The directors present the strategic report for the year ended 31 March 2025.

FCMS (NW) Limited is a Social Enterprise with a strategic objective to nurture an environment of innovation, inspiration and disruption so that the people within our world receive exceptional care for this generation and the next. We provide a range of services throughout urgent and emergency care, call handling, urgent dentistry, diagnostics, supporting patients with complex lives and supporting Primary care. We are passionate about improving patient experience, engaging with our customers to collaborate on innovative new services as well as targeting the efficiency and effectiveness of on-going services with the patients always at the heart of decisions that we make. There were no changes to any major contracts in FY 2025 and as such FCMS remains a key contributor to the healthcare economy in both Lancashire and South Cumbria and Doncaster.

We are delighted to have once again been in a position to further support our social enterprise objectives by making charitable donations in FY25. This is in line with our strategy of supporting organisations within our geographies who are similarly committed to tackling issues contributing to health inequalities and the wider determinants of health.

Whilst we are a social enterprise it is important in our medium term planning to generate sufficient reserves for reinvestment in the business and innovation to ensure sustainability. Operating profit this year was £284k and profit before tax was £521k. Our retained reserves are held at such a level to ensure adequate coverage of core costs should there be any significant loss of core contracts.

The business continues to maintain a strong balance sheet and to finance its activities largely through cash generation with cash of £7.88M as at 31 March 2025. A substantial amount of the cash held is prepayment for services yet to be delivered. As an organisation our cash flow is highly dependent on NHS payments, therefore a balanced approach to cash is maintained with a mixture of instant access cash, accessible investments, Fixed Term Deposits and Notice accounts to balance maximising interest whilst maintaining a level of operating capital to cover commitments should there be a temporary delay in NHS payments.

The business has a dedicated risk and assurance team which leads our governance process. We review our thinking around key risks through regular discussions including Board meetings, Senior Management meetings and clinical governance meetings.

Our key strategic risks are:

Economic Environment

A key risk of the organisation in 2025 continues to be pay inflation which threatens our ability to recruit and retain staff as we look to balance sustainability of the organisation with remaining an employer of choice in the areas we work in. We were able to award a pay increase in 2024 which was higher than originally budgeted for all our colleagues.

The employers NI percentage increase and the reduction in threshold (April 2025) has had a significant impact to our labour cost base going forwards and has not been met with additional funding, unlike for NHS bodies. This, along with the increase in NLW which we strive to pay ahead of, threatens our ability to remain competitive within the market as annual contract uplifts fall below the rates of cost increases.

We aspire to be Real Living Wage employers, however due to the enhancements that we offer along with the restricted cost uplift factors on our contracts this is not currently achievable.

Political environment

As an independent provider of NHS services with a significant proportion of our revenue generated from NHS contracts, any changes in government policy regarding the NHS are impactful. It is yet to be seen what impact the recent government announcements regarding the restructures within ICBs and the abolishment of NHS England will have on commissioning services in the areas we serve. We will continue to do everything that we can to work collaboratively with commissioners in helping to shape how services are delivered with always keeping the patient at the heart of decisions. Whilst government policy is prioritising NHS spending, the current financial pressures within the NHS and the increasing deficits within systems are impacting decisions in commissioning and expectations around reducing cost base. We continue to work with other social enterprise colleagues to increase awareness within the Department of Health and Social Care of the scale and importance of healthcare delivery by Social Enterprise organisations.

Resources

The workforce crisis in health and care remains, with the shortage in predominantly clinical roles leading to high levels of vacancies within the NHS and associated healthcare providers such as ourselves. This is particularly affecting our ability to recruit and retain Nursing staff. We have, however, seen a higher availability of sessional GPs over recent years which has resulted in a welcome reduction in agency use for GPs.

We are continually looking for innovative solutions to ensure services can remain effective and efficient as well as maintaining a strong focus on our workforce strategy.

Reliance on and retention of key personnel

We have mitigated our reliance on key personnel over recent years by introducing a programme of training and development for anyone in a supervisory role, encouraging external training and reviewing pipeline succession. We carried out a restructure of some areas of management in 2024 to align with current and future changing needs of the business.

The future

New business

We continue to invest in the ability to respond to new opportunities as and when they arise. We are still largely dependent on the tender processes within other organisations to determine the timing of new opportunities, however we review each opportunity strategically and focus on those which complement the established services we already deliver and the resources at our disposal. We are already successfully working with other providers in collaboration and are keen to explore this further to support the direction of travel in the NHS 10 year plan and local commissioning strategies. Although we recognise that any change in commissioning strategy is a potential risk, we believe that social enterprises such as FCMS (NW) Ltd are integral to providing a diversity of providers. We are proud of our proven track record of providing patient centred services and are excited at the opportunity to continue this within the new framework.

Research and development

We continue to work with our operational teams on innovative new services and ways of working to improve the patient experience and the efficiency of services to tackle head on the challenges faced by the sector.

The business monitors key performance indicators in relation to profitability, contract performance, quality and workforce. Key financial metrics used are operating profit margin, labour cost percentage and agency/sessional to total labour percentage. Many of our services have contract specific KPIs which are proactively monitored and subsequently reported to commissioners such as wait times, breaches, average call handling times and patient satisfaction score. As a people centred organisation, we also closely monitor KPIs relating to staff such as staff engagement and sickness metrics.

The Directors of the Company have a legal responsibility under Section 172 of the Companies Act 2006 to conduct ourselves in the most effective manner to promote the group’s success for the benefit of its members as a whole, and in doing so have regard (amongst other matters) to:

(a) The likely consequences of any decision in the long term

(b) The interests of the company’s employees

(c) The need to foster the company’s business relationships with suppliers, customers and others

(d) The impact of the company’s operations on the community and the environment,

(e) The desirability of the company maintaining a reputation for high standards of business conduct, and

(f) The need to act fairly between members of the company.

The Directors consider we have acted in good faith with regards to all of the above as outlined throughout the strategic report.

Engagement with key stakeholder groups

A key success of FCMS (NW) Ltd is our relationships and how hard we work to foster strong, mutually respectful relationships with all of our stakeholders, who are all important to us

• Our People are at the heart of all that we do, we consider our employees in all decisions that we make and strive to do our best for them. We engage regularly with our teams through a range of mediums to try and get as wide a reach as possible and ensure that all voices are heard at FCMS. Our focus is training and upskilling our workforce through the Leadership Development Programme to 150 people and using the Apprenticeship Levy to its maximum effect with a cohort of apprenticeships for 2024/25. We have a staff survey twice per year that gives us insights into the experience that our colleagues have when they work with us, as well as multiple focus groups to enhance our Culture.

• Our Customers are twofold; firstly commissioners, predominantly NHS, who procure our services, but our key customers are the patients and communities that utilise those services. We have strong relationships with our commissioners and work collaboratively to ensure the best possible care for patients and realise value for money for the NHS. We engage with patients and families through not only feedback of services provided but also through engaging in forums such as The Fylde Coast VCFS Co-production project to understand needs better.

• Our Suppliers are local wherever that is feasible, and we strive to ensure a strong, ethical supply chain and value for money for the NHS and pride ourselves on prompt payments to maintain strong working relationships.

• Nationally, we are members of both UHUK and SEUK, both key Social Enterprise advocates. Our mutual support helps us to link into national agendas while feeding the reality of providers on the ground into Government. At a local level, we focus our Social Enterprise ethos on supporting the next generation in their endeavours to succeed and flourish and we do that by working with, and funding local Community Youth Projects across our geographies.

In conjunction with local champions, we have developed an Environmental Framework which will inform and guide our strategy and delivery over the coming years.

Our business is heavily dependent on the dedication, hard work and professionalism of our teams. We are proud of our corporate values which our teams demonstrate consistently through their work. The pressures on the healthcare system remain post-pandemic and our teams continue to strive to provide exceptional healthcare to our communities in often difficult circumstances and everyone who works for FCMS has a unique and important part to play in that. The directors would like to thank our colleagues for their continued commitment, perseverance, dedication and humility in these continually challenging times.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 March 2025.

The principal activity of the company continued to be that of the provision of medical services.

The results for the year are set out on page 13. FCMS is a social enterprise and does not pay dividends.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

Information of matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response to regulatory changes, MacIntyre Hudson LLP ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP.

MHA will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

FCMS (NW) Ltd is committed to managing its environmental impact and carbon management and is fully aware that by considering the environment in our decision making we can have a beneficial impact on the company’s performance. Our key environmental impacts arise from:

Energy consumption in our sites

Transportation of goods

Use of our vehicle fleet

Our energy and carbon calculations have been conducted in accordance with the UK Government's Reporting Guidelines for Company Report. Data has been reviewed and verified by a third-party (Adlar and Allan). GHG calculations have been performed using the Greenhouse Gas Protocol Corporate Reporting Standards (GHG Protocol) and ISO14064-1:2018 Greenhouse Gases - Part 1: Specification with guidance at the organisation level for qualification and reporting of greenhouse gas emissions and removals. All emissions calculations use up to date GHG Conversion Factors for Company Report (BEIS) and are reported as carbon dioxide equivalent (co2e) accounting for all major greenhouse gases.

To ensure there is no double counting of consumption, we have not included charging of Electric vehicles at one of our on site charging points within fuel consumed for transport as that will already have been included within electricity purchased.

Our reporting for Gas consumption is only based on the building we own – 88 Whitegate Drive, where some of our call handlers and support staff were based. We currently lease another building -Newfield House where we have no financial control over the Gas consumption as this is paid within our agreement therefore it is not included currently, however we are in discussion with the landlord to have full control of this.

Electricity purchased includes both buildings 88 Whitegate Drive and Newfield House.

We have calculated the carbon emissions and kWh figures using the UK Government’s 2024 Conversion Factors for Company Reporting. All emissions are included where stated and include Scope 1 (direct emissions from owned road vehicles and transport where we are responsible for purchasing the fuel i.e fuel used for Fleet vehicles, Company Cars on business use and Fuel used in personal cars on business use) and Scope 2 (indirect emissions from purchased electricity).

Total carbon emissions per Whole Time Equivalent in the year to 31 March 2025 were 0.32 tCO2. This is a 14% increase on last year. This is based on a full time equivalent staff number 401.

All lighting changed to LED from fluorescent during the last two years with PIR motion sensors in communal areas to minimize energy consumption.

All company vehicles have trackers installed to assist in our monitoring of mileage and driving standards. We are transitioning our fleet to electric/hybrid powered vehicles and 47 percent of our fleet are now fully electric or hybrid.

We have participated in ESOS Phase 3 and the Blackpool Net-zero Academy program. We continue to regularly review energy and carbon savings opportunities and are committed to progressively reducing our environmental impact.

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial instruments and future developments.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent;

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

We have audited the financial statements of FCMS (NW) Limited (the 'company') for the year ended 31 March 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 March 2025 and of its profit 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 ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

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

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

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.

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 specific procedures for this audit and the extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

• Enquiries with management, including directors, about any known or suspected instances of non-compliance with laws and regulations and fraud;

• Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business;

• Auditing the risk of fraud in revenue, including through the testing of the cut off of income at the year end and testing contract income to ensure revenue is complete in the financial statements and recognised in the correct accounting period;

• Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations; and

• Reviewing minutes of meetings of those charged with governance.

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 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.

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

FCMS (NW) Limited is a company limited by guarantee, incorporated in England and Wales. Any surplus on a wind up will be given or transferred to some other institution or institutions with similar objectives to FCMS (NW) Limited. The registered office is Newfield House, Vicarage Lane, Blackpool, FY4 4EW.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound.

The financial statements have been prepared under the historical cost convention, modified to include short term bank deposits which are held at fair value through profit and loss. The principal accounting policies adopted are set out below.

The company has taken the section 402 exemption from the requirement to prepare group accounts as under section 405 all of its subsidiary undertakings could be excluded from consolidation in Companies Act group accounts. The financial statements present information about the company as an individual entity and not about its group.

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for at least the 12 month period following approval of the accounts.

The directors have prepared forecasts which demonstrate the company has sufficient cash resource to pay its liabilities as they fall due for the 12 month period following approval of the accounts. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover represents amounts invoiced net of VAT for services provided to public sector and charitable organisations. Sales are recognised at the point at which the company has fulfilled its contractual obligations and the risks and rewards attaching to the service, have been transferred to the customer.

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost price is based on the latest purchase invoice price.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

The company has no non-basic financial assets.

Financial assets are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

The company has no non-basic financial liabilities.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Certain employees are covered by the provisions of the NHS Pension Scheme. The scheme is an unfunded, defined benefit scheme that covers NHS employees, General Practices and other bodies, allowed under the direction of the Secretary of State, in England and Wales. The scheme is not designed to be run in a way that would enable FCMS (NW) Limited to identify its share of underlying scheme assets and liabilities. Therefore, the scheme is accounted for as if it were a defined contribution scheme: the cost of participating in the scheme is taken as equal to the contribution payable to the scheme for the accounting period. Surpluses and deficits on the pension scheme are the responsibility of the government.

In addition, some of the company's employees are members of a private defined contribution pension scheme, the assets of which are held separately from those of the company. The annual contributions payable are charged to the profit and loss account.

Grants towards capital expenditure are released to the profit and loss account over the expected useful life of the assets.

Grants and other contract income towards revenue expenditure which specify performance conditions are recognised in income when the performance conditions are met. Where such funding does not specify performance conditions it is recognised in income when the proceeds are received or receivable. Grant and other contract income received before the recognition criteria are satisfied is recognised as a liability.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The directors do not believe there are any significant estimates or assumptions within the accounts for the year ended 31 March 2025.

An analysis of the company's turnover is as follows:

The average monthly number of persons (including directors) employed by the company during the year was:

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2024 - 4).

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

£66,604 (2024 - £29,222) of impairment losses are recognised in administration expenses in the profit and loss account.

More information on impairment movements in the year is given in note 11.

Details of the company's subsidiaries at 31 March 2025 are as follows:

The registered office for all subsidiaries is Newfield House, Vicarage Lane, Blackpool, FY4 4EW.

FCMS Dental Limited has not traded during the year ended 31 March 2025. Its capital and reserves at 31 March 2025 was £51.

Fylde Coast Medical Services Limited has not traded during the year ended 31 March 2025. Its capital and reserves at 31 March 2025 was £153.

Urgent Dental Services (NW) Limited has not traded during the year ended 31 March 2025. Its capital and reserves at 31 March 2025 was £100.

PDS (Medical) Limited has not traded during the year ended 31 March 2025. Its capital and reserves at 31 March 2025 was £1,499.

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

The deferred tax asset set out above relating to short term timing differences on retirement benefits, holiday pay and charity donations is expected to reverse in all material respects within twelve months of the balance sheet date.

At the signing of these financial statements the company has not finalised its capital expenditure programme for the forthcoming year and therefore an assessment as to the likely movement of fixed asset timing differences cannot be made.

Certain employees are covered by the provisions of the NHS Pension Scheme. The scheme is an unfunded, defined benefit scheme that covers NHS employees, General Practices and other bodies, allowed under the direction of the Secretary of State, in England and Wales. As detailed in accounting policy 1.13, the scheme is accounted for as if it were a defined contribution scheme.

In addition some of the company's employees are members of a private defined contribution pension scheme.

At the year end an amount of £235,629 was payable to the pension schemes (2024: £231,870).

The company has no share capital but is limited by guarantee. In the event of a wind up each members' liability is limited to £1.

Any surplus on a wind up will be given to a charitable institution with similar objectives to FCMS (NW) Limited.

In the event of the business ceasing and the property on Whitegate Drive being sold a payment equal to the original grant of £157,437 will be payable to the local Primary Care Trust, or its successor body, who helped fund the original investment. A legal charge over the property was taken out which is still in place. The directors currently have no intentions of ceasing the trade and do not therefore believe that any potential liability under this agreement will crystallise in the foreseeable future. In the event of a sale of the property in the future, the grant will be repaid in full.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

The key management personnel are considered to be the directors of the company has taken advantage of the exemption permitted under Section 33 'Related Party Disclosures' paragraph 33.7A from disclosing key management personnel remuneration.

During the year the company entered into the following transactions with related parties:

During the year the company employed close family members of directors and key management personnel. Total remuneration, including employer's national insurance and employer's pension contributions, paid to these employees in the year was £109,515 (2024: £138,502).

The following amounts were outstanding at the reporting end date:

The following amounts were outstanding at the reporting end date:

The company has taken advantage of the exemption permitted under Section 33 'Related Party Disclosures' paragraph 33.1A from disclosing transactions and balances with wholly owned subsidiary companies. The disclosures stated above therefore exclude transactions and balances with such parties.