Company registration number 12499511 (England and Wales)
WOODROW MERCER HEALTHCARE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
WOODROW MERCER HEALTHCARE LIMITED
COMPANY INFORMATION
Directors
Mr L Molesworth
Mr S Alsop-Hall
Company number
12499511
Registered office
6 Brindley Place
X&Y Foundry
Birmingham
United Kingdom
B1 2JB
Auditor
Folkes Worton LLP
15-17 Church Street
Stourbridge
West Midlands
United Kingdom
DY8 1LU
WOODROW MERCER HEALTHCARE LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 23
WOODROW MERCER HEALTHCARE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Review of the business

The Group commenced to trade in its current form on 4th August 2023 following a management buyout of the Clive Henry Group from WM Management Services Limited.

 

Woodrow Mercer Healthcare Limited continues to invest in its strategy to develop a regional healthcare staff management group that supports its clients in the efficient and cost-effective manner whilst maintaining its positions on CCS Frameworks RM6281, RM6277 and NHS Standard Terms & Conditions.

 

In execution of this strategy Woodrow Mercer Healthcare Limited continues to make strategic investments in relevant business opportunities that add significant value to the service proposition of the Group through enhancing staff skills, knowledge and training to deliver exceptional standards of service quality and efficiency, that the Group’s customers demand.

 

Woodrow Mercer Healthcare Limited, since reorganisation has attracted and retained a wider reaching sales team and customers across all entities, and we continue to invest in the service proposition through technology, processes and standards to ensure that we remain at the forefront of our markets and peers.

 

Woodrow Mercer Healthcare Limited's profit for the period amounted to £745,456 which was in line with our expectation as the newly established Group absorbed a new debt structure and a short-term increase in operational costs to implement the management transformation and associated structural investments required.

 

The results since the period end have seen a stabilisation of revenue following an initial decline against the previous financial years owing to client churn as the transformed management team established itself. The Directors have forecast that revenue from a reduced position will continue to increase during 2025 and 2026 where current placement volumes and pricing are looking more favourable.

On behalf of the board

Mr S Alsop-Hall
Director
11 April 2025
WOODROW MERCER HEALTHCARE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

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

Principal activities

The principal activity of the company was the provision of healthcare professionals and employment placements to the NHS and healthcare providers.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £318,479. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr L Molesworth
Mr S Alsop-Hall
Mr A Heggie
(Resigned 4 August 2023)
Mr M Raven
(Resigned 4 August 2023)
Mr D Ostrowski
(Resigned 4 August 2023)
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr S Alsop-Hall
Director
11 April 2025
WOODROW MERCER HEALTHCARE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

WOODROW MERCER HEALTHCARE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WOODROW MERCER HEALTHCARE LIMITED
- 4 -
Opinion

We have audited the financial statements of Woodrow Mercer Healthcare Limited (the 'company') for the year ended 31 March 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

WOODROW MERCER HEALTHCARE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WOODROW MERCER HEALTHCARE LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

WOODROW MERCER HEALTHCARE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WOODROW MERCER HEALTHCARE LIMITED
- 6 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

John Hegney FCCA
Senior Statutory Auditor
For and on behalf of Folkes Worton LLP
11 April 2025
Chartered Accountants
Statutory Auditor
15-17 Church Street
Stourbridge
West Midlands
United Kingdom
DY8 1LU
WOODROW MERCER HEALTHCARE LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
17,033,955
18,484,089
Cost of sales
(13,903,153)
(15,289,331)
Gross profit
3,130,802
3,194,758
Administrative expenses
(2,270,590)
(2,523,286)
Other operating income
-
0
1,001
Operating profit
5
860,212
672,473
Interest payable and similar expenses
9
(116,676)
(3,782)
Profit before taxation
743,536
668,691
Tax on profit
10
1,920
(133,539)
Profit for the financial year
745,456
535,152

The profit and loss account has been prepared on the basis that all operations are continuing operations.

WOODROW MERCER HEALTHCARE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
£
£
Profit for the year
745,456
535,152
Other comprehensive income
-
-
Total comprehensive income for the year
745,456
535,152
WOODROW MERCER HEALTHCARE LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
143,457
159,397
Other intangible assets
12
5,103
-
0
Total intangible assets
148,560
159,397
Tangible assets
13
21,173
17,804
169,733
177,201
Current assets
Debtors
14
5,157,851
3,681,659
Cash at bank and in hand
19,674
41,057
5,177,525
3,722,716
Creditors: amounts falling due within one year
15
(4,248,917)
(3,809,537)
Net current assets/(liabilities)
928,608
(86,821)
Total assets less current liabilities
1,098,341
90,380
Creditors: amounts falling due after more than one year
16
(579,310)
-
0
Provisions for liabilities
Deferred tax liability
18
4,943
3,269
(4,943)
(3,269)
Net assets
514,088
87,111
Capital and reserves
Called up share capital
21
1
1
Profit and loss reserves
514,087
87,110
Total equity
514,088
87,111
The financial statements were approved by the board of directors and authorised for issue on 11 April 2025 and are signed on its behalf by:
Mr S Alsop-Hall
Director
Company Registration No. 12499511
WOODROW MERCER HEALTHCARE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
1
257,610
257,611
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
535,152
535,152
Dividends
11
-
(705,652)
(705,652)
Balance at 31 March 2023
1
87,110
87,111
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
745,456
745,456
Dividends
11
-
(318,479)
(318,479)
Balance at 31 March 2024
1
514,087
514,088
WOODROW MERCER HEALTHCARE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
24
(434,260)
(55,647)
Interest paid
(116,676)
(3,782)
Income taxes (paid)/refunded
(177,766)
9,053
Net cash outflow from operating activities
(728,702)
(50,376)
Investing activities
Purchase of intangible assets
(5,103)
(60,573)
Purchase of tangible fixed assets
(9,914)
(13,186)
Repayment of loans
(1,943)
-
0
Net cash used in investing activities
(16,960)
(73,759)
Financing activities
Proceeds from new bank loans
1,600,000
-
0
Repayment of bank loans
(557,242)
-
0
Dividends paid
(318,479)
(705,652)
Net cash generated from/(used in) financing activities
724,279
(705,652)
Net decrease in cash and cash equivalents
(21,383)
(829,787)
Cash and cash equivalents at beginning of year
41,057
870,844
Cash and cash equivalents at end of year
19,674
41,057
WOODROW MERCER HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
1
Accounting policies
Company information

Woodrow Mercer Healthcare Limited is a private company limited by shares incorporated in England and Wales. The registered office is 6 Brindley Place, X&Y Foundry, Birmingham, United Kingdom, B1 2JB.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

In assessing the appropriateness of the going concern assumption, the Directors have reviewed detailed profit and loss forecasts and cash flow forecasts, considering all reasonably foreseeable potential scenarios and uncertainties in relation to revenue and expenditure for a period of at least 12 months from the date these financial statements have been signed. true

 

Based on these forecasts, the Directors have a reasonable expectation that the company can meet its liabilities as they fall due and the Directors have therefore concluded that it is appropriate to prepare the financial statements on the going concern basis.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

WOODROW MERCER HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
3 years straight line
1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings
15% reducing balance
Computers
33% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

WOODROW MERCER HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

WOODROW MERCER HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans 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. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

WOODROW MERCER HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
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.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover
2024
2023
£
£
Turnover analysed by geographical market
UK
17,033,955
18,484,089
WOODROW MERCER HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
4
Exceptional item
2024
2023
£
£
Expenditure
Exceptional item - Admin costs (incl in Admin charge)
22,808
-
5
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Exchange losses
168
11
Fees payable to the company's auditor for the audit of the company's financial statements
8,096
-
0
Depreciation of owned tangible fixed assets
6,544
5,691
Amortisation of intangible assets
15,940
25,982
6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
8,096
-
0
7
Employees

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

2024
2023
Number
Number
17
15

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,206,409
1,305,328
Social security costs
127,600
107,764
Pension costs
15,128
11,701
1,349,137
1,424,793
WOODROW MERCER HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
8
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
101,492
116,667
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
104,257
-
Other finance costs:
Other interest
12,419
3,782
116,676
3,782
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
-
0
132,652
Adjustments in respect of prior periods
(3,594)
-
0
Total current tax
(3,594)
132,652
Deferred tax
Origination and reversal of timing differences
1,674
887
Total tax (credit)/charge
(1,920)
133,539
WOODROW MERCER HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
10
Taxation
(Continued)
- 19 -

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

2024
2023
£
£
Profit before taxation
743,536
668,691
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
185,884
127,051
Tax effect of expenses that are not deductible in determining taxable profit
13,306
7,915
Change in unrecognised deferred tax assets
946
(946)
Adjustments in respect of prior years
(3,594)
-
0
Effect of change in corporation tax rate
-
0
439
Group relief
(202,447)
(5,107)
Permanent capital allowances in excess of depreciation
-
0
(752)
Amortisation on assets not qualifying for tax allowances
3,985
4,937
-
0
2
Taxation (credit)/charge for the year
(1,920)
133,539
11
Dividends
2024
2023
£
£
Interim paid
318,479
705,652
12
Intangible fixed assets
Goodwill
Software
Total
£
£
£
Cost
At 1 April 2023
199,246
-
0
199,246
Additions
-
0
5,103
5,103
At 31 March 2024
199,246
5,103
204,349
Amortisation and impairment
At 1 April 2023
39,849
-
0
39,849
Amortisation charged for the year
15,940
-
0
15,940
At 31 March 2024
55,789
-
0
55,789
Carrying amount
At 31 March 2024
143,457
5,103
148,560
At 31 March 2023
159,397
-
0
159,397
WOODROW MERCER HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
13
Tangible fixed assets
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 1 April 2023
7,553
18,459
26,012
Additions
163
9,751
9,914
At 31 March 2024
7,716
28,210
35,926
Depreciation and impairment
At 1 April 2023
1,212
6,996
8,208
Depreciation charged in the year
891
5,654
6,545
At 31 March 2024
2,103
12,650
14,753
Carrying amount
At 31 March 2024
5,613
15,560
21,173
At 31 March 2023
6,341
11,463
17,804
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,520,746
3,287,027
Amounts owed by group undertakings
2,451,751
282,977
Other debtors
160,004
91,491
Prepayments and accrued income
25,350
20,164
5,157,851
3,681,659
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
17
463,448
-
0
Trade creditors
1,050,037
888,317
Amounts owed to group undertakings
102,736
138,228
Corporation tax
86,118
267,478
Other taxation and social security
567,189
427,277
Deferred income
19
-
0
76,926
Other creditors
1,867,542
1,871,268
Accruals and deferred income
111,847
140,043
4,248,917
3,809,537

Other creditors includes an amount of £1,811,158 (2023: £1,868,707) which is secured by a fixed and floating charge over the assets of the company.

WOODROW MERCER HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
579,310
-
0
17
Loans and overdrafts
2024
2023
£
£
Bank loans
1,042,758
-
0
Payable within one year
463,448
-
0
Payable after one year
579,310
-
0

The long-term loans are secured by monthly fixed charges of £38,621 and is due to be full repaid by July 2026.

18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
5,293
4,451
Retirement benefit obligations
(350)
(236)
Liabilities not recognised
-
(946)
4,943
3,269
2024
Movements in the year:
£
Liability at 1 April 2023
3,269
Charge to profit or loss
1,674
Liability at 31 March 2024
4,943

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

WOODROW MERCER HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
19
Deferred income
2024
2023
£
£
Other deferred income
-
76,926
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
15,128
11,701

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Deferred shares of £1 each
1
1
1
1
22
Operating lease commitments

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

2024
2023
£
£
Within one year
162,000
198,363
Between two and five years
-
0
162,000
162,000
360,363
23
Ultimate controlling party

Until 1 August 2023, the immediate ownership of the company was Clive Henry Group Limited and the ultimate parent company was WM Management Services Limited, its registered office being Arca Building, Temple Row, Birmingham, England, B2 5AF. Since 1 August 2023, the ultimate parent company has been Molehall Ventures Ltd, its registered office is 6 Brindley Place, X&Y Foundry, Birmingham, United Kingdom, B1 2JB.

WOODROW MERCER HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
24
Cash absorbed by operations
2024
2023
£
£
Profit for the year after tax
745,456
535,152
Adjustments for:
Taxation (credited)/charged
(1,920)
133,539
Finance costs
116,676
3,782
Amortisation and impairment of intangible assets
15,940
25,982
Depreciation and impairment of tangible fixed assets
6,545
5,691
Movements in working capital:
Increase in debtors
(1,474,249)
(662,492)
Increase/(decrease) in creditors
234,218
(129,677)
(Decrease)/increase in deferred income
(76,926)
32,376
Cash absorbed by operations
(434,260)
(55,647)
25
Analysis of changes in net funds/(debt)
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
41,057
(21,383)
19,674
Borrowings excluding overdrafts
-
(1,042,758)
(1,042,758)
41,057
(1,064,141)
(1,023,084)
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