Diagnostic World Limited Company accounts

COMPANY REGISTRATION NUMBER: 05937877

Diagnostic World Limited

Financial Statements

30 September 2024

Diagnostic World Limited

Financial Statements

Year ended 30 September 2024

Contents	Page

Officers and professional advisers	1

Directors' report	2

Independent auditor's report to the member	4

Statement of comprehensive income	8

Statement of financial position	9

Statement of changes in equity	10

Notes to the financial statements	11

Diagnostic World Limited

Officers and Professional Advisers

The board of directors	Mr J Leonard
	Mr S Farnell
	Mr M Bartlett

Registered office	Gateway West
	East Street
	Leeds
	LS9 8DA

Auditor	TC Group
	Statutory auditor
	Sterling House
	97 Lichfield Street
	Tamworth
	Staffordshire
	B79 7QF

Diagnostic World Limited

Directors' Report

Year ended 30 September 2024

The directors present their report and the financial statements of the company for the year ended 30 September 2024 .

Directors

The directors who served the company during the year were as follows:

Mr J Leonard	(Appointed 31 May 2024)
Mr P Webb	(Resigned 31 May 2024)
Mr R Bradford	(Resigned 2 May 2024)
Mr A Searle	(Resigned 31 May 2024)
Mr S Scott	(Resigned 31 May 2024)

Mr Sean Farnell resigned as director on 30 April 2024 and was then reappointed on 18 August 2025.

Dividends

The directors do not recommend the payment of a dividend.

Directors' responsibilities statement

The directors are responsible for preparing the 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.

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 September 2025 and signed on behalf of the board by:

Mr S Farnell

Director

Registered office:

Gateway West

East Street

Leeds

LS9 8DA

Diagnostic World Limited

Independent Auditor's Report to the Member of Diagnostic World Limited

Year ended 30 September 2024

Opinion

We have audited the financial statements of Diagnostic World Limited (the 'company') for the year ended 30 September 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity 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 30 September 2024 and of its loss 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. 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.

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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the directors' report has 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 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; or - the directors were not entitled to take advantage of the small companies' exemptions from the requirement to prepare a strategic report.

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 my 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: The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management. Our approach was as follows: - We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as require by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations - We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK - We considered the nature of the industry, the control environment and business performance, including the key drivers for management's remuneration - We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit - We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls. Based on this understanding we designed our audit procedures to identify. non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not 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. Use of our report

This report is made solely to the company's member, 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 member 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 member as a body, for our audit work, for this report, or for the opinions we have formed.

Stephen Butler BA FCA

(Senior Statutory Auditor)

For and on behalf of

TC Group

Statutory auditor

Sterling House

97 Lichfield Street

Tamworth

Staffordshire

B79 7QF

26 September 2025

Diagnostic World Limited

Statement of Comprehensive Income

Year ended 30 September 2024

		2024	2023
Note		£	£
Turnover	4	2,848,318	3,131,709

Cost of sales	1,375,563	1,573,300
	------------	------------
Gross profit	1,472,755	1,558,409

Administrative expenses		1,322,413	1,207,204
		------------	------------
Operating profit	5	150,342	351,205

Write off of intergroup loan	8	( 210,000)	–
Interest payable and similar expenses	9	3,169	–
		------------	------------
(Loss)/profit before taxation		( 62,827)	351,205

Tax on (loss)/profit	10	38,876	88,248
		---------	---------
(Loss)/profit for the financial year		( 101,703)	262,957
		---------	---------

True up adjustment	( 413,971)	–
	---------	---------
Total comprehensive income for the year	( 515,674)	262,957
	---------	---------

All the activities of the company are from continuing operations.

Diagnostic World Limited

Statement of Financial Position

30 September 2024

	2024	2023
Note	£	£

Fixed assets

Tangible assets	11	96,191	127,138

Current assets

Stocks	12	3,000	11,000
Debtors	13	476,351	660,052
Cash at bank and in hand		685,077	554,564
		------------	------------
		1,164,428	1,225,616

Creditors: amounts falling due within one year	14	543,407	454,484
		------------	------------
Net current assets		621,021	771,132
		---------	---------
Total assets less current liabilities		717,212	898,270

Creditors: amounts falling due after more than one year	15	295,740	–

Provisions	16	( 140,653)	( 179,529)
		---------	------------
Net assets		562,125	1,077,799
		---------	------------

Capital and reserves

Called up share capital	19	1,424,143	1,424,143
Share premium account	20	254,697	254,697
Profit and loss account	20	( 1,116,715)	( 601,041)
		------------	------------
Shareholder funds		562,125	1,077,799
		------------	------------

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.

These financial statements were approved by the board of directors and authorised for issue on 26 September 2025 , and are signed on behalf of the board by:

Mr S Farnell

Director

Company registration number: 05937877

Diagnostic World Limited

Statement of Changes in Equity

Year ended 30 September 2024

		Called up share capital	Share premium account	Profit and loss account	Total
		£	£	£	£
At 1 October 2022		1,424,143	254,697	( 863,998)	814,842

Profit for the year				262,957	262,957
		------------	---------	---------	---------
Total comprehensive income for the year		–	–	262,957	262,957

At 30 September 2023		1,424,143	254,697	( 601,041)	1,077,799

Loss for the year				( 101,703)	( 101,703)
Other comprehensive income for the year:
	True up adjustment	–	–	( 413,971)	( 413,971)
		------------	---------	---------	------------
Total comprehensive income for the year		–	–	( 515,674)	( 515,674)

		------------	---------	------------	------------
At 30 September 2024		1,424,143	254,697	( 1,116,715)	562,125
		------------	---------	------------	------------

Diagnostic World Limited

Notes to the Financial Statements

Year ended 30 September 2024

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Gateway West, East Street, Leeds, LS9 8DA.

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 and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Revenue recognition

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

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:

Fixtures and fittings	-	33% straight line
Equipment	-	Between 20% and 33% straight line
Scanners	-	Between 20% and 33% 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. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

Stocks are not for resale but are the Company's stock of consumables held for its own use. Cost is based on the cost of the purchase on a first in, first out 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. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Turnover

Turnover arises from:

	2024	2023
	£	£
Rendering of services	2,848,318	3,131,709
	------------	------------

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

5. Operating profit

Operating profit or loss is stated after charging:

	2024	2023
	£	£
Depreciation of tangible assets	47,269	38,452
	--------	--------

6. Staff costs

The average number of persons employed by the company during the year, including the directors, amounted to:

	2024	2023
	No.	No.
Production staff	40	41
Administrative staff	27	23
	----	----
	67	64
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2024	2023
	£	£
Wages and salaries	682,378	694,795
Social security costs	67,932	68,380
Other pension costs	16,611	12,971
	---------	---------
	766,921	776,146
	---------	---------

7. Profit before taxation

Profit before taxation is stated after charging:

	2024	2023
	£	£
Depreciation of tangible assets	47,269	38,452

8. Write off of intergroup loan

	2024	2023
	£	£
Write off of intergroup loan	(210,000)	–
	---------	----

In May 2024, £210,000 of loans owed by Group undertakings of the former parent company, C7 Health Limited, were written off. The £210,000 was not an operating cost. The write off occurred as a consequence of the change of ownership referred to in Note 23 - Controlling party.

9. Interest payable and similar expenses

	2024	2023
	£	£
Interest on banks loans and overdrafts	2,950	–
HMRC Interest	219	–
	-------	----
	3,169	–
	-------	----

10. Tax on (loss)/profit

Major components of tax expense

	2024	2023
	£	£

Deferred tax:

Origination and reversal of timing differences	38,876	88,248
	--------	--------
Tax on (loss)/profit	38,876	88,248
	--------	--------

Reconciliation of tax expense

The tax assessed on the (loss)/profit on ordinary activities for the year is higher than (2023: higher than) the standard rate of corporation tax in the UK of 25 % (2023: 25 %).

	2024	2023
	£	£
(Loss)/profit on ordinary activities before taxation	( 62,827)	351,205
	--------	---------
(Loss)/profit on ordinary activities by rate of tax	36,793	87,801
Effect of expenses not deductible for tax purposes	3,032	907
Effect of capital allowances and depreciation	7,737	( 26,992)
Utilisation of tax losses	( 47,562)	( 61,716)
Deferred tax	38,876	88,248
	--------	---------
Tax on (loss)/profit	38,876	88,248
	--------	---------

11. Tangible assets

	Fixtures and fittings	Equipment	Scanners	Total
	£	£	£	£
Cost
At 1 October 2023	7,453	110,052	522,452	639,957
Additions	–	16,322	–	16,322
	-------	---------	---------	---------
At 30 September 2024	7,453	126,374	522,452	656,279
	-------	---------	---------	---------
Depreciation
At 1 October 2023	7,453	78,426	426,940	512,819
Charge for the year	–	10,469	36,800	47,269
	-------	---------	---------	---------
At 30 September 2024	7,453	88,895	463,740	560,088
	-------	---------	---------	---------
Carrying amount
At 30 September 2024	–	37,479	58,712	96,191
	-------	---------	---------	---------
At 30 September 2023	–	31,626	95,512	127,138
	-------	---------	---------	---------

12. Stocks

	2024	2023
	£	£
Raw materials and consumables	3,000	11,000
	-------	--------

13. Debtors

	2024	2023
	£	£
Trade debtors	274,260	332,497
Amounts owed by group undertakings	–	260,232
Prepayments and accrued income	196,617	67,323
Other debtors	5,474	–
	---------	---------
	476,351	660,052
	---------	---------

14. Creditors: amounts falling due within one year

	2024	2023
	£	£
Trade creditors	304,678	209,002
Amounts owed to group undertakings	–	63,050
Accruals and deferred income	92,139	157,535
Social security and other taxes	22,909	21,268
Pensions payable	4,710	3,629
Other creditors	118,971	–
	---------	---------
	543,407	454,484
	---------	---------

Natwest Bank have a fixed and floating charge over the assest of the company registered with effect from 27 April 2023.

15. Creditors: amounts falling due after more than one year

	2024	2023
	£	£
Other loans	295,740	–
	---------	----

Loan accrues interest at 3 % p.a. and repayment is based on performance criteria.

16. Provisions

	Deferred tax (note 17)
	£
At 1 October 2023	( 179,529)
Charge against provision	38,876
	---------
At 30 September 2024	( 140,653)
	---------

17. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2024	2023
	£	£
Included in provisions (note 16)	( 140,653)	( 179,529)
	---------	---------

The deferred tax account consists of the tax effect of timing differences in respect of:

	2024	2023
	£	£
Accelerated capital allowances	( 33,350)	( 25,614)
Unused tax losses	( 107,303)	( 153,915)
	---------	---------
	(140,653)	(179,529)
	---------	---------

18. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 16,611 (2023: £ 12,971 ).

19. Called up share capital

Issued, called up and fully paid

	2024		2023
	No.	£	No.	£
Ordinary class A shares of £ 0.01 each	20,144	201	20,144	201
Ordinary Class B shares of £ 0.01 each	14,849	148	14,849	148
Ordinary Class C shares of £ 1 each	1	1	1	1
Ordinary Class D shares of £ 1 each	1,423,792	1,423,792	1,423,792	1,423,792
	------------	------------	------------	------------
	1,458,786	1,424,143	1,458,786	1,424,143
	------------	------------	------------	------------

20. Reserves

Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs. Profit and loss account - This reserve records retained earnings and accumulated losses .

21. True up adjustment

As part of the Share Purchase Agreement (SPA) between the Company's former parent and J Leonard, the Company was required to make a balancing payment of £413,971 to the seller.

This adjustment reflected a post-completion reconciliation of pre-completion trading balances, and was settled directly by the Company in accordance with the SPA.

The amount is considered to relate to pre-acquisition activity and therefore has been recognised as a charge to the Pre-Acquisition Reserve. It has not been presented within the profit and loss account in accordance with the requirements of FRS 102.

22. Contingencies

There are no known contingent liabilities as at the balance sheet date.

23. Controlling party

Diagnostic World Limited was sold out of the Inhealth Group Limited in May 2024 and so no longer has a parent undertaking. In 2023 the company considered InHealth Group Limited, incorporated in England and Wales, to be its ultimate parent undertaking with effect from 30th June 2022. It's immediate parent was C7 Health Limited.