Registration number:
Solutions 4 Health Ltd
for the Year Ended 31 March 2024
Solutions 4 Health Ltd
Contents
Company Information |
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Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Profit and Loss Account |
|
Statement of Comprehensive Income |
|
Balance Sheet |
|
Statement of Changes in Equity |
|
Statement of Cash Flows |
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Notes to the Financial Statements |
Solutions 4 Health Ltd
Company Information
Directors |
L Sankla K Sankla |
Registered office |
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Auditors |
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Solutions 4 Health Ltd
Strategic Report for the Year Ended 31 March 2024
The directors present their strategic report for the year ended 31 March 2024.
Principal activity
Solutions 4 Health Ltd is a pioneering artificial intelligence, digital healthcare and clinical healthcare services company.
Fair review of the business
The company is a Care Quality Commission (CQC) regulated provider and has long term contracts with Local Authorities and the NHS which includes:
• |
Integrated Sexual Health (education. diagnosis, treatment of STD’s); |
• |
Integrated Lifestyle Services; |
• |
Smoking Cessation; |
• |
Children and Adult Weight Management Services (Tier 1, 2 and 3); |
• |
Chronic Disease Self-Management |
• |
Falls risk assessment and strength & balance services for elderly; and |
• |
Autism/ADHD diagnosis & support; |
• |
Social Care support for vulnerable families |
In the year ended 31 March 2024, the company recorded recognised turnover of £20,338,044 (2023 - £19,764,466) and made a loss before tax of £2,347,149 (2023 - profit of £286,793) before the recognition of a tax credit of £76,324 (2023 - charge of £20,172).
At 31 March 2024 the company had net assets of £1,523,259 (2023 - £3,794,084).
The company has continued to grow steadily, building on its strong foundation during the pandemic recovery phase. Over this period, the company has successfully secured contract renewals and extensions while also focusing on strategic opportunities to enhance its market presence.
The directors are pleased with the company’s sustained growth and expansion into new markets. With increasing global interest in AI-driven healthcare solutions and digital transformation, the company is actively exploring international opportunities to extend its reach beyond the UK. This expansion aligns with its strategic vision to leverage AI and digital health innovations to support population health on a broader scale.
To ensure long-term sustainability and financial resilience, the company has taken a robust approach to contract management, prioritising high-value opportunities while exiting non-profitable contracts. This strategic focus enables the company to optimise resources, enhance efficiency, and strengthen its overall performance.
The company remains committed to driving meaningful change through its healthcare solutions, focusing on scalability and adaptability to diverse healthcare systems worldwide. The directors anticipate strong financial growth in the coming year, underpinned by multi-year contracts, customer retention, expansion into new international markets, and a focus on delivering high-impact, sustainable solutions.
Solutions 4 Health Ltd
Strategic Report for the Year Ended 31 March 2024
The directors consider the company is fully on track to achieve it's 5-year plan, which includes:
1 |
Moving towards the delivery of clinical (CQC Registered) contracts that include Drugs and Alcohol services. |
|
2 |
Models for cost effective eldercare services. |
|
3 |
Taking individual commissioned lifestyle services such as Tobacco Control, Weight Management, Physical Activity Services and developing a robust, cost effective new model for the delivery of Integrated Lifestyle Services. This model is further enhanced by use of innovative technology that puts patients/service users at the centre of care. |
|
4 |
A digital first strategy, by adopting Artificial Intelligence (AI) to build and deploy a Wellbeing Suite to deliver at a population wide level. |
|
5 |
Robust clinical and safeguarding governance, accounting, finance, administration and HR processes to underpin operations. |
|
6 |
International expansion, with appropriate operating partners. |
The company's key financial and other performance indicators during the year were as follows:
Unit |
2024 |
2023 |
|
Revenue |
£ |
20,338,044 |
19,764,466 |
EBITDA |
£ |
34,620 |
1,481,534 |
Gross profit margin |
% |
14 |
22 |
Overhead as a proportion of revenue |
% |
21 |
20 |
Research and development
As part of our ongoing commitment to innovation, we are actively reviewing our R&D activities in line with significant advancements and paradigm shifts in technology. The emergence of new AI platforms, particularly in the domain of large-scale language models and generative AI, presents transformative opportunities that we are evaluating for potential integration into our strategic roadmap. Our focus remains on leveraging these developments to enhance efficiency, drive competitive advantage, and unlock new value propositions across our operations.
Solutions 4 Health Ltd
Strategic Report for the Year Ended 31 March 2024
Future developments
The company has robust financial, clinical governance processes, a strong clinical and engineering team and have successfully demonstrated their capability in both service and digital delivery at scale.
The company is also registered on the SPARK Framework, a government framework that enables the procurement of emerging technology products and services, including Internet of Things (IoT), AI and automation, simulated environments, wearables and new improvements in security.
Furthermore, the company, through a rigorous process has been validated by JOSCAR (the Joint Supply Chain Accreditation Register) which is a collaborative tool used by the aerospace, defence and security industry to act as a single repository for pre-qualification and compliance information. Using JOSCAR can determine if a supplier is “fit for business”.
By deploying our teams deep-rooted expertise, evidence base and technical know-how and data, the company is poised to help communities and continue to expend into large workplaces, local authorities, and the NHS.
Principal risks and uncertainties
The directors have considered the principal risks that the company faces and have addressed them as follows:
Political and Economic Environment
The UK continues to navigate a complex political and economic landscape, including ongoing regulatory adjustments following Brexit, global economic uncertainty, and the evolving impact of inflation and interest rate fluctuations. While the company operates solely within the UK, changes in government policies, funding allocations, and healthcare regulations remain key factors that could impact business operations.
The general election in 2024 could bring potential shifts in healthcare policy and investment priorities. However, the company’s focus on long-term contracts (typically spanning 3 to 5 years) provides stability and allows time to adjust to any policy changes. Furthermore, our strategic diversification into AI-driven solutions and transformation strengthens our resilience in the face of any shifts in government priorities or funding structures.
Technological Advancements and Industry Disruption
The rapid evolution of AI and automation, particularly in healthcare and enterprise transformation, presents both opportunities and risks. The emergence of large-scale AI models and digital health innovations is reshaping the industry, requiring continuous investment in research and development to remain competitive. The company is proactively reviewing these advancements to integrate cutting-edge solutions that enhance efficiency and improve patient outcomes.
Post-Pandemic Healthcare Landscape
While the acute phase of the COVID-19 pandemic has passed, its long-term effects on healthcare demand, workforce constraints, and service delivery models continue to influence the sector. Increased reliance on digital transformation and AI-driven healthcare solutions aligns with the company's strategic direction, ensuring that it remains well-positioned to support evolving healthcare needs.
By maintaining a forward-looking approach and adapting to emerging risks and opportunities, the company remains well-prepared to navigate the evolving business landscape.
Solutions 4 Health Ltd
Strategic Report for the Year Ended 31 March 2024
Going Concern
As at 31 March 2024, the company had net current liabilities of £2,044,416 (31 March 2023: £1,449,084) and net assets of £1,523,259 (31 March 2023: £3,794,084). The company relies on ongoing financial facilities to support operations.
The directors have assessed the company's financial position, including projections for the next twelve months, and remain confident in its ability to continue operating as a going concern. The company has demonstrated profitability since 31 March 2024, and additional financing facilities have been secured to ensure adequate working capital for operational needs.
Taking these factors into account, along with the information available at the date of approval, the directors consider it appropriate to prepare the financial statements on a going concern basis, as they believe the company has sufficient resources to continue trading for at least the next twelve months.
Non-financial information
Market and Economic Conditions
As the global economy adjusts to post-pandemic conditions, the company continues to assess and adapt to evolving market dynamics. The healthcare sector, in particular, remains influenced by increased demand for digital transformation, workforce challenges, and ongoing NHS structural reforms. The directors regularly review budgets and forecasts to stress test the company’s resilience against economic pressures such as inflation, rising interest rates, and broader macroeconomic uncertainties.
Following a review of the company’s performance in 2024, the directors do not anticipate a material decline in revenue, as the company continues to benefit from long-term contracts and market trends favouring AI-driven solutions and public health transformation. Additionally, shifts in government funding and policy direction are being monitored to ensure the business remains well-positioned to respond to any potential changes in healthcare investment priorities.
The company's solid financial position, combined with prudent working capital management and strategic diversification into AI and automation, ensures it remains well-equipped to navigate both risks and opportunities in the evolving market landscape.
Outlook
The directors remain confident in the company’s ability to sustain its growth trajectory, supported by strong contract pipelines and continued investment in technology-driven healthcare solutions. While economic and policy uncertainties persist, proactive financial management and strategic adaptability will allow the company to continue operations smoothly and capitalise on emerging opportunities within the sector.
Objectives and policies
The company is exposed to price risk, liquidity and cashflow risk. Appropriate policies have been developed and implemented to identify, evaluate and manage key risks and the directors review risk management strategies reguarly. The company is well placed to take advantage of appropriate opportunities as they arise.
Solutions 4 Health Ltd
Strategic Report for the Year Ended 31 March 2024
Price risk, credit risk, liquidity risk and cash flow risk
Price risk - the company is exposed to price risk as a result of its operations and the company uses this information accordingly when tendering for future new business.
Liquidity and cash flow risk - the company's exposure to liquidity risk gives rise to net current liabilities. The company has restructured its finance and accounting function and is managing cash flow with detailed forecasting, thus planning for any requirements well in advance. The company also works closely with its lenders to ensure that future funding requirements are met by available facitilies.
Approved and authorised by the
......................................... |
Solutions 4 Health Ltd
Directors' Report for the Year Ended 31 March 2024
The directors present their report and the financial statements for the year ended 31 March 2024.
Directors of the company
The directors who held office during the year were as follows:
Financial instruments
The company has procedures to identify risk and protect and manage the company from events that may hinder it's performance objectives. The objectives aim to limit counterparty exposure, ensure sufficient working capital exists and monitor risk and manage it at a business unit level. The company does not consider it necessary to employ derivatives such as forward currency contracts to manage risk based on the company's current activities.
Employment of disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the abilities of the applicant concerned. In the event of members of staff becoming disabled every effort is made to ensure that their employment with the company continues and that appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
During the period the company has maintained and developed arrangements aimed at systematically providing employees with information on matters of concern to them as employees, consulting them or their representatives on a regular basis, so that their views may be taken into account in making decisions which are likely to affect their interests. The company encourages employee involvement and believes that achieving a common awareness on the part of all employees of the financial and economic factors affecting the performance of their employing company plays a major role in maintaining the success of the company.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved by the
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Solutions 4 Health Ltd
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
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.
Solutions 4 Health Ltd
Independent Auditor's Report to the Members of Solutions 4 Health Ltd
Opinion
We have audited the financial statements of Solutions 4 Health Ltd (the 'company') for the year ended 31 March 2024, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, 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 loss for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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
We draw attention to the Going Concern accounting policy in note 2 of the financial statements, which outlines that as at 31 March 2024, the company had net current liabilities of £2,044,416. The company continues to rely on financial facilities to support its operations. While this reliance presents a degree of uncertainty, the directors have reviewed forecasts and remain confident in the company’s ability to meet its obligations. Our opinion is not modified in respect of this matter.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
Solutions 4 Health Ltd
Independent Auditor's Report to the Members of Solutions 4 Health Ltd
• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 8, 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.
Auditor 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.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:
• |
obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework; |
• |
inquired of management, and those charged with governance, about their own identification and assessment of the risks or irregularities, including known and actual, suspected or alleged instances of fraud; |
• |
discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud. |
Solutions 4 Health Ltd
Independent Auditor's Report to the Members of Solutions 4 Health Ltd
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity’s operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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.
......................................
For and on behalf of
Freshford House
Redcliffe Way
BS1 6NL
Solutions 4 Health Ltd
Profit and Loss Account for the Year Ended 31 March 2024
Note |
2024 |
2023 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Operating (loss)/profit |
(2,289,181) |
324,092 |
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar expenses |
( |
( |
|
(57,968) |
(37,299) |
||
(Loss)/profit before tax |
( |
|
|
Tax on (loss)/profit |
|
( |
|
(Loss)/profit for the financial year |
( |
|
The above results were derived from continuing operations.
Solutions 4 Health Ltd
Statement of Comprehensive Income for the Year Ended 31 March 2024
2024 |
2023 |
|
(Loss)/profit for the year |
( |
|
Total comprehensive income for the year |
( |
|
Solutions 4 Health Ltd
(Registration number: 06475161)
Balance Sheet as at 31 March 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
- |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Revaluation reserve |
|
|
|
Profit and loss account |
|
|
|
Total equity |
|
|
Approved and authorised by the
|
Solutions 4 Health Ltd
Statement of Changes in Equity for the Year Ended 31 March 2024
Share capital |
Revaluation reserve |
Profit and loss account |
Total |
|
At 1 April 2023 |
|
|
|
|
Loss for the year |
- |
- |
( |
( |
Total comprehensive income |
- |
- |
( |
( |
At 31 March 2024 |
|
|
|
|
Share capital |
Revaluation reserve |
Retained earnings |
Total |
|
At 1 April 2022 |
|
|
|
|
Profit for the year |
- |
- |
|
|
At 31 March 2023 |
1,000 |
311,015 |
3,482,069 |
3,794,084 |
Solutions 4 Health Ltd
Statement of Cash Flows for the Year Ended 31 March 2024
Note |
2024 |
2023 |
|
Cash flows from operating activities |
|||
(Loss)/profit for the year |
(2,270,825) |
266,621 |
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
920,891 |
907,442 |
|
Impairment loss of intangible fixed asset |
1,402,910 |
250,000 |
|
Loss on disposal of tangible assets |
4,140 |
697 |
|
Finance income |
(5,176) |
(6,766) |
|
Finance costs |
61,431 |
34,355 |
|
Income tax expense |
(76,324) |
20,172 |
|
37,047 |
1,472,521 |
||
Working capital adjustments |
|||
Increase in stocks |
(12,611) |
(2,963) |
|
Increase in trade debtors |
(232,834) |
(294,734) |
|
Increase in trade creditors |
588,602 |
326,622 |
|
Cash generated from operations |
380,204 |
1,501,446 |
|
Income taxes paid |
(93,559) |
(77,700) |
|
Net cash flow from operating activities |
286,645 |
1,423,746 |
|
Cash flows from investing activities |
|||
Interest received |
5,174 |
6,766 |
|
Acquisition of subsidiaries |
- |
(100) |
|
Acquisitions of tangible assets |
(135,555) |
(760,064) |
|
Proceeds from sale of tangible assets |
859 |
4,800 |
|
Acquisition of intangible assets |
(653,457) |
(865,739) |
|
Net cash flows from investing activities |
(782,979) |
(1,614,337) |
|
Cash flows from financing activities |
|||
Interest paid |
(61,431) |
(34,355) |
|
Proceeds from bank borrowing draw downs |
294,652 |
(178,122) |
|
Payments to finance lease creditors |
73,860 |
22,775 |
|
Net cash flows from financing activities |
307,081 |
(189,702) |
|
Net decrease in cash and cash equivalents |
(189,253) |
(380,293) |
|
Cash and cash equivalents at 1 April |
(289,505) |
90,788 |
|
Cash and cash equivalents at 31 March |
(478,758) |
(289,505) |
Solutions 4 Health Ltd
Notes to the Financial Statements for the Year Ended 31 March 2024
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The financial statements are presented in pound sterling, which is the functional currency of the company, and rounded to the nearest pound.
The financial statements are prepared in sterling, which is the functional currency of the company, and rounded to the nearest £.
Going concern
As at 31 March 2024, the company had net current liabilities of £2,044,416 (31 March 2023: £1,449,084) and net assets of £1,523,259 (31 March 2023: £3,794,084). The company relies on ongoing financial facilities to support operations.
The directors have assessed the company's financial position, including projections for the next twelve months, and remain confident in its ability to continue operating as a going concern. The company has demonstrated profitability since 31 March 2024, and additional financing facilities have been secured to ensure adequate working capital for operational needs.
Taking these factors into account, along with the information available at the date of approval, the directors consider it appropriate to prepare the financial statements on a going concern basis, as they believe the company has sufficient resources to continue trading for at least the next twelve months.
Solutions 4 Health Ltd
Notes to the Financial Statements for the Year Ended 31 March 2024
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 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.
The principal assets of the company are intangible assets, which have been capitalised through the internal development of new products. Initial capitalisation and any subsequent impairment is based on the judgement that technological and economic feasibility is demonstrated. In determining the amounts to be capitalised the company makes assumptions regarding the expected future cash generation of the product and the expected period of benefits. If either technological or economic feasibility is not demonstrated then the costs will not be capitalised.
The estimate of the carrying value of intangible assets involves significant judgements and changes in the underlying assumptions could have a significant impact on the carrying value of these assets. In determining whether development costs are impaired the company makes assumptions regarding the expected future cash generation of the project, discount rates to be applied and the expected period of benefits. Valuation estimates are used to determine the fair values of these intangible assets. This includes estimation of future cash flows, discount rates and useful economic lives.
Current liabilities include obligations arising from past events for the transfer of economic resources to a third party, the timing of which is unknown. The estimate of the liability involves judgement by the company using all available information at the balance sheet date.
Revenue recognition
Turnover is measured based on consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The company recognizes turnover when it transfers control over a good or service to a customer. Turnover is presented net of value added tax (VAT), rebates and discounts.
The company recognises revenue when:
- the amount of revenue can be reliably measured;
- it is probable that future economic benefits will flow to the entity; and
- specific criteria have been met for each of the company's activities.
Government grants
Government grants have been received during the year. These Government grants have been recognised on an accruals basis in line with the overall revenue recognition policy.
Finance income and costs policy
Interest income and expenditure is recognised using the effective interest rate method.
Solutions 4 Health Ltd
Notes to the Financial Statements for the Year Ended 31 March 2024
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Current and deferred tax assets and liabilities are not discounted.
Tangible assets
Tangible assets are stated in the balance sheet at cost or valuation, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Tangible assets held at valuation are revalued with sufficient regularity such that the carrying amount does not differ materially from that which would be determined using fair values at the balance sheet date. Any revaluation arising on the revaluation is credited to the revaluation reserve, except to the extent that it reverses a revaluation decrease from the same asset previously recognised as an expense, in which case the increase is credited to the profit and loss account to the extent of the decrease previously expensed. A decrease in carrying amount arising on the revaluation is charged as an expense on the extent that it exceeds the balance, if any, held in the properties revaluation reserve relating to a previous revaluation of that asset. On the subsequent sale of a revalued property, the attributable revaluation surplus remaining in the properties revaluation reserve is transferred directly to retained earnings.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Freehold land and buildings |
no depreciation as considered immaterial |
Furniture, fittings and equipment |
25% reducing balance |
Motor vehicles |
25% reducing balance |
Long leasehold land and buildings |
25% reducing balance |
Solutions 4 Health Ltd
Notes to the Financial Statements for the Year Ended 31 March 2024
Depreciation has not been charged on the company's freehold land and buildings as the property's residual value is sufficiently high that the effect of depreciation would be immateial.
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Intangible assets
Research and development expenditure is written off as incurred, except that development expenditure incurred on an individual project is capitalised as an intangible asset when the company can demonstrate the technical feasibility of completing the intangible asset so that it will be available for use or sale, its intention to complete and its ability to use or sell the asset, how the asset will generate future economic benefits, the availability of resources to complete the asset and the ability to measure reliably the expenditure during development.
Following initial recognition of the development expenditure as an asset, the cost model is applied requiring the asset to be carried at cost less any accumulated amortisation and accumulated impairment losses. Amortisation of the asset begins when development is complete and the asset is available for use. It is amortised evenly over the period of expected future benefit. During the period of development the asset is tested for impairment annually.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Development costs |
10% straight line |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment. 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 the Profit or Loss account.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Solutions 4 Health Ltd
Notes to the Financial Statements for the Year Ended 31 March 2024
Debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
At each reporting date, stocks are assessed for impairment. If stocks are 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.
Creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Provisions
Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that the obligation and a reliable estimate can be made of the amount of obligation.
Solutions 4 Health Ltd
Notes to the Financial Statements for the Year Ended 31 March 2024
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Certain staff employed by the company are eligible for membership with the NHS Pension Scheme. This is a multi-employer defined benefit pension scheme for which insufficient information is available to enable the company to identify its share of scheme assets and liabilities. Consequently contributions to the scheme are treated as if they were made to a defined contribution plan.
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Solutions 4 Health Ltd
Notes to the Financial Statements for the Year Ended 31 March 2024
Revenue |
The analysis of the company's turnover for the year from continuing operations is as follows:
2024 |
2023 |
|
Provision of services |
|
|
Operating (loss)/profit |
Arrived at after charging/(crediting):
2024 |
2023 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Impairment loss |
|
|
Operating lease expense - plant and machinery |
|
|
Operating lease expense - other |
|
|
Loss on disposal of property, plant and equipment |
|
|
Interest payable and similar expenses |
2024 |
2023 |
|
Interest on bank overdrafts and borrowings |
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
Foreign exchange gains |
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2024 |
2023 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Other short-term employee benefits |
|
|
Pension costs, defined contribution scheme |
|
|
Redundancy costs |
|
|
Other employee expense |
|
|
|
|
Solutions 4 Health Ltd
Notes to the Financial Statements for the Year Ended 31 March 2024
The average number of persons employed by the company (including directors) during the year, analysed by category, was as follows:
2024 |
2023 |
|
Clinical |
|
|
Administration and support |
|
|
Management |
|
|
Directors |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2024 |
2023 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
408,983 |
218,342 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
2024 |
2023 |
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
2024 |
2023 |
|
Remuneration |
|
|
Company contributions to money purchase pension schemes |
|
|
Solutions 4 Health Ltd
Notes to the Financial Statements for the Year Ended 31 March 2024
Taxation |
Tax charged/(credited) in the income statement:
2024 |
2023 |
|
Current taxation |
||
UK corporation tax |
- |
|
UK corporation tax adjustment to prior periods |
|
|
7,254 |
139,968 |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
( |
( |
Tax (receipt)/expense in the income statement |
( |
|
The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2024 |
2023 |
|
(Loss)/profit before tax |
( |
|
Corporation tax at standard rate |
( |
|
Decrease from effect of different UK tax rates on some earnings |
- |
( |
Tax increase/(decrease) from other short-term timing differences |
|
( |
Effect of revenues exempt from taxation |
( |
( |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Deferred tax expense relating to changes in tax rates or laws |
|
|
Total tax (credit)/charge |
( |
|
Solutions 4 Health Ltd
Notes to the Financial Statements for the Year Ended 31 March 2024
Intangible assets |
Internally generated software development costs |
Total |
|
Cost or valuation |
||
At 1 April 2023 |
|
|
Additions |
|
|
At 31 March 2024 |
|
|
Amortisation |
||
At 1 April 2023 |
|
|
Amortisation charge |
|
|
Impairment |
|
|
At 31 March 2024 |
|
|
Carrying amount |
||
At 31 March 2024 |
|
|
At 31 March 2023 |
|
|
Solutions 4 Health Ltd
Notes to the Financial Statements for the Year Ended 31 March 2024
Tangible assets |
Freehold land and buildings |
Long leasehold land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Total |
|
Cost or valuation |
|||||
At 1 April 2023 |
|
|
|
|
|
Additions |
- |
- |
|
|
|
Disposals |
- |
- |
- |
( |
( |
At 31 March 2024 |
|
|
|
|
|
Depreciation |
|||||
At 1 April 2023 |
- |
|
|
|
|
Charge for the year |
- |
|
|
|
|
Eliminated on disposal |
- |
- |
- |
( |
( |
At 31 March 2024 |
- |
|
|
|
|
Carrying amount |
|||||
At 31 March 2024 |
|
|
|
|
|
At 31 March 2023 |
|
|
|
|
|
Included within the net book value of land and buildings above is £725,000 (2023 - £725,000) in respect of freehold land and buildings and £466,701 (2023 - £622,268) in respect of long leasehold land and buildings.
Revaluation
The fair value of the company's freehold land and buildings was revalued on
Solutions 4 Health Ltd
Notes to the Financial Statements for the Year Ended 31 March 2024
Investments |
2024 |
2023 |
|
Investments in subsidiaries |
|
|
Sky 369 Limited, a wholly owned subsidiary, has not been consolidated in the financial statements due to Solutions 4 Health Ltd taking the exemption under the Companies Act 2006 s405.
Sky 369 Limited is a dormant subsidiary and has share capital of £100 as at 31 March 2023 with no reserves and no recorded activity in the profit and loss account.
Subsidiaries |
£ |
Cost or valuation |
|
At 1 April 2023 |
|
Provision |
|
Carrying amount |
|
At 31 March 2024 |
|
At 31 March 2023 |
|
Stocks |
2024 |
2023 |
|
Other inventories |
|
|
Debtors |
Current |
Note |
2024 |
2023 |
Trade debtors |
|
|
|
Amounts owed by related parties |
|
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
|
|
Solutions 4 Health Ltd
Notes to the Financial Statements for the Year Ended 31 March 2024
Cash and cash equivalents |
2024 |
2023 |
|
Cash on hand |
- |
|
Cash at bank |
|
|
|
|
|
Bank overdrafts |
( |
( |
Cash and cash equivalents in statement of cash flows |
(478,758) |
(289,505) |
Creditors |
Note |
2024 |
2023 |
|
Due within one year |
|||
Loans and borrowings |
|
|
|
Trade creditors |
|
|
|
Social security and other taxes |
|
|
|
Outstanding defined contribution pension costs |
|
|
|
Other creditors |
|
|
|
Accruals |
|
|
|
Corporation tax liability |
- |
86,305 |
|
|
|
||
Due after one year |
|||
Loans and borrowings |
|
|
Pension and other schemes |
Defined contribution pension scheme
The employees of the company belong to two principle pension schemes: the NHS Pension Scheme, a multi-employer defined benefit scheme; and an independently administered defined contribution pension scheme. Insufficient information is available to enable the company to identify its share of the NHS Pension Scheme assets and liabilities and accordingly is treated as though it were a defined contribution pension scheme.
The pension cost charge for the year represents contributions payable by the company to both schemes and amounted to £
Contributions totalling £
Solutions 4 Health Ltd
Notes to the Financial Statements for the Year Ended 31 March 2024
Share capital |
Allotted, called up and fully paid shares
2024 |
2023 |
|||
No. |
£ |
No. |
£ |
|
|
|
1,000 |
|
1,000 |
Reserves |
Profit and loss account
This reserve represents accumulated profits or losses net of distribution to shareholders.
Revaluation reserve
This reserve reflects the surplus or deficit arising on the revaluation of assets within the company.
Solutions 4 Health Ltd
Notes to the Financial Statements for the Year Ended 31 March 2024
Loans and borrowings |
Non-current loans and borrowings
2024 |
2023 |
|
Bank borrowings |
|
|
Current loans and borrowings
2024 |
2023 |
|
Bank borrowings |
|
|
Bank overdrafts |
|
|
Hire purchase contracts |
|
|
|
|
Amounts due to related parties are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
Bank loans are denominated in GBP with interest rates of varying levels.
The bank has the following charges over the company and security therefrom:
- Fixed and floating charge over all property and assets of the company;
- First legal charge over freehold property at 1 Thames Court, 2 Richfield Avenue, Reading, RG1 8EQ
- All moneys guarantee from the K Sankla and L Sankla; and
- Unlimited debenture from the company
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
2024 |
2023 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
Solutions 4 Health Ltd
Notes to the Financial Statements for the Year Ended 31 March 2024
Related party transactions |
Key management compensation
2024 |
2023 |
|
Salaries and other short term employee benefits |
|
|
Loans to related parties
2024 |
Subsidiary |
Key management |
Other related parties |
Total |
At start of period |
|
|
|
|
Advanced |
- |
|
- |
|
Repaid |
- |
( |
- |
( |
At end of period |
|
|
|
|
|
2023 |
Subsidiary |
Key management |
Other related parties |
Total |
At start of period |
- |
|
|
|
Advanced |
|
|
|
|
Repaid |
( |
( |
( |
( |
Interest transactions |
- |
|
- |
|
At end of period |
|
|
|
|
|
Financial instruments |
Categorisation of financial instruments
2024 |
2023 |
|
Financial assets that are debt instruments measured at amortised cost |
|
|
Financial liabilities measured at amortised cost |
|
|
Parent and ultimate parent undertaking |
The ultimate controlling parties are
Solutions 4 Health Ltd
Notes to the Financial Statements for the Year Ended 31 March 2024
Analysis of changes in net debt |
1 April 2023 |
Cashflow |
Other non-cash changes |
31 March 2024 |
|
£ |
£ |
£ |
£ |
|
Cash and cash equivalents |
||||
Cash |
600 |
(600) |
- |
- |
Bank |
158 |
407 |
- |
565 |
Overdraft |
(290,263) |
(189,060) |
- |
(479,323) |
(289,505) |
(189,253) |
- |
(478,758) |
|
Borrowings |
||||
Due under 1 year |
(420,385) |
(288,958) |
(709,343) |
|
Due over 1 year |
(325,777) |
(219,285) |
(545,062) |
|
(746,162) |
- |
(746,162) |
||
Total |
(1,035,667) |
(189,253) |
- |
(1,224,920) |
1 April 2022 |
Cashflow |
Other non-cash changes |
31 March 2023 |
|
£ |
£ |
£ |
£ |
|
Cash and cash equivalents |
||||
Cash |
1,200 |
(600) |
- |
600 |
Bank |
89,588 |
(89,430) |
- |
158 |
Overdraft |
- |
(290,263) |
- |
(290,263) |
90,788 |
(380,293) |
- |
(289,505) |
|
Borrowings |
||||
Due under 1 year |
190,983 |
229,402 |
- |
420,385 |
Due over 1 year |
420,263 |
(94,486) |
- |
325,777 |
611,246 |
- |
- |
611,246 |
|
Total |
702,034 |
(380,293) |
- |
321,741 |