480) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the period 1 October 2022 to 31 March 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Statement of Comprehensive Income | 9 |
Statement of Financial Position | 10 |
Statement of Changes in Equity | 12 |
Notes to the Financial Statements | 13 |
FIRST OPTION HEALTHCARE LIMITED |
COMPANY INFORMATION |
for the period 1 October 2022 to 31 March 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
16 Davy Court |
Castle Mound Way |
Rugby, CV23 0UZ |
Magma Audit LLP is part |
Of the Dains Group |
FIRST OPTION HEALTHCARE LIMITED (REGISTERED NUMBER: 09741480) |
STRATEGIC REPORT |
for the period 1 October 2022 to 31 March 2024 |
The Directors present the strategic report together with financial reports for First Option Healthcare Limited (the company) for the period ended 31 March 2024. The Board aims to present a balanced and comprehensive review of the development and performance of the business during the period and its position at the period end. The review is consistent with the size and nature of the business and is written in the context of the risks and uncertainties that the group faces. |
REVIEW OF BUSINESS |
The company provides complex care in the home for seriously ill adults and children. The company works with multiple key stakeholders including NHS Continuing Healthcare through various ICB's, Local Authorities, Educational institutions, Case Management companies and private individuals. The care that is provided is bespoke to each individual with a focus on providing the best possible care and constantly improving the quality of the service. |
The Board monitors the performance of the company through a variety of measurements both financial and non-financial in order to maintain effective control over the business. The most important of these are known as key performance indicators (KPIs). The company monitors non-financial KPIs monthly through a governance report. This repor includes staff numbers (sickness, starters, leavers), client numbers, complaints, and incidents, as well as compliments. The main financial KPIs that the company monitors are turnover, gross profit and pross profit margin percentage and these are set out below for the period ended 31 March 2024 with comparative for the period to 30 September 2022. |
2024 | 2022 |
Turnover | £22,688,341 | £24,046,716 |
Gross Profit | £7,993,575 | £7,417,007 |
Gross Profit % | 35.2% | 30.8% |
Operating Profit | £684,001 | £950,746 |
At the period end the company has net current assets of £646,317 (2022: £433,386) and net assets of £477,355 (2022: £472,824). |
PRINCIPAL RISKS AND UNCERTAINTIES |
The Board takes a conservative approach to risk minimising and mitigating for risk where possible. The Board also takes its responsibilities to financial stability seriously leaving investments in the business to allow the business to expand and grow. |
The company funds its operations through a combination of retained earnings, invoice finance facilities and a short-term government backed loan. They provide the flexibility to support the company through any significant changes in business capacity if needed. The directors are confident that the facilities provide adequate finance for the future growth and for the natural development of the company. |
The Covid-19 pandemic exposed several risks for the company which were all addressed through the implementation of robust business continuity plans, on the main part most of the risks were identified and mitigated without impact to the business. |
Brexit also posed uncertainties with the main impact being a reduction in the workforce, especially of European healthcare workers which has impacted the care sector. The business has tackled this challenge directly through implementation of new recruitment strategies and has also obtained a Sponsor license through the Home Office. |
The Board of the company is continuing to work on developing the strategy for growth and this will see the new business pipeline continue to grow and will provide new work streams for the company throughout the next financial period. |
The company has invested in a new department for PALMS incorporating Mental health, Autism and Learning Disabilities. We have developed training and support strategies for staff who work in this department and have created a management structure to mirror the existing business. |
FIRST OPTION HEALTHCARE LIMITED (REGISTERED NUMBER: 09741480) |
STRATEGIC REPORT |
for the period 1 October 2022 to 31 March 2024 |
The company has invested in its Clinical Team and has put an emphasis on education of the workforce, this is to ensure that care delivered is to the highest standard and that the company is in a position to be able to care for individuals with extremely complex conditions. This investment has enabled the company to grow a Clinical Education team who are specialists in community complex care and can support the business with our clients. |
The company has developed its Clinical Governance throughout this reporting period and has developed strong relationships with the industry regulators and also collaborates with professional bodies. This has led to further development of the companies technology solutions which will facilitate quality assurance and oversight of care provision for our teams and improve client outcomes and safety. |
Future Developments |
The Company is developing the business to support more clients from the Complex Care sector to ensure that they have a highly skilled workforce in place, supporting the healthcare industry. We work in close collaboration with our Key Stakeholders to provide services that are tailored to our clients needs. Throughout the 2025 Financial reporting period the company will see improvements from a new business wide operating system and from a new recruitment and retention strategy that has been implemented. |
The educational side of the company has also grown and more variety of training opportunities are now available internally for our staff that are all fully CPD accredited. The bespoke training that is offered will continue to be developed throughout the reporting period to include new equipment that will be utilised across our training suite and on other sites that we use for training. We will also be working with one of our stakeholders to develop a new multisensory SEND room which will be utilised for our training of staff, this is expected to be operational towards the end of the 2025 reporting period. |
Risk Management |
The board recognises the importance of identification, evaluation and management of the company's risks. Regular corporate governance meetings and clinical governance meetings address the principal risks as they may arise. |
The risks are logged on our corporate risk register and are monitored regularly with mitigating factors put in place. Monthly Clinical governance meetings ensure that any incidents that occur are tracked and monitored so that risks can be mitigated continuously. These risks are linked back to our insurers where required. |
The main financial risks that the director's consider to be relevant for the company are Pricing, Credit and Liquidity. |
- | Pricing |
The main risks are posed due to increases in national living wage, minimum wage, increases in National Insurance contributions and the impact of IR35 on staff wages, the company have mitigated these risks in approaching our commissioners for uplifts in line with inflation. |
- | Credit |
The exposure is mitigated through our large client base and internal processes for monitoring the credit status of overdue accounts. Throughout the reporting period improvements to our internal processes have improved the credit status of the company, this continues to be monitored weekly. |
- | Liquidity |
The company manages the risk by budgeting each financial period and forecasting cash flows in the short to medium terms. The company also monitors working capital position on a weekly and monthly basis. Long term liquidity is assured through committed funding arrangements that are in place. |
Employees |
The board is committed to being a responsible employer and strives to create a working environment where employees are engaged, informed and involved. First Option Healthcare Ltd has five core values of Excellence, Respect, Collaboration, Integrity and Ownership. All staff have quarterly reviews with their line manager when they can provide feedback and get support with their personal and professional development. |
First Option Healthcare Ltd is committed to fostering an inclusive workplace that supports the recruitment, retention, and career growth of individuals with disabilities. We ensure equal opportunities and provide reasonable accommodations in accordance with best practices and legal requirements, as reflected in our policies. |
The company supports employees to access training events and CPD courses that are relevant to their job roles. The company also invests time and money in organising team building events and social activities for staff to enable them to feel valued and part of the team. |
FIRST OPTION HEALTHCARE LIMITED (REGISTERED NUMBER: 09741480) |
STRATEGIC REPORT |
for the period 1 October 2022 to 31 March 2024 |
Corporate Social Responsibility |
The board recognise its responsibility to achieve good environmental practice and make a positive contribution to the community. The company is very aware of the environmental impact and as such we have implemented environmental waste management systems in our offices, we have also reduced the use of disposable items where possible and encourage our staff to do the same. The Company supports THE DUST PROJECT and has a particular charitable focus for looking after children in need. The company also supports staff with carrying out charitable work and regularly donates funds at charity events. The company also supports Growing Hope Foundation who provide support to families that have children with complex health needs. We refer clients to them and have directly supported their fund raising efforts. The company supports charity events in the office environment such as coffee mornings, and national fund raiser events such as red nose day. Staff have been supported by the company to run marathon's for charity and to take part in other fund raising events. |
Business conduct and relationships |
The board recognises the importance of a strong corporate culture that considers the best interests of its employees, business partners and shareholders. The board recognises its responsibility to other external stakeholders including its clients, contractors and suppliers. Its strong relationship with its clients and staff are critical to driving growth. |
We support all of our key stakeholders by developing good relationships that enable us to deliver the highest quality of care for all our clients. We hold as a minimum quarterly meetings with all stakeholders, to ensure that good quality engagement takes place regularly, this enables any issues to be addressed promptly and reduces any issues with billing, invoicing or service delivery. |
ON BEHALF OF THE BOARD: |
FIRST OPTION HEALTHCARE LIMITED (REGISTERED NUMBER: 09741480) |
REPORT OF THE DIRECTORS |
for the period 1 October 2022 to 31 March 2024 |
The directors present their report with the financial statements of the company for the period 1 October 2022 to 31 March 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the period under review was that of the provision of critical health care. |
DIVIDENDS |
Total dividends of £531,000 (2022: £615,469) have been declared and paid in the 18 month period ended 31 March 2024. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 October 2022 to the date of this report. |
M Wilson - resigned 1 November 2022 |
Other changes in directors holding office are as follows: |
CHARITABLE DONATIONS AND EXPENDITURE |
During the 18 month period ending 31 March 2024, the company made charitable donations totalling £12,900 (2022: £24,587). |
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. |
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. |
Matters covered in the Strategic report |
The company has chosen in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out in the company's Strategic Report information required by the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 Schedule 7 to be contained in the directors' report. |
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. |
FIRST OPTION HEALTHCARE LIMITED (REGISTERED NUMBER: 09741480) |
REPORT OF THE DIRECTORS |
for the period 1 October 2022 to 31 March 2024 |
AUDITORS |
The auditors, Magma Audit LLP, 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 |
FIRST OPTION HEALTHCARE LIMITED |
Opinion |
We have audited the financial statements of First Option Healthcare Limited (the 'company') for the period ended 31 March 2024 which comprise the Statement of Comprehensive Income, Statement of Financial Position, 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 31 March 2024 and of its profit for the period 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 period 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. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FIRST OPTION HEALTHCARE LIMITED |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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: |
Based on our understanding of the company and the industry, we have identified the principal risks of non-compliance with laws and regulations, and we have considered the extent to which non-compliance might have a material effect on the financial statements. We have also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries, and management bias in accounting estimates. Audit procedures performed included: |
- | Discussions with management for consideration of known or suspected instances of non-compliance with laws and regulations and fraud. |
- | Challenging assumptions made by management in their significant accounting estimates, in particular useful economic life of fixed assets, bad debt provision and going concern. |
- | Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations, journal entries crediting revenue, journal entries crediting cash and journal entries with specific defined descriptions. |
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting in error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through collusion. |
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. |
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 |
16 Davy Court |
Castle Mound Way |
Rugby, CV23 0UZ |
Magma Audit LLP is part |
Of the Dains Group |
FIRST OPTION HEALTHCARE LIMITED (REGISTERED NUMBER: 09741480) |
STATEMENT OF COMPREHENSIVE |
INCOME |
for the period 1 October 2022 to 31 March 2024 |
Period | Period |
1/10/22 | 1/4/21 |
to | to |
31/3/24 | 30/9/22 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
620,136 | 847,775 |
Other operating income |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
686,102 | 952,268 |
Interest payable and similar expenses | 6 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 7 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL PERIOD |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
FIRST OPTION HEALTHCARE LIMITED (REGISTERED NUMBER: 09741480) |
STATEMENT OF FINANCIAL POSITION |
31 March 2024 |
2024 | 2022 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 | 300,827 | 163,449 |
CURRENT ASSETS |
Stocks | 11 |
Debtors | 12 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 13 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET ASSETS |
FIRST OPTION HEALTHCARE LIMITED (REGISTERED NUMBER: 09741480) |
STATEMENT OF FINANCIAL POSITION - continued |
31 March 2024 |
2024 | 2022 |
Notes | £ | £ |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings | 20 | 477,255 | 472,724 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
FIRST OPTION HEALTHCARE LIMITED (REGISTERED NUMBER: 09741480) |
STATEMENT OF CHANGES IN EQUITY |
for the period 1 October 2022 to 31 March 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 September 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2024 |
FIRST OPTION HEALTHCARE LIMITED (REGISTERED NUMBER: 09741480) |
NOTES TO THE FINANCIAL STATEMENTS |
for the period 1 October 2022 to 31 March 2024 |
1. | STATUTORY INFORMATION |
First Option Healthcare Limited is a private company, limited by shares, registered in England and Wales. The company's registration number is 09741480 and registered office address is North Wing, Amp House 7th Floor, Dingwall Road, Croydon, England, CR0 2LX. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements are presented in Sterling (£) and rounded to the nearest pound. |
The financial statements are for the 18 month period ended 31 March 2024. The previous financial period was for the 18 month period ended 30 September 2022 and therefore the figures are comparable, due to both periods being drawn up for the same longer period. The period end was extended in order to align the Group entities to have the same year end going forward. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" under section 1.12: |
- the requirements of Section 7 Statement of Cash Flows; |
- the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); |
- the requirement of paragraph 33.7. |
Turnover |
Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: |
Rendering of services |
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: |
- the amount of revenue can be measured reliably; |
- it is probable that the company will receive the consideration due under the contract; |
- the stage of completion of the contract at the end of the reporting period can be measured reliably; and |
- the costs incurred and the costs to complete the contract can be measured reliably. |
Intangible assets |
Intangible assets comprise Computer software which is stated at cost less accumulated amortisation and accumulated impairment losses. Software is amortised over its useful economic life, of 3 years, on a straight line basis. |
Where factors such as technological advancement or changes in market price, indicate that residual value or useful economic life have changed, the residual value, useful life or amortisation rate are amended prospectively to reflect the new circumstances. |
The assets are reviewed for impairment if the above factors indicate that the carrying amount may be impaired. |
FIRST OPTION HEALTHCARE LIMITED (REGISTERED NUMBER: 09741480) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the period 1 October 2022 to 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated |
impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the |
location and condition necessary for it to be capable of operating in the manner intended by management. |
Depreciation is charged so as to allocate the cost of assets to their residual value over their estimated useful |
lives, using a straight line or reducing balance method, as indicated below: |
Fixtures & Fittings | - 4 years straight line |
Computer equipment | - 2 to 4 years straight line |
Motor vehicles | - 20% reducing balance |
The depreciation charge is pro-rated in the years of acquisition and disposals of assets. |
The asset's residual value, useful lives and depreciation methods are reviewed, and adjusted prospectively if |
appropriate, or if there is an indication of a significant change since the last reporting date. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are |
recognised in profit or loss. |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. |
At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss. |
Financial instruments |
(i) Financial assets |
Basic financial assets, including trade and other debtors, cash and bank balances and investments are initially recognised at transaction price, 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. |
Such assets are subsequently carried at amortised cost using the effective interest method. |
(ii) Financial liabilities |
Basic financial liabilities, including trade and other creditors, bank loans and loans from fellow group companies are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. |
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. Creditors 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. |
FIRST OPTION HEALTHCARE LIMITED (REGISTERED NUMBER: 09741480) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the period 1 October 2022 to 31 March 2024 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
The tax expense for the year comprises current and deferred tax. |
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. |
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that: |
- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and |
- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. |
Both current and deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Hire purchase and operating leases |
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and their useful lives. Obligations under such agreements are included in creditors net of the finance charge. The finance element of the rental payment is charged to the income statement so as to produce a constant periodic rate of charge on the net obligation outstanding in each period. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Dividends |
Equity dividends are recognised when they became legally payable. |
Invoice discounting |
The gross amount of invoice discounted debts are included in trade debtors and a corresponding liability in respect of proceeds received from factors are shown within current liabilities. Charges and interest are recognised in the profit and loss account as they accrue. |
Other income |
Income in respect of management charges is recognised within other operating income in the period in which the services are provided. |
Critical accounting estimates and assumptions |
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. |
(i) Impairment of debtors |
The company makes an estimate of the recoverable value of intercompany and other debtors. When assessing impairment of intercompany and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. |
(ii) Going concern |
In completing an assessment as to whether the company is a going concern, budgets and forecasts are used which are based on estimates. Management uses their knowledge of past performance and future expectations in selecting these estimates. |
3. | TURNOVER |
The whole of the turnover is attributable to the principal activity of the company and originated in the United Kingdom. |
FIRST OPTION HEALTHCARE LIMITED (REGISTERED NUMBER: 09741480) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the period 1 October 2022 to 31 March 2024 |
4. | EMPLOYEES AND DIRECTORS |
Period | Period |
1/10/22 | 1/4/21 |
to | to |
31/3/24 | 30/9/22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the period was as follows: |
Period | Period |
1/10/22 | 1/4/21 |
to | to |
31/3/24 | 30/9/22 |
Directors | 4 | 4 |
Clinical Lead and Care Managers | 29 | 30 |
Nursing Contractors | 232 | 157 |
Finance, IT and administration | 21 | 28 |
Period | Period |
1/10/22 | 1/4/21 |
to | to |
31/3/24 | 30/9/22 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
Period | Period |
1/10/22 | 1/4/21 |
to | to |
31/3/24 | 30/9/22 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
FIRST OPTION HEALTHCARE LIMITED (REGISTERED NUMBER: 09741480) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the period 1 October 2022 to 31 March 2024 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
Period | Period |
1/10/22 | 1/4/21 |
to | to |
31/3/24 | 30/9/22 |
£ | £ |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Computer software amortisation |
Auditors' remuneration |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period | Period |
1/10/22 | 1/4/21 |
to | to |
31/3/24 | 30/9/22 |
£ | £ |
Bank loan interest |
Other loan interest |
Hire purchase |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the period was as follows: |
Period | Period |
1/10/22 | 1/4/21 |
to | to |
31/3/24 | 30/9/22 |
£ | £ |
Current tax: |
UK corporation tax |
Tax on profit |
FIRST OPTION HEALTHCARE LIMITED (REGISTERED NUMBER: 09741480) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the period 1 October 2022 to 31 March 2024 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the period is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
Period | Period |
1/10/22 | 1/4/21 |
to | to |
31/3/24 | 30/9/22 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes |
Superdeduction | (224 | ) | (2,056 | ) |
Change in tax rates | 4,089 | - |
Group relief | (87,358 | ) | - |
Total tax charge | 63,977 | 191,911 |
8. | DIVIDENDS |
Period | Period |
1/10/22 | 1/4/21 |
to | to |
31/3/24 | 30/9/22 |
£ | £ |
Ordinary shares of £0.10 each |
Interim |
9. | INTANGIBLE FIXED ASSETS |
Computer |
software |
£ |
COST |
At 1 October 2022 |
Additions |
At 31 March 2024 |
AMORTISATION |
At 1 October 2022 |
Amortisation for period |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 30 September 2022 |
FIRST OPTION HEALTHCARE LIMITED (REGISTERED NUMBER: 09741480) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the period 1 October 2022 to 31 March 2024 |
10. | TANGIBLE FIXED ASSETS |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 October 2022 |
Additions |
At 31 March 2024 |
DEPRECIATION |
At 1 October 2022 |
Charge for period |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 30 September 2022 |
The net carrying amount of assets held under finance leases included in motor vehicles is £258,371 (2022 - £95,163) |
11. | STOCKS |
2024 | 2022 |
£ | £ |
Finished goods |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2022 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Directors' current accounts | 249,163 | 77,058 |
VAT |
Prepayments and accrued income |
Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand. |
Details in respect of overdrawn directors' current accounts are disclosed in note 23. |
FIRST OPTION HEALTHCARE LIMITED (REGISTERED NUMBER: 09741480) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the period 1 October 2022 to 31 March 2024 |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 15) |
Hire purchase contracts (see note 16) |
Trade creditors |
Tax |
Social security and other taxes |
VAT | - | 3,203 |
Other creditors |
Accruals and deferred income |
Other creditors includes outstanding pension contributions totalling £37,261 (2022: £31,429) |
Amounts received of £1,024,077 (2022: £800,954) in respect of debtors which have been financed by invoice discounting have been included within other creditors as proceeds of invoice discounted debts. |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2022 |
£ | £ |
Bank loans (see note 15) |
Other loans (see note 15) |
Hire purchase contracts (see note 16) |
15. | LOANS |
An analysis of the maturity of loans is given below: |
2024 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between one and two years: |
Other loans - 1-2 years | 249,056 |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2024 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
FIRST OPTION HEALTHCARE LIMITED (REGISTERED NUMBER: 09741480) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the period 1 October 2022 to 31 March 2024 |
16. | LEASING AGREEMENTS - continued |
Non-cancellable | operating leases |
2024 | 2022 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
The future minimum hire purchase lease payments are as follows: |
2024 | 2022 |
£ | £ |
Not later than one year | 36,197 | 13,255 |
Later than one year and not later than five years | 217,985 | 74,074 |
Total gross payments | 254,182 | 87,329 |
Less: finance charges | (12,373 | ) | (5,703 | ) |
Carrying amount of liability | 241,809 | 81,626 |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
2024 | 2022 |
£ | £ |
Bank loans |
Hire purchase contracts | 241,809 | 81,627 |
Other loans | 249,056 | - |
Invoice discounting facility | 1,024,077 | 800,954 |
The invoice discounting facility is secured by a debenture over the assets of the company. The debenture contains both fixed and floating charges. The floating charge covers all the property or undertaking of the company. |
The bank loan is secured by an unlimited guarantee over the company. The loan is a Bounce Back Loan which is supported by the Government. Interest of 2.5% is payable for the duration of the loan. |
The other loan is secured by a debenture and a charge over a freehold property, along with personal guarantee and indemnity. The other loan incurs interest of 1.5% per month for the duration of the loan. |
The hire purchase liabilities are secured over the assets to which they relate to. |
18. | PROVISIONS FOR LIABILITIES |
2024 | 2022 |
£ | £ |
Deferred tax | 30,712 | 30,712 |
FIRST OPTION HEALTHCARE LIMITED (REGISTERED NUMBER: 09741480) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the period 1 October 2022 to 31 March 2024 |
18. | PROVISIONS FOR LIABILITIES - continued |
Deferred |
tax |
£ |
Balance at 1 October 2022 |
Balance at 31 March 2024 |
2024 | 2022 |
£ | £ |
Accelerated capital allowances | 30,712 | 30,712 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal value: | 2024 | 2022 |
£ | £ |
475 | A Ordinary Shares | £0.10 | 48 | 48 |
475 | B Ordinary Shares | £0.10 | 48 | 48 |
50 | C Ordinary Shares | £0.10 | 5 | 5 |
100 | 100 |
20. | RESERVES |
Retained |
earnings |
£ |
At 1 October 2022 |
Profit for the period |
Dividends | ( |
) |
At 31 March 2024 |
21. | PARENT COMPANY |
First Option Healthcare Group Limited is regarded by the directors as being the company's ultimate parent company. |
The smallest group and largest in which the results of the company are consolidated for the current period ended is that headed by First Option Healthcare Group Limited. The consolidated accounts of this company are available to the public and may be obtained from North Wing, 7th Floor, AMP House, Dingwall Road, Croydon, England, CR0 2LX. |
FIRST OPTION HEALTHCARE LIMITED (REGISTERED NUMBER: 09741480) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the period 1 October 2022 to 31 March 2024 |
22. | CONTINGENT LIABILITIES |
Loan notes |
The company acts as guarantor to the noteholder of Series B and Series C Loan notes which were issues by the parent company First Option Group Limited. The guaranteed obligations comprise all present and future payment obligations and liabilities of the parent company, owing or incurred under the instrument to the noteholder in respect of the notes. As at the 31 March 2024 period end the Loan notes payable by the parent company totalled £430,000, with this being repayable by March 25. |
The loan notes are secured by a debenture over all freehold, leasehold or commonhold property owned by the company. The debenture contains both fixed and floating charges. The floating charge covers all the property or undertaking of the company. |
Tenancy agreement and Rent Deposit |
The company acts as guarantor to the landlord in respect of First Option Clinical Education Limited, a group company, obligations regarding it's tenancy agreement and rent deposit deed. |
23. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
At the year end, F J Higgs owed £232,791 (2022: £77,058) in the form of a director's loan account. Repayments of £73,387 were made in the year. The maximum amount outstanding in the year amounted to £232,791 (2022: £77,058). The loan is repayable on demand and subject to interest of 2.25%. |
At the year end, R Dobson owed £16,372 (2022: £Nil)) in the form of a director's loan account. Repayments of £5,000 (2022: £Nil) were made in the year. The maximum amount outstanding in the year amounted to £16,372 (2022: £Nil). The loan is repayable on demand and subject to interest of 2.25% |
At the year end, C S Silwimba owed £Nil (2022: £Nil) in the form of a director's loan account. The maximum amount outstanding in the year amounted to £Nil (2022: £60,599). The balance was repaid during the prior period and was subject to interest of 2.25%. |
24. | 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. |
25. | ULTIMATE CONTROLLING PARTY |
The controlling party is First Option Healthcare GroupLimited. |
The ultimate controlling party is |
26. | POST BALANCE SHEET EVENTS |
The company entered into a new loan agreement in March 2025 for £350,000. The interest rate charged is 24% per annum. The loan is repayable over a period of one year. |