Company registration number 03137456 (England and Wales)
THE BULLEN HEALTHCARE GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
THE BULLEN HEALTHCARE GROUP LIMITED
COMPANY INFORMATION
Directors
Mr P F Bullen
Mr P A Bullen
Mr J M Charles
Mr I N Burton
Secretary
Mr I N Burton
Company number
03137456
Registered office
C/o DSG
Castle Chambers
43 Castle Street
Liverpool
Merseyside
L2 9TL
Auditor
DSG
Castle Chambers
43 Castle Street
Liverpool
L2 9TL
Business address
Glacier Building
Brunswick Business Park
Harrington Road
Liverpool
L3 4BH
THE BULLEN HEALTHCARE GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
13
Company statement of changes in equity
12
Group statement of cash flows
14
Notes to the financial statements
15 - 35
THE BULLEN HEALTHCARE GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2022
- 1 -
The directors present the strategic report for the year ended 31 March 2022.
Principal activity and fair review of business
The principal activity of the company in the year under review was to provide management services for the group. The subsidiaries' activities were the manufacture and sale of healthcare and surgical equipment.
The results for the group show a pre-tax profit of £5,450,661 (2021: £3,453,068) for the year and sales of £53,530,620 (2021: £46,927,158).
The group has net assets of £11,023,798 (2021: £7,182,234)
The year to March 2022 has seen continued stability in the margins achieved in the business in what can be a competitive marketplace. There has been a focus on cash management during the year and this has seen significant benefits in the levels of headroom available in the business to allow strategic decisions to be taken and to reduce the level of interest payable. This is expected to continue in the future.
The business continues to invest significantly in fixed assets including IT systems to ensure that the Group continues to offer a cutting edge service to its patients and other stakeholders.
The Group increased it’s level of stock holding at the year end in the approach to keeping up with rising customer demand. Consequently, stock levels increased to £3,649,618 (2021: £3,229,353). This increased level of stockholding has been maintained since year end and is unlikely to change in the near future.
Principal risks and uncertainties
Business risk
The management of the business is subject to certain risks. These include the risk of competition, loss of key personnel and the risk of losing the Dispensing Appliance Contractor (DAC) Licences which are held by other group entities. Management deal with risks in a proactive manner to minimise any loss of trade to the company.
Economic risk
The key business risks and uncertainties affecting the company are considered to relate to the economy in general and the pharmaceutical industry in particular. Other factors include competition from both national and independent pharmaceutical distributors, employee retention and product availability.
Credit risk
Credit risk is a constant risk and all new customers are reviewed and their financial position assessed before acceptance. The debt from existing customers is monitored on a regular basis to reduce the cash flow risk.
Coronavirus risk
Management has considered the potential operational challenges posed by COVID 19, including but not restricted to, an assessment of the robustness of their supply chain and broader logistic arrangements. See the going concern accounting policy for further information, however management does not foresee any operational pressures to be caused by the COVID 19 situation or any material impact on the company.
Key performance indicators
It is envisaged that when assessing the performance of the business against key performance indicators such as turnover, gross profit, cost control and overall profitability, the group will continue to perform well and develop in line with its business plan.
Future developments
The directors have considered the future activities of the group and consider that they are well placed to manage their business risks and take advantage of any business opportunities that arise.
THE BULLEN HEALTHCARE GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 2 -
Mr P A Bullen
Director
22 December 2022
THE BULLEN HEALTHCARE GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2022
- 3 -
The directors present their annual report and financial statements for the year ended 31 March 2022.
This report contains the statutory information disclosed in addition to that set out in the strategic report. Information relating to the principal activity, risk management policies and future developments, which would otherwise be included in the Directors' Report, is included in the Strategic Report.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr P F Bullen
Mrs L C Marsden
(Resigned 4 June 2021)
Mr P A Bullen
Mr J M Charles
Mr I N Burton
Qualifying third party indemnity provisions
The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.
Post reporting date events
There have been no major changes since the balance sheet date.
Auditor
The auditor, DSG, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor
of the
company is
unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor
of the
company
is
aware of that information.
On behalf of the board
Mr P A Bullen
Director
22 December 2022
THE BULLEN HEALTHCARE GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2022
- 4 -
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group 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;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the
;
-
prepare the
on the going concern basis unless it is inappropriate to presume that the
group and
company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
THE BULLEN HEALTHCARE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE BULLEN HEALTHCARE GROUP LIMITED
- 5 -
Opinion
We have audited the
financial statements of
The Bullen Healthcare Group Limited
(the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2022 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements,
including
significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2022 and of the group's 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's
responsibilities for the audit of the
financial statements
section of our report. We are independent of the
group and
parent 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
group's and
parent
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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the strategic report and the directors'
r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
THE BULLEN HEALTHCARE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE BULLEN HEALTHCARE GROUP LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the
group and the parent
company and
their
environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report or the directors'
r
eport
.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
-
the parent company 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 directors'
r
esponsibilities
s
tatement, 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
parent
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 parent company or to cease operations, or have
no realistic alternative but to do so.
Auditor's 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
.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below
.
THE BULLEN HEALTHCARE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE BULLEN HEALTHCARE GROUP LIMITED
- 7 -
Capability of the audit in detecting irregularities, including fraud
Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity. The following laws and regulations were identified as being of significance to the entity:
-
Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation.
-
Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include environmental regulations, health and safety legislation, trades description act
,
employment legislation
and pharmaceutical regulations in accordance with the health and social care act 2012.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of journal entries; reviewing post year end payments for evidence of claims pay outs and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
Jean Ellis BA FCA CTA (Senior Statutory Auditor)
For and on behalf of DSG
22 December 2022
Chartered Accountants
Statutory Auditor
Castle Chambers
43 Castle Street
Liverpool
L2 9TL
THE BULLEN HEALTHCARE GROUP LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2022
- 8 -
2022
2021
Notes
£
£
Turnover
3
53,530,620
46,927,158
Cost of sales
(37,849,003)
(33,770,088)
Gross profit
15,681,617
13,157,070
Distribution costs
(1,104,066)
(1,109,971)
Administrative expenses
(8,982,970)
(8,506,209)
Other operating income
-
10,000
Operating profit
4
5,594,581
3,550,890
Interest payable and similar expenses
8
(143,920)
(97,822)
Profit before taxation
5,450,661
3,453,068
Tax on profit
9
(1,139,140)
(708,718)
Profit for the financial year
25
4,311,521
2,744,350
Profit for the financial year is all attributable to the owners of the parent company.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
THE BULLEN HEALTHCARE GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2022
- 9 -
2022
2021
£
£
Profit for the year
4,311,521
2,744,350
Other comprehensive income
-
-
Total comprehensive income for the year
4,311,521
2,744,350
Total comprehensive income for the year is all attributable to the owners of the parent company.
THE BULLEN HEALTHCARE GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2022
31 March 2022
- 10 -
2022
2021
Notes
£
£
£
£
Fixed assets
Goodwill
11
15,030
35,062
Other intangible assets
11
1,517,957
1,528,472
Total intangible assets
1,532,987
1,563,534
Tangible assets
12
2,172,375
2,305,363
Investments
13
469,956
3,705,362
4,338,853
Current assets
Stocks
17
3,649,618
3,229,353
Debtors
18
15,454,413
12,005,256
Cash at bank and in hand
117,488
268
19,221,519
15,234,877
Creditors: amounts falling due within one year
20
(11,456,679)
(12,082,723)
Net current assets
7,764,840
3,152,154
Total assets less current liabilities
11,470,202
7,491,007
Provisions for liabilities
Deferred tax liability
24
446,404
308,773
(446,404)
(308,773)
Net assets
11,023,798
7,182,234
Capital and reserves
Called up share capital
23
25,000
50,000
Capital redemption reserve
25
32,000
7,000
Profit and loss reserves
25
10,966,798
7,125,234
Total equity
11,023,798
7,182,234
The financial statements were approved by the board of directors and authorised for issue on 22 December 2022 and are signed on its behalf by:
22 December 2022
Mr P A Bullen
Director
Company registration number 03137456 (England and Wales)
THE BULLEN HEALTHCARE GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2022
31 March 2022
- 11 -
2022
2021
Notes
£
£
£
£
Fixed assets
Goodwill
11
20,035
40,067
Other intangible assets
11
1,517,957
1,528,472
Total intangible assets
1,537,992
1,568,539
Tangible assets
12
2,172,375
2,305,363
Investments
13
7,560
813,560
3,717,927
4,687,462
Current assets
Debtors
18
4,192,429
3,836,451
Cash at bank and in hand
72,645
4,265,074
3,836,451
Creditors: amounts falling due within one year
20
(6,378,397)
(6,431,995)
Net current liabilities
(2,113,323)
(2,595,544)
Total assets less current liabilities
1,604,604
2,091,918
Provisions for liabilities
Deferred tax liability
24
446,404
308,773
(446,404)
(308,773)
Net assets
1,158,200
1,783,145
Capital and reserves
Called up share capital
23
25,000
50,000
Capital redemption reserve
25
32,000
7,000
Profit and loss reserves
25
1,101,200
1,726,145
Total equity
1,158,200
1,783,145
As permitted by s408 Companies Act 2006, the
c
ompany has not presented its own profit and loss account and related notes. The
c
ompany’s profit for the year was £181,056 (2021 - £1,046,229 profit).
The financial statements were approved by the board of directors and authorised for issue on 22 December 2022 and are signed on its behalf by:
22 December 2022
Mr P A Bullen
Director
Company registration number 03137456 (England and Wales)
THE BULLEN HEALTHCARE GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022
- 12 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2020
50,000
7,000
839,916
896,916
Year ended 31 March 2021:
Profit and total comprehensive income for the year
-
-
1,046,229
1,046,229
Dividends
10
-
-
(160,000)
(160,000)
Balance at 31 March 2021
50,000
7,000
1,726,145
1,783,145
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
-
181,056
181,056
Issue of share capital
23
25,000
-
-
25,000
Bonus issue of shares
23
-
(1,726,145)
(1,726,145)
Dividends
10
-
-
(806,000)
(806,000)
Own shares acquired
-
-
(1)
(1)
Redemption of shares
23
-
25,000
-
25,000
Reduction of shares
23
-
-
1,726,145
1,726,145
Other movements
(50,000)
-
-
(50,000)
Balance at 31 March 2022
25,000
32,000
1,101,200
1,158,200
THE BULLEN HEALTHCARE GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2022
- 13 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2020
50,000
7,000
4,540,884
4,597,884
Year ended 31 March 2021:
Profit and total comprehensive income for the year
-
-
2,744,350
2,744,350
Dividends
10
-
-
(160,000)
(160,000)
Balance at 31 March 2021
50,000
7,000
7,125,234
7,182,234
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
-
4,311,521
4,311,521
Issue of share capital
23
25,000
-
-
25,000
Bonus issue of shares
23
-
(1,726,145)
(1,726,145)
Dividends in specie
10
-
-
(469,956)
(469,956)
Own shares acquired
-
-
(1)
(1)
Redemption of shares
23
-
25,000
-
25,000
Reduction of shares
23
-
-
1,726,145
1,726,145
Other movements
(50,000)
-
-
(50,000)
Balance at 31 March 2022
25,000
32,000
10,966,798
11,023,798
THE BULLEN HEALTHCARE GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2022
- 14 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
4,277,702
1,905,874
Interest paid
(143,920)
(97,822)
Income taxes paid
(702,101)
(180,130)
Net cash inflow from operating activities
3,431,681
1,627,922
Investing activities
Purchase of intangible assets
(182,490)
(465,000)
Purchase of tangible fixed assets
(258,723)
(794,115)
Net cash used in investing activities
(441,213)
(1,259,115)
Financing activities
(Decrease)/increase in invoice discounting facility
(2,273,594)
(371,831)
Dividends paid to equity shareholders
-
(160,000)
Net cash used in financing activities
(2,273,594)
(531,831)
Net increase/(decrease) in cash and cash equivalents
716,874
(163,024)
Cash and cash equivalents at beginning of year
(599,386)
(436,362)
Cash and cash equivalents at end of year
117,488
(599,386)
Relating to:
Cash at bank and in hand
117,488
268
Bank overdrafts
-
(599,654)
THE BULLEN HEALTHCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
- 15 -
1
Accounting policies
Company information
The Bullen Healthcare Group Limited
(“the company”)
is a
private
limited company domiciled and incorporated in
England and Wales
.
The registered office is
.
The group consists of The Bullen Healthcare Group Limited and all of its subsidiaries.
The principal activity of the company and its subsidiaries is disclosed in the Strategic Report.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of DAC licences at fair value. The principal accounting policies adopted are set out below.
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
-
Section 4 ‘Statement of Financial Position’ – Reconciliation of the opening and closing number of shares;
-
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash
f
low and related notes and disclosures;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
-
Section 33 ‘Related Party Disclosures’ – Compensation for key management personnel.
1.2
Business combinations
In the parent company
financial statements, t
he cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date.
Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date.
I
nvestments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
THE BULLEN HEALTHCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company
The Bullen Healthcare Group Limited
together with
all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates
.
All
financial statements
are made up to 31 March 2022
.
Where necessary, adjustments are made to the
financial statements
of subsidiaries to bring the accounting policies used into line with those used by other members of the
g
roup.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the
group
has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.5
Turnover
Turnover represents amounts receivable for goods net of VAT and trade discounts. Revenue is recognised as customers are invoiced; at the point of delivery of goods.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on d
e
spatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of
a
business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated
amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.7
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
THE BULLEN HEALTHCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 17 -
Amortisation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Software
25% straight line
DAC licences
20 years straight line
1.8
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Tenant improvements
Over 25 years
Land and buildings leasehold
Over the life of the lease
Fixtures, fittings & equipment
25% reducing balance
Computer equipment
25% straight line
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the
profit and loss account
.
1.9
Fixed asset investments
Equity in
vest
ments are measured at fair value through profit or loss
,
except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably
,
which are recognised at cost less impairment until a reliable measure of fair value becomes available.
I
n the parent company
financial statements,
investments in subsidiaries, associates
, unlisted investments
and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the
group. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The
group
considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the
g
roup’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method.
Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill.
However, this has been recognised as part of the cost of investment in the accounts. The goodwill is being amortised over 8 years and the amortisation is included in the valuation of investment each year.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the
parent c
ompany
financial statements,
investments in associates are accounted for at cost less impairment.
THE BULLEN HEALTHCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 18 -
Entities in which the
group
has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
Unlisted investments are entities in which the company holds an interest but has no significant holding or influence in the entity.
1.10
Impairment of fixed assets
At each reporting
period
end date, the
group
reviews the carrying amounts of its tangible
and intangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.11
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.12
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
THE BULLEN HEALTHCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 19 -
1.13
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's
balance sheet
when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
m
ethod unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those
held
at
fair value through profit and loss
, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected.
If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
THE BULLEN HEALTHCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 20 -
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts,
are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as
being measured at
fair value th
r
ough profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the
group's contractual obligations expire or are discharged or cancelled.
1.14
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.15
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.16
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
group’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
THE BULLEN HEALTHCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 21 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
profit and loss account
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset
if, and only if, there is
a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.17
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.18
Retirement benefits
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.19
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
d
asset are consumed.
1.20
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.21
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
THE BULLEN HEALTHCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 22 -
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
DAC Licences
The fair value of the DAC licences has been determined by the directors based by reference to active market prices.
3
Turnover and other revenue
An analysis of the group's turnover is as follows:
2022
2021
£
£
Turnover analysed by class of business
Sale of goods
53,530,620
46,927,158
2022
2021
£
£
Turnover analysed by geographical market
United Kingdom
53,530,620
46,927,158
2022
2021
£
£
Other revenue
Grants received
10,000
4
Operating profit
2022
2021
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
2
(24)
Government grants
(10,000)
Depreciation of owned tangible fixed assets
391,711
406,743
Amortisation of intangible assets
213,037
200,082
Operating lease charges
690,832
662,114
THE BULLEN HEALTHCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 23 -
5
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2022
2021
2022
2021
Number
Number
Number
Number
Manufacturing
25
23
-
-
Stores
35
31
-
-
Administration
87
83
17
16
Total
147
137
17
16
Their aggregate remuneration comprised:
Group
Company
2022
2021
2022
2021
£
£
£
£
Wages and salaries
4,515,804
4,217,814
991,969
1,061,480
Social security costs
371,258
345,203
116,984
123,120
Pension costs
121,645
172,145
46,563
104,170
5,008,707
4,735,162
1,155,516
1,288,770
6
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
476,869
527,454
Company pension contributions to defined contribution schemes
30,948
90,000
507,817
617,454
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2021 - 1).
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2022
2021
£
£
Remuneration for qualifying services
280,731
256,687
The directors are the key management personnel.
THE BULLEN HEALTHCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 24 -
7
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
20,000
20,000
For other services
All other non-audit services
10,000
10,000
8
Interest payable and similar expenses
2022
2021
£
£
Interest on bank overdrafts and loans
143,273
88,800
Other interest
647
9,022
Total finance costs
143,920
97,822
9
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
1,056,898
705,634
Adjustments in respect of prior periods
(55,389)
27,168
Total current tax
1,001,509
732,802
Deferred tax
Origination and reversal of timing differences
(22,019)
(10,180)
Adjustment in respect of prior periods
159,650
(13,904)
Total deferred tax
137,631
(24,084)
Total tax charge
1,139,140
708,718
THE BULLEN HEALTHCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
9
Taxation
(Continued)
- 25 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2022
2021
£
£
Profit before taxation
5,450,661
3,453,068
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
1,035,626
656,083
Tax effect of expenses that are not deductible in determining taxable profit
37,191
41,463
Permanent capital allowances in excess of depreciation
327
(2,092)
Research and development tax credit
(16,246)
Under/(over) provided in prior years
(55,389)
27,168
Deferred tax adjustments in respect of prior years
137,631
(13,904)
Taxation charge
1,139,140
708,718
10
Dividends
2022
2021
Recognised as distributions to equity holders:
£
£
Interim paid
-
160,000
11
Intangible fixed assets
Group
Goodwill
Software
DAC licences
Total
£
£
£
£
Cost
At 1 April 2021
223,148
388,445
1,930,000
2,541,593
Additions - internally developed
182,490
182,490
At 31 March 2022
223,148
570,935
1,930,000
2,724,083
Amortisation and impairment
At 1 April 2021
188,086
298,543
491,430
978,059
Amortisation charged for the year
20,032
96,505
96,500
213,037
At 31 March 2022
208,118
395,048
587,930
1,191,096
Carrying amount
At 31 March 2022
15,030
175,887
1,342,070
1,532,987
At 31 March 2021
35,062
89,902
1,438,570
1,563,534
THE BULLEN HEALTHCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
11
Intangible fixed assets
(Continued)
- 26 -
Company
Goodwill
Software
DAC licences
Total
£
£
£
£
Cost
At 1 April 2021
223,148
388,445
1,930,000
2,541,593
Additions - internally developed
182,490
182,490
At 31 March 2022
223,148
570,935
1,930,000
2,724,083
Amortisation and impairment
At 1 April 2021
183,081
298,543
491,430
973,054
Amortisation charged for the year
20,032
96,505
96,500
213,037
At 31 March 2022
203,113
395,048
587,930
1,186,091
Carrying amount
At 31 March 2022
20,035
175,887
1,342,070
1,537,992
At 31 March 2021
40,067
89,902
1,438,570
1,568,539
The remaining amortisation period of the DAC licences is 14 years (2021: 15 years).
12
Tangible fixed assets
Group
Tenant improvements
Land and buildings leasehold
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2021
971,577
714,729
1,251,153
2,384,907
455,848
5,778,214
Additions
39,810
32,184
42,467
109,272
34,990
258,723
At 31 March 2022
1,011,387
746,913
1,293,620
2,494,179
490,838
6,036,937
Depreciation and impairment
At 1 April 2021
297,193
38,718
984,903
1,936,708
215,329
3,472,851
Depreciation charged in the year
39,410
14,836
73,271
201,148
63,046
391,711
At 31 March 2022
336,603
53,554
1,058,174
2,137,856
278,375
3,864,562
Carrying amount
At 31 March 2022
674,784
693,359
235,446
356,323
212,463
2,172,375
At 31 March 2021
674,384
676,011
266,250
448,199
240,519
2,305,363
THE BULLEN HEALTHCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
12
Tangible fixed assets
(Continued)
- 27 -
Company
Tenant improvements
Land and buildings leasehold
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2021
971,577
714,729
1,234,414
2,384,907
455,848
5,761,475
Additions
39,810
32,184
42,467
109,272
34,990
258,723
At 31 March 2022
1,011,387
746,913
1,276,881
2,494,179
490,838
6,020,198
Depreciation and impairment
At 1 April 2021
297,193
38,718
968,164
1,936,708
215,329
3,456,112
Depreciation charged in the year
39,410
14,836
73,271
201,148
63,046
391,711
At 31 March 2022
336,603
53,554
1,041,435
2,137,856
278,375
3,847,823
Carrying amount
At 31 March 2022
674,784
693,359
235,446
356,323
212,463
2,172,375
At 31 March 2021
674,384
676,011
266,250
448,199
240,519
2,305,363
13
Fixed asset investments
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Investments in subsidiaries
14
7,560
7,560
Unlisted investments
469,956
806,000
469,956
7,560
813,560
Movements in fixed asset investments
Group
Investments
£
Cost or valuation
At 1 April 2021
469,956
Disposals
(469,956)
At 31 March 2022
-
Carrying amount
At 31 March 2022
-
At 31 March 2021
469,956
THE BULLEN HEALTHCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
13
Fixed asset investments
(Continued)
- 28 -
Movements in fixed asset investments
Company
Shares in subsidiaries
Other investments
Total
£
£
£
Cost or valuation
At 1 April 2021
7,560
806,000
813,560
Disposals
-
(806,000)
(806,000)
At 31 March 2022
7,560
-
7,560
Carrying amount
At 31 March 2022
7,560
-
7,560
At 31 March 2021
7,560
806,000
813,560
14
Subsidiaries
Details of the company's subsidiaries at 31 March 2022 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Bullen International Healthcare Limited
England and Wales
Dormant
Ordinary
100.00
Charles S Bullen Stomacare Limited
England and Wales
Sale of stomacare eurology and wound equipment
Ordinary
100.00
Owen Bros. (Footwear) Limited
England and Wales
Dormant
Ordinary
100.00
S.G.& P Payne Limited
England and Wales
Dormant
Ordinary
100.00
The registered address of the subsidiaries is the same as The Bullen Healthcare Group Limited.
15
Joint ventures
Details of joint ventures at 31 March 2022 are as follows:
Name of undertaking
Registered office
Nature of business
Interest
% Held
held
Direct
Healthcare Advisory Group Limited
England & Wales
Dormant
Ordinary
50.00
The registered address of the subsidiaries is the same as The Bullen Healthcare Group Limited.
THE BULLEN HEALTHCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 29 -
16
Unlisted investments
The group has the following holding in unlisted investments:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Trio Healthcare Holdings Ltd
England and Wales
Distribution of healthcare products
Ordinary
18.10
The registered address of the company is 3 Royal Court, Tatton Street, Knutsford, England, WA16 6EN.
On the 22 October 2019 all shares in Trio Healthcare Limited (‘Trio’) were transferred on a share for share basis to Trio Healthcare Holdings Ltd (‘Trio H’), which is now the 100% owner of Trio. The Company’s original holding of 20% (15% ordinary shares & 5% non-voting ordinary shares) in Trio was exchanged for a 18.1% investment in Trio H. The Company no longer has any representation on the board of Trio and therefore has no significant control over Trio and is no longer considered an associate.
17
Stocks
Group
Company
2022
2021
2022
2021
£
£
£
£
Finished goods and goods for resale
3,649,618
3,229,353
Stock is stated after provisions for impairment of £347,516 (2021: £354,845).
18
Debtors
Group
Company
2022
2021
2022
2021
Amounts falling due within one year:
£
£
£
£
Trade debtors
12,984,416
11,157,511
Corporation tax recoverable
26,415
24,356
Amounts owed by group undertakings
573,425
-
3,711,495
3,068,864
Other debtors
1,604,507
660,684
215,252
587,859
Prepayments and accrued income
265,650
187,061
241,326
179,728
15,454,413
12,005,256
4,192,429
3,836,451
THE BULLEN HEALTHCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 30 -
19
Financial instruments
Group
Company
2022
2021
2022
2021
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
15,089,374
11,379,530
n/a
n/a
Equity instruments measured at cost less impairment
-
469,956
n/a
n/a
Carrying amount of financial liabilities
Measured at amortised cost
9,782,011
10,427,921
n/a
n/a
20
Creditors: amounts falling due within one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans and overdrafts
21
599,654
127,497
Trade creditors
6,178,743
5,683,823
114,577
97,194
Amounts owed to group undertakings
3,509,527
3,509,527
Corporation tax payable
1,056,898
731,075
87,779
136,056
Other taxation and social security
617,770
923,727
35,472
50,321
Other creditors
2,527,964
3,660,592
2,492,774
2,409,998
Accruals and deferred income
1,075,304
483,852
138,268
101,402
11,456,679
12,082,723
6,378,397
6,431,995
Included within Creditors is £nil (2021: £1,183,650) secured on the trade debtors.
21
Loans and overdrafts
Group
Company
2022
2021
2022
2021
£
£
£
£
Bank overdrafts
599,654
127,497
Payable within one year
599,654
127,497
Bank overdrafts are secured by a fixed charge over book and other debts, goodwill, uncalled capital and intellectual property and a floating charge on all the other assets of the company, including property.
22
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
121,645
172,145
THE BULLEN HEALTHCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
22
Retirement benefit schemes
(Continued)
- 31 -
A
defined contribution pension scheme
is operated
for all qualifying employees.
The assets of the scheme are held separately from those of the group in an independently administered fund.
23
Share capital
Group and company
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
50,000
50,000
25,000
50,000
24
Deferred taxation
Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2022
2021
Group
£
£
ACAs
333,544
122,265
Revaluation of DAC licences
112,860
186,508
446,404
308,773
Liabilities
Liabilities
2022
2021
Company
£
£
ACAs
333,544
122,265
Revaluation of DAC licences
112,860
186,508
446,404
308,773
Group
Company
2022
2022
Movements in the year:
£
£
Liability at 1 April 2021
308,773
308,773
Charge to profit or loss
137,631
137,631
Liability at 31 March 2022
446,404
446,404
THE BULLEN HEALTHCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 32 -
25
Reserves
Profit and loss reserves
The company's profit and loss reserve includes undistributable reserves of £337,903 (2021: £391,235) in relation to the revaluation of intangible assets.
26
Financial commitments, guarantees and contingent liabilities
Each company in the group has given a joint and several guarantee and a fixed and floating charge to secure its own indebtness and the indebtness of the other companies in the group to the group bankers.
27
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2022
2021
2022
2021
£
£
£
£
Within one year
325,342
294,033
184,250
185,500
Between two and five years
893,296
813,892
737,000
732,750
In over five years
85,625
454,125
85,625
454,125
1,304,263
1,562,050
1,006,875
1,372,375
28
Ultimate controlling party
The ultimate controlling party is Trevally Holdings Limited, a company registered in England and Wales, company number 13183047. The registered address is DSG Chartered Accountants, Castle Chambers, 43 Castle Street, Liverpool, United Kingdom, L2 9TL.
THE BULLEN HEALTHCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 33 -
29
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with the following related parties:
Charles S Bullen Executive Pension Scheme - common directors and members
Peter Bullen Discretionary Settlement - controlled by P F Bullen
Gloria Bullen Discretionary Trust - controlled by PF Bullen
P F Bullen - director
P A Bullen - director
L C Marsden - director
I Burton - director
C Bullen - son of P F Bullen
Bullen Lewis and Partners Limited - common director
L Bullen - wife of P A Bullen
Rental costs
Dividends
2022
2021
2022
2021
£
£
£
£
Group
Other related parties
352,526
352,834
-
160,000
Company
Other related parties
195,326
195,326
-
160,000
The following amounts were outstanding at the reporting end date:
Amounts owed to related parties
2022
2021
£
£
Group
Key management personnel
2,216,483
2,149,824
Other related parties
271,726
256,417
2,488,209
2,406,241
Company
Key management personnel
2,216,483
2,149,824
Other related parties
271,726
256,417
2,488,209
2,406,241
THE BULLEN HEALTHCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
29
Related party transactions
(Continued)
- 34 -
The following amounts were outstanding at the reporting end date:
Amounts owed by related parties
Amounts owed by related parties
2022
2021
Balance
Provision
Net
Balance
Provision
Net
£
£
£
£
£
£
Group
Other related parties
168,987
78,364
90,623
153,294
78,364
74,930
Company
Other related parties
116,250
-
116,250
116,250
-
116,250
THE BULLEN HEALTHCARE GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 35 -
Each company in the group has given a joint and several guarantee and a fixed and floating charge to secure its own indebtness and the inbebtness of the other companies to the group's bankers.
30
Cash generated from group operations
2022
2021
£
£
Profit for the year after tax
4,311,521
2,744,350
Adjustments for:
Taxation charged
1,139,140
708,718
Finance costs
143,920
97,822
Amortisation and impairment of intangible assets
213,037
200,082
Depreciation and impairment of tangible fixed assets
391,711
406,743
Decrease in provisions
-
(40,000)
Movements in working capital:
(Increase)/decrease in stocks
(420,265)
323,052
Increase in debtors
(2,332,799)
(1,174,110)
Increase/(decrease) in creditors
831,437
(1,360,783)
Cash generated from operations
4,277,702
1,905,874
31
Analysis of changes in net funds/(debt) - group
1 April 2021
Cash flows
31 March 2022
£
£
£
Cash at bank and in hand
268
117,220
117,488
Bank overdrafts
(599,654)
599,654
(599,386)
716,874
117,488
2022-03-31
2021-04-01
false
CCH Software
CCH Accounts Production 2022.300
No description of principal activity
Mr P F Bullen
Mrs L C Marsden
Mr P A Bullen
Mr J M Charles
Mr I N Burton
Mr I N Burton
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2021-03-31
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2022-03-31
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2022-03-31
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2021-03-31
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2021-03-31
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2021-03-31
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bus:Consolidated
2021-03-31
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2021-03-31
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2022-03-31
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2022-03-31
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2022-03-31
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2022-03-31
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2021-04-01
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2021-03-31
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