Case Studies

Purpose Built Health and Medical Centre

 

Background

 

The directors of a large consortium of GP practices consortium had approached our office and were in need of arranging a bank loan for construction of a new health centre. We would also need to monitor the day to day running of the practice during and after the construction phase, prepare financial accounts and advise them on ways to cut costs and operate in a tax efficient manner.

 

How we helped

 

During the pre-construction phase, we prepared a detailed business plan for the practice and assisted our client in acquiring a loan in excess of £10 million in order to initiate construction of the health centre. We reviewed expenditure on a monthly basis during construction to ensure that the business was controlling costs. We were constantly in contact with directors if they required any further assistance from our office such as consultancy or accountancy matters.    

 

After construction, we were appointed accountants and auditors for the new company. We work with the financial controller throughout the year, providing ad-hoc advice. At the year-end we plan our audit timetable with the Financial Controller, and perform the audit as per statutory requirements in line with ICAEW guidelines. In some years, for added assurance we have also had third party firms review our working papers, receiving exemplary results

 

Outcome

 

With our assistance, the business was able to complete construction and has been fully operational in its day to day running. The Practice was able to expand its property size and has been able to obtain additional rental income from other GP practices along with a pharmacy at the premises.

 

The lenders and other third parties have been satisfied with our audited financial statements, All staff at the health centre and directors have been pleased with our flexible approach to preparing and auditing their financial accounts, with our re-appointment over the last 4 years, a testament to this fact.

 

120+ Bedroom Hotel Franchise

Background

A medium sized real estate company, with shareholders based overseas, was planning to develop and operate a four star franchised hotel in London. It needed to create a group structure which would bring tax benefits, arrange financing, and once operational monitor the operation of the hotel and perform year-end accounting functions.

How we helped

We gave advice which would eventually lead to the formation of a new company responsible for developing and then operating the hotel. We advised that as the shareholders were based abroad, it may be beneficial to have the hotel managed by one of the large international hotel chains. We also guided the Directors through the formation and eventual structure of the group and carried out a feasibility study to secure the necessary financing. During the development phase we made sure that all tax reliefs and allowances were claimed.

On a monthly basis we now provide financial reporting to the overseas shareholders and the lenders carrying out independent audits (non-statutory) on financial information provided by the hotel management. We also carry out internal audits on key processes on a rotational basis to provide assurance over risks and internal controls.

Outcome

At the year-end, we are responsible for consolidating the hotel's finances (from operational income / expenditure), with the company's other activities.

We were able to create a structure which is easy to manage and at the same time is tax efficient. The hotel is operational, being managed under the brand of a large chain, reducing the hassle that overseas shareholders would otherwise have. Our monthly financial reports and internal audit programme is valued by the owners who rely on these reports to be kept aware of the hotel's financial situation.