Newbridge Care Systems Limited 06134186 false 2024-01-01 2024-12-31 2024-12-31 The principal activity of the company is to operate all Schoen UK mental health operations. The principal site, Schoen Clinic Newbridge, which is based in Birmingham, was acquired in May 2017 and is one of the largest private inpatient facilities for the treatment of children and adolescent eating disorders in the UK. The company has a broad range of effective specialist treatments delivered by highly qualified staff. The services cater for children and young people aged 8 to 18 with discrete units for younger and older age groups and an outpatient clinic which is open to both adults and young people, treating a range of eating disorders. The staff at Schoen Clinic Newbridge are specialists in eating disorders and work in multi-disciplinary teams delivering evidence-based care. The other sites are in York and Chelsea, York providing adult eating disorder services for up to 15 inpatients, and Chelsea providing outpatient eating disorder and mood services for adults, adolescents and children with eating disorders, anxiety and depression. In January 2024 the lease at the York clinic was extended by 5 years, and the lease expanded to include the entire building with a total capacity of 77 beds. Additional services were introduced during the course of 2024 following discussions with Commissioners regarding service lines with the greatest need for additional provision in the area and CQC registration has been obtained during the year. This expanded site is expected to generate profits within 3 financial years. 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Registration number: 06134186

Newbridge Care Systems Limited
Annual Report and Financial Statements
for the Year Ended 31 December 2024

Newbridge Care Systems Limited

Contents

Company Information | 1
Strategic Report | 2 to 3
Directors' Report | 4
Statement of Directors' Responsibilities | 5
Independent Auditor's Report | 6 to 8
Profit and Loss Account | 9
Balance Sheet | 10
Statement of Changes in Equity | 11
Notes to the Financial Statements | 12 to 19

Newbridge Care Systems Limited

Company Information

Directors | A G Davey J C Nel

Company secretary | S Findlay

Registered office | 147 Chester Road Streetly Sutton Coldfield B74 3NE

Auditors | Hazlewoods LLP Windsor House Bayshill Road Cheltenham GL50 3AT

Newbridge Care Systems Limited

Strategic Report for the Year Ended 31 December 2024

The directors present their strategic report and financial statements for the year ended 31 December 2024.

Principal activity

The principal activity of the company is to operate all Schoen UK mental health operations. The principal site, Schoen Clinic Newbridge, which is based in Birmingham, was acquired in May 2017 and is one of the largest private inpatient facilities for the treatment of children and adolescent eating disorders in the UK. The company has a broad range of effective specialist treatments delivered by highly qualified staff. The services cater for children and young people aged 8 to 18 with discrete units for younger and older age groups and an outpatient clinic which is open to both adults and young people, treating a range of eating disorders. The staff at Schoen Clinic Newbridge are specialists in eating disorders and work in multi-disciplinary teams delivering evidence-based care.
The other sites are in York and Chelsea, York providing adult eating disorder services for up to 15 inpatients, and Chelsea providing outpatient eating disorder and mood services for adults, adolescents and children with eating disorders, anxiety and depression.
In January 2024 the lease at the York clinic was extended by 5 years, and the lease expanded to include the entire building with a total capacity of 77 beds. Additional services were introduced during the course of 2024 following discussions with Commissioners regarding service lines with the greatest need for additional provision in the area and CQC registration has been obtained during the year. This expanded site is expected to generate profits within 3 financial years.

Business review

The company’s revenues are generated by treatment of mental health patients. Expenses were mainly incurred for personnel costs and administrative expenses.

Key performance indicators

The company measures performance mainly by using the following KPIs:

Financial KPIs | Unit | 2024 | 2023
Turnover | £ | 7,757,059 | 9,707,220
EBITDA** | £ | (7,570,827) | (2,715,827)
Loss for financial year | £ | (9,358,224) | (3,833,469)

**EBITDA is earnings before interest, taxation, depreciation, amortisation and loss on disposal of tangible assets.

Newbridge Care Systems Limited

Strategic Report for the Year Ended 31 December 2024

Principal risks and uncertainties

Economic and competition risks
Historically up to 50% of Newbridge Care Systems Limited’s eating disorded patients have been from out of area and the NHS is eager to avoid out of area placements in the future. This is seen as a principal risk to the currently high bed occupancy of the business.
The NHS has restructured select mental health commissioning to devolve responsibility to lead NHS Trusts under the ‘’Provider Collaborative’ initiative. The goal of this initiative is to transfer resources from inpatient facilities to community- based services and provide services close to home. As the NHS is the primary funding source for both inpatient locations, Schoen Clinic York and Schoen Clinic Newbridge could be impacted with a reduction in purchased eating disorder inpatient services. However, we have not seen out of area placements decrease significantly with the introduction of Provider Collaborative commissioning arrangements. Schoen Clinic is actively participating in all partnerships in care initiatives with the lead NHS Trusts. Schoen Clinic is also seeking to diversify revenue sources by offering private inpatient and outpatient options through further expansion of both sites
Legislative risks
The York Hospital is rated “Good” overall by the CQC (December 2022).
Chelsea was inspected by the CQC in February 2022 and was rated overall “Good”.
Schoen Clinic Newbridge is rated “Outstanding” overall by the CQC.
Financial instruments risk
Newbridge Care Systems Limited is completely integrated into the Schoen Clinic Group 5 year planning and quarterly forecast process. If the company is not able to generate sufficient funds to realise its investment program, the necessary funds will be provided by the parent company.
Credit risk
The majority of the revenue is from the NHS and due to contracts being in place for all activity with agreed payment and reconciliation processes, credit risk is deemed to be low.
Liquidity risk
The company has been integrated into the group cash pooling system in order to secure access to funds if needed. The company also aims to mitigate liquidity risk by managing cash generation and applying cash collection measures throughout the UK group.

Approved by the Board on 14 April 2025 and signed on its behalf by:

A G Davey
Director

J C Nel
Director

Newbridge Care Systems Limited

Directors' Report for the Year Ended 31 December 2024

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

Directors of the company

The directors who held office during the year were as follows:

A G Davey

J C Nel

Future developments

Future developments include engagement with the NHS New Care Models across a number of regions including holding Board positions supporting the shift to the provider collaborative commissioning.

Going concern

At the balance sheet date, the company had net current liabilities £19,249,188 (2023 - £9,586,771) after making a loss for 2024 of £9,358,224 (2023 - £3,833,469).
The Directors have considered the application of the going concern basis of accounting taking into consideration current and projected trading performance which is expected to generate significant profits and cash flows over the next five years. The Company obtained a letter of support from Schoen Klinik SE, its ultimate parent company, which consists of financial support to the Company for the period of at least 12 months from the date of approval of financial statements. The Directors have also considered the financial ability of Schoen Klinik SE to support the Company. Schoen Klinik SE has a strong balance sheet and significant liquidity headroom.
Based on these assumptions, the Directors have no reason to believe that a material uncertainty exists that may cause significant doubt about the ability of the Company to continue as a going concern or its ability to fulfil its financial obligations. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements.

Disclosure of information to the auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
• so far as the directors are aware, there is no relevant audit information of which the Company's auditors are unaware, and
• the directors have taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Reappointment of auditors

Hazlewoods LLP have expressed their willingness to continue in office.

Approved by the Board on 14 April 2025 and signed on its behalf by:

A G Davey
Director

J C Nel
Director

Newbridge Care Systems Limited

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 apply them consistently;
• | make judgements and accounting estimates that are reasonable and prudent;
• | state whether applicable UK Accounting Standards has been followed, subject to any material departures disclosed and explained in the financial statements; and
• | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

Newbridge Care Systems Limited

Independent Auditor's Report to the Members of Newbridge Care Systems Limited

Opinion

We have audited the financial statements of Newbridge Care Systems Limited (the 'company') for the year ended 31 December 2024, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• | give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its loss for the year then ended;
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
• | have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Conclusions relating to going concern

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 original financial statements were authorised for issue.

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

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Newbridge Care Systems Limited

Independent Auditor's Report to the Members of Newbridge Care Systems Limited

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• | the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

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

• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
• | the financial statements are not in agreement with the accounting records and returns; or
• | certain disclosures of directors' remuneration specified by law are not made; or
• | we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 5, 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.

Extent to which the audit was 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, 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:
We considered the nature of the company’s industry and its control environment and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.
We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

Newbridge Care Systems Limited

Independent Auditor's Report to the Members of Newbridge Care Systems Limited

In common with all audits conducted in accordance with ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override of controls. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.
In addition to the above, our procedures to respond to the risks identified included the following:

• | reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

• | performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud;

• | enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and

• | reading minutes of meetings of those charged with governance.

Our audit procedures were designed to respond to risks of material misstatement 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 deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed 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 are to become aware of it.

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

Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

James Morter (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

14 April 2025

Newbridge Care Systems Limited

Profit and Loss Account for the Year Ended 31 December 2024

| Note | 2024 £ | 2023 £
Turnover | 3 | 7,757,059 | 9,707,220
Cost of sales |  | (7,023,857) | (6,625,745)
Gross profit |  | 733,202 | 3,081,475
Administrative expenses |  | (8,841,058) | (6,164,171)
Other operating income |  | 39,740 | 80,981
Operating loss | 4 | (8,068,116) | (3,001,715)
Other interest receivable and similar income | 8 | 663,404 | 576,070
Interest payable and similar expenses | 9 | (1,953,512) | (1,407,824)
Loss before tax |  | (9,358,224) | (3,833,469)
Tax on loss | 10 | - | -
Loss for the financial year |  | (9,358,224) | (3,833,469)

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

Newbridge Care Systems Limited

(Registration number: 06134186)
Balance Sheet as at 31 December 2024

| Note | 2024 £ | 2023 £
Fixed assets |  |  |
Intangible assets | 11 | 4,706 | 7,031
Tangible assets | 12 | 4,682,715 | 4,407,930
|  | 4,687,421 | 4,414,961
Current assets |  |  |
Stocks |  | 22,450 | 22,000
Debtors | 13 | 668,499 | 1,124,050
Cash at bank and in hand |  | 84 | 43,353
|  | 691,033 | 1,189,403
Creditors: Amounts falling due within one year | 14 | (19,940,221) | (10,776,174)
Net current liabilities |  | (19,249,188) | (9,586,771)
Total assets less current liabilities |  | (14,561,767) | (5,171,810)
Creditors: Amounts falling due after more than one year | 14 | (92,712) | (124,445)
Net liabilities |  | (14,654,479) | (5,296,255)
Capital and reserves |  |  |
Called up share capital | 15 | 335,000 | 335,000
Capital redemption reserve | 16 | 65,000 | 65,000
Profit and loss account | 16 | (15,054,479) | (5,696,255)
Shareholders' deficit |  | (14,654,479) | (5,296,255)

Approved and authorised by the Board on 14 April 2025 and signed on its behalf by:

A G Davey
Director

J C Nel
Director

Newbridge Care Systems Limited

Statement of Changes in Equity for the Year Ended 31 December 2024

| Share capital £ | Capital redemption reserve £ | Profit and loss account £ | Total £
At 1 January 2024 | 335,000 | 65,000 | (5,696,255) | (5,296,255)
Loss for the year | - | - | (9,358,224) | (9,358,224)
At 31 December 2024 | 335,000 | 65,000 | (15,054,479) | (14,654,479)

| Share capital £ | Capital redemption reserve £ | Profit and loss account £ | Total £
At 1 January 2023 | 335,000 | 65,000 | (1,862,786) | (1,462,786)
Loss for the year | - | - | (3,833,469) | (3,833,469)
At 31 December 2023 | 335,000 | 65,000 | (5,696,255) | (5,296,255)

Newbridge Care Systems Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

| 1 | General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
147 Chester Road
Streetly
Sutton Coldfield
B74 3NE

| 2 | Accounting policies

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102 Section 1A, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 Section 1A requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies.
The following principal accounting policies have been applied:

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Financial reporting standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland.
- the requirements of section 7 Statement of Cash Flows;
- the requirements of section 33 Related Party Disclosures paragraph 33.7.
The information is included in the consolidated financial statements of Schoen Klinik SE (previously Schoen Holding SE & Co KG) as at 31 December 2024 and these financial statements may be obtained from Seestrasee 5A, 83209 Prien Am Chiemsee, Germany.

Going concern

At the balance sheet date, the company had net current liabilities £19,249,188 (2023 - £9,586,771) after making a loss for 2024 of £9,358,224 (2023 - £3,833,469).
The Directors have considered the application of the going concern basis of accounting taking into consideration current and projected trading performance. The Company obtained a letter of support from Schoen Klinik SE, its ultimate parent company, which consists of financial support to the Company for the period of at least 12 months from the date of approval of financial statements. The Directors have also considered the financial ability of Schoen Klinik SE to support the Company. Schoen Klinik SE has a strong balance sheet and significant liquidity headroom.
Based on these assumptions, the Directors have no reason to believe that a material uncertainty exists that may cause significant doubt about the ability of the Company to continue as a going concern or its ability to fulfil its financial obligations. Thus, they continue to adopt the going concern basis of accounting in preparing the financial statements.

Newbridge Care Systems Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

Judgements

No significant judgements have been made by management in preparing these financial statements.

Key sources of estimation uncertainty

No key sources of estimation uncertainty have been identified by management in preparing these financial statements other than those detailed in these accounting policies.

Critical accounting 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 amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company. The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Intangible assets

Costs associated with maintaining computer software are recognised as an expense is incurred. Development costs that are directly attributable to the design and testing of identifiable and unique software products controlled by the company are recognised as intangible assets when the following criteria are met:
• it is technically feasible to complete the software so that it will be available for use;
• management intends to complete the software and use or sell it;
• there is an ability to use or sell the software;
• it can be demonstrated how the software will generate probable future economic benefits;
• adequate technical, financial and other resources to complete the development and to use or sell the software are available; and
• the expenditure attributable to the software during its development can be reliably measured.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Newbridge Care Systems Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class | Depreciation method and rate
Freehold property | Over 33 years
Leasehold improvements | Over the life of the lease
Fixtures and fittings | 5-50% on cost
Computer equipment | 33% on cost

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Newbridge Care Systems Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

Financial instruments
Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.
Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.
A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Newbridge Care Systems Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

| 3 | Turnover

The analysis of the company's turnover for the year by market is as follows:

| 2024 £ | 2023 £
Medical services | 7,757,059 | 9,707,220

The total turnover of the company has been derived from its principal activity wholly undertaken in the United Kingdom.

| 4 | Operating profit

Arrived at after charging/(crediting)

| 2024 £ | 2023 £
Depreciation expense | 490,883 | 275,095
Amortisation expense | 6,406 | 10,793
Operating lease expense - property | 1,446,740 | 902,122
Operating lease expense - plant and machinery | 5,795 | 4,482

| 5 | Auditors' remuneration

| 2024 £ | 2023 £
Audit of the financial statements | 14,250 | 15,000

| 6 | Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

| 2024 £ | 2023 £
Wages and salaries | 4,484,849 | 4,485,178
Social security costs | 381,087 | 437,237
Pension costs, defined contribution scheme | 112,376 | 132,050
| 4,978,312 | 5,054,465

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

| 2024 No. | 2023 No.
Employees | 110 | 149

| 7 | Directors' remuneration

Directors' remuneration has been borne by a fellow group undertaking.

| 8 | Other interest receivable and similar income

| 2024 £ | 2023 £
Interest receivable from group undertakings | 663,404 | 576,070

Newbridge Care Systems Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

| 9 | Interest payable and similar expenses

| 2024 £ | 2023 £
Interest payable to group undertakings | 1,953,512 | 1,407,824

| 10 | Taxation

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of 25% (2023 - 23.52%).
The differences are reconciled below:

| 2024 £ | 2023 £
Loss before tax | (9,358,224) | (3,833,469)
Corporation tax at standard rate | (2,339,556) | (901,632)
Effect of expense not deductible in determining taxable profit (tax loss) | 322,527 | 195,634
UK deferred tax expense relating to changes in tax rates or laws | - | 9,162
Deferred tax expense from unrecognised tax loss or credit | 1,949,973 | 645,843
Tax increase from effect of capital allowances and depreciation | 67,056 | 50,993
Total tax charge/(credit) | - | -

| 11 | Intangible assets

| Computer software £
Cost or valuation
At 1 January 2024 | 424,877
Additions | 4,081
At 31 December 2024 | 428,958
Amortisation
At 1 January 2024 | 417,846
Amortisation charge | 6,406
At 31 December 2024 | 424,252
Carrying amount
At 31 December 2024 | 4,706
At 31 December 2023 | 7,031

Newbridge Care Systems Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

| 12 | Tangible assets

| Freehold property £ | Fixtures and fittings £ | Computer equipment £ | Leasehold improvements £ | Total £
Cost
At 1 January 2024 | 3,891,107 | 866,876 | 367,454 | 1,560,136 | 6,685,573
Additions | - | 354,886 | 30,179 | 380,603 | 765,668
Disposals | - | (3,296) | - | - | (3,296)
At 31 December 2024 | 3,891,107 | 1,218,466 | 397,633 | 1,940,739 | 7,447,945
Depreciation
At 1 January 2024 | 573,683 | 615,401 | 310,854 | 777,705 | 2,277,643
Charge for the year | 120,324 | 195,932 | 26,624 | 148,003 | 490,883
Eliminated on disposal | - | (3,296) | - | - | (3,296)
At 31 December 2024 | 694,007 | 808,037 | 337,478 | 925,708 | 2,765,230
Carrying amount
At 31 December 2024 | 3,197,100 | 410,429 | 60,155 | 1,015,031 | 4,682,715
At 31 December 2023 | 3,317,424 | 251,475 | 56,600 | 782,431 | 4,407,930

| 13 | Debtors

| 2024 £ | 2023 £
Trade debtors | 492,599 | 949,868
Other debtors | 144,299 | 64,911
Prepayments | 31,601 | 109,271
| 668,499 | 1,124,050

| 14 | Creditors

| 2024 £ | 2023 £
Due within one year |  |
Bank overdraft | 473 | -
Trade creditors | 148,897 | 243,019
Amounts due to group undertakings | 17,222,912 | 8,423,196
Social security and other taxes | 86,402 | 181,631
Other creditors | 38,113 | 114,133
Accruals | 2,443,424 | 1,814,195
| 19,940,221 | 10,776,174
Due after one year |  |
Deferred income | 92,712 | 124,445

Newbridge Care Systems Limited

Notes to the Financial Statements for the Year Ended 31 December 2024

| 15 | Share capital

Allotted, called up and fully paid shares

| 2024 | 2023
| No. | £ | No. | £
Ordinary shares of £1 each | 335,000 | 335,000 | 335,000 | 335,000

| 16 | Reserves

Capital redemption reserve
This reserve amounts transferred following the redemption or purchase of the company's own shares out of distributable profits.
Profit and loss account
This reserve records retained earnings and accumulated losses attributable to the shareholders of the group company, Newbridge Care Systems Limited.

| 17 | Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £112,376 (2023 - £132,050).

| 18 | Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

| 2024 £ | 2023 £
Not later than one year | 1,444,273 | 1,444,273
Later than one year and not later than five years | 4,201,175 | 4,433,092
Later than five years | - | 92,356
| 5,645,448 | 5,969,721

| 19 | Parent and ultimate parent undertaking

The company's immediate parent is Schoen Clinic UK Limited, incorporated in England and Wales.

Schoen Klinik SE (previously Schoen Holding SE & Co kg), a company incorporated in Germany, is the parent company of the smallest group for which consolidated financial statements are drawn up of which the company is a member. Accounts can be obtained from Schoen Klinik SE (previously Schoen Holding SE & Co kg), Seestrasse 5A, 83209 Prien Am Chiemsee, Germany.