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COMPANY REGISTRATION NUMBER: 03867872
Healthcode Limited
Financial Statements
31 December 2024
Healthcode Limited
Financial Statements
Year ended 31 December 2024
Contents
Page
Officers and professional advisers
1
Strategic report
2
Directors' report
5
Directors' responsibilities statement
7
Independent auditor's report to the members
8
Statement of income and retained earnings
13
Statement of financial position
14
Statement of cash flows
15
Notes to the financial statements
16
Healthcode Limited
Officers and Professional Advisers
The board of directors
P M Connor
D D Wright
R Abdin
P Dowling - Lynch
M Vardy
D Cyprus
J Pagdin
Company secretary
J Murray
Registered office
10 Orange Street
London
United Kingdom
WC2A 7DQ
Auditor
Moore Kingston Smith LLP
Chartered accountants & statutory auditor
5 Godalming Business Centre
Woolsack Way
Godalming
Surrey
United Kingdom
GU7 1XW
Healthcode Limited
Strategic Report
Year ended 31 December 2024
The directors present their report for the year ended 31 December 2024. Business Review The principal activity of the company remains the provision of bill clearing services for the private healthcare market, along with practice management systems, secure messaging, pre-authorisation, and clinical coding translation tools. The company experienced another year of strong growth, both commercially and operationally, with clearing volumes in 2024 surpassing those seen in 2023. Monthly subscriptions continued their upward trend, and transaction volumes once again exceeded expectations. Factors contributing to this included ongoing NHS waiting list pressures and the continuation of industrial action, which has led to a sustained increase in the use of private medical insurance and self-funded treatment. The company's headcount reduced during the year in line with our strategy to automate some key areas of the business. The directors and board executives reaffirm their commitment to the company's long-term strategy, prioritising product development, capacity building, capability enhancement, resilience, and operational effectiveness. 2024 saw the official launch of ICE - a significant new product in the private healthcare sector. ICE leverages FHIR APIs to deliver an integrated eBooking diary system, allowing hospitals, practitioners, practices, and clinics to synchronise services and availability across multiple platforms, while maintaining full diary control. Key financial performance indicators (KPI's) The key financial performance indicators of the company are turnover and profit before tax which are summarised below:
2024 2023
£ £
Turnover 12,037,554 9,826,048
Profit before tax 1,170,417 208,072
Key non-financial performance indicators (KPI's) Healthcode successfully passed its ISO27001 audit once again, reinforcing its strong commitment to information security and data protection for both the business and its customers. Customer satisfaction remains high, as evidenced by growing volumes of five-star Google reviews. The Customer Operations team continues to enhance support processes using Salesforce, ensuring a robust and responsive service model. The Healthcode brand has now been active for over two years and continues to deliver strong engagement through targeted marketing activities, contributing to increased visibility across YouTube, LinkedIn, and web platforms. The company has now completed a second full year in its Staines office, which continues to provide a collaborative and productive environment for staff. Going concern The directors have conducted a detailed assessment of the company's status as a going concern, considering future projections and financial forecasts over a 12-month period from the approval of these accounts. Based on this review, the directors do not believe there are any material uncertainties that would cast doubt on the company's ability to continue as a going concern. Future developments Healthcode remains focused on evolving its business in line with its current strategic direction. Principal risks and uncertainties Healthcode continues to explore funding options to support its development objectives and long-term strategic growth. IT risk Loss of the IT network or data held within it could result in significant reputational and financial damage. The company has a dedicated IT function with skill and experience in maintaining and monitoring the IT infrastructure. Business data is regularly backed up and stored in a secure location. Email and internet filtering technology and firewall software are in place to restrict the impact of cyber-attacks. Regular notifications are sent to staff regarding the importance of remaining vigilant of phishing emails. Risk Management Liquidity risks The company considers its liquidity risk to be low. Cash flow and working capital are closely monitored by the management team to ensure ongoing financial stability. Credit risks Credit risk is primarily associated with trade receivables from key customers. The company periodically assesses customer creditworthiness, with its principal clients-private medical insurers and hospitals-considered to represent low credit risk Interest rate risks The company's exposure to interest rate risk is limited to a CBILS loan, which carries an interest rate of 3% above the base rate. This risk is monitored regularly and is considered low based on the outstanding loan amount.
This report was approved by the board of directors on 26 June 2025 and signed on behalf of the board by:
P M Connor
Director
Registered office:
10 Orange Street
London
United Kingdom
WC2A 7DQ
Healthcode Limited
Directors' Report
Year ended 31 December 2024
The directors present their report and the financial statements of the company for the year ended 31 December 2024 .
Directors
The directors who served the company during the year were as follows:
P M Connor
D D Wright
R Abdin
P Dowling - Lynch
M Vardy
(Appointed 21 February 2024)
D Cyprus
(Appointed 12 September 2024)
J Pagdin
(Appointed 12 September 2024)
A Hasan
(Resigned 30 August 2024)
C Smith
(Served from 1 February 2024 to 12 July 2024)
C Smith was appointed as a director on 1 February 2024.
Dividends
The directors do not recommend the payment of a dividend.
Disclosure of information in the strategic report
A separate strategic report has been prepared which includes information regarding the future developments, principal risks and uncertainties and information which would have been included in the business review.
Directors insurance
Directors and officers insurance is in place to indemnify the directors against liabilities arising from the discharge of their duties as directors of the company.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 26 June 2025 and signed on behalf of the board by:
P M Connor
Director
Registered office:
10 Orange Street
London
United Kingdom
WC2A 7DQ
Healthcode Limited
Directors' Responsibilities Statement
Year ended 31 December 2024
The directors are responsible for preparing the strategic report, directors' 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 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 judgments 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.
Healthcode Limited
Independent Auditor's Report to the Members of Healthcode Limited
Year ended 31 December 2024
Opinion
We have audited the financial statements of Healthcode Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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'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 the 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.
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 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 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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Identifying and assessing risks related to irregularities: We assessed the susceptibility of the company's financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and updating our understanding of the sector in which the company operates. Laws and regulations of direct significance in the context of the company include The Companies Act 2006, Data Protection Act 2018 and UK Tax legislation. In addition, the company is subject to other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to its ability to operate or to avoid a material penalty. These include anti-bribery legislation and employment law. Audit response to risks identified We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance. We have reviewed management's assessment of how the company complies with the relevant laws and regulations. During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner's review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud. There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. An auditor conducting an audit in accordance with ISAs (UK) is responsible for obtaining reasonable assurance that the financial statements taken as a whole are free from material misstatement, whether caused by fraud or error and in our audit procedures described above. Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements of the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - 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. 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. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.
Peter Conneely
(Senior Statutory Auditor)
For and on behalf of
Moore Kingston Smith LLP
Chartered accountants & statutory auditor
5 Godalming Business Centre
Woolsack Way
Godalming
Surrey
United Kingdom
GU7 1XW
26 June 2025
Healthcode Limited
Statement of Income and Retained Earnings
Year ended 31 December 2024
2024
2023
Note
£
£
Turnover
4
12,037,554
9,826,048
-------------
------------
Gross profit
12,037,554
9,826,048
Administrative expenses
( 10,842,242)
( 9,570,332)
Other operating income
5
7,091
-------------
------------
Operating profit
6
1,202,403
255,716
Other interest receivable and similar income
10
17,513
18,864
Interest payable and similar expenses
11
( 49,499)
( 66,508)
-------------
------------
Profit before taxation
1,170,417
208,072
Tax on profit
12
120,141
549,537
------------
---------
Profit for the financial year and total comprehensive income
1,290,558
757,609
------------
---------
Retained earnings at the start of the year
1,568,927
811,318
------------
------------
Retained earnings at the end of the year
2,859,485
1,568,927
------------
------------
All the activities of the company are from continuing operations.
Healthcode Limited
Statement of Financial Position
31 December 2024
2024
2023
Note
£
£
£
Fixed assets
Intangible assets
13
4,773,770
3,429,052
Tangible assets
14
326,386
421,472
------------
------------
5,100,156
3,850,524
Current assets
Debtors
15
1,692,405
2,610,358
Cash at bank and in hand
2,351,830
1,013,388
------------
------------
4,044,235
3,623,746
Creditors: amounts falling due within one year
16
( 5,534,906)
( 4,855,343)
------------
------------
Net current liabilities
( 1,490,671)
( 1,231,597)
------------
------------
Total assets less current liabilities
3,609,485
2,618,927
Creditors: amounts falling due after more than one year
17
( 150,000)
( 450,000)
------------
------------
Net assets
3,459,485
2,168,927
------------
------------
Capital and reserves
Called up share capital
19
600,000
600,000
Profit and loss account
20
2,859,485
1,568,927
------------
------------
Shareholders funds
3,459,485
2,168,927
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 26 June 2025 , and are signed on behalf of the board by:
P M Connor
Director
Company registration number: 03867872
Healthcode Limited
Statement of Cash Flows
Year ended 31 December 2024
2024
2023
£
£
Cash flows from operating activities
Profit for the financial year
1,290,558
757,609
Adjustments for:
Depreciation of tangible assets
120,773
120,863
Amortisation of intangible assets
1,265,561
856,514
Other interest receivable and similar income
( 17,513)
( 18,864)
Interest payable and similar expenses
49,499
66,508
Tax on profit
( 120,141)
( 549,537)
Changes in:
Trade and other debtors
521,204
875,940
Trade and other creditors
679,563
415,725
------------
------------
Cash generated from operations
3,789,504
2,524,758
Interest paid
( 49,499)
( 66,508)
Interest received
17,513
18,864
Tax received
516,890
193,328
------------
------------
Net cash from operating activities
4,274,408
2,670,442
------------
------------
Cash flows from investing activities
Purchase of tangible assets
( 25,687)
( 7,543)
Purchase of intangible assets
( 2,610,279)
( 2,090,585)
------------
------------
Net cash used in investing activities
( 2,635,966)
( 2,098,128)
------------
------------
Cash flows from financing activities
Repayments of borrowings
( 300,000)
( 300,000)
------------
------------
Net cash used in financing activities
( 300,000)
( 300,000)
------------
------------
Net increase in cash and cash equivalents
1,338,442
272,314
Cash and cash equivalents at beginning of year
1,013,388
741,074
------------
------------
Cash and cash equivalents at end of year
2,351,830
1,013,388
------------
------------
Healthcode Limited
Notes to the Financial Statements
Year ended 31 December 2024
1. General information
The company is a private company limited by shares, registered in England. The address of the registered office is 10 Orange Street, London, UK, WC2H 7DQ and the principal place of business is One Causeway Park, The Causeway, Staines, Surrey, TW18 3AL. The principal activity of the company is that of the provision of bill clearing services for the private healthcare market together with the provision of practice management systems, secure messaging, pre-authorisation and clinical coding translation tools.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities at fair value through profit or loss as set out in the accounting polices below. The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
The directors have conducted a detailed assessment of the company's status as a going concern, considering future projections and financial forecasts over a 12-month period from the approval of these accounts. Based on this review, the directors do not believe there are any material uncertainties that would cast doubt on the company's ability to continue as a going concern.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: Impairment of assets Non-current assets including intangibles assets are reviewed for impairment if events or changes in circumstances indicate that the carrying amount may not be recoverable. Such reviews require management to make judgements, estimates and assumptions. Where such an event or change of circumstances takes place, then additional impairment may be required for future periods. At 31 December 2024 the carrying value of intangibles assets was £4,773,770 (2023: £3,429,052). No impairment was required in the year (2023: £nil).
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for services rendered, stated net of discounts and of Value Added Tax. Subscription income is recognised on a straight line basis over the period of the subscription. Clearing income is recognised at the point where the service is provided.
Intangible assets-software development expenditure
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses.
Research expenditure is written off in the period in which it is incurred.
Development expenditure is written off as incurred, except where the directors are satisfied as to the technical, commercial financial viability of the project. In such cases the identifiable expenditure is deferred and amortised over the period during which the company is expected to benefit.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Software Development
-
20% straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Leasehold Improvements
-
Over the lease terrm -5 Years
Fixtures & Fittings
-
20% straight line
Computer Equipment
-
20% straight line
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
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 statement of financial position 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. 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, loans from fellow group companies and preference shares that are classified as debt, 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.
Defined contribution plans
The company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. The contributions payable are charged to the profit and loss account.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense
4. Turnover
Turnover arises from:
2024
2023
£
£
Rendering of services
12,037,554
9,826,048
-------------
------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Other operating income
2024
2023
£
£
Other operating income
7,091
-------
----
6. Operating profit
Operating profit or loss is stated after charging:
2024
2023
£
£
Amortisation of intangible assets
1,265,561
856,514
Depreciation of tangible assets
120,773
120,863
Operating leases
195,731
195,731
------------
---------
7. Auditor's remuneration
2024
2023
£
£
Fees payable for the audit of the financial statements
20,750
20,350
--------
--------
8. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024
2023
No.
No.
Administrative staff
67
74
Management staff
10
8
----
----
77
82
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
4,596,374
4,548,143
Social security costs
498,379
504,656
Other pension costs
325,571
342,565
------------
------------
5,420,324
5,395,364
------------
------------
Key management remuneration during the year was £1,690,358 (2023: £1,351,290).
9. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
509,711
442,287
Company contributions to defined contribution pension plans
26,195
26,187
---------
---------
535,906
468,474
---------
---------
The number of directors who accrued benefits under company pension plans was as follows:
2024
2023
No.
No.
Defined contribution plans
1
1
----
----
Remuneration of the highest paid director in respect of qualifying services:
2024
2023
£
£
Aggregate remuneration
438,096
397,287
Company contributions to defined contribution pension plans
26,195
26,187
---------
---------
464,291
423,474
---------
---------
The above directors' remuneration includes salary, long term and short term bonuses and other benefits.
10. Other interest receivable and similar income
2024
2023
£
£
Interest on cash and cash equivalents
17,513
18,864
--------
--------
11. Interest payable and similar expenses
2024
2023
£
£
Other interest payable and similar charges
49,499
66,508
--------
--------
12. Tax on profit
Major components of tax income
2024
2023
£
£
Current tax:
UK current tax income
( 125,796)
( 285,239)
Adjustments in respect of prior periods
5,655
( 264,298)
---------
---------
Total current tax
( 120,141)
( 549,537)
---------
---------
---------
---------
Tax on profit
( 120,141)
( 549,537)
---------
---------
Reconciliation of tax income
The tax assessed on the profit on ordinary activities for the year is lower than (2023: lower than) the standard rate of corporation tax in the UK of 25 % (2023: 23.50 %).
2024
2023
£
£
Profit on ordinary activities before taxation
1,170,417
208,072
------------
---------
Profit on ordinary activities by rate of tax
292,604
48,940
Effect of expenses not deductible for tax purposes
39,262
9,888
Effect of capital allowances and depreciation
( 350,266)
( 309,803)
Impact of additional Research and development expenditure relief
( 296,090)
( 351,992)
Difference in R&D surrendered vs claimed as refund
188,694
317,728
Adjustment in respect of prior year
5,655
( 264,298)
------------
---------
Tax on profit
( 120,141)
( 549,537)
------------
---------
Factors that may affect future tax income
As at 31 December 2024 the company has tax losses of £1,987,611 (2023: £1,821,327) available to carry forward against future taxable profits.
13. Intangible assets
Software Development
£
Cost
At 1 January 2024
5,472,353
Additions
2,610,279
------------
At 31 December 2024
8,082,632
------------
Amortisation
At 1 January 2024
2,043,301
Charge for the year
1,265,561
------------
At 31 December 2024
3,308,862
------------
Carrying amount
At 31 December 2024
4,773,770
------------
At 31 December 2023
3,429,052
------------
14. Tangible assets
Leasehold Improvements
Fixtures and fittings
Equipment
Total
£
£
£
£
Cost
At 1 January 2024
247,495
138,489
321,664
707,648
Additions
1,845
24,238
26,083
Disposals
( 396)
( 396)
---------
---------
---------
---------
At 31 December 2024
247,495
140,334
345,506
733,335
---------
---------
---------
---------
Depreciation
At 1 January 2024
58,988
30,520
196,668
286,176
Charge for the year
50,208
27,708
42,857
120,773
---------
---------
---------
---------
At 31 December 2024
109,196
58,228
239,525
406,949
---------
---------
---------
---------
Carrying amount
At 31 December 2024
138,299
82,106
105,981
326,386
---------
---------
---------
---------
At 31 December 2023
188,507
107,969
124,996
421,472
---------
---------
---------
---------
15. Debtors
2024
2023
£
£
Trade debtors
811,593
1,457,326
Prepayments and accrued income
221,220
134,575
Corporation tax repayable
403,022
799,771
Other debtors
256,570
218,686
------------
------------
1,692,405
2,610,358
------------
------------
The debtors above include the following amounts falling due after more than one year:
2024
2023
£
£
Other debtors
63,291
25,680
--------
--------
16. Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
300,000
300,000
Trade creditors
490,902
462,642
Deferred Income
2,650,535
2,173,410
Accruals
1,001,839
816,412
Social security and other taxes
735,504
666,678
Other creditors
356,126
436,201
------------
------------
5,534,906
4,855,343
------------
------------
On 13 June 2016 a fixed and floating charge was created in favour of Barclays Bank Plc over all assets of the company.
17. Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
150,000
450,000
---------
---------
In April 2020 the company applied for and obtained a loan of £1.5m under the Coronavirus Business Interruption Loan (CBIL) Scheme. This loan is repayable over 6 years in quarterly instalments of £75,000 at 3% interest over the Bank of England base rate. The £1.5m loan is subject to an 80% government guarantee under the CBIL loan scheme.
18. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 325,571 (2023: £ 342,565 ).
At the year end, amounts outstanding in relation to pensions was £32,744 (2023: £32,116).
19. Called up share capital
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary A shares of £ 1 each
100,000
100,000
100,000
100,000
Ordinary B shares of £ 1 each
100,000
100,000
100,000
100,000
Ordinary C shares of £ 1 each
100,000
100,000
100,000
100,000
Ordinary D shares of £ 1 each
100,000
100,000
100,000
100,000
Ordinary E shares of £ 1 each
100,000
100,000
100,000
100,000
Ordinary F shares of £1 each
100,000
100,000
100,000
100,000
---------
---------
---------
---------
600,000
600,000
600,000
600,000
---------
---------
---------
---------
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company. All ordinary shares rank equally with regard to the company's residual assets.
20. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses.
21. Analysis of changes in net debt
At 1 Jan 2024
Cash flows
At 31 Dec 2024
£
£
£
Cash at bank and in hand
1,013,388
1,338,442
2,351,830
Debt due within one year
(300,000)
(300,000)
Debt due after one year
(450,000)
300,000
(150,000)
------------
------------
------------
263,388
1,638,442
1,901,830
------------
------------
------------
22. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2024
2023
£
£
Not later than 1 year
396,606
368,426
Later than 1 year and not later than 5 years
563,893
825,169
---------
------------
960,499
1,193,595
---------
------------
23. Related party transactions
During the year the company invoiced £5,983,669 (2023: £4,650,310) to owners having a participating interest in the company. The total amount owing to the company at the year end from owners having a participating interest in the company and which included within trade debtors is £101,718 (2023: £909,056).
24. Controlling party
In the opinion of the directors, there is no one controlling party of the company.