Registration number:
Newmarket Equine Clinic Limited
for the Year Ended 31 December 2024
Registration number:
Newmarket Equine Clinic Limited
for the Year Ended 31 December 2024
Newmarket Equine Clinic Limited
Contents
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Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account |
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Statement of Comprehensive Income |
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Balance Sheet |
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Statement of Changes in Equity |
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Statement of Cash Flows |
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Notes to the Financial Statements |
Newmarket Equine Clinic Limited
Company Information
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Directors |
Mr M H Hillyer Mr D Dugdale Mr M Tunstill Mr S W Williamson Ms G Minshall Mr P O Ormond Mr D Bartram Mr S W Waterhouse Mr W B Barker Mr L J MacGillivray Mr M S Smith Mr B Herinckx Mr A Fogarty Mrs J E Pynn |
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Company secretary |
Mr M H Hillyer |
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Registered office |
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Auditors |
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Newmarket Equine Clinic Limited
Strategic Report for the Year Ended 31 December 2024
The directors present their strategic report for the year ended 31 December 2024.
Principal activity
The principal activity of the company is the provision of veterinary activities.
Fair review of the business
Following a group reorganisation at the start of the year, Newmarket Equine Clinic Limited now holds the trading veterinary practice. The previous year, the company acted as the buying agent for the group. As a result, the trading results for the year ended 31 December 2024 has seen a significant increase in turnover and gross profit, representing the change in business.
The company's key financial and other performance indicators during the year were as follows:
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Financial KPIs |
Unit |
2024 |
2023 |
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Gross Profit Margin |
% |
79 |
65 |
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Employment costs: Turnover |
% |
30 |
44 |
Principal risks and uncertainties
Competition in the industry has become more intense, and there is a constant need to keep up to date in terms
of equipment, branch appearances and digital capabilities. To counter this, the business has continued its
investment in equipment, refurbishments and the development of its staff.
The needs of the more demanding customers are constantly being evaluated and opportunities created. The
company is committed to improve engagement with its clients by providing more services, better facilities and to
improve communication.
The wider economic environment continues to be challenged due to the impacts of Brexit and Covid-19. The
business is satisfied that it's resources and level of borrowing is adequate to counter any possible adverse
effects. The veterinary industry has been relatively insulated from economic turbulence in the past due in part to
the increase in the use of pet insurance and activities not necessarily related to footfall such as pet health plans.
Newmarket Equine Clinic Limited
Strategic Report for the Year Ended 31 December 2024
Section 172(1) statement
The directors understand the business, strategic targets and ever-changing market and environment that the company operates in. Strategic decisions are taken at board level, where the directors take decisions they believe are in the best interests of the company, members and stakeholders. The board meets every month to discuss current topics across all areas of the business. They receive an overview of the current financial performance and discuss matters of importance during the board meetings.
The directors recognise that the employees are fundamental and are integral to the business to deliver strategic ambitions. The success of the business depends on attracting, retaining and motivating employees. Directors ensure that the company does the upmost to be a responsible employer considering pay, benefits, upkeep of health and safety requirements and workplace environments. When making decisions, the directors factor the implication of decisions on the employees where it is relevant and possible to do so.
The directors recognise that in order to achieve its strategic objectives it must have strong relationships with its customers and suppliers. The directors receive regular information and feedback from business operations that inform them how current and emerging relationships are developing. The directors actively seek and receive third party information indicating performance from a customer point of view. The directors also receive regular updates on supplier activities and contract management topics.
The directors will take into account the impact of the company's operations on the community and environment in any decision making process where it is necessary to do. The directors are fully aware of their legal responsibilities and obligations, including company policies which are designed to uphold the core values of Newmarket Equine Clinic and ensure all stakeholders conduct themselves as it would expect. By following these principles and guidelines, the business is conducted with the upmost integrity. Regular internal reviews take place, which help ensure that the guidelines are followed and identify any areas or processes that can be improved.
The directors consider the best possible action in its decision-making process to deliver their strategy. When making these decisions the Directors act as fairly as they can for all members however this can mean that sometimes certain stakeholder interests may not be fully aligned.
The Newmarket Equine Clinic Board understand their duties and responsibilities individually and collectively. They have acted in accordance with their duties codified in law, which include their duty to act in a way in which they consider would be most likely to promote the success of the company to the benefit of its members whilst considering the stakeholders of the company and matters set out in section 172 (1) of the Companies Act 2006.
Approved by the
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Newmarket Equine Clinic Limited
Directors' Report for the Year Ended 31 December 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
Directors of the company
The directors who held office during the year were as follows:
Dividends
The Directors recommend a final dividend payment of £679,779 be made in respect of the financial year ended 31 December 2024. This dividend has been recognised as a liability in the financial statements.
Financial instruments
Objectives and policies
The company's principal financial assets are its bank balances, fixed assets and debtors. The company's credit
risk is primarily attributable to its trade debtors. To mitigate this credit risk, the business uses a combination of
internal credit control functions and external debt collection agencies. The accounts presented in the balance
sheet are net of provisions for doubtful debts. The company does not purchase any significant goods or services
in foreign currencies.
Price risk, credit risk, liquidity risk and cash flow risk
The company is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest risk on
any floating rate borrowings. In order to maintain liquidity and ensure that sufficient funds are available for
ongoing operations and future developments, the company uses a mixture of long-term and short-term debt
finance.
Newmarket Equine Clinic Limited
Directors' Report for the Year Ended 31 December 2024
Merger with Newmarket Equine Hospital
On 1 January 2024, Newmarket Equine Clinic Limited entered into a merger arrangement with Newmarket Equine Hospital, an unincorporated partnership carrying on a similar line of business. Under the terms of the agreement, the trade, assets and certain liabilities of Newmarket Equine Hospital were transferred to Newmarket Equine Clinic Limited at fair value in exchange for the issue of shares in the company to the former partners of Newmarket Equine Hospital.
This transaction was accounted for as a business combination in accordance with Section 19 of FRS 102 - Business Combinations and Goodwill. The identifiable assets and liabilities of Newmarket Equine Hospital were recognised at their fair values as at the date of acquisition. The difference between the fair value of the consideration transferred and the fair value of the net assets acquired has been recognised as goodwill.
The inclusion of the results of Newmarket Equine Hospital from the date of merger has had a significant impact on the current year’s financial performance and position compared with the prior year. The current year’s figures therefore are not directly comparable with those of the previous year, which reflect only the results and financial position of Newmarket Equine Clinic Limited prior to the merger.
The fair values of the assets and liabilities acquired at the date of merger were as follows:
Tangible fixed assets - £5,235,808
Stock - £366,298
Debtors - £3,580,148
Cash at bank - £400,487
Creditors and accruals - (£5,285,900)
Net assets acquired - £4,296,841
Consideration satisfied by issue of shares - £10,876,841
Goodwill arising on acquisition - £6,580,000
The directors consider the merger to represent a strategic opportunity to combine complementary operations, broaden the client base, and strengthen the group’s market position.
Future developments
The Directors expect the business to continue operating along similar lines to the current year for the next financial year. The Directors remain focused on maintaining operational efficiency and financial stability while carefully monitoring external factors that may affect future performance.
Research and development
The directors are committed to fostering innovation and ensuring the company remains at the forefront of its industry through ongoing research and development (R&D) activities. During the year 31 December 2024 the company undertook several significant R&D projects aimed at enhancing and revolutionising equine care and medical treatments. The directors believe that these investments are crucial for maintaining the company’s competitive edge and driving future growth. We are confident that our continued focus on R&D will result in significant benefits, including the enhancement of our market position as well as improved medical care for our patients.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Reappointment of auditors
The auditors Moore Scarrott Audit Limited are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Newmarket Equine Clinic Limited
Directors' Report for the Year Ended 31 December 2024
Approved by the
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Newmarket Equine Clinic Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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.
The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
Newmarket Equine Clinic Limited
Independent Auditor's Report to the Members of Newmarket Equine Clinic Limited
Opinion
We have audited the financial statements of Newmarket Equine Clinic Limited (the 'company') for the year ended 31 December 2024, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and 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 2024 and of its profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our 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 director's 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 original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Newmarket Equine Clinic Limited
Independent Auditor's Report to the Members of Newmarket Equine Clinic Limited
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Directors' Report.
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 7), 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.
Auditor 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 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.
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We considered the nature of the company's industry and its control environment, and reviewed the company's documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities. |
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We obtained an understanding of the legal and regulatory frameworks that the company operates in, and identified the key laws and regulation that: |
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had a direct effect on the determination of material amounts and disclosures in the financial statements. These included UK Companies Act, pensions legislation, tax legislation; and |
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do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. These included the company's compliance with the RCVS regulations applicable to all practices and qualified nurses, GDPR, Veterinary Surgeons Act 1966, Animal Welfare Act 2006, Veterinary Medicines Regulations 2013 and The Animal Act 1986. |
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We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements. |
Newmarket Equine Clinic Limited
Independent Auditor's Report to the Members of Newmarket Equine Clinic Limited
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In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business. |
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In addition to the above, our procedures to respond to the risks identified included the following: |
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reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
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performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
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enquiring of management and external legal counsel concerning actual and potential litigation and claims, and instances of non-compliance with laws and regulations; and |
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reading minutes of meetings of those charged with governance |
As part of an audit in accordance with ISAs (UK), we exercised professional judgement and maintain professional scepticism 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 auditor's report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
For and on behalf of
Calyx House
South Road
Somerset
TA1 3DU
Newmarket Equine Clinic Limited
Profit and Loss Account for the Year Ended 31 December 2024
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Note |
2024 |
2023 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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Administrative expenses |
( |
( |
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Other operating income |
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Operating profit |
4,633,779 |
230,612 |
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Other interest receivable and similar income |
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Interest payable and similar expenses |
( |
( |
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(204,897) |
(31,351) |
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Profit before tax |
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Tax on profit |
( |
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Profit for the financial year |
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The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
Newmarket Equine Clinic Limited
Statement of Comprehensive Income for the Year Ended 31 December 2024
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2024 |
2023 |
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Profit for the year |
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Total comprehensive income for the year |
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Newmarket Equine Clinic Limited
(Registration number: 05982720)
Balance Sheet as at 31 December 2024
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Note |
2024 |
2023 |
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Fixed assets |
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Intangible assets |
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- |
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Tangible assets |
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Current assets |
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Stocks |
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- |
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Debtors |
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Cash at bank and in hand |
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||
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Creditors: Amounts falling due within one year |
( |
( |
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Net current (liabilities)/assets |
( |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
- |
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Provisions for liabilities |
( |
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|
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Net assets |
|
|
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Capital and reserves |
|||
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Called up share capital |
|
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Retained earnings |
|
|
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Shareholders' funds |
|
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Approved and authorised by the
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Newmarket Equine Clinic Limited
Statement of Changes in Equity for the Year Ended 31 December 2024
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Share capital |
Retained earnings |
Total |
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At 1 January 2024 |
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Profit for the year |
- |
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Dividends |
- |
( |
( |
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At 31 December 2024 |
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Share capital |
Retained earnings |
Total |
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At 1 January 2023 |
|
|
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Profit for the year |
- |
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At 31 December 2023 |
2 |
4,384,233 |
4,384,235 |
Newmarket Equine Clinic Limited
Statement of Cash Flows for the Year Ended 31 December 2024
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Note |
2024 |
2023 |
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Cash flows from operating activities |
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Profit for the year |
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Adjustments to cash flows from non-cash items |
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Depreciation and amortisation |
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Loss/(profit) on disposal of tangible assets |
|
( |
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Finance income |
( |
( |
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Finance costs |
|
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Income tax expense |
|
( |
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|
|
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||
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Working capital adjustments |
|||
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Increase in stocks |
( |
- |
|
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Increase in debtors |
( |
( |
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Increase/(decrease) in creditors |
|
( |
|
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Cash generated from operations |
|
( |
|
|
Income taxes received |
|
|
|
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Net cash flow from operating activities |
|
( |
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Cash flows from investing activities |
|||
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Interest received |
|
|
|
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Acquisitions of tangible assets |
( |
( |
|
|
Proceeds from sale of tangible assets |
- |
|
|
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Acquisition of intangible assets |
( |
- |
|
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Net cash flows from investing activities |
( |
( |
|
|
Cash flows from financing activities |
|||
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Interest paid |
( |
( |
|
|
Proceeds from bank borrowing draw downs |
|
- |
|
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Repayment of bank borrowing |
( |
- |
|
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Dividends paid |
( |
- |
|
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Net cash flows from financing activities |
|
( |
|
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
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Cash and cash equivalents at 1 January |
|
|
|
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Cash and cash equivalents at 31 December |
788,490 |
50,814 |
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Newmarket Equine Clinic Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The company's registered number is 05982720.
The address of its registered office is:
These financial statements were authorised for issue by the
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were 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.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Revenue recognition
Turnover represents the amounts, excluding value added tax, derived from the provision of goods and services to customers in the year.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Newmarket Equine Clinic Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
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Asset class |
Depreciation method and rate |
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Long leasehold land and buildings |
25 Years Straight Line |
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Veterinary equipment |
6 Years Straight Line |
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Motor vehicles |
25% Reducing Balance |
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Computer equipment |
6 Years Straight Line |
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Fixtures and fittings |
6 Years Straight Line |
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the Company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Intangible assets
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
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Asset class |
Amortisation method and rate |
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Goodwill |
20 Years Straight Line |
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
Newmarket Equine Clinic Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable
and similar charges.
Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Newmarket Equine Clinic Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Judgements in applying accounting policies and key sources of estimation uncertainty |
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 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 company assesses on an ongoing basis the requirement to recognise provisions. Where the Directors consider that an obligation based on past events exists and it can be reliably measured, a provision is recorded.
Critical judgements
Depreciation rates and residual values
In preparing these financial statements, management has made critical judgements in determining appropriate depreciation rates for tangible fixed assets and the amortisation period for the leasehold property. The depreciation rates are based on management’s assessment of the expected useful economic lives and residual values of the assets, taking into account historical experience and anticipated future use.
Judgement is also applied in estimating the period over which the leasehold property should be amortised, reflecting the shorter of the lease term or the estimated useful life of the improvements. These assessments are reviewed periodically to ensure they remain appropriate in light of changes in the company’s operations and asset utilisation.
Sources of estimation uncertainty
Impairment of fixed assets
The company determines whether there are indicators of impairment of tangible asset. Factors taken into account consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.
Stock provision
The company determines whether there are conditions that exist at the balance sheet date that indicates that the net realisable value of individual stock lines are less than the carrying value. Such indicators include post year end sales, and market demand.
Bad debt provision
The company determines whether there are conditions that exist at the balance sheet date that indicates the recoverable value of debtors is less than the carrying value. Such indicators include post year end cash receipts, and customer sales activity.
Newmarket Equine Clinic Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Turnover |
The analysis of the company's Turnover for the year from continuing operations is as follows:
|
2024 |
2023 |
|
|
Sale of goods and services |
- |
|
|
Fees |
12,563,572 |
- |
|
Drugs |
3,641,417 |
- |
|
|
|
All turnover arose within the United Kingdom, and all sales were made to customers located in the UK.
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Other operating income |
The analysis of the company's other operating income for the year is as follows:
|
2024 |
2023 |
|
|
Miscellaneous other operating income |
|
|
Other operating income increased significantly in the year to £122,284 (2024: £750). The majority of this increase, £119,870, relates to referral fees earned during the year. These fees are non-recurring in nature and arise from one-off arrangements with third parties; they do not form part of the company’s regular trading activities.
|
Operating profit |
Arrived at after charging/(crediting)
|
2024 |
2023 |
|
|
Depreciation expense |
|
|
|
Amortisation expense |
|
- |
|
Operating lease expense - plant and machinery |
|
|
|
Loss/(profit) on disposal of property, plant and equipment |
|
( |
Newmarket Equine Clinic Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
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Other interest receivable and similar income |
|
2024 |
2023 |
|
|
Interest income on bank deposits |
|
- |
|
Other finance income |
|
|
|
|
|
|
Interest payable and similar expenses |
|
2024 |
2023 |
|
|
Interest expense on other finance liabilities |
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|
|
Foreign exchange gains |
|
|
|
|
|
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Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2024 |
2023 |
|
|
Wages and salaries |
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|
|
Other employee expense |
|
|
|
|
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The average number of persons employed by the company (including directors) during the year, was 125 (2023 - 114).
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Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2024 |
2023 |
|
|
Remuneration |
|
- |
|
Contributions paid to money purchase schemes |
|
- |
|
259,713 |
- |
In respect of the highest paid director:
|
2024 |
2023 |
|
|
Remuneration |
|
- |
|
Company contributions to money purchase pension schemes |
|
- |
|
Auditors' remuneration |
|
2024 |
2023 |
|
|
Audit of the financial statements |
|
|
Newmarket Equine Clinic Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
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Taxation |
Tax charged/(credited) in the profit and loss account
|
2024 |
2023 |
|
|
Current taxation |
||
|
UK corporation tax |
|
- |
|
UK corporation tax adjustment to prior periods |
- |
( |
|
23,809 |
(306,781) |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
|
( |
|
Tax expense/(receipt) in the income statement |
|
( |
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2024 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2024 |
2023 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
- |
|
Effect of tax losses |
( |
- |
|
Tax decrease from other tax effects |
- |
( |
|
Deferred tax expense/(credit) |
|
( |
|
Decrease in UK and foreign current tax from adjustment for prior periods |
- |
( |
|
Accelerated capital allowances |
|
|
|
Tax decrease arising from group relief |
( |
- |
|
Tax (decrease)/increase from changes in pension fund prepayment |
( |
|
|
Tax decrease from effect of adjustment in research and development tax credit |
( |
( |
|
Tax decrease from changes in tax provisions due to legislation |
- |
( |
|
Total tax charge/(credit) |
|
( |
Newmarket Equine Clinic Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
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Intangible assets |
|
Goodwill |
Total |
|
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Cost or valuation |
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Additions acquired separately |
|
|
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At 31 December 2024 |
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|
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Amortisation |
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Amortisation charge |
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At 31 December 2024 |
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Carrying amount |
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At 31 December 2024 |
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|
Newmarket Equine Clinic Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Tangible assets |
|
Long leasehold land and buildings |
Fixtures and fittings |
Plant and machinery |
Office equipment |
Motor vehicles |
Total |
|
|
Cost or valuation |
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|
At 1 January 2024 |
- |
|
|
|
|
|
|
Additions |
|
|
|
|
- |
|
|
Disposals |
- |
- |
- |
( |
( |
( |
|
At 31 December 2024 |
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|
|
|
|
|
|
Depreciation |
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At 1 January 2024 |
- |
|
|
|
|
|
|
Charge for the year |
|
|
|
|
|
|
|
Eliminated on disposal |
- |
- |
- |
( |
( |
( |
|
At 31 December 2024 |
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|
|
|
|
|
|
Carrying amount |
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At 31 December 2024 |
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At 31 December 2023 |
- |
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|
Included within the net book value of land and buildings above is £4,663,545 (2023 - £Nil) in respect of long leasehold land and buildings.
Newmarket Equine Clinic Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
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Stocks |
|
2024 |
2023 |
|
|
Stock |
|
- |
|
Debtors |
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Current |
Note |
2024 |
2023 |
|
Trade debtors |
|
- |
|
|
Amounts owed by related parties |
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|
|
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Other debtors |
|
|
|
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Prepayments |
|
|
|
|
Income tax asset |
- |
|
|
|
|
|
|
Cash and cash equivalents |
|
2024 |
2023 |
|
|
Cash on hand |
|
|
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Cash at bank |
|
|
|
|
|
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Creditors |
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Note |
2024 |
2023 |
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Due within one year |
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Bank loans and overdrafts |
|
- |
|
|
Trade creditors |
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|
|
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Amounts owing to related parties |
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|
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Social security and other taxes |
|
|
|
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Outstanding defined contribution pension costs |
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|
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Other payables |
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|
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Accruals |
|
|
|
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Corporation tax liability |
23,809 |
- |
|
|
|
|
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Due after one year |
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Bank loans and overdrafts |
|
- |
During the year ended 31 December 2024, the company had a fixed charge over creditors to secure borrowing facilities. This charge was satisfied in full on 1 March 2024.
Newmarket Equine Clinic Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Provisions for liabilities |
|
Deferred tax |
Total |
|
|
At 1 January 2024 |
( |
( |
|
Increase (decrease) in existing provisions |
|
|
|
At 31 December 2024 |
|
|
|
|
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Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £
|
Share capital |
Allotted, called up and fully paid shares
|
2024 |
2023 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
2 |
|
2 |
|
Loans and borrowings |
Non-current loans and borrowings
|
2024 |
2023 |
|
|
Bank borrowings |
|
- |
Current loans and borrowings
|
2024 |
2023 |
|
|
Bank borrowings |
|
- |
Bank borrowings
|
Security is given by way of a fixed and floating charge over all company assets. |
Included in the loans and borrowings are the following amounts due after more than five years:
|
2024 |
2023 |
|
|
After more than five years by instalments |
|
- |
|
- |
- |
Newmarket Equine Clinic Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
|
2024 |
2023 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
Later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Leases relating to cars total £23,768 (2023 - £13,558) and leases relating to property total £2,281,928 (2023 - £2,567,169).
|
Financial guarantee |
At the balance sheet date, the directors have provided personal guarantees amounting to £1,950,000 in respect of the company’s banking facilities. No provision has been made in the financial statements as the directors have not been required to make any payments under the guarantees.
Newmarket Equine Clinic Limited
Notes to the Financial Statements for the Year Ended 31 December 2024
|
Related party transactions |
Summary of transactions with other related parties
|
|
|
Parent and ultimate parent undertaking |
The ultimate controlling parties are