Registration number:
Insight Health Limited
for the Year Ended 31 December 2017
JPL
110 Chandos Avenue
Whetstone
London
N20 9DZ
Insight Health Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Profit and Loss Account |
|
Balance Sheet |
|
Statement of Changes in Equity |
|
Statement of Cash Flows |
|
Notes to the Financial Statements |
Insight Health Limited
Company Information
Directors |
Mr John Rawlinson Mrs Alison Rawlinson |
Company secretary |
Mrs Alison Rawlinson |
Registered office |
|
Auditors |
|
Page 1 |
Insight Health Limited
Strategic Report for the Year Ended 31 December 2017
The directors present their strategic report for the year ended 31 December 2017.
Principal activity
The principal activity of the company is the distribution of health products.
Fair review of the business
During the year the company increased its turnover with NHS Supply Chain and its sales to pharmacies throughout the country. Profit margins were maintained and the directors consider the profits to be satisfactory.
The company's key financial and other performance indicators during the year were as follows:
Unit |
2017 |
2016 |
|
Turnover |
£'000 |
23,202 |
21,531 |
Operating profit |
£'000 |
964 |
880 |
Profit after tax |
£'000 |
782 |
707 |
Shareholders' funds |
£'000 |
4,388 |
3,946 |
Principal risks and uncertainties
The principal risks and uncertainties facing the company are broadly grouped as competitive, legislative and financial instrument risk.
Competitive Risks
The company is continuing its contract with its main supplier and ongoing activities are assured for the foreseeable future. The principal competitive risk relates to the probability of new products being brought to market. Due to the regulatory obligations in operation the directors consider this risk to be low.
Legislative Risks
In the UK and Europe, health products must be approved by European licensing authorities. Any changes significant changes may have a material impact on the ability of the company to supply products at a profit.
Financial Instrument Risks
The company has established a risk and financial management framework whose primary objectives are to protect the company from events that may hinder the company's performance. The objectives aim to limit undue third party exposure and ensure sufficient working capital exists.
Approved by the
.........................................
Director
Page 2 |
Insight Health Limited
Directors' Report for the Year Ended 31 December 2017
The directors present their report and the financial statements for the year ended 31 December 2017.
Directors of the company
The directors who held office during the year were as follows:
Financial instruments
Objectives and policies
Details of financial instruments are provided in the strategic report on page 2.
Price risk, credit risk, liquidity risk and cash flow risk
The institutions with which the company deals are generally either government backed or academic and, in the opinion of the directors, there is little risk in extending credit to them. The company maintains a very healthy cash surplus and liabilities are modest in comparison.
The company does not trade speculatively in derivatives or similar instruments.
Future developments
The directors aim to maintain the management policies which have resulted in the company's growth in recent years. They consider that next year will show a similar record of growth to 2017.
Research and development
The company continues its programme of research and development with a view to identifying additional products to broaden its product base.
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 JPL are deemed to be reappointed under section 487(2) of the Companies Act 2006.
Approved by the
.........................................
Director
Page 3 |
Insight Health 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:
• |
select suitable accounting policies and 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 financial statements; and |
• |
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.
Page 4 |
Insight Health Limited
Independent Auditor's Report to the Members of Insight Health Limited
Opinion
We have audited the financial statements of Insight Health Limited (the 'company') for the year ended 31 December 2017, which comprise the Profit and Loss Account, 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).
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.
In our opinion the financial statements:
• |
give a true and fair view of the state of the company's affairs as at 31 December 2017 and of its profit for the year then ended; |
• |
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• |
have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
• |
the directors’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
• |
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
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.
Page 5 |
Insight Health Limited
Independent Auditor's Report to the Members of Insight Health Limited
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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
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 4], 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’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.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
Page 6 |
Insight Health Limited
Independent Auditor's Report to the Members of Insight Health Limited
• |
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. |
• |
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. |
• |
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. |
• |
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. |
• |
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. |
• |
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the company audit. We remain solely responsible for our audit opinion. |
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
......................................
For and on behalf of
110 Chandos Avenue
London
N20 9DZ
Page 7 |
Insight Health Limited
Profit and Loss Account for the Year Ended 31 December 2017
Note |
2017 |
2016 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Operating profit |
|
|
|
Other interest receivable and similar income |
|
|
|
8,506 |
9,606 |
||
Profit before tax |
|
|
|
Taxation |
( |
( |
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
Page 8 |
Insight Health Limited
(Registration number: 03875080)
Balance Sheet as at 31 December 2017
Note |
2017 |
2016 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Profit and loss account |
|
|
|
Total equity |
|
|
Approved and authorised by the
.........................................
Director
Page 9 |
Insight Health Limited
Statement of Changes in Equity for the Year Ended 31 December 2017
Share capital |
Profit and loss account |
Total |
|
At 1 January 2017 |
|
|
|
Profit for the year |
- |
|
|
Total comprehensive income |
- |
|
|
Dividends |
- |
( |
( |
At 31 December 2017 |
|
|
|
Share capital |
Profit and loss account |
Total |
|
At 1 January 2016 |
|
|
|
Profit for the year |
- |
|
|
Total comprehensive income |
- |
|
|
Dividends |
- |
( |
( |
At 31 December 2016 |
|
|
|
Page 10 |
Insight Health Limited
Statement of Cash Flows for the Year Ended 31 December 2017
Note |
2017 |
2016 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Finance income |
( |
( |
|
Corporation tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
Decrease/(increase) in stocks |
|
( |
|
Decrease/(increase) in trade debtors |
|
( |
|
(Decrease)/increase in trade creditors |
( |
|
|
Cash generated from operations |
|
|
|
Corporation tax paid |
( |
( |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Net cash flows from investing activities |
( |
|
|
Cash flows from financing activities |
|||
Dividends paid |
( |
( |
|
Net increase in cash and cash equivalents |
|
|
|
Cash and cash equivalents at 1 January |
|
|
|
Cash and cash equivalents at 31 December |
2,877,322 |
2,681,096 |
Page 11 |
Insight Health Limited
Notes to the Financial Statements for the Year Ended 31 December 2017
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
The principal place of business is:
P O Box 520
WEMBLEY
Middlesex
HA9 7YN
These financial statements were authorised for issue by the
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'.
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.
Judgements
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. |
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Tax
The tax expense for the period comprises current 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.
Page 12 |
Insight Health Limited
Notes to the Financial Statements for the Year Ended 31 December 2017
The current income 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.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
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:
Asset class |
Depreciation method and rate |
Land and buildings |
Straight line over 50 years |
Fixtures, fittings and equipment |
15% on reducing balance |
Forklifts |
15% on reducing balance |
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. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
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.
Page 13 |
Insight Health Limited
Notes to the Financial Statements for the Year Ended 31 December 2017
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.
Revenue |
The analysis of the company's revenue for the year from continuing operations is as follows:
2017 |
2016 |
|
Sale of goods |
|
|
The analysis of the company's turnover for the year by market is as follows:
2017 |
2016 |
|
UK |
|
|
Rest of world |
|
|
|
|
Operating profit |
Arrived at after charging/(crediting)
2017 |
2016 |
|
Depreciation expense |
|
|
Other interest receivable and similar income |
2017 |
2016 |
|
Interest income on bank deposits |
|
|
Page 14 |
Insight Health Limited
Notes to the Financial Statements for the Year Ended 31 December 2017
Auditors' remuneration |
2017 |
2016 |
|
Audit of the financial statements |
|
|
Other fees to auditors |
||
All other non-audit services |
|
|
Taxation |
Tax charged/(credited) in the income statement
2017 |
2016 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
- |
( |
190,558 |
182,865 |
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2016 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2017 |
2016 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Increase (decrease) in UK and foreign current tax from adjustment for prior periods |
- |
( |
Tax increase (decrease) from effect of capital allowances and depreciation |
|
|
Total tax charge |
|
|
The main rate of Corporation Tax was reduced from 20% to 19% from 1st April 2017.
Page 15 |
Insight Health Limited
Notes to the Financial Statements for the Year Ended 31 December 2017
Tangible assets |
Land and buildings |
Furniture, fittings and equipment |
Other tangible assets |
Total |
|
Cost or valuation |
||||
At 1 January 2017 |
|
|
|
|
Additions |
|
- |
- |
|
At 31 December 2017 |
|
|
|
|
Depreciation |
||||
At 1 January 2017 |
|
|
|
|
Charge for the year |
|
|
|
|
At 31 December 2017 |
|
|
|
|
Carrying amount |
||||
At 31 December 2017 |
|
|
|
|
At 31 December 2016 |
|
|
|
|
Included within the net book value of land and buildings above is £1,116,916 (2016 - £1,128,537) in respect of freehold land and buildings.
Stocks |
2017 |
2016 |
|
Stocks |
|
|
Debtors |
2017 |
2016 |
|
Trade debtors |
|
|
Other debtors |
|
|
Total current trade and other debtors |
|
|
Cash and cash equivalents |
2017 |
2016 |
|
Cash at bank |
|
|
Page 16 |
Insight Health Limited
Notes to the Financial Statements for the Year Ended 31 December 2017
Creditors |
Note |
2017 |
2016 |
|
Due within one year |
|||
Trade creditors |
|
|
|
Amounts due to related parties |
|
- |
|
Other creditors |
|
|
|
Accrued expenses |
|
|
|
Corporation tax liability |
190,558 |
183,270 |
|
|
|
Share capital |
Allotted, called up and fully paid shares
2017 |
2016 |
|||
No. |
£ |
No. |
£ |
|
|
|
10,000 |
|
10,000 |
Page 17 |
Insight Health Limited
Notes to the Financial Statements for the Year Ended 31 December 2017
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
2017 |
2016 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Dividends |
2017 |
2016 |
|||
£ |
£ |
|||
Interim dividend of £
|
340,000 |
770,000 |
Related party transactions |
Transactions with directors |
Dividends paid to directors |
2017 |
2016 |
|||
Mr John Rawlinson |
||||
Dividend paid |
170,000 |
385,000 |
||
Mrs Alison Rawlinson |
||||
Dividend paid |
170,000 |
385,000 |
||
Page 18 |
Insight Health Limited
Notes to the Financial Statements for the Year Ended 31 December 2017
Summary of transactions with other related parties
Expenditure with and payables to related parties
2017 |
Other related parties |
Rendering of services |
|
2016 |
Other related parties |
Rendering of services |
|
Loans from related parties
2017 |
Other related parties |
At start of period |
|
Advanced |
|
At end of period |
|
During the year the company paid rent totalling £100,000 (2016 - £100,000) to The Rawlinson Pension Fund, a pension scheme of which both of the directors are beneficiaries. At the balance sheet date the amount due to The Rawlinson Pension Fund was £nil (2016 - £nil).
Page 19 |