Company Registration No. 10788058 (England and Wales)
MYA Clinics Ltd
Annual report and financial statements
for the year ended 30 November 2020
MYA Clinics Ltd
Company information
Directors
Esta Rea
John Ryan
Secretary
Darren Bellwood
Company number
10788058
Registered office
1 Cardale Park
Beckwith Head Road
Harrogate
North Yorkshire
HG3 1RY
Independent auditor
Saffery Champness LLP
Mitre House
North Park Road
Harrogate
North Yorkshire
HG1 5RX
MYA Clinics Ltd
Contents
Page
Strategic report
1 - 4
Directors' report
5 - 6
Directors' responsibilities statement
7
Independent auditor's report
8 - 10
Income statement
11
Statement of comprehensive income
Statement of financial position
12 - 13
Statement of changes in equity
14
Statement of cash flows
15
Notes to the financial statements
16 - 32
MYA Clinics Ltd
Strategic report
For the year ended 30 November 2020
Page 1
The directors present the strategic report for the year ended 30 November 2020.
Fair review of the business
The directors are of the opinion that the trading performance for the year to 30 November 2020 represents a fair result for the business whilst continuing to make positive changes whilst operating within the business sector which continues to go through significant change whilst also adjusting to a COVID dominated world.
The business is focused on delivering happiness through healthcare. We support the World Health Organisation’s interpretation of good health and believe that cosmetic surgery is perfectly placed to live up to these objectives and to make a profound positive difference to the health and wellbeing of individuals. As mental health and general wellbeing is better understood so will be the important role that cosmetic surgery plays in society.
“Health is a state of complete physical, mental and social well-being and not merely the absence of disease or infirmity. The enjoyment of the highest attainable standard of health is one of the fundamental rights of every human being without distinction of race, religion, political belief, economic or social condition”.
MYA Clinics Ltd
Strategic report (continued)
For the year ended 30 November 2020
Page 2
Principal risks and uncertainties
Any plans made going into 2020 were materially affected by the COVID pandemic. This resulted in businesses having to cease certain operations and private healthcare was materially affected. For several months of 2020 operating capability was removed although patient care and contact was maintained.
Fortunately, during the financial period and ahead of the COVID pandemic, the business continued with streamlining the business to create a much more flexible and dynamic business. This was a plan to futureproof the business and make it fit for purpose in a digital age. The closure of our southern operating facility was to be the start of a journey of change within the business which continued thoughout the period. The level of changes made significantly moved the business model in a positive manner away from what has been seen as the norm within the private sector of cosmetic surgery for many years.
A key driver for this change was to address the losses incurred as the business has been operating with a fixed and disproportionate cost base. A fundamental shift and investment had to take place before operational changes could follow, the further development of e-consultations and centralisation of services needed to be effective before the old clinic administration centre model could be changed.
The changes made significantly rebase the cost structure, creating a robust and financially sound, flexible business that can adapt quickly to changes which may affect the market sector in either direction. Given the scale of change we first tried to get support through agreement but then needed the added protection of a restructuring support mechanism. After seeking advice, we reluctantly entered into a CVA in January 2020. Whilst this was not the desired route the CVA was passed with overwhelming support from our creditors.
With the unforeseen event for all of Covid-19 in the spring of 2020, which has had profound impact on the UK and world economies (which continues today), the business further accelerated digital change allowing a further modernistaion o the business model. As a result, the business returned to a sustainably profitable position during the second half of 2020.
The business is focused on being profitable as well as safe, effective, caring, responsive and well lead. The business continues to invest in technology, processes and people to ensure that high standards are maintained with one eye on future developments whilst also addressing an area of potential risk. It remains important to continue to invest in the clinical, compliance and operational arms of the business.
The business continues to manage this risk by embracing the change, participating in committees linked to the ongoing development as well as refining the business to be able to demonstrate objectively clinical excellence.
MYA Clinics Ltd
Strategic report (continued)
For the year ended 30 November 2020
Page 3
Key performance indicators
The business has undertaken a fundamental change in approach. Rather than focusing on continuing to grow turnover and keep adding clinics and hospitals to the portfolio the management focused on creating a more flexible and dynamic business with investment in technology and a reduction in more ‘traditional’ overheads. This change in approach required a review of the historic infrastructure and practices and time to implement significant operational changes to re-align them with the new strategy. This strategy offers greater futureproofing and growth opportunities once now the change has been implemented.
The business has a series of actions to continue to focus on:
-
Proportionate and flexible overheads.
-
Improved asset utilisation.
-
Improved volume.
-
Improved communication and experience.
-
Technology to be continuously developed and deployed to assist all of the above.
Other information and explanations
Future developments
The business will continue to improve in all core areas with key projects focusing on:
-
To create a brand with a distinct and positive identity.
-
To build flexible operating capacity.
-
To aggregate and offer centralised services with an enhanced technology experience.
-
To continue to ensure that patients are carefully assessed medically and to further engage with medical professionals and when appropriate divert patients to other treatment plans rather than surgery.
-
To further develop the medical team of surgeons and other healthcare professionals who specialise in cosmetic surgery and harness their passion to create the number one cosmetic surgery service in the UK.
-
Focus on objective measures of patient satisfaction and clinical outcomes to ensure that a consistently high standard is maintained.
-
To build a community of patients and to support their healthcare needs.
-
To modernise the patient experience through the continued implementation of technology.
-
To ensure that a long-term sustainable model is created with an appropriate price point to reflect a quality service.
MYA Clinics Ltd
Strategic report (continued)
For the year ended 30 November 2020
Page 4
Esta Rea
Director
29 November 2021
MYA Clinics Ltd
Directors' report
For the year ended 30 November 2020
Page 5
The directors present their annual report and financial statements for the year ended 30 November 2020.
Principal activities
The principal activity of the company is that
of cosmetic surgery services and related procedures.
In July 2018 the trade and assets of MYA Cosmetic Surgery Limited was transferred to this company.
Results and dividends
The results for the year are set out on page 11.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Esta Rea
John Ryan
Future developments
The business will continue to improve in all core areas with key projects focusing on:
-
To create a brand with a distinct and positive identity.
-
To build flexible operating capacity.
-
To aggregate and offer centralised services with an enhanced technology experience.
-
To continue to ensure that patients are carefully assessed medically and to further engage with medical professionals and when appropriate divert patients to other treatment plans rather than surgery.
-
To further develop the medical team of surgeons and other healthcare professionals who specialise in cosmetic surgery and harness their passion to create the number one cosmetic surgery service in the UK.
-
Focus on objective measures of patient satisfaction and clinical outcomes to ensure that a consistently high standard is maintained.
-
To build a community of patients and to support their healthcare needs.
-
To modernise the patient experience through the continued implementation of technology.
-
To ensure that a long-term sustainable model is created with an appropriate price point to reflect a quality service.
Auditor
Saffery Champness LLP have expressed their willingness to continue in office.
MYA Clinics Ltd
Directors' report (continued)
For the year ended 30 November 2020
Page 6
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 company’s
auditor
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 company’s
auditor
is aware of that information.
On behalf of the board
Esta Rea
Director
29 November 2021
MYA Clinics Ltd
Directors' responsibilities statement
For the year ended 30 November 2020
Page 7
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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
-
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.
MYA Clinics Ltd
Independent auditor's report
To the members of MYA Clinics Ltd
Page 8
Opinion
We have audited the financial statements of MYA Clinics Ltd (the 'company') for the year ended 30 November 2020 which comprise the income statement, the statement of financial position, the statement of changes in equity, the 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
S
tandard 102
,
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 30 November 2020 and of its loss 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
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.
Material uncertainty related to going concern
As disclosed in note 1.2 to these financial statements, the company is currently part of a Creditors Voluntary Arrangement and is dependent upon the support of its parent entity and ultimate shareholders for ongoing support, which represent material uncertainties in relation to going concern. Our audit report is not modified in respect of these matters.
MYA Clinics Ltd
Independent auditor's report (continued)
To the members of MYA Clinics Ltd
Page 9
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of
the
audit
:
-
the information given in the strategic report and the 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.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
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
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 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.
MYA Clinics Ltd
Independent auditor's report (continued)
To the members of MYA Clinics Ltd
Page 10
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
.
A further description of our responsibilities for the audit of the financial statements is located 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.
Martin Holden (Senior Statutory Auditor)
For and on behalf of Saffery Champness LLP
30 November 2021
Chartered Accountants
Statutory Auditors
Mitre House
North Park Road
Harrogate
North Yorkshire
HG1 5RX
MYA Clinics Ltd
Income statement
For the year ended 30 November 2020
Page 11
Year
Period
ended
ended
30 November
30 November
2020
2019
Notes
£
£
Turnover
3
10,123,754
29,846,986
Cost of sales
(5,803,546)
(15,059,136)
Gross profit
4,320,208
14,787,850
Administrative expenses
(6,800,015)
(16,625,171)
Other operating income
464,901
21,250
Restructuring costs
4
(508,787)
(4,244,707)
Exceptional item
4
161,000
-
Operating loss
5
(2,362,693)
(6,060,778)
Interest payable and similar expenses
8
(32,032)
(67,739)
Loss before taxation
(2,394,725)
(6,128,517)
Tax on loss
9
-
-
Loss for the financial year
(2,394,725)
(6,128,517)
The income statement has been prepared on the basis that all operations are continuing operations.
MYA Clinics Ltd
Statement of financial position
As at 30 November 2020
Page 12
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
10
270,822
454,831
Current assets
Stocks
12
67,714
54,188
Debtors
13
1,417,067
1,150,814
Cash at bank and in hand
425,533
560,277
1,910,314
1,765,279
Creditors: amounts falling due within one year
14
(10,654,378)
(8,348,627)
Net current liabilities
(8,744,064)
(6,583,348)
Total assets less current liabilities
(8,473,242)
(6,128,517)
Creditors: amounts falling due after more than one year
15
(50,000)
-
Net liabilities
(8,523,242)
(6,128,517)
Capital and reserves
Profit and loss reserves
(8,523,242)
(6,128,517)
MYA Clinics Ltd
Statement of financial position (continued)
As at 30 November 2020
Page 13
The financial statements were approved by the board of directors and authorised for issue on 29 November 2021 and are signed on its behalf by:
Esta Rea
Director
Company Registration No. 10788058
MYA Clinics Ltd
Statement of changes in equity
For the year ended 30 November 2020
Page 14
Profit and loss reserves
£
Balance at 1 June 2018
-
Period ended 30 November 2019:
Loss and total comprehensive income for the period
(6,128,517)
Balance at 30 November 2019
(6,128,517)
Year ended 30 November 2020:
Loss and total comprehensive income for the year
(2,394,725)
Balance at 30 November 2020
(8,523,242)
MYA Clinics Ltd
Statement of cash flows
For the year ended 30 November 2020
Page 15
2020
2019
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
23
(171,484)
2,015,283
Interest paid
(32,032)
(67,739)
Net cash (outflow)/inflow from operating activities
(203,516)
1,947,544
Investing activities
Purchase of tangible fixed assets
(82,851)
(1,395,928)
Proceeds on disposal of tangible fixed assets
108,841
159
Net cash generated from/(used in) investing activities
25,990
(1,395,769)
Financing activities
Cash inflows from new loans
50,000
-
Payment of finance leases obligations
(7,428)
8,502
Net cash generated from financing activities
42,572
8,502
Net (decrease)/increase in cash and cash equivalents
(134,954)
560,277
Cash and cash equivalents at beginning of year
560,277
-
Cash and cash equivalents at end of year
425,533
560,277
CASH FLOW OUT OF BALANCE BY:
(210)
-
MYA Clinics Ltd
Notes to the financial statements
For the year ended 30 November 2020
Page 16
1
Accounting policies
Company information
MYA Clinics Ltd is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
1 Cardale Park, Beckwith Head Road, Harrogate, North Yorkshire, HG3 1RY.
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 freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 400 of the
Companies Act 2006 not to prepare consolidated accounts. The
financial statements
present information about the company as an individual entity and not about its group
.
MYA Clinics Ltd is a wholly owned subsidiary of MYA Group Limited and the results of MYA Clinics Ltd are included in the consolidated financial statements of MYA Group Limited which are available from the registered office.
MYA Clinics Ltd
Notes to the financial statements (continued)
For the year ended 30 November 2020
1
Accounting policies (continued)
Page 17
1.2
Going concern
These financial statements are prepared on the going concern basis, notwithstanding the net liabilities of £8,523,031. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future. However, the directors are aware of certain material uncertainties which may cause doubt on the company's ability to continue as a going concern as set out below.
The company's profitability and ability to generate cash are dependent upon the number of procedures taking place and the level of forward bookings and resultant deposits. The company has been impacted by the Coronavirus pandemic and the ongoing operational impact of this continues to present an uncertainty in relation to cash generation.
The company entered into a Company Voluntary Arrangement (CVA) in January 2020, and as a result of this has negotiated a schedule of payments covering a number of period end balances, however certain creditors remain subject to final agreement. The agreed and estimated payments have been included within the company's cash flow forecasts and the going concern assumption continues to be dependent upon their ability to meet these requirements.
The company is financed by way of a loan from MYA Group Limited, which is included within creditors due within one year. MYA Group Limited is financed by way of loans from its shareholders, and confirmation of this ongoing shareholder support to the overall group has been obtained. The company's balance sheet also reflects a significant level of payments in advance from customers in relation to future procedures.
The above conditions indicate the existence of material uncertainties in relation to going concern and the financial statements do not reflect any adjustments arising as a result of the above uncertainties.
1.3
Turnover
Revenue is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The company provides cosmetic surgery procedures and turnover is recognised at the point the procedure is complete.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
MYA Clinics Ltd
Notes to the financial statements (continued)
For the year ended 30 November 2020
1
Accounting policies (continued)
Page 18
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Medical equipment
25% straight line
Fixtures and fittings and website
14% / 20% / 25% straight line
Office equipment
25% straight line
Motor vehicles
20% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.5
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
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.
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.
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to net realisable value.
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.
MYA Clinics Ltd
Notes to the financial statements (continued)
For the year ended 30 November 2020
1
Accounting policies (continued)
Page 19
1.7
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.
1.8
Financial instruments
The company 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 company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
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, 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 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.
MYA Clinics Ltd
Notes to the financial statements (continued)
For the year ended 30 November 2020
1
Accounting policies (continued)
Page 20
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 company
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 company after deducting all of its liabilities.
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. A
m
ounts 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
s
ubsequently 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 company’s contractual obligations
expire or are discharged or cancelled.
MYA Clinics Ltd
Notes to the financial statements (continued)
For the year ended 30 November 2020
1
Accounting policies (continued)
Page 21
1.9
Equity instruments
Equity instruments issued by the company 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 company.
1.10
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair
value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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
s
asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
MYA Clinics Ltd
Notes to the financial statements (continued)
For the year ended 30 November 2020
1
Accounting policies (continued)
Page 22
1.13
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.
1.14
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.
2
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
2020
2019
£
£
Turnover analysed by class of business
Cosmetic surgery services
10,123,755
29,846,986
Analysis per statutory database
10,123,755
29,846,986
Statutory database analysis does not agree to the trial balance by:
1
-
2020
2019
£
£
Other significant revenue
Grants received
462,401
-
MYA Clinics Ltd
Notes to the financial statements (continued)
For the year ended 30 November 2020
Page 23
4
Exceptional items
2020
2019
£
£
Expenditure
Restructuring costs
508,787
4,244,707
Credit of CVA
(161,000)
-
347,787
4,244,707
5
Operating loss
2020
2019
Operating loss for the year is stated after charging/(crediting):
£
£
Government grants
(462,401)
-
Fees payable to the company's auditor for the audit of the company's financial statements
75,040
23,000
Depreciation of owned tangible fixed assets
157,809
585,758
Depreciation of tangible fixed assets held under finance leases
-
7,167
Operating lease charges
668,376
1,502,531
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Directors
7
7
Nurses
30
67
Admin
105
123
Total
142
197
MYA Clinics Ltd
Notes to the financial statements (continued)
For the year ended 30 November 2020
6
Employees (continued)
Page 24
Their aggregate remuneration comprised:
2020
2019
£
£
Wages and salaries
3,592,996
8,113,633
Social security costs
323,177
813,319
Pension costs
137,774
153,593
4,053,947
9,080,545
7
Directors' remuneration
2020
2019
£
£
Remuneration for qualifying services
6,000
147,775
8
Interest payable and similar expenses
2020
2019
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
32,032
64,338
Other finance costs:
Interest on finance leases and hire purchase contracts
-
3,401
32,032
67,739
MYA Clinics Ltd
Notes to the financial statements (continued)
For the year ended 30 November 2020
Page 25
9
Taxation
The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2020
2019
£
£
Loss before taxation
(2,394,725)
(6,128,517)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2019: 19.00%)
(454,998)
(1,164,418)
Unutilised tax losses carried forward
454,958
1,164,418
Taxation credit for the year
(40)
-
Taxation charge in the financial statements
-
-
Reconciliation - the current year tax charge does not reconcile to the above analysis. Please review figures in the database.
(40)
-
MYA Clinics Ltd
Notes to the financial statements (continued)
For the year ended 30 November 2020
Page 26
10
Tangible fixed assets
Medical equipment
Fixtures and fittings and website
Office equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 December 2019
73,635
269,546
405,700
24,175
773,056
Additions
-
17,626
65,225
-
82,851
Disposals
(245,469)
(791,959)
(169,237)
-
(1,206,665)
At 30 November 2020
(171,834)
(504,787)
301,688
24,175
(350,758)
Depreciation and impairment
At 1 December 2019
11,132
117,137
182,790
7,166
318,225
Depreciation charged in the year
10,356
25,627
116,450
5,376
157,809
Eliminated in respect of disposals
(219,378)
(711,457)
(166,779)
-
(1,097,614)
At 30 November 2020
(197,890)
(568,693)
132,461
12,542
(621,580)
Carrying amount
At 30 November 2020
26,056
63,906
169,227
11,633
270,822
At 30 November 2019
62,503
152,409
222,910
17,009
454,831
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2020
2019
£
£
Motor vehicles
-
17,025
11
Subsidiaries
Details of the company's subsidiaries at 30 November 2020 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
shares held
% Held
Direct
Fitzroy Surgery Limited
England & Wales
Cosmetic Surgery Services
Ordinary
100
MYA Clinics Ltd
Notes to the financial statements (continued)
For the year ended 30 November 2020
11
Subsidiaries (continued)
Page 27
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Fitzroy Surgery Limited
(227,040)
The investments in subsidiaries are all stated at cost.
Consolidated financial statements for the group incorporating these subsidiaries have not been prepared on the grounds that the subsidiary in consolidated within the ultimate parent company MYA Group Limited.
12
Stocks
2020
2019
£
£
Raw materials and consumables
67,714
54,188
13
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
1,010,404
505,173
Other debtors
196,321
116,403
Prepayments and accrued income
210,342
529,238
1,417,067
1,150,814
MYA Clinics Ltd
Notes to the financial statements (continued)
For the year ended 30 November 2020
Page 28
14
Creditors: amounts falling due within one year
2020
2019
Notes
£
£
Obligations under finance leases
17
1,074
8,502
Trade creditors
1,976,325
1,462,930
Amounts owed to group undertakings
1,778,511
1,693,916
Taxation and social security
1,783,867
810,971
Other creditors
86,601
93,850
Accruals and deferred income
5,028,000
4,278,458
10,654,378
8,348,627
15
Creditors: amounts falling due after more than one year
2020
2019
Notes
£
£
Bank loans and overdrafts
16
50,000
-
16
Loans and overdrafts
2020
2019
£
£
Bank loans
50,000
-
Payable after one year
50,000
-
The long-term loans are secured by fixed charges over [XXX]
17
Finance lease obligations
2020
2019
Future minimum lease payments due under finance leases:
£
£
Within one year
1,074
8,502
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
MYA Clinics Ltd
Notes to the financial statements (continued)
For the year ended 30 November 2020
Page 29
18
Retirement benefit schemes
2020
2019
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
137,774
153,593
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
19
Financial commitments, guarantees and contingent liabilities
The directors are aware that HMRC maintain that VAT is due on certain sales that are considered purely cosmetic. They are not aware of the circumstances, the nature of these sales, or the procedures to which these may relate. The directors believe that all sales made by MYA Clinics Limited (Formerly MYA Cosmetic Surgery Limited) are in respect of procedures to treat medical disorders or to protect, maintain or restore health, and therefore all of their sales are exempt from VAT. The company continues to support HMRC with their enquiries which are themselves non conclusive and cannot be quantified.
20
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2020
2019
£
£
Within one year
336,692
336,692
Between two and five years
975,385
975,385
In over five years
354,329
691,021
1,666,406
2,003,098
MYA Clinics Ltd
Notes to the financial statements (continued)
For the year ended 30 November 2020
20
Operating lease commitments (continued)
Page 30
21
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2020
2019
£
£
Aggregate compensation
458,065
849,269
Transactions with related parties
MYA Clinics Ltd
Notes to the financial statements (continued)
For the year ended 30 November 2020
21
Related party transactions (continued)
Page 31
Included in the financial statements are the following material transactions and balances with related parties which require to be disclosed in accordance with the provisions of FRS102.
During the period, the company purchased services from Cardale Park Properties Limited amounting to £173,481 (2019 £206,942). At the balance sheet date £9,525 (2019 £37,649) was payable to Cardale Park Properties Limited. These amounts were incurred in the normal course of business and at arm’s length.
E Rea owns 100% of the share capital in 121 Finance Limited. All loan transactions were carried out at an arm’s length basis. At the balance sheet date 121 Finance Limited owed MYA Clinics Limited £143,501 (2019 £53,385).
The company owns 100% of the share capital in Fitzroy Surgery Limited. All transactions were carried out at an arm’s length basis. At the balance sheet date Fitzroy Surgery Limited owed MYA Clinics Limited £227,040 (2019 £227,040).
E Rea is a director of MYA Lingerie Ltd. All transactions have been carried out at an arm’s length basis. At the balance sheet date MYA Clinics Ltd owed MYA Lingerie Ltd £16,630 (2019 £12,014).
During the period the company paid salaries to related parties of the shareholders that do not carry out work on behalf of the company of £Nil (2019 £77,140).
22
Ultimate controlling party
The company's ultimate parent undertaking is MYA Group Limited.
MYA Clinics Ltd
Notes to the financial statements (continued)
For the year ended 30 November 2020
Page 32
23
Cash (absorbed by)/generated from operations
2020
2019
£
£
Loss for the year after tax
(2,394,725)
(6,128,517)
Adjustments for:
Finance costs
32,032
67,739
Depreciation and impairment of tangible fixed assets
157,809
940,938
Movements in working capital:
Increase in stocks
(13,526)
(54,188)
Increase in debtors
(266,253)
(1,150,814)
Increase in creditors
2,313,179
8,340,125
Cash (absorbed by)/generated from operations
(171,484)
2,015,283
24
Analysis of changes in net funds
1 December 2019
Cash flows
30 November 2020
£
£
£
Cash at bank and in hand
560,277
(134,744)
425,533
Borrowings excluding overdrafts
-
(50,000)
(50,000)
Obligations under finance leases
(8,502)
7,428
(1,074)
551,775
(177,316)
374,459
2020-11-30
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