Company Registration No. 06131525 (England and Wales)
BARNDOC HEALTHCARE LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
BARNDOC HEALTHCARE LIMITED
COMPANY INFORMATION
Directors
A Uzoka
A Levett
J Peter
M J Kaltz
U Sarkar
M A Smeeth
Company number
06131525
Registered office
73 Cornhill
London
EC3V 3QQ
Accountants
Gerald Edelman LLP
73 Cornhill
London
EC3V 3QQ
Business address
Churchwood House
Cockfosters Road
Barnet
Hertfordshire
EN4 0DR
BARNDOC HEALTHCARE LIMITED
CONTENTS
Page
Directors' report
1 - 2
Accountants' report
3
Profit and loss account
4
Balance sheet
5
Statement of changes in equity
6
Notes to the financial statements
7 - 13
BARNDOC HEALTHCARE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2020
- 1 -
The directors present their annual report and financial statements for the year ended 31 March 2020.
Principal activities
The principal activity of the company during the year was the provision of GP led primary care services to a range of local NHS Primary Care Trust Commissioners.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
A Uzoka
A Levett
J Peter
M J Kaltz
U Sarkar
M A Smeeth
Statement of directors' responsibilities
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;
-
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.
Going concern
The accounts were originally prepared on a going concern basis as was appropriate to reflect the financial situation at year-end 31 March 2020. However, since then the company’s financial prospects have continued to deteriorate at an unaffordable rate. At an EGM held on 13
th
January 2021
shareholders approved a resolution to give notice on contracts as necessary on the understanding that this might lead in due course to a Members Voluntary Liquidation. Subsequently the company approached NHS commissioners for financial support to form part of a financial recovery package. Unfortunately commissioners were unwilling to fund a financial support package that would have enabled BHL to continue to trade and prevent further losses. Consequently, the BHL Board was left with no option but to give notice of termination on our existing contracts with a view to proceeding with an orderly, solvent winding-up. It is anticipated that the company will cease trading by no later than the end of 2021 and be subject to a Members Voluntary Liquidation shortly thereafter.
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
BARNDOC HEALTHCARE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 2 -
On behalf of the board
J Peter
Director
23 June 2021
BARNDOC HEALTHCARE LIMITED
ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF BARNDOC HEALTHCARE LIMITED FOR THE YEAR ENDED 31 MARCH 2020
- 3 -
In accordance with the engagement letter and in order to assist you to fulfil your duties under the Companies Act 2006, we have compiled the financial statements of Barndoc Healthcare Limited for the year ended 31 March 2020, set out on pages 3 to 4 from the accounting records and information and explanations you have given to us.
This report is made solely to the Board of Directors of Barndoc Healthcare Limited, as a body. Our work has been undertaken solely to prepare for your approval the financial statements of Barndoc Healthcare Limited
and state those matters that we have agreed to state to the Board of Directors of Barndoc Healthcare Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Barndoc Healthcare Limited and its Board of Directors as a body, for
our work or for this report.
It is your duty to ensure that Barndoc Healthcare Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets,
liabilities, financial position and loss
of Barndoc Healthcare Limited. You consider that Barndoc Healthcare 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 financial statements of Barndoc Healthcare 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 financial statements.
Gerald Edelman LLP
23 June 2021
Accountants
73 Cornhill
London
EC3V 3QQ
BARNDOC HEALTHCARE LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2020
- 4 -
2020
2019
£
£
Turnover
6,405,550
5,782,110
Administrative expenses
(6,891,525)
(6,025,940)
Other operating income
41,858
10,452
Operating loss
(444,117)
(233,378)
Interest receivable and similar income
3,798
4,549
Loss before taxation
(440,319)
(228,829)
Taxation
Loss for the financial year
(440,319)
(228,829)
BARNDOC HEALTHCARE LIMITED
BALANCE SHEET
AS AT
31 MARCH 2020
31 March 2020
- 5 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
3
110,983
Current assets
Stocks
14,798
17,867
Debtors
4
1,147,132
752,522
Assets for sale
71,090
Cash at bank and in hand
673,614
1,209,288
1,906,634
1,979,677
Creditors: amounts falling due within one year
5
(927,277)
(671,024)
Net current assets
979,357
1,308,653
Net assets
979,357
1,419,636
Capital and reserves
Called up share capital
6
1,050
1,010
Profit and loss reserves
978,307
1,418,626
Total equity
979,357
1,419,636
For the financial year ended 31 March 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 23 June 2021 and are signed on its behalf by:
J Peter
Director
Company Registration No. 06131525
BARNDOC HEALTHCARE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2020
- 6 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2018
1,010
1,647,455
1,648,465
Year ended 31 March 2019:
Loss and total comprehensive income for the year
-
(228,829)
(228,829)
Balance at 31 March 2019
1,010
1,418,626
1,419,636
Year ended 31 March 2020:
Loss and total comprehensive income for the year
-
(440,319)
(440,319)
Other movements
40
-
40
Balance at 31 March 2020
1,050
978,307
979,357
BARNDOC HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
- 7 -
1
Accounting policies
Company information
Barndoc Healthcare Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
73 Cornhill, London, EC3V 3QQ.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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. The principal accounting policies adopted are set out below.
1.2
Going concern
The accounts were originally prepared on a going concern basis as was appropriate to reflect the financial situation at year-end 31 March 2020. However, since then the company’s financial prospects have continued to deteriorate at an unaffordable rate. At an EGM held on 13
true
th
January 2021
shareholders approved a resolution to give notice on contracts as necessary on the understanding that this might lead in due course to a Members Voluntary Liquidation. Subsequently the company approached NHS commissioners for financial support to form part of a financial recovery package. Unfortunately commissioners were unwilling to fund a financial support package that would have enabled BHL to continue to trade and prevent further losses. Consequently, the BHL Board was left with no option but to give notice of termination on our existing contracts with a view to proceeding with an orderly, solvent winding-up. It is anticipated that the company will cease trading by no later than the end of 2021 and be subject to a Members Voluntary Liquidation shortly thereafter.
1.3
Turnover
Turnover represents the amounts receivable for the provision of GP led health services to local NHS commissioners. Income in respect of GP out of hours services is accounted
for
on fixed and variable elements as
per
contract. Income in respect of other services is accounted for on a current month basis reflecting actual activity levels in accordance with contract terms and conditions.
Revenue is recognised when services are provided and billed for.
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.
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:
Short leasehold improvements
Over duration of the lease
Plant and machinery
20% - Straight line
Fixtures, fittings & equipment
20% - Straight line
Computer equipment
20% - Straight line
BARNDOC HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
1
Accounting policies
(Continued)
- 8 -
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
.
In order to revalue the company on a break-up basis as set out in Note 1.2 of the Financial Statements – ‘Going Concern’, the company directors have written down those assets classified as fixed in previous Financial Statements to their best estimate of realisable market value. Consequently, these assets have been reclassified as current assets and no assets within the Financial Statements are now classified as fixed.
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.
As set out in Note 1.4 of the Financial Statements – ‘Tangible Fixed Assets’, all assets previously classified as fixed assets have been reclassified as current assets and revalued to reflect realisable market value as part of the restatement of the Financial Statements on a break-up basis.
1.6
Stocks
Stock comprises of medicine held for treatment of patients. Stocks
are stated at the lower of cost and
estimated selling price
.
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.
BARNDOC HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
1
Accounting policies
(Continued)
- 9 -
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 balance sheet 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 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 rate of interest.
Financial assets classified as receivable within one year are not amortised.
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 and bank loans
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 receipts 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.
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
BARNDOC HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
1
Accounting policies
(Continued)
- 10 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense
.
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.
1.12
Retirement benefits
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
1.13
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.14
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.
BARNDOC HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 11 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
109
113
3
Tangible fixed assets
Short leasehold improvements
Plant and machinery etc
Total
£
£
£
Cost
At 1 April 2019
461,788
478,519
940,307
Additions
63,303
63,303
Write-down
(55,873)
(13,893)
(69,766)
Transfers
(527,929)
(527,929)
At 31 March 2020
405,915
405,915
Depreciation and impairment
At 1 April 2019
387,291
442,033
829,324
Depreciation charged in the year
18,624
14,807
33,431
Transfers
(456,840)
(456,840)
At 31 March 2020
405,915
405,915
Carrying amount
At 31 March 2020
At 31 March 2019
74,497
36,486
110,983
4
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
487,096
102,949
Other debtors
660,036
646,218
1,147,132
749,167
BARNDOC HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
4
Debtors
(Continued)
- 12 -
2020
2019
Amounts falling due after more than one year:
£
£
Deferred tax asset
3,355
Total debtors
1,147,132
752,522
5
Creditors: amounts falling due within one year
2020
2019
£
£
Trade creditors
283,365
194,065
Corporation tax
78
78
Other taxation and social security
57,274
47,538
Other creditors
586,560
429,343
927,277
671,024
6
Called up share capital
2020
2019
2020
2019
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary 'A' voting shares of 10p each
10,500
10,100
1,050
1,010
7
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2020
2019
£
£
178,750
107,821
8
Related party transactions
Included in consultancy fees are amounts of £50,000 (2019: £62,500) paid to Lincoln Road Medical Practice, a practice in which Dr. U Sarkar is a partner. The amounts were paid in respect of director services provided by Dr. U Sarkar.
Included in administrative expenses is an amount of £6,750 (2019: £348) paid to Phoenix Practice, a practice in which Dr. A Uzoka is a partner.
BARNDOC HEALTHCARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
- 13 -
9
Controlling party
There is no ultimate controlling party.
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