REGISTERED NUMBER: 12287905 (England and Wales)

ST JOSEPH'S INDEPENDENT HOSPITAL LIMITED

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED

31 DECEMBER 2025

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

S M Hammond

A Lewis

REGISTERED OFFICE:

Harding Avenue

Malpas

Newport

NP20 6ZE

REGISTERED NUMBER:

12287905 (England and Wales)

AUDITORS:

Bevan Buckland Audit Ltd (Statutory Auditors)

Ground Floor Cardigan House

Castle Court

Swansea Enterprise Park

Swansea

SA7 9LA

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

REVIEW OF BUSINESS

The Company operates as a private hospital in South Wales and the principal activity is the provision of elective surgery and other medical services to private and NHS patients.

The Company delivered another strong year of trading, achieving a profit after tax of 1,586,013

The companies KPI's fr are as follows;

2025

2024

Outpatients

33,312

39,577

Admissions

6,210

5,795

Patient Day Equivalents

6,792

6,889

Imaging

13,612

13,164

Physiotherapy

15,520

15,262

The directors report that the Company delivered a strong financial performance for the year ended 31 December 2025, with revenue increasing by 11% compared to the prior year.

Admissions increased by 7% year-on-year, reflecting sustained demand for services. Growth was primarily driven by the Private Medical Insurance (PMI) market, which grew by 9%, partially offset by a decline in the self-pay market, consistent with wider market trends. Notwithstanding this, there were positive indications of recovery within the self-pay segment towards the latter part of the year, following strategic decisions.

Private patient activity remains the principal source of revenue. NHS-funded activity also increased year-on-year, supported by contractual arrangements and established relationships with local NHS trusts.

Overall, the results demonstrate a balanced revenue mix across funding streams and the Company's ability to respond to changing market conditions. The Company continued to invest in equipment and infrastructure during the year to support service delivery and maintain high standards of patient care.

PRINCIPAL RISKS AND UNCERTAINTIES

Financial Risks

The company uses various financial instruments which include cash and other items such as trade creditors that arise directly from its operations. The main risks arising from the company's financial instruments are liquidity risk and credit risk. The directors review and agree policies for managing each of these risks and these are summarised below.

Liquidity risk

The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. The company has built up its cash reserves to the point where borrowings such as overdraft facilities are not relied upon for short-term flexibility.

The company does finance some of its investments in tangible fixed assets through hire purchase contracts. The maturity of these obligations is set out in the notes to the financial statements.

Interest rate risk

The company manages its exposure to interest rate fluctuation on its hire purchase agreements by entering into fixed rate agreements. The company manages the liquidity risk by ensuring there are sufficient funds to meet the payments.

Pricing risk

The company manages its exposure to consumable price fluctuations by entering into fixed rate agreements with suppliers on key items.

Trading Risks

Health & Safety

The company has in place a rigorous and far-reaching health & safety policy and is committed to adhering to all legislation requirements imposed on it through enforcing authorities.

Information Governance & Security

The Company is required to maintain a sizeable range of both physical and digital data assets relating to patients, staff and commercial interests. All personal data has to be managed in compliance with the Data Protection Act 2018 and the General Data Protection Regulations (GDPR).

The level of risk to the company IT environment and systems continues to grow as cyber security threats continue to become more sophisticated. It is anticipated that healthcare organisations will continue to be at high risk of cyber attacks.

Workforce Planning

The healthcare sector continues to face a long-term shortage of clinical and medical staff in the UK. The company remains focussed on recruitment and retention in a competitive market place.

ON BEHALF OF THE BOARD:

S M Hammond - Director

18 September 2026

The directors present their report with the financial statements of the company for the year ended 31 December 2025.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2025.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2025 to the date of this report.

S M Hammond

A Lewis

Other changes in directors holding office are as follows:

Miss J A Butler - resigned 9 September 2025

Mrs T J Green - resigned 14 March 2025

J Shore - resigned 4 March 2025

POLITICAL DONATIONS AND EXPENDITURE

During the year the company made charitable donations totalling £5,102 (2024: £5,034).

DISABLED PERSONS

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 appropriate training is arranged. It is the policy of the Company that the training, career development and promotion of disabled people should, as far as possible, be identical to that of other employees.

EMPLOYEE INVOLVEMENT

The company attaches paramount importance to the well-being of its workforce and is committed to their support development and motivation. The company is an equal pay employer, provides equal opportunities and is committed to the principle of equality regardless of race, national origin, religious belief, political opinion or affiliation, gender, marital status, sexual orientation, gender reassignment, age or disability.

We apply employment policies that are fair, equitable and consistent with the skills and abilities of our employees and the needs of the business. We implement these policies to ensure all employees are accorded equal opportunity for recruitment, training and promotion and, in all jobs of like work, on equal terms of employment. All of our employment policies are monitored to ensure compliance with current legislation and best practice.

The company engages closely with all of the workforce, believing strongly in inclusive leadership and empowerment of staff to make the best decisions for our patients. Engagement occurs regularly in the form of daily multidisciplinary meetings at which all departments are represented, monthly departmental meetings attended by the executive team at which staff are encouraged to ask questions, challenge and have input into the management and strategy of the organisation. The hospital also undertakes anonymous staff surveys in order to in order to monitor its performance in relation to employee engagement and communication.

EMPLOYMENT OF DISABLED PERSONS

The company's policy is to recruit disabled workers for those vacancies that they are able to fill. 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.

ENGAGEMENT WITH EMPLOYEES

Our employees contribute to a positive working culture and the company recognises that employee involvement is fundamental to its success. We work hard to ensure employees feel welcome and are valued and recognised for their hard work. The directors attach high importance to the wellbeing of the workforce and are committed to their support, development and motivation.

The company places considerable value on the involvement of its employees and has continued to keep them informed on matters affecting them as employees and the factors affecting performance of the company. This is achieved through formal and informal communications to employees.

The company attach importance to its approach to pay and benefits. The company is an equal opportunities employer and is committed to the principal of equality.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

The auditor, Bevan Buckland, previously traded through the legal entity Bevan Buckland LLP, following a restructure and regulatory changes, Bevan Buckland LLP ceased to hold an audit registration with the engagement transitioning to Bevan Buckland Audit Ltd.

AUDITORS

The auditors, Bevan Buckland Audit Ltd (Statutory Auditors), will be proposed for re-appointment in accordance with the Companies Act.

ON BEHALF OF THE BOARD:

S M Hammond - Director

18 September 2026

Opinion

We have audited the financial statements of St Joseph's Independent Hospital Limited (the 'company') for the year ended 31 December 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where 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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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

We identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, and then, design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

We discussed our audit independence complying with the Revised Ethical Standard 2024 with the engagement team members whilst planning the audit and continually monitored our independence throughout the process.

Identifying and assessing potential risks related to irregularities.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

-

enquiring of management, including obtaining and reviewing supporting documentation, concerning the Company's policies and procedures relating to:

-

identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

-

detecting and responding to the risks of fraud and whether they have knowledge of any actual. suspected or alleged fraud;

-

the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;

-

discussing among the engagement team how and where fraud might occur in the Financial Statements and any potential indicators of fraud. As part of this discussion, we identified potential for fraud in the following areas;

-

Assumptions used for valuing work in progress at the year end, and;

-

Potential for deferring income already earned at the year end.

-

obtaining an understanding of the legal and regulatory frameworks that the Company operates in, focusing on those laws and regulations that had a direct effect on the Financial Statements or that had a fundamental effect on the operations of the Company, The key laws and regulations we considered in this context included the UK Companies Act and relevant tax legislation.

Audit response to risks identified

In addition to the above, our procedures to respond to risks identified included the following:

-

reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations;

-

enquiring of management concerning actual and potential litigation and claims; performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

-

reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and

-

in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments;

-

assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and

-

evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.

Michael Williams (Senior Statutory Auditor)

for and on behalf of Bevan Buckland Audit Ltd (Statutory Auditors)

Ground Floor Cardigan House

Castle Court

Swansea Enterprise Park

Swansea

SA7 9LA

18 September 2026

TURNOVER

3

30,082,795

26,952,653

Cost of sales

17,170,929

14,928,892

GROSS PROFIT

12,911,866

12,023,761

Administrative expenses

10,861,462

9,809,987

2,050,404

2,213,774

Other operating income

70,748

28,017

OPERATING PROFIT

5

2,121,152

2,241,791

Interest payable and similar expenses

6

384

12,923

PROFIT BEFORE TAXATION

2,120,768

2,228,868

Tax on profit

7

534,755

518,387

PROFIT FOR THE FINANCIAL YEAR

1,586,013

1,710,481

PROFIT FOR THE YEAR

1,586,013

1,710,481

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,586,013

1,710,481

FIXED ASSETS

Intangible assets

8

329

410

Tangible assets

9

13,096,728

13,480,489

13,097,057

13,480,899

CURRENT ASSETS

Stocks

10

635,890

645,991

Debtors

11

2,337,726

2,558,166

Cash at bank and in hand

4,976,433

2,594,050

7,950,049

5,798,207

CREDITORS

Amounts falling due within one year

12

3,300,220

3,135,862

NET CURRENT ASSETS

4,649,829

2,662,345

TOTAL ASSETS LESS CURRENT LIABILITIES

17,746,886

16,143,244

PROVISIONS FOR LIABILITIES

14

2,095,725

2,078,096

NET ASSETS

15,651,161

14,065,148

CAPITAL AND RESERVES

Called up share capital

15

4,605

4,605

Share premium

16

1,084,525

1,084,525

Capital redemption reserve

16

2,000

2,000

Retained earnings

16

14,560,031

12,974,018

SHAREHOLDERS' FUNDS

15,651,161

14,065,148

The financial statements were approved by the Board of Directors and authorised for issue on 18 September 2026 and were signed on its behalf by:

S M Hammond - Director

A Lewis - Director

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 January 2024

4,605

11,263,537

1,084,525

2,000

12,354,667

Changes in equity

Total comprehensive income

-

1,710,481

-

-

1,710,481

Balance at 31 December 2024

4,605

12,974,018

1,084,525

2,000

14,065,148

Changes in equity

Total comprehensive income

-

1,586,013

-

-

1,586,013

Balance at 31 December 2025

4,605

14,560,031

1,084,525

2,000

15,651,161

Cash flows from operating activities

Cash generated from operations

1

4,172,864

4,034,085

Interest paid

(384

)

(12,923

)

Tax paid

(334,500

)

(579,452

)

Net cash from operating activities

3,837,980

3,441,710

Cash flows from investing activities

Purchase of tangible fixed assets

(1,353,240

)

(1,739,249

)

Sale of tangible fixed assets

-

24,614

Net cash from investing activities

(1,353,240

)

(1,714,635

)

Cash flows from financing activities

Loan repayments in year

(102,357

)

(603,515

)

Net cash from financing activities

(102,357

)

(603,515

)

Increase in cash and cash equivalents

2,382,383

1,123,560

Cash and cash equivalents at beginning of year

2

2,594,050

1,470,490

Cash and cash equivalents at end of year

2

4,976,433

2,594,050

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit before taxation

2,120,768

2,228,868

Depreciation charges

1,654,814

1,404,850

Loss on disposal of fixed assets

2,002

44,002

Finance costs

384

12,923

3,777,968

3,690,643

Decrease/(increase) in stocks

10,101

(27,504

)

Decrease/(increase) in trade and other debtors

108,562

(218,991

)

Increase in trade and other creditors

276,233

589,937

Cash generated from operations

4,172,864

4,034,085

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2025

31.12.25

1.1.25

£

£

Cash and cash equivalents

4,976,433

2,594,050

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

2,594,050

1,470,490

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.25

Cash flow

At 31.12.25

£

£

£

Net cash

Cash at bank and in hand

2,594,050

2,382,383

4,976,433

2,594,050

2,382,383

4,976,433

Total

2,594,050

2,382,383

4,976,433

1.	STATUTORY INFORMATION

St Joseph's Independent Hospital Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results in the future may differ from these estimates.

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 and in any future periods affected.

Significant management judgements

The following are management judgements in applying the accounting policies of the company that have the most significant effect on the amounts recognised in the financial statements.

Useful life of assets

Tangible fixed assets, other than investment properties, are depreciated over their useful economic lives based on various internal and external factors. The actual lives of the assets are re-assessed on a periodic basis and may vary depending on the standard of the asset. The board periodically review the major classes of assets to ensure that the periods over which they are depreciated is appropriate.

Provisions and accruals

Management bases its judgements on the circumstances relating to each specific event and upon currently available information. However, given the inherent difficulties in the estimation of liabilities in these areas, it cannot be guaranteed that additional costs will not be incurred beyond the amounts accrued.

Turnover

Revenue represents the amounts derived from the provision of private healthcare and diagnostic services in the UK after deducting any trade discounts, rebate, value added tax and other sales taxes and is measured at the fair value of the consideration received or receivable.

Revenue is recognised in the period to which the hospital has entitlement to the income, the income can be measured reliably, and it is probable the income will be received.

Revenue is recognised when invoiced on completion of the services to which it relates. Revenue in respect of patients invoiced in advance for procedures is deferred until the treatment has been completed.

Included in other income is income which is generated through the sales of food and drink in the on site cafe, as well as income from consultant room rent and other miscellaneous ad-hoc income.

For cafe sales, revenue is recognised at the point of sale, which is when goods are provided to the customer and payment is received or receivable (typically at the till).

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

2% on cost

Plant and Machinery

-

Straight line over 5 years and Straight line over 7 years

Fixtures and fittings

-

Straight line over 5 years

Motor vehicles

-

20% on cost

Computer equipment

-

33% on cost

If there is an indication that there has been a significant change in depreciation rate or residual value of an asset, the depreciation of that asset is revised prospectively to reflect the new expectations.

Cost comprises the purchase price of the asset and expenditure directly attributable to the acquisition of the item.

A fixed asset is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. 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 the income statement.

Impairment of fixed assets

The company performs impairment testing where there are any indicators of impairment. Impairment is calculated as the difference between the carrying value and the recoverable value of the asset. Recoverable value is the higher of net realisable value and estimated value in use at the date the impairment loss is recognised. Value in use represents the present value of expected future discounted cash flows. If incurred, impairment is recognised immediately in the income statement.

Where an impairment loss subsequently reverses, the carrying value of the asset is increased to the revised estimate of the recoverable amount, but so that the increased carrying value does not exceed the carrying value that would have been determined if no impairment loss had been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately as a credit to the income statement.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs.

Financial instruments

The company enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities such as trade and other receivables and payables, amounts due to and from participating interests.

Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Debt instruments like loans and other receivables and payables are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of cash or other consideration expected to be paid or received.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss. For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying value and the present value of estimated cash flows discounted at the assets original effective interest rate. For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount recognised in the balance sheet when there is an 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. At each reporting date non-financial assets not carried at fair value, such as property, plant and equipment are reviewed to determine whether there is an indication that an asset may be impaired. If there is an indication of possible impairment, the recoverable amount of any asset or group of related assets, which is the higher of value in use and the fair value less costs to sell, is estimated and compared with its carrying amount. If the recoverable amount is lower, the carrying amount of the asset is reduced to its recoverable amount and an impairment loss is recognised immediately in profit or loss.

If an impairment loss is subsequently reversed, the carrying amount of the asset or group of related assets is increased to the revised estimate of its recoverable amount, but not to exceed the amount that would have been determined had no impairment loss been recognised for the asset or group of related assets in prior periods. A reversal of an impairment loss is recognised immediately in profit or loss.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Employee benefits

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

Trade Debtors

Short term trade debtors are measured at transaction price, less any impairment. A provision for impairment of trade debtors is established when there is objective evidence that the company will not

be able to collect all amounts due.

Creditors

Short term creditors are measured at the transaction price.

Provisions for liabilities

Provisions are recognised when the company has a present obligation (legal or constructive) from a past event that will probably result in a transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably.

Assets under construction

Assets under construction are tangible assets that are in the process of being constructed, developed, or otherwise prepared for use, and are not yet available for their intended purpose. These assets may include buildings, machinery, equipment, or other property.

Assets under construction are initially measured at cost, which includes all directly attributable costs necessary to bring the asset to the condition necessary for it to be capable of operating in the manner intended by management. These costs may include direct labour, materials, and overheads, as well as borrowing costs that are directly attributable to the construction of the asset.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2025

2024

£

£

Treatment of patients

28,708,705

25,708,131

Wholesale Pharmacy

358,760

203,155

Other Income

1,015,330

1,041,367

30,082,795

26,952,653