Company registration number 09971402 (England and Wales)
DALEACRE HEALTHCARE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
DALEACRE HEALTHCARE LIMITED
COMPANY INFORMATION
Directors
Daleacre Holdings Limited
Mr R E Mcdonald
Mr I C Mckenzie
Mr J Such
Mrs E J Haddon
Mr D R Evans
Mrs J A W Evans
Mrs E L Anderson
(Appointed 31 January 2024)
Company number
09971402
Registered office
11 Wilsthorpe Road
Breaston
Derby
Derbyshire
DE72 3EA
Auditor
Xeinadin Audit Ltd
i2 Mansfield, Office Suite 0.3
Hamilton Court
Oakham Business Park
Mansfield
Nottinghamshire
NG18 5FB
DALEACRE HEALTHCARE LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 25
DALEACRE HEALTHCARE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 1 -
The directors present the strategic report for the year ended 31 July 2024.
Review of the business
The company did not acquire any pharmacies during the financial year.
The period has been a satisfactory one showing significant organic growth in both Turnover and NHS activity, and the directors expect this to continue in the coming year despite ongoing changes in the regulatory framework affecting pharmacies, and the NHS in general.
Continuing growth is dependent upon the overall market for health services within this country and the level of government funding to pharmacy and the NHS.
Throughout the FYE July 2024, the company has been impacted by the failure of the NHS to properly fund community pharmacy’s core supply role.
There has been no uplift in the NHS pharmacy contract in England since 2017, yet community pharmacy is operating in a different financial environment since then, with rising national minimum wage, inflation, higher interest rates and increased utility costs. Trade bodies have calculated that community pharmacy in England has experienced a 35% real terms cut in funding since 2017 meaning the sector is under funded by some £1.2bn. This lack of funding can be seen in the company’s results.
The recent announcement in April 2025 by the Department of Health & Social Care of a new increased funding package for community pharmacy should see NHS revenues increase by approximately 13.5% and will be reflected in part in the next set of accounts.
The company’s borrowings remain low so the impact of the current level of interest rates has had minimal impact.
In 2022 the company’s bankers discontinued the covenants on the term loans the company has due to the low level of the outstanding loans and the strength of the company balance sheet. In addition, in April 2025 the company’s bankers agreed to extend the current facilities which were due to expire in May 2025.
The company has continued to see significant increases in both prescription turnover (6.3%) and retail sales of medicines (13.2%) compared to the previous year. NHS Service income growth remains very strong (44.1%) driven by the nation hypertension case finding service.
The company is still participating in the covid vaccination service, and has had a number of pharmacies included in national prescribing pilots schemes which will drive growth in 2025
The provision of non NHS private services has also increased and there is renewed demand for travel vaccines. The company is diversifying its offering to include weight management, ear wax micro-suction and aesthetics, this is shown by the 13.2% increase in non NHS related income and is increasing further during the current financial year.
DALEACRE HEALTHCARE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 2 -
Principal risks and uncertainties
Business risks
The main risks to the business are namely the reliance on the government and NHS which provide both the majority of business and control the drug tariff prices paid, and activities of the major competitors within the locality.
The aim is to mitigate the risks of the business as much as possible through active involvement in policy making processes, and by ensuring good relations with the doctors' surgeries, proximity to the doctors' surgeries, developing and maintaining good customer relations and by monitoring purchasing costs constantly.
Financial risks
The company's principal financial instruments comprise bank balances, bank loans and overdrafts, trade creditors and trade debtors. The main purpose of these instruments is to raise funds for the company's operations.
The company also has the option to finance business expansion by using related funding from trust fund and family investors, to minimise the risk of exposure to traditional methods of finance in uncertain times.
Due to the value and nature of the financial instruments used by the company there is little exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.
In respect of bank balances the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility, through the use of overdrafts at floating rates of interest.
The majority of trade debtors represent amounts owed by the NHS. Other trade debtors are managed closely in respect of credit and cash flow risk.
Trade creditor liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
Development and performance
The company continues to look for expansion by acquisition, internal means, by increasingly providing services to other health professionals within the NHS and direct to the public.
The company is dependent on the continued expansion of the UK market in health services and products.
A freehold building plot was acquired and developed and shows as investment property in the accounts. This was sold during the financial year and the proceeds used to reduce the overdraft facility and to repay a small temporary family loan.
DALEACRE HEALTHCARE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 3 -
Key performance indicators
The key performance indicators for the company are as follows: |
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Number of Pharmacy Freeholds | | | |
| | | | | |
NHS Prescriptions Dispensed | | | | |
| | | | | | |
| | | | | | |
| | | | | | |
EBITDA * Earnings before interest, tax, depreciation, amortisation, dividends receivable and other gains or losses. |
Mr D R Evans
Mrs J A W Evans
Director
Director
28 April 2025
28 April 2025
DALEACRE HEALTHCARE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 4 -
The directors present their annual report and financial statements for the year ended 31 July 2024.
Principal activities
The principal activity of the company continued to be that of pharmacies.
Results and dividends
The results for the year are set out on page 9.
No ordinary dividends were paid. 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:
Daleacre Holdings Limited
Mr R E Mcdonald
Mr I C Mckenzie
Mr J Such
Mrs E J Haddon
Mr D R Evans
Mrs J A W Evans
Mrs E L Anderson
(Appointed 31 January 2024)
Auditor
In accordance with the company's articles, a resolution proposing that Xeinadin Audit Ltd be reappointed as auditor of the company will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
DALEACRE HEALTHCARE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 5 -
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 D R Evans
Mrs J A W Evans
Director
Director
28 April 2025
DALEACRE HEALTHCARE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DALEACRE HEALTHCARE LIMITED
- 6 -
Opinion
We have audited the financial statements of Daleacre Healthcare Limited (the 'company') for the year ended 31 July 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 July 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.
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.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
DALEACRE HEALTHCARE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DALEACRE HEALTHCARE LIMITED
- 7 -
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:
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 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 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities, including fraud
We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were The Companies Act 2006 and relevant taxation compliance regulations.
In addition, we also concluded that there are certain significant laws and regulations which may have an effect on the determination of the amounts and disclosures in the financial statements, being those laws relating to health and safety regulations, Coronavirus regulations, data protection and GDPR guidelines and also the guidelines of the General Pharmaceutical Council, to which pharmacies are required to be registered.
We understood how the company is complying with these frameworks and regulations by making enquiries of management and those responsible for compliance and corroborated these enquiries with reviews of board minutes and any available correspondence with legal advisors.
We assessed that there were risks of material impact on the financial statements from irregularities, including fraud from the overide of controls by management, timing and recognising of income and in the manipulation of the company's key performance indicators to meet targets
DALEACRE HEALTHCARE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DALEACRE HEALTHCARE LIMITED
- 8 -
Audit response to risks identified
We carried out procedures to respond to these risks, including enquiries of management about their systems and controls to identify these risks of irregularities, reviewing minutes of directors meetings, testwork to review a sample of journal entries made during the year, reviewing and testing assumptions made on accounting estimates for management biases and testing the timing and recognition of revenue.
Our audit procedures were designed to respond to risks of material misstatements in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve more sophisticated acts, including concealment, collusion or deliberately failing to record transactions through intentional misrepresentation.
There are inherent limitations within an audit, even though it has been properly planned and carried out in accordance with auditing standards and we cannot be responsible for preventing non-compliance and cannot be expected to detect non compliance with all laws and regulations.
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.
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.
Russell Eley FCCA
Senior Statutory Auditor
For and on behalf of Xeinadin Audit Ltd
29 April 2025
Chartered Accountants &
Statutory Auditor
i2 Mansfield, Office Suite 0.3
Hamilton Court
Oakham Business Park
Mansfield
Nottinghamshire
NG18 5FB
DALEACRE HEALTHCARE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2024
- 9 -
2024
2023
Notes
£
£
Turnover
15,322,285
14,591,242
Cost of sales
(11,355,379)
(11,154,860)
Gross profit
3,966,906
3,436,382
Administrative expenses
(4,604,914)
(4,394,743)
Other operating income
190,183
181,713
Operating loss
3
(447,825)
(776,648)
Interest receivable and similar income
6
607,226
Interest payable and similar expenses
7
(59,221)
(44,294)
Amounts written off investments
8
-
(624,210)
Loss before taxation
(507,046)
(837,926)
Tax on loss
9
15,422
Loss for the financial year
(507,046)
(822,504)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
DALEACRE HEALTHCARE LIMITED
BALANCE SHEET
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
10
6,330,412
6,330,412
Other intangible assets
10
4,412,080
4,412,080
Total intangible assets
10,742,492
10,742,492
Tangible assets
11
2,479,292
2,557,513
Investment property
12
2,102,803
2,102,803
Investments
13
6,996
6,996
15,331,583
15,409,804
Current assets
Stocks
15
583,062
578,931
Debtors
16
1,574,433
1,384,425
Investments
17
885,000
Cash at bank and in hand
8,533
10,209
2,166,028
2,858,565
Creditors: amounts falling due within one year
18
(5,690,287)
(5,884,846)
Net current liabilities
(3,524,259)
(3,026,281)
Total assets less current liabilities
11,807,324
12,383,523
Creditors: amounts falling due after more than one year
19
(340,275)
(409,428)
Net assets
11,467,049
11,974,095
Capital and reserves
Called up share capital
22
14,033,676
14,033,676
Profit and loss reserves
(2,566,627)
(2,059,581)
Total equity
11,467,049
11,974,095
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 28 April 2025 and are signed on its behalf by:
Mr D R Evans
Mrs J A W Evans
Director
Director
Company registration number 09971402 (England and Wales)
DALEACRE HEALTHCARE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 August 2022
14,033,676
(1,237,077)
12,796,599
Year ended 31 July 2023:
Loss and total comprehensive income
-
(822,504)
(822,504)
Balance at 31 July 2023
14,033,676
(2,059,581)
11,974,095
Year ended 31 July 2024:
Loss and total comprehensive income
-
(507,046)
(507,046)
Balance at 31 July 2024
14,033,676
(2,566,627)
11,467,049
DALEACRE HEALTHCARE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
25
(666,038)
(1,183,808)
Interest paid
(59,221)
(44,294)
Income taxes refunded
15,422
Net cash outflow from operating activities
(725,259)
(1,212,680)
Investing activities
Purchase of tangible fixed assets
(51,826)
(75,371)
Purchase of investment property
(43,130)
Proceeds from disposal of investment property
865,000
Receipts arising from loans made
-
(28,732)
Interest received
126
Dividends received
607,100
Net cash generated from investing activities
813,174
459,993
Financing activities
Repayment of bank loans
(62,185)
(60,447)
Net cash used in financing activities
(62,185)
(60,447)
Net increase/(decrease) in cash and cash equivalents
25,730
(813,134)
Cash and cash equivalents at beginning of year
(961,697)
(148,563)
Cash and cash equivalents at end of year
(935,967)
(961,697)
Relating to:
Cash at bank and in hand
8,533
10,209
Bank overdrafts included in creditors payable within one year
(944,500)
(971,906)
DALEACRE HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
- 13 -
1
Accounting policies
Company information
Daleacre Healthcare Limited is a private company limited by shares incorporated in England and Wales. The registered office is 11 Wilsthorpe Road, Breaston, Derby, Derbyshire, DE72 3EA.
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.
Related party exemption
The company has taken advantage of exemption, under the terms of the Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' not to disclose related party transactions within the group.
The ultimate parent undertaking is Daleacre Holdings Limited and the results of the company are incorporated in its group accounts. The company is also incorporated in England and Wales, its registered office is 11 Wilsthorpe Road, Breaston, Derby, DE72 3EA.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable net of VAT and other sales related taxes.
1.4
Intangible fixed assets - goodwill
Goodwill arises on the acquisition of subsidiary undertakings and business, representing any excess of the fair value of the consideration given over the fair value of the identifiable assets and liabilities acquired. The residual value of the goodwill is higher than the acquisition amount and therefore no amortisation has been charged to these financial statements to reflect a true and fair view.
1.5
Intangible fixed assets other than goodwill
On acquisition of a trading Pharmacy, an element of the excess of the fair value of the consideration given over the fair value of the identifiable assets and liabilities acquired in relation to the NHS licence, representing consideration paid to acquire the right to sell prescribed drugs in those retail outlets. The value of the NHS Licence at the date of acquisition is based on an assessment by the directors of the present value of future cash flows resulting from the NHS turnover of each outlet. The NHS Licence does not attach to a specific Freehold or Leasehold Property and exists in perpetuity. The residual value of the Licences are higher than the cost and therefore no amortisation has been charged to these financial statements to show a true and fair view.
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:
Patents & licences
No amortisation charged
DALEACRE HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 14 -
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:
Freehold land and buildings
2% reducing balance
Leasehold land and buildings
No depreciation charged
Plant and equipment
25% reducing balance
Fixtures and fittings
20% reducing balance
Computers
25% straight line
Motor vehicles
25% reducing balance
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
Investment property
Investment property is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.8
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
1.9
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.
1.10
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving stock where appropriate. The method for valuing stocks is on a first in first out basis.
1.11
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.
DALEACRE HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 15 -
1.12
Financial instruments
Debtors and creditors receivable/payable with a year
Debtors and creditors are recorded at transaction price receivable or payable within one year. Any losses arising from impairment are recognised in the profit and loss account within administrative expenses.
Loans and borrowings
Loans and borrowings are initially recognised at the transaction price including transaction costs. They are subsequently measured at amortised cost using the effective interest rate method, less impairment.
1.13
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. 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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
DALEACRE HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 16 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Intangible fixed assets valuations
The basis of valuation is shown in the accounting policies.
Investment property valuations
The basis of valuation is shown in the accounting policies and in note 13 below.
Fixed asset investment valuations
The basis of valuation is shown in the accounting policies and in note 14 below.
3
Operating loss
2024
2023
Operating loss for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
15,755
14,495
Depreciation of owned tangible fixed assets
130,047
136,061
Loss on disposal of investment property
20,000
Operating lease charges
17,022
16,711
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Staff
129
136
Directors
7
6
Total
136
142
DALEACRE HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
4
Employees
(Continued)
- 17 -
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,850,921
2,520,777
Social security costs
257,342
226,842
Pension costs
64,456
52,340
3,172,719
2,799,959
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
352,552
327,566
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
88,486
90,494
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
126
Income from fixed asset investments
Income from shares in group undertakings
607,100
Total income
607,226
DALEACRE HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 18 -
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
24,273
14,080
Other interest on financial liabilities
34,948
30,212
59,221
44,292
Other finance costs:
Other interest
2
59,221
44,294
8
Amounts written off investments
2024
2023
£
£
Amounts written back to/(written off) non-current loans
-
(11,981)
Amounts written back to/(written off) investments held at fair value
-
(19,574)
Other gains and losses
-
(592,655)
-
(624,210)
One of the subsidiary company's, Daleacre Wholesale Limited, is being voluntarily struck off the register. The intercompany balance of £11,981 was written off during the 31 July 2023 financial year.
The sale of an investment property completed in August 2024, the value of the property was included within "investments in financial assets measured at fair value". The value of the property was revalued to it's fair value at 31 July 2023 recognising, a loss of £19,574 in the 31 July 2023 financial year.
One of the company's subsidiary companies, Knotfree Limited ceased trading as at 31 July 2021. As a result of this, an impairment review was carried out on the investment in this company and an amount of £592,655 was written off to the profit and loss account to better reflect the fair value of the investment as at 31 July 2023.
DALEACRE HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 19 -
9
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
(15,422)
The actual charge/(credit) for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Loss before taxation
(507,046)
(837,926)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
(126,762)
(209,482)
Tax effect of expenses that are not deductible in determining taxable profit
5,000
156,053
Unutilised tax losses carried forward
104,358
143,654
Adjustments in respect of prior years
(15,422)
Group relief
46,454
Depreciation on assets not qualifying for tax allowances
17,404
15,096
Dividend income
(151,775)
Taxation charge/(credit) for the year
-
(15,422)
10
Intangible fixed assets
Goodwill
Patents & licences
Total
£
£
£
Cost
At 1 August 2023 and 31 July 2024
6,330,412
4,412,080
10,742,492
Amortisation and impairment
At 1 August 2023 and 31 July 2024
Carrying amount
At 31 July 2024
6,330,412
4,412,080
10,742,492
At 31 July 2023
6,330,412
4,412,080
10,742,492
DALEACRE HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 20 -
11
Tangible fixed assets
Freehold land and buildings
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 August 2023
2,552,765
1
218,082
550,107
121,162
92,904
3,535,021
Additions
22,506
3,741
19,632
5,947
51,826
At 31 July 2024
2,575,271
1
221,823
569,739
127,109
92,904
3,586,847
Depreciation and impairment
At 1 August 2023
306,795
152,356
373,763
111,602
32,992
977,508
Depreciation charged in the year
51,362
16,861
38,279
8,567
14,978
130,047
At 31 July 2024
358,157
169,217
412,042
120,169
47,970
1,107,555
Carrying amount
At 31 July 2024
2,217,114
1
52,606
157,697
6,940
44,934
2,479,292
At 31 July 2023
2,245,970
1
65,726
176,344
9,560
59,912
2,557,513
DALEACRE HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 21 -
12
Investment property
2024
£
Fair value
At 1 August 2023 and 31 July 2024
2,102,803
The investment properties are considered to be held at fair value by the directors. The values were reviewed during the year and were deemed to not be materially different to those values reflected in the financial statements.
13
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
14
6,996
6,996
DALEACRE HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 22 -
14
Subsidiaries
Details of the company's subsidiaries at 31 July 2024 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Knotfree Limited
1 Wilsthorpe Road, Breaston, Derby DE72 3EA
Dormant company
Ordinary shares
100.00
-
Knotfree Limited
Preference shares
100.00
-
Daleacre Medical Services Limited
1 Wilsthorpe Road Breaston, Derby DE72 3EA
Dormant company
Ordinary shares
100.00
-
Blackwell Holdings Limited
1 Wilsthorpe Rad, Breaston, Derby DE72 3EA
Holding company
Ordinary shares
60.00
-
Blackwell Medical Services Limited
1 Wilsthorpe Road, Breaston, Derby DE72 3EA
Pharmacy
Ordinary shares
-
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Knotfree Limited
(48)
Daleacre Medical Services Limited
8
Blackwell Holdings Limited
13,392
Blackwell Medical Services Limited
999,562
115,428
15
Stocks
2024
2023
£
£
Raw materials and consumables
583,062
578,931
16
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,373,992
1,182,928
Amounts owed by group undertakings
48
48
Other debtors
175,914
176,719
Prepayments and accrued income
24,479
24,730
1,574,433
1,384,425
DALEACRE HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 23 -
17
Current asset investments
2024
2023
£
£
Investment property
885,000
Current asset investments of £nil (2023 £885,000) relate to an investment property held by the company which was sold in August 2023.
18
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
20
1,015,311
1,035,749
Trade creditors
1,483,199
1,423,691
Amounts owed to group undertakings
3,040,486
3,286,212
Taxation and social security
59,644
57,761
Other creditors
16,282
15,156
Accruals and deferred income
75,365
66,277
5,690,287
5,884,846
19
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
20
340,275
409,428
Amounts included above which fall due after five years are as follows:
Payable by instalments
151,445
176,483
20
Loans and overdrafts
2024
2023
£
£
Bank loans
411,086
473,271
Bank overdrafts
944,500
971,906
1,355,586
1,445,177
Payable within one year
1,015,311
1,035,749
Payable after one year
340,275
409,428
DALEACRE HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
20
Loans and overdrafts
(Continued)
- 24 -
The long-term loans are secured by first legal charge over the freehold property and a debenture over the company's assets.
There are two long-term loans one repayable over 10 years with monthly repayments of £5,271 and the other over 15 years with monthly repayments of £2,673.
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
64,456
52,340
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.
22
Share capital
2024
2023
Ordinary share capital
£
£
Issued and fully paid
Ordinary shares of £1 each
14,033,676
14,033,676
23
Contingent Liability
The company is party to a cross guarantee agreement from HSBC bank with fellow group companies, Daleacre Holdings Ltd, Blackwell Holdings Ltd and Blackwell Medical Services Ltd. The company is potentially liable for £158,675. however the directors do not consider that this guarantee will be called upon.
24
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
17,000
9,333
Between two and five years
62,333
79,333
9,333
DALEACRE HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 25 -
25
Cash absorbed by operations
2024
2023
£
£
Loss for the year after tax
(507,046)
(822,504)
Adjustments for:
Taxation charged/(credited)
(15,422)
Finance costs
59,221
44,294
Investment income
(607,226)
Loss on disposal of investment property
20,000
Depreciation and impairment of tangible fixed assets
130,047
136,061
Other gains and losses
-
624,210
Movements in working capital:
Increase in stocks
(4,131)
(3,518)
(Increase)/decrease in debtors
(190,008)
116,379
Decrease in creditors
(174,121)
(656,082)
Cash absorbed by operations
(666,038)
(1,183,808)
26
Analysis of changes in net debt
1 August 2023
Cash flows
31 July 2024
£
£
£
Cash at bank and in hand
10,209
(1,676)
8,533
Bank overdrafts
(971,906)
27,406
(944,500)
(961,697)
25,730
(935,967)
Borrowings excluding overdrafts
(473,271)
62,185
(411,086)
(1,434,968)
87,915
(1,347,053)
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