Registered number: 10625083
FOR THE YEAR ENDED 31 DECEMBER 2024
THE HEARING CARE PARTNERSHIP LIMITED
COMPANY INFORMATION
THE HEARING CARE PARTNERSHIP LIMITED
CONTENTS
THE HEARING CARE PARTNERSHIP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their strategic report for the year ended 31 December 2024.
The principal activity of The Hearing Care Partnership Partnership is that of audiology services. Revenue increased by 14% due to investment in training and development alongside focusing on delivering market customer service alongside the expansion of the network of partners and clinics.
At the end of 2024 the business partnered with 300 third party independent opticians and other health care providers. Operating profit was £0.9m, an increase of £0.3m compared to the prior year. This increase is due to higher revenue, an improved gross profit margin whilst managing overhead costs. Investments have been focused on providing Audiologists with a market-leading renumeration package and ensuring the customers receive premium grade hearing aid technology and the highest levels of customer care. The company will continue to invest into the people, systems and services that will continue to help support customers and partners with a market-leading audiology service.
At the end of 2024 the business partnered with 300 third party independent opticians and other health care providers. Operating profit was £0.9m, an increase of £0.3m compared to the prior year. This increase is due to higher revenue, an improved gross profit margin whilst managing overhead costs. Investments have been focused on providing Audiologists with a market-leading renumeration package and ensuring the customers receive premium grade hearing aid technology and the highest levels of customer care. The company will continue to invest into the people, systems and services that will continue to help support customers and partners with a market-leading audiology service.
The company is exposed to the wider economic conditions, specifically the tightening of monetary policy and the increase of cost of living in the UK.
Outlook
In 2025, The Hearing Care Partnership continues to focus on attracting, training and growing the team of Audiologists to support the expansion of clinics within the existing network and the continued expansion of new Partnerships across the UK. The company anticipates revenues will grow at a faster rate to 2024, with a continued focus on providing exceptional customer service alongside the natural ageing of the customer base and the planned expansion.
Outlook
In 2025, The Hearing Care Partnership continues to focus on attracting, training and growing the team of Audiologists to support the expansion of clinics within the existing network and the continued expansion of new Partnerships across the UK. The company anticipates revenues will grow at a faster rate to 2024, with a continued focus on providing exceptional customer service alongside the natural ageing of the customer base and the planned expansion.
This report was approved by the board and signed on its behalf.
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THE HEARING CARE PARTNERSHIP 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.
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the company's financial statements 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 to 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.
The profit for the year, after taxation, amounted to £693,619 (2023 - £419,994).
No dividends will be distributed for the year ended 31 December 2024 (2023 - £nil).
The directors who served during the year were:
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THE HEARING CARE PARTNERSHIP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors recognise the importance of promoting staff involvement within the organisation and endeavour to create a culture in which individuals feel part of a team. Business related and social matters are communicated regularly to all employees via various routes including virtual conferences, intranet and regular branch, area and company wide meetings. In addition to day to day employee feedback, staff surveys are conducted, enabling employee views from across the whole company to be considered.
The recruitment process must result in the selection of the most suitable candidate for the job on the basis of their experience and qualifications. Applications must be considered from all sections of the community for all vacancies. Only qualifications and skills that are essential for the position should be established as criteria for selection and these may include academic or professional qualifications and experience. No pre-judgements should be made by recruiters on the suitability of an applicant because of their race, sex, sexual orientation, religious belief or disability and all applicants should be given equal consideration.
Leightons believe that its most valuable resource is its Employees and that appropriate training and development opportunities should be available to all Employees irrespective of race, colour, nationality, ethnic origin, disability, age, sex, sexual orientation, gender reassignment, pregnancy, religion or belief or marital status. The company encourages all Employees to develop in their career for the mutual benefit of both the company and individual.
Leightons strive to determine and put in place reasonable adjustments for new or existing employees with a disability. Employees who become disabled during their working life will be retained in employment wherever possible and will receive appropriate retraining and workplace modification where possible to facilitate their return to work.
The recruitment process must result in the selection of the most suitable candidate for the job on the basis of their experience and qualifications. Applications must be considered from all sections of the community for all vacancies. Only qualifications and skills that are essential for the position should be established as criteria for selection and these may include academic or professional qualifications and experience. No pre-judgements should be made by recruiters on the suitability of an applicant because of their race, sex, sexual orientation, religious belief or disability and all applicants should be given equal consideration.
Leightons believe that its most valuable resource is its Employees and that appropriate training and development opportunities should be available to all Employees irrespective of race, colour, nationality, ethnic origin, disability, age, sex, sexual orientation, gender reassignment, pregnancy, religion or belief or marital status. The company encourages all Employees to develop in their career for the mutual benefit of both the company and individual.
Leightons strive to determine and put in place reasonable adjustments for new or existing employees with a disability. Employees who become disabled during their working life will be retained in employment wherever possible and will receive appropriate retraining and workplace modification where possible to facilitate their return to work.
Principal risks and uncertainties, financial key performance indicators and future developments (outlook) are covered in the Strategic report.
The auditor, Shaw Gibbs (Audit) Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
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THE HEARING CARE PARTNERSHIP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
This report was approved by the board and signed on its behalf.
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THE HEARING CARE PARTNERSHIP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE HEARING CARE PARTNERSHIP LIMITED
We have audited the financial statements of The Hearing Care Partnership Limited (the 'company') for the year ended 31 December 2024, which comprise the Statement of comprehensive income, the Statement of financial position, the 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 Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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 United Kingdom, including the Financial Reporting Council'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.
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.
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THE HEARING CARE PARTNERSHIP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE HEARING CARE PARTNERSHIP LIMITED (CONTINUED)
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.
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.
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.
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THE HEARING CARE PARTNERSHIP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE HEARING CARE PARTNERSHIP LIMITED (CONTINUED)
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:
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, 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 or intentional misrepresentations, or through collusion.
We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to , the Companies Act 2006 and UK tax legislation.
Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. 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. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
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THE HEARING CARE PARTNERSHIP LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THE HEARING CARE PARTNERSHIP LIMITED (CONTINUED)
for and on behalf of
Statutory Auditor
Wey Court West
Union Road
Surrey
GU9 7PT
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THE HEARING CARE PARTNERSHIP LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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THE HEARING CARE PARTNERSHIP LIMITED
REGISTERED NUMBER: 10625083
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 13 to 27 form part of these financial statements.
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THE HEARING CARE PARTNERSHIP LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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THE HEARING CARE PARTNERSHIP LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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THE HEARING CARE PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The Hearing Care Partnership Limited is a private company limited by shares. It is incorporated in England and Wales. Its registered number is 10625083 and its registered office address is Clarendon House, 63 Downing Street, Farnham, Surrey, GU9 7PN.
2.Accounting policies
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, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The financial statements are presented in Sterling to whole £s.
The financial statements are presented in Sterling to whole £s.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3).
The following principal accounting policies have been applied:
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 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Leightons Holdings Limited as at 31 December 2024 and these financial statements may be obtained from Clarendon House, 63 Downing Street, Farnham, Surrey, GU9 7PN.
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THE HEARING CARE PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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THE HEARING CARE PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Other operating income represents marketing rebates. The company recognises the income when it is entitled to receive it, it is probable that it will receive it and the amount can be reliably estimated.
The company is part of a group VAT registration along with Leightons Holdings Limited, Leightons Limited, Leightons Opticians Limited and Leightons Hearingcare Limited.
Leightons Limited is the nominated company, responsible for submitting the returns and for making the payments on behalf of the companies within the group registration.
Leightons Limited is the nominated company, responsible for submitting the returns and for making the payments on behalf of the companies within the group registration.
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THE HEARING CARE PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of income and retained earnings over its useful economic life.
Other intangible assets
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
The estimated useful lives range as follows:
The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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THE HEARING CARE PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
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 trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
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THE HEARING CARE PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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 the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
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.
The key sources of estimation uncertainty that may have a significant effect on the amounts recognised in the financial statements are;
1. Useful economic lives of tangible and intangible assets:
The annual depreciation and amortisation charge is sensitive to changes in the economic lives and residual values of the assets.
2. Provision for liabilities:
The sales return provision in the accounts is based upon an estimation of the expected returns at the year end.
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THE HEARING CARE PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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THE HEARING CARE PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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THE HEARING CARE PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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THE HEARING CARE PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
10.Taxation (continued)
There were no factors that may affect future tax charges.
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THE HEARING CARE PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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THE HEARING CARE PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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THE HEARING CARE PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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THE HEARING CARE PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
In the prior year, there were additions of £15,000 for customer databases. These had not been accurately disclosed within the intangible fixed assets note at prior year end. This has now been disclosed separately from goodwill, along with the prior year depreciation charge of £1,500.
In the prior year, £84,195 of accruals and deferred income had been incorrectly disclosed as other creditors, within the creditors due within one year note. The £84,195 has been reclassified to correctly include this amount within accruals and deferred income in the comparative figures.
In the prior year, £551,375 of supplier rebates had been incorrectly disclosed as other income. The £551,375 has been reclassified to correctly include this amount within purchases in cost of sales in the comparative figures.
The VAT group that includes the company has made a VAT disclosure to HMRC that includes errors relating to this company and the comparative figures have been restated to reflect this.
This has increased the intercompany creditor with Leightons Limited by £332,608, reduced retained profits carried forward at 31 December 2022 by £194,892, reduced purchases by £141,194 and reduced bad debt expense by £3,478.
In the prior year, £84,195 of accruals and deferred income had been incorrectly disclosed as other creditors, within the creditors due within one year note. The £84,195 has been reclassified to correctly include this amount within accruals and deferred income in the comparative figures.
In the prior year, £551,375 of supplier rebates had been incorrectly disclosed as other income. The £551,375 has been reclassified to correctly include this amount within purchases in cost of sales in the comparative figures.
The VAT group that includes the company has made a VAT disclosure to HMRC that includes errors relating to this company and the comparative figures have been restated to reflect this.
This has increased the intercompany creditor with Leightons Limited by £332,608, reduced retained profits carried forward at 31 December 2022 by £194,892, reduced purchases by £141,194 and reduced bad debt expense by £3,478.
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company, in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £245,035 (2023 - £195,492). Contributions totalling £Nil (2023 - £28,806) were payable to the fund at the reporting date.
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THE HEARING CARE PARTNERSHIP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The ultimate parent company is Leightons Holdings Limited, a company incorporated in England and Wales. The parent company's registered office is Clarendon House, 63 Downing Street, Farnham, Surrey, GU9 7PN.
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