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

The principal activity of the company continued to be that of provision of GP surgeries.

HBG Ltd has been trading since 2010, providing general practice medical services through surgeries in Hull and Scarborough. As of 31 March 2025, the group operate five GP surgeries: Burnbrae, Kingwood, Orchard Park, and Newington in Hull (following the closure of Calvert Surgery in January 2025); and Lawrence House Surgery in Scarborough. The company serves nearly 63,000 patients, delivering NHS contracted primary care services with a focus on accessibility, quality, and innovation.

The company has successfully navigated the challenges of healthcare delivery through the COVID-19 pandemic and subsequent recovery period. This time has been challenging for the delivery of general practice services with multiple years of imposed contracts and income growth failing to match wider pay and inflationary cost pressures. Through our strengths as an 'at-scale' provider we have been able to focus on our strategic priorities to improve patient care (outcomes, access and experience), staff satisfaction and maintain financial balance. Our Board lead the delivery of an annual strategic business plan to meet our ambitions.

Operationally, our overall patient numbers remained stable, waiting times for care reduced and we continued strong delivery of the Quality and Outcomes Framework (managing long term conditions for our patients). Calvert Surgery in Hull closed with services consolidated at Newington Surgery where additional consulting space was acquired. Capital investment was made in renovating the Burnbrae Surgery. Delivery of our People Plan continues to result in increasing staff satisfaction and reduced staff turnover, and we have expanded GP training places hosted in Scarborough as part of our long-term strategy to address recruitment challenges in coastal settings. We continue to develop our digital capabilities, harnessing the power of technology to improve our efficiency and effectiveness.

The principle risks to the business stem from funding reliance on a main source, the national GP contract. Although this is negotiated on behalf of contractors by the British Medical Association, where agreement cannot be reached this can be imposed by NHS England. 2025-26 has seen the return to an agreed contract with an improved income position, supported by an expansion of funded local enhanced services. The risks associated are mitigated through a robust and prudent financial forecasting approach and delegated local budget holding.

Further risks are associated with recruitment, especially in deprived and coastal communities, growing service demand and expectation from patients and those associated with the development of digital services. Recruitment risks have been mitigated through investment in training and placements, growing the pool of potential candidates for permanent positions, and improving staff satisfaction for better retention. Service demand risks have been mitigated through deployment of the modern general practice model to give equitable access routes and visibility of total demand for capacity planning. Digital risks are mitigated through robust digital safety and information governance processes, with digital development being embraced to improve service delivery.

Risk is managed by the Operational Board and through a sub-committee structure led by nominated directors and a supporting senior management team including the Chief Operating Officer and Associated Director of Governance.

Despite the difficult operating environment for general practice nationally and locally, HBG Ltd continues to deliver a strong financial position. Our annual turnover continued to grow from £13.3m in 2024 to £14.0m in 2025. Additional income was received for the delivery of local enhanced services with commitment from commissioners that this would be formally contracted from April 2026. Expenditure on staff costs continued to grow from £7.1m to £7.8m through inflationary wage uplifts and a slight increase in staff numbers from 284 to 299; partner support costs increased by £200K to £1.69m (due to nationally recommended inflationary uplift and appointment of an additional partner in Scarborough); £48K was invested in property improvements to our Burnbrae Surgery; and £53K was invested in technology developments. Although our profits before tax fell from £952K to £764K, our cash position remains strong at £1.05m.

The Board monitors a wide range of metrics relating to the strategic aims and delivery plan. For our key strategic aims, patient experience is measured through satisfaction 'Friends and Family Test' questions and showed monthly satisfaction from 85-90%. Waiting times continued to fall for routine appointments with the KPI reduced from those waiting over four weeks to those waiting over two weeks due to successful waiting list reductions. Staff satisfaction rose from 45% in 2023 to 73% in 2025, with 90% of staff reporting the organisation was a better place to work since the introduction of the People Plan. Staff turnover reduced from over 25% in 2023 to under 15% in 2025.

The Board is optimistic for the future as the national 10 Year Plan for Health sets out the core role for general practice in the delivery of new neighbourhood health models. HBG Ltd is well placed to play an integral role in this in our local systems.

We continue to evolve and develop our access model for patients, ensuring we can deliver the best outcomes and experience for patients. This includes a focus on continuity of care for those with more complex needs and proactive care for those living with long term conditions.

We will continue to develop our estate to meet the needs of a growing population and ensure that this remains fit for purpose. Having achieved our silver award in the national Green Impact for Healthcare Toolkit, we will focus on reducing our energy consumption, reducing the waste we generate and continuing to look for more sustainable prescribing opportunities. We will invest in the development of digital products, partnering with technology companies that can help us to improve patient and staff experience through the digitisation of pathways and processes.

On behalf of the board

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

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £950,000. The directors do not recommend payment of a final dividend.

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

The company uses a mixture of pro active cash management and short/long term debt finance to provide an adequate level of liquidity to meet the operating needs of the business, whilst ensuring the company has sufficient resources for ongoing and future developments.

The company is exposed to fair value interest rate risk on its borrowings and cash flow interest rate risk on bank overdrafts and loans. The company has fixed the rate on its borrowings to reduce its exposure to changes in interest rates.

The company takes all appropriate actions to ensure that its exposure to credit risk is minimised. The company's principal financial assets are cash and bank balances; and trade and other trade debtors. All customers who wish to trade on credit terms are subject to careful screening. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

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 about 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.

Azets Leeds were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

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.

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

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 HBG Limited (the 'company') for the year ended 31 March 2025 which comprise the statement of comprehensive income, the statement of financial position, 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's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

Extent to which the audit was considered capable of detecting irregularities, including fraud (continued)

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

• Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; 

• Reviewing minutes of meetings of those charged with governance;

• Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection; 

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

• Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias; and

• Performing audit work over the timing and recognition of revenue and in particular whether it has been recorded in the correct accounting period.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Other matters which we are required to address

In the previous accounting period the directors of the Company took advantage of audit exemption under s477 of the Companies Act 2006. Therefore the prior period financial statements were not subject to audit.

Use of our report

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

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

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

HBG Limited is a private company limited by shares incorporated in England and Wales. The registered office is Gale Farm Surgery, 109-119 Front Street, Acomb, York, YO24 3BU.

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 £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

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 the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown inclusive of VAT. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

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

Depreciation is recognised so as to write off the cost or valuation 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 credited or charged to profit or loss.

Freehold land and buildings are measured using the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and impairment losses. No depreciation is charged where the residual value is considered equal to the carrying amount. The residual value is reviewed at each reporting date. The fair value of land and buildings is typically determined based on their market value.

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in profit or loss.

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

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.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

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 statement of financial position when the company becomes party to the contractual provisions of the instrument.

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

Basic financial assets, 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.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, 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 trade and other creditors, and bank loans 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.

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

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

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

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 income statement 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 is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled based on tax rates that have been enacted or substantively enacted by the reporting date.

Deferred tax liabilities are recognised in respect of all timing differences that exist at the reporting date. Timing differences are differences between taxable profits and total comprehensive income that arise from the inclusion of income and expenses in tax assessments in different periods from their recognition in the financial statements. Deferred tax assets are recognised only to the extent that it is probable that they will be recovered by the reversal of deferred tax liabilities or other future taxable profits.

For non-depreciable assets measured using the revaluation model and investment properties measured at fair value (except investment property with a limited useful life held by the company to consume substantially all of its economic benefit), deferred tax is measured using the tax rates and allowances that apply to the sale of the asset or property.

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.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant 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 estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

The company establishes provisions based on reasonable estimates, for possible consequences of audits by the tax authorities. The amount of such provisions is based on various factors, such as experience with previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority.

Management estimation is required to determine the amount of deferred tax assets/liabilities that can be recognised, based upon likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies. Further details are contained in note 18.

A decrease in net future rental income and rent reimbursement by NHS will result in a decrease in the fair value. Estimation is involved in determining the future outcome of the rent reviews and improvement works that may alter the pricing mechanism. A decrease in the market rates for similar properties for which have been used to benchmark fair values may impact the value of the land and buildings. As market conditions influences the outcome of the valuations, management engages the services of an independent external expert, to manage the risk of estimation uncertainty involved. Further details are contained in note 11.

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:

No remuneration was paid to the directors.

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:

The company has pledged all of its freehold land and buildings to secure the bank loans (notes 14 and 15) granted to the company by way of a fixed charge.

Freehold land and buildings with a carrying amount of £520,000 were revalued as at 31 March 2022. The valuation was arrived at on the basis of valuations carried out by the directors of the company by taking into consideration market evidence of transaction prices for similar properties.

The revaluation surplus is disclosed in note 21.

If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:

The bank loans of £16,692 (2024 - £15,448) are secured by a fixed charge over the undertaking and all property held within the company.

The bank loans of £150,467 (2024 - £167,784) are secured by a fixed charge over the undertaking and all property held within the company.

Bank loans of £167,159 (2024: £183,232) are payable in monthly instalments. Interest is charged at a rate of 2.55% over base rate per annum with the balance to be paid in full by September 2032.

The bank loan is secured against the freehold land and buildings of the company as detailed in note 11, 14 and 15.

The company received a revenue grant of £25,000 (2024: £nil) from the Integrated Care Board (ICB) to support the refurbishment at Lawrence House Surgery. During the year, £6,450 has been recognised as income and the remaining £18,550 (£nil) has been deferred and will be recognised in income once the conditions attached to the grant are fulfilled.

The company received a revenue grant of £27,000 (2024: £27,000) from the Integrated Care Board (ICB) to support transformation development costs. As at 31 March 2025, £54,500 (2024: £27,000) has been deferred and will be recognised in income once the conditions attached to the grant are fulfilled.

The company received a revenue grant of £nil (2024: £9,018) from Hull York Medical Student (HYMS) for infrastructure support costs. During the year, £7,800 (£nil) has been recognised as income and the remaining £1,218 (2024: £9,018) has been deferred and will be recognised in income once the conditions attached to the grant are fulfilled.

The company received a grant of £67,030 (2024: £nil) from Integrated Care Board (ICB) which covered the cost of stamp duty paid on the renewal of leases. The grant has been deferred in full and will be recognised in income over the term of the leases to which it relates.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

The deferred tax liability relating to accelerated capital allowances and short term timing differences are expected to reverse within 12 months.

The company operates a number of defined contribution pension schemes for all qualifying employees. The assets of the schemes are held separately from those of the company in independently administered funds.

Contributions totalling £99,044 (2024: £92,088) were payable to the scheme at the year end.

All classes of shares, which carry no right to fixed income, each carry full voting, dividend and capital distribution (including on winding up) rights. All classes of shares rank pari passu.

Arises from the revaluation of freehold land and buildings held under the revaluation model of £119,362 (2024: £119,362) and deferred tax of £29,840 (2024: £29,840).

Cumulative profit and loss net of distributions to owners.

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:

On 12 May 2025, the company obtained an independant valuation of its Freehold land and building (note 11), resulting in an increase in its carrying amount to £590,000. The valuation reflects market conditions subsequent to the balance sheet date and has therefore not been reflected in the financial statments for the year ended 31 March 2025.

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

The following amounts were outstanding at the reporting end date:

The following amounts were outstanding at the reporting end date:

The other related parties which consists of companies and partnerships are related to the company due to having common directors or partners.

All recharges, sales and purchases are made under normal commercial terms. The above outstanding balances at the year end are all repayable on demand, unsecured and do not attract any interest.