Registration number:
Abbey Field Health Limited
for the Year Ended 31 March 2020
Abbey Field Health Limited
Contents
Company Information |
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Accountants' Report |
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Balance Sheet |
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Notes to the Unaudited Financial Statements |
Abbey Field Health Limited
Company Information
Directors |
Mr C P Daly Mr FT Gourlay |
Registered office |
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Accountants |
Brown, Scott & Main |
Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Abbey Field Health Limited
for the Year Ended 31 March 2020
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Abbey Field Health Limited for the year ended 31 March 2020 as set out on pages 3 to 12 from the company's accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants of Scotland, we are subject to its ethical and other professional requirements which are detailed at www.icas.com/accountspreparationguidance
This report is made solely to the Board of Directors, as a body, in accordance with the terms of our engagement. Our work has been undertaken solely to prepare for your approval the accounts of Abbey Field Health Limited and state those matters that we have agreed to state to the Board of Directors, as a body, in this report in accordance with the requirements of the Institute of Chartered Accountants of Scotland as detailed at http://www.icas.com/accountspreparationguidance. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and its Board of Directors, as a body, for our work or for this report.
It is your duty to ensure that Abbey Field Health Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Abbey Field Health Limited. You consider that Abbey Field Health Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the accounts of Abbey Field Health Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.
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Chartered Accountants
Edinburgh
Lothian
EH9 3DP
Abbey Field Health Limited
(Registration number: 10652466)
Balance Sheet as at 31 March 2020
Note |
2020 |
2019 |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Provisions for liabilities |
( |
( |
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Net assets |
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|
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Capital and reserves |
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Called up share capital |
90 |
90 |
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Share premium reserve |
147,967 |
147,967 |
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Profit and loss account |
72,315 |
59,464 |
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Shareholders' funds |
220,372 |
207,521 |
For the financial year ending 31 March 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
• |
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• |
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.
Approved and authorised by the
Abbey Field Health Limited
(Registration number: 10652466)
Balance Sheet as at 31 March 2020
.........................................
Director
Abbey Field Health Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2020
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
England
The principal place of business is:
Ypres Road
Colchester
Essex
CO2 7UW
England
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 have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared under the historical cost convention.
The presentation currency is sterling.
Going concern
The financial statements have been prepared on the going concern basis. The directors consider this appropriate as the company is supported by the value of its licence and it continues to meet its day to day commitments from working capital and existing financial arrangements as they fall due. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.
Turnover
Turnover represents sales of pharmaceutical products, excluding value added tax and net of discounts allowed, recognised when goods are despatched or provided to customers.
Abbey Field Health Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2020
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.
Current or deferred taxation assets and liabilities are not discounted.
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Tangible assets
Tangible fixed assets are stated at historic cost less accumulated depreciation and accumulated impairment losses.
Depreciation
Depreciation is provided at rates calculated so as to write off the cost less residual value of each asset over its expected useful life as follows:
Asset class |
Depreciation method and rate |
Plant and machinery |
10% straight line |
Fixtures and fittings |
10% straight line |
Office equipment |
20% straight line |
Leasehold improvements |
5% straight line |
Intangible assets
The company's intangible assets comprise a licence fee paid to obtain permission to operate the company's pharmacy. Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
The company's licence is amortised on the straight line basis over its estimated life of 20 years. This is a departure from the requirements of section 1A of FRS 102 which requires intangible assets to be amortised over a period not exceeding 10 years where it is not possible to make a reliable estimate of the useful life. The directors believe the company's licence has a lifespan longer than 10 years and consider 20 years is a more accurate period for amortisation of the licence.
If the licence had been amortised over 10 years the amortisation charge to the profit and loss account would have been £638 (2019 £638), resulting in a decrease in the profit of £319 (2019 £319).
Abbey Field Health Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2020
Impairment of assets
At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in profit or loss.
If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.
Stock
Stock is stated at the lower of cost and net realisable value, and comprises pharmaceutical products for resale.
Leases
Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme whose assets are held separately from those of the company in independently administered funds. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.
Financial instruments
Basic Financial Assets
Basic financial assets, which include stock, debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market value rate of interest.Financial assets classified as receivable within one year are not amortised.
Basic Financial Liabilities
Basic financial liabilities, which include creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Abbey Field Health Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2020
Staff numbers |
The average number of persons employed by the company (including directors) during the period, was
Taxation |
The tax charge on the profit for the year was as follows: |
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2020 |
2019 |
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£ |
£ |
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UK corporation tax |
448 |
- |
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Deferred tax |
3,715 |
15,931 |
|
4,163 |
15,931 |
Intangible assets |
Licence |
Total |
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Cost or valuation |
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At 1 April 2019 |
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At 31 March 2020 |
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Amortisation |
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At 1 April 2019 |
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Amortisation charge |
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At 31 March 2020 |
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Carrying amount |
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At 31 March 2020 |
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At 31 March 2019 |
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Abbey Field Health Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2020
Tangible assets |
Leasehold improvements |
Furniture, fittings and equipment |
Total |
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Cost or valuation |
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At 1 April 2019 |
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|
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Additions |
- |
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At 31 March 2020 |
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Depreciation |
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At 1 April 2019 |
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Charge for the period |
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At 31 March 2020 |
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Carrying amount |
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At 31 March 2020 |
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At 31 March 2019 |
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Debtors |
2020 |
2019 |
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Trade debtors |
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Prepayments |
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Other debtors |
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Trade debtors include balances due from related parties. Details of related party transactions are provided at note 11.
Abbey Field Health Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2020
Creditors |
Creditors: amounts falling due within one year
2020 |
2019 |
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Due within one year |
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Loan |
24,707 |
65,000 |
Trade creditors |
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Taxation and social security |
|
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Accruals and deferred income |
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Other creditors |
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Creditors: amounts falling due after more than one year
2020 |
2019 |
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Due after one year |
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Loans and borrowings |
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Creditors include loan balances of £93,084 (2019 £70,929) due to Rushport Corporate Services Ltd, a company controlled by Mr Daly. The loan bears interest at 4% pa and is repayable over 60 months.
Further details of related parties and transactions are provided at note 11.
Provisions for liabilities |
2020 |
2019 |
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£ |
£ |
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Deferred tax |
19,646 |
15,931 |
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Deferred tax |
|||
Balance at 1 April 2019 |
15,931 |
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Charge / (credit) to profit and loss account during the year |
3,715 |
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Balance at 31 March 2020 |
19,646 |
Leasing agreements |
Abbey Field Health Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2020
Minimum lease payments under non-cancellable operating leases fall due as follows: |
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2020 |
2019 |
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£ |
£ |
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Within one year |
16,794 |
36,994 |
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Between two and five years |
31,308 |
120,502 |
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After more than five years |
13,333 |
91,666 |
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61,435 |
249,162 |
Related party transactions |
Abbey Field Health Limited is a joint venture between C P Daly, a director and majority shareholder, Wellbeing Pharmacies Limited, a minority shareholder, and the medical partnership of Abbey Field Medical Centre, whose partners are minority shareholders in the company.
C P Daly is also:
- a director and majority shareholder of Shefford Health Limited, a retail pharmacy;
- a director and shareholder of Wellbeing Rushport (Middlewich) Limited, a retail pharmacy; and
- a director and shareholder of Rushport Corporate Services Limited, a company which provides management consultancy services.
F T Gourlay, a director of the company, is also:
- a director and shareholder in Wellbeing Pharmacies Limited, a retail pharmacist which reimburses to the company certain supplier rebates on its purchases;
- a director and shareholder in MAF Pharma Limited, which supplies pharmaceutical products and also reimburses to the company certain supplier rebates on its purchases;
- a director of Wellbeing Rushport (Middlewich) Limited, a retail pharmacist; and
- a director of Medicine Collection Limited, a retailer of medical and orthopaedic goods in specialised stores.
Wellbeing Pharmacies Limited is also a shareholder in Wellbeing Rushport (Middlewich) Limited.
At the year end the company had loan balances due to Rushport Corporate Services Limited of £93,084 (2019 £79,929).
During the year the company rented property and received consultancy services from Abbey Field Medical Centre. In July 2019, the company bought out the consultancy services from Abbey Field Medical Centre at a cost of £100,000. This cost is included in administration expenses in the profit and loss account.
The following related party trading transactions took place at arms length during the year:
Goods and services provided by |
Goods and services purchased by |
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Abbey Field Health Limited |
Abbey Field Health Limited |
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2020 |
2019 |
2020 |
2019 |
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£ |
£ |
£ |
£ |
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Abbey Field Medical Centre |
2,605 |
76 |
24,630 |
26,155 |
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MAF Pharma Limited |
- |
- |
(2,877) |
(379) |
Abbey Field Health Limited
Notes to the Unaudited Financial Statements for the Year Ended 31 March 2020
Medicine Collection Limited (*fixed asset purchase) |
- |
- |
14,000 |
* |
- |
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Shefford Health Limited |
- |
- |
- |
507 |
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Wellbeing Pharmacies Limited |
- |
- |
18,802 |
20,226 |
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Wellbeing Rushport (Middlewich) Limited |
- |
- |
- |
83 |
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2,605 |
76 |
54,555 |
46,592 |
At the year end the following trading balances were due:
Debtor balances: due to |
Creditor balances: due from |
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Abbey Field Health Limited |
Abbey Field Health Limited |
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2020 |
2019 |
2020 |
2019 |
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£ |
£ |
£ |
£ |
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Abbey Field Medical Centre |
2,618 |
76 |
- |
7,830 |
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MAF Pharma Limited |
7,904 |
4,412 |
39 |
- |
|||
Medicine Collection Limited |
- |
- |
16,800 |
- |
|||
Wellbeing Pharmacies Limited |
3,067 |
390 |
5,406 |
3,722 |
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Wellbeing Rushport (Middlewich) Limited |
- |
- |
100 |
100 |
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13,589 |
4,878 |
22,345 |
11,652 |