The director presents the strategic report for the year ended 31 March 2025.

The LivingCare Sheffield business completed its first full financial year of operation from the Canon Medical Arena in March 2025. The business was strongly focused on imaging operations in the year and the successful mobilisation of state of the art equipment in a flagship site. Trading was disrupted variously by teething issues with new equipment and unpredictable volumes of research and NHS revenues throughout the year. But a focus on quality delivery and strong local relationships meant the year concluded with consecutive record months and a stable platform to diversify the range of services delivered from the site.

The key financial metrics that the Board tracks are revenue and EBITDA. Revenue reached £1,063k. EBITDA was (£202k).

The current policy environment for the UK healthcare market is creating a degree of short term uncertainty. There are frequent inconsistencies between stated policy objectives at a national level and commissioning and contracting decisions made at a local level. In particular, the government’s stated commitment to reduce NHS waiting lists, and the intention to work in collaboration with the independent sector to achieve this, commonly runs into conflict with the financial envelope available to NHS commissioners. In these circumstances we are seeing frequent changes in referral patterns and contracting intentions which make operational planning challenging.

But the fundamental long term demands of the market remain extremely positive for the Group’s business model:

• Demographic changes are likely to continue the very consistent long term trend of underlying growth in healthcare demand;

• The UK is behind the majority of comparable western economies in diagnostic capacity;

• Consumers are expected to increasingly favour accessible, community-based diagnostic providers ahead of large, high cost, city centre acute hospitals;

• There is evidence of a continuing trend for increasing proportions of the population holding private medical insurance (PMI), with a similar trend in consumers being willing to pay in circumstance where they do not hold PMI policies;

• Regulation, high capital costs and a premium placed on reputation by consumers act as barriers to new market entrants.

In this context the key long term threats to the Group’s business are technological advancements in the Group’s key diagnostic markets reducing barriers to entry and increasing competition from substitute products.

Our strategy is focused on capitalising on these market conditions for long-term sustainable growth, while investing in our technology and market reputation to protect against key threats.

For our NHS-funded activities we aim to protect and maintain our services through active engagement with commissioners and other NHS partners, while continuously striving to deliver high quality and operational efficiency to maximise our impact on the NHS objectives to reduce waiting times while improving productivity.

We anticipate the majority of future revenue growth being driven by private services across PMI, self-pay, and sport. We are partnering with our clinicians to develop and market our priority service lines and plan to make strategic investments internally to grow our marketing capability to drive this strategy.

Our Sheffield site presents a significant opportunity to grow group revenues given the size and quality of the facility. The investments we have made and opportunities to expand service offerings from the site give confidence that high double-digit revenue growth can be achieved in the coming year, with significant improvements in EBITDA performance as a consequence.

On behalf of the board

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

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

Livingcare Sheffield Limited is a private company limited by shares incorporated in England and Wales. The registered office is 4215 Park Approach, Thorpe Park, Leeds, LS15 8GB.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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 on a going concern basis. The financial year ending 31 March 2025 was the first full year of trading from the Canon Medical Arena. During this period the business has maintained a positive cash position through support from its shareholder and primary long term creditor.true

The directors have prepared cash flow forecasts for a period of at least twelve months from the date of approval of these financial statements, which reflect the current trading plan, committed cost base and expected funding profile. The forecasts indicate that the Group/Company has sufficient financial resources to meet its obligations as they fall due, taking into account:

• existing cash resources;

• executed financing arrangements; and

• written statements of support received from existing shareholders and major funders confirming their intent and ability to provide financial support, as required, for a period of at least twelve months from the date of approval of these financial statements.

Based on the above, the directors have a reasonable expectation that the Group/Company has adequate resources to continue in operational existence for the foreseeable future and, therefore, 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 net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

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.

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.

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 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 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.

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, loans from fellow group companies and preference shares that are classified as debt, 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.

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 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.

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

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

The Company has availed of the exemption provided in FRS102 Section 33 Related Party Disclosures not to disclose transactions entered into with fellow group companies that are wholly owned within the group of companies of which the Company is wholly owned member.

The Company's immediate parent is Fountain Diagnostics Limited, incorporated in England and Wales.

The ultimate parent is Living Care Group Limited, incorporated in England and Wales.

The ultimate controlling party is Dr S M Feldman.

Living Care Group Limited is the smallest and largest group to consolidate these financial statements. Copies of the Living Care Group Limited consolidated financial statements are available from Companies House.