REGISTERED NUMBER: 04304495 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
FOR |
CHARING CARE LIMITED |
REGISTERED NUMBER: 04304495 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
FOR |
CHARING CARE LIMITED |
CHARING CARE LIMITED (REGISTERED NUMBER: 04304495) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 4 |
Statement of Director's Responsibilities | 5 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Statement of Financial Position | 12 |
Company Statement of Financial Position | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Statement of Cash Flows | 16 |
Notes to the Consolidated Statement of Cash Flows | 17 |
Notes to the Consolidated Financial Statements | 18 |
CHARING CARE LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: | Nicholas Jeffrey Klein |
AUDITORS: |
Chartered Certified Accountants |
368 Forest Road |
London |
E17 5JF |
CHARING CARE LIMITED (REGISTERED NUMBER: 04304495) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
The director presents his strategic report of the Company and the Group for the year ended 31 December 2021. |
REVIEW OF BUSINESS |
The principal activity of the group during the year was to own and manage residential and nursing care homes for the elderly. The homes are principally located in Kent. At 31 December 2021, the Group operated 5 homes with 235 beds. |
The group operated in line with expectations. Consolidated sales, gross profit and profit before tax increased/ (decreased) by £(205,465), £146,223 and £208,216 respectively in 2021 reflecting the continued demand for the group's services. |
Both the level of business and the year end financial position were satisfactory and the director expects that the general level of activity will be sustained for the foreseeable future. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The group faces a number of risks and uncertainties and the director believes that the key business risks are summarised below. In view of these risks and uncertainties, the director is aware that the development of the group may be affected by factors outside their control. |
Competitive risks |
The senior living sector is a growing market and competition from both national and local care home providers is forever prevalent. If a competitor develops a home in the location of one of the group homes this may have an impact on occupancy and the potential revenue generation at that home. The director is confident that the positioning of the brand and offering, the quality of buildings, market leading care provision plus the demographics of the ageing population will protect future income streams for the group. |
Legislative risks |
The homes from which the group earns revenues are subject to licensing and inspection from the Care Quality Commission (CQC). The director recognises that as regulations continue to change and evolve this may have the potential to impact the revenue of the homes if an inspection leads to a negative report. However, the director is confident that the strength of the internal care governance procedures and quality of management put in place by the group will have a positive impact on overall CQC compliance over the long term such that the regulatory landscape will not have a material impact on the group's revenue. |
Financial risk management |
The group has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are largely conducted in sterling. The group does not enter into any formally designated hedging arrangements. |
The group continues to be financed from the sources shown within the financial statements including third party lenders and continues to be required to meet their ongoing lending requirements, in the normal way. The group does not use financial instruments to hedge against interest rate risks. |
Covid-19 |
The group policy in relation to Covid-19 and its potential risks to the business has been to carry out comprehensive risk assessments within its activities. It has actioned all measures considered necessary to safeguard the residents and staff. These measures are constantly reviewed within the group and, where it is felt appropriate, adapted accordingly. |
CHARING CARE LIMITED (REGISTERED NUMBER: 04304495) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
FUTURE DEVELOPMENTS |
The director anticipates the business environment will remain competitive and believes that the Group is in a good financial position and that the risks that have been identified are being well managed, including the ongoing risks associated with Covid-19. |
The Group continues to benefit from good levels of activity in the market. The focus of the business will be on maintaining and developing the existing homes. |
EMPLOYEE INVOLVEMENT |
The skill and support from its employees is extremely important to the Group. The director acknowledges the importance of good communications and employee relations and the Group devotes time and effort ensuring that all employees are well informed about those aspects of its business which may affect them. Employees are briefed on all matters relevant to their areas of operation and their views are sought and taken into account. The Group remains committed to employee involvement and equal opportunity. |
FINANCIAL KEY PERFORMANCE INDICATORS |
The Group's key financial and other performance indicators during the year were as follows: |
Unit | 2021 | 2020 |
Turnover | £ | 7,641,139 | 7,846,604 |
Gross profit margin | % | 38 | 35 |
Profit before tax | £ | 1,706,991 | 1,498,775 |
Other performance indicator such as occupancy rate is monitored closely by the Director. |
ON BEHALF OF THE BOARD: |
CHARING CARE LIMITED (REGISTERED NUMBER: 04304495) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
The director presents his report with the financial statements of the Company and the Group for the year ended 31 December 2021. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 December 2021 was £60,000. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTOR |
DISABLED EMPLOYEES |
Applications for employment by disabled persons are always fully considered, bearing in mind the abilities of the applicant concerned. In the event of members of staff becoming disabled every effort is made to ensure that their employment with the Group continues and that appropriate training is arranged. It is the policy of the Group and the Company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees. |
POST BALANCE SHEET EVENTS |
Covid-19 and its effects on the business represent a non-adjusting post balance sheet event. |
DISCLOSURE IN THE STRATEGIC REPORT |
The principal activity of the group, a business review, likely future developments, description of employee involvement policies, financial instruments and the principal risks and uncertainties facing the group have not been included in this report as they are disclosed in the strategic report. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the Group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the Group's auditors are aware of that information. |
AUDITORS |
The auditors, Klein Evangelou, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
CHARING CARE LIMITED (REGISTERED NUMBER: 04304495) |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period. In preparing these financial statements, the director is required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the Company's and the Group's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CHARING CARE LIMITED |
Opinion |
We have audited the financial statements of Charing Care Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2021 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the Group's and of the Parent Company affairs as at 31 December 2021 and of the Group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's and the Parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report, the Report of the Director and the Statement of Director's Responsibilities, but does not include the financial statements and our Report of the Auditors 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 themselves. 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CHARING CARE LIMITED |
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 Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Director 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 Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director. |
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 by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the Parent Company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page five, the director is 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 director determines 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 director is responsible for assessing the Group's and the Parent 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 director either intends to liquidate the Group or the Parent Company or to cease operations, or has no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CHARING CARE LIMITED |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Based on our understanding of the group and the care services sector, we identified that the principal risks of non-compliance with laws and regulations related to UK tax legislation, pensions legislation, employment and health and safety regulation, anti-bribery, corruption and fraud, regulation regarding professional responsibilities and, money laundering and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. |
We evaluated the directors’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to revenue recognition, and significant one-off or unusual transactions. |
Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to: |
- Discussing with the directors and management their policies and procedures regarding compliance with laws and regulations; |
- Communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance throughout our audit; and |
- Considering the risk of acts by the company which were contrary to the applicable laws and regulations, including fraud. |
Our audit procedures in relation to fraud included but were not limited to: |
- Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud; |
- Gaining an understanding of the internal controls established to mitigate risks related to fraud; |
- Discussing amongst the engagement team the risks of fraud; and |
- Addressing the risks of fraud through management override of controls by performing journal entry testing. |
The primary responsibility for the prevention and detection of irregularities including fraud rests with management. |
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
CHARING CARE LIMITED |
Use of our 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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Certified Accountants |
368 Forest Road |
London |
E17 5JF |
CHARING CARE LIMITED (REGISTERED NUMBER: 04304495) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
2021 | 2020 |
Notes | £ | £ |
TURNOVER | 3 | 7,641,139 | 7,846,604 |
Cost of sales | (4,761,949 | ) | (5,113,637 | ) |
GROSS PROFIT | 2,879,190 | 2,732,967 |
Administrative expenses | (1,478,002 | ) | (1,482,689 | ) |
1,401,188 | 1,250,278 |
Other operating income | 536,170 | 484,627 |
OPERATING PROFIT | 5 | 1,937,358 | 1,734,905 |
Interest receivable and similar income | 984 | 791 |
1,938,342 | 1,735,696 |
Interest payable and similar expenses | 7 | (231,351 | ) | (236,921 | ) |
PROFIT BEFORE TAXATION | 1,706,991 | 1,498,775 |
Tax on profit | 8 | (354,322 | ) | (335,889 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,352,669 | 1,162,886 |
CHARING CARE LIMITED (REGISTERED NUMBER: 04304495) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
2021 | 2020 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,352,669 | 1,162,886 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,352,669 |
1,162,886 |
Total comprehensive income attributable to: |
Owners of the parent | 1,352,669 | 1,162,886 |
CHARING CARE LIMITED (REGISTERED NUMBER: 04304495) |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2021 |
2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 | 5 | 77,338 |
Tangible assets | 12 | 7,350,456 | 7,514,199 |
Investments | 13 | - | - |
7,350,461 | 7,591,537 |
CURRENT ASSETS |
Debtors | 14 | 10,533,417 | 9,060,541 |
Cash at bank and in hand | 4,495,379 | 4,730,822 |
15,028,796 | 13,791,363 |
CREDITORS |
Amounts falling due within one year | 15 | 1,771,538 | 8,271,904 |
NET CURRENT ASSETS | 13,257,258 | 5,519,459 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
20,607,719 |
13,110,996 |
CREDITORS |
Amounts falling due after more than one year |
16 |
(7,534,486 |
) |
(1,348,601 |
) |
PROVISIONS FOR LIABILITIES | 20 | (191,651 | ) | (173,482 | ) |
NET ASSETS | 12,881,582 | 11,588,913 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 1,700 | 1,700 |
Retained earnings | 22 | 12,879,882 | 11,587,213 |
SHAREHOLDERS' FUNDS | 12,881,582 | 11,588,913 |
The financial statements were approved by the director and authorised for issue on 30 August 2022 and were signed by: |
C Osman - Director |
CHARING CARE LIMITED (REGISTERED NUMBER: 04304495) |
COMPANY STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2021 |
2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
Company's loss for the financial year | (19,890 | ) | (45,416 | ) |
The financial statements were approved by the director and authorised for issue on |
CHARING CARE LIMITED (REGISTERED NUMBER: 04304495) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2020 | 1,700 | 10,424,327 | 10,426,027 |
Changes in equity |
Total comprehensive income | - | 1,162,886 | 1,162,886 |
Balance at 31 December 2020 | 1,700 | 11,587,213 | 11,588,913 |
Changes in equity |
Dividends | - | (60,000 | ) | (60,000 | ) |
Total comprehensive income | - | 1,352,669 | 1,352,669 |
Balance at 31 December 2021 | 1,700 | 12,879,882 | 12,881,582 |
CHARING CARE LIMITED (REGISTERED NUMBER: 04304495) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2020 |
Changes in equity |
Total comprehensive loss | - | ( |
) | ( |
) |
Balance at 31 December 2020 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive loss | - | ( |
) | ( |
) |
Balance at 31 December 2021 |
CHARING CARE LIMITED (REGISTERED NUMBER: 04304495) |
CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
2021 | 2020 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,282,841 | 2,482,887 |
Interest paid | (231,351 | ) | (236,921 | ) |
Tax paid | (328,572 | ) | (309,065 | ) |
Net cash from operating activities | 1,722,918 | 1,936,901 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (104,867 | ) | (134,700 | ) |
Interest received | 984 | 791 |
Net cash from investing activities | (103,883 | ) | (133,909 | ) |
Cash flows from financing activities |
New loans in year | 192,028 | 420,000 |
Loans to connected undertakings | (1,575,000 | ) | (539,858 | ) |
Loan repayments in year | (411,506 | ) | (588,225 | ) |
Equity dividends paid | (60,000 | ) | - |
Net cash from financing activities | (1,854,478 | ) | (708,083 | ) |
(Decrease)/increase in cash and cash equivalents | (235,443 | ) | 1,094,909 |
Cash and cash equivalents at beginning of year |
2 |
4,730,822 |
3,635,913 |
Cash and cash equivalents at end of year | 2 | 4,495,379 | 4,730,822 |
CHARING CARE LIMITED (REGISTERED NUMBER: 04304495) |
NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
1. | RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS |
2021 | 2020 |
£ | £ |
Profit for the financial year | 1,352,669 | 1,162,886 |
Depreciation charges | 345,943 | 386,305 |
Finance costs | 231,351 | 236,921 |
Finance income | (984 | ) | (791 | ) |
Taxation | 354,322 | 335,889 |
2,283,301 | 2,121,210 |
Decrease in trade and other debtors | 102,124 | 130,921 |
(Decrease)/increase in trade and other creditors | (102,584 | ) | 230,756 |
Cash generated from operations | 2,282,841 | 2,482,887 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 December 2021 |
31.12.21 | 1.1.21 |
£ | £ |
Cash and cash equivalents | 4,495,379 | 4,730,822 |
Year ended 31 December 2020 |
31.12.20 | 1.1.20 |
£ | £ |
Cash and cash equivalents | 4,730,822 | 3,635,913 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.21 | Cash flow | At 31.12.21 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 4,730,822 | (235,443 | ) | 4,495,379 |
4,730,822 | (235,443 | ) | 4,495,379 |
Debt |
Debts falling due within 1 year | 1,589,921 | 7,980,363 | 9,570,284 |
Debts falling due after 1 year | (1,348,601 | ) | (6,185,885 | ) | (7,534,486 | ) |
241,320 | 1,794,478 | 2,035,798 |
Total | 4,972,142 | 1,559,035 | 6,531,177 |
CHARING CARE LIMITED (REGISTERED NUMBER: 04304495) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
1. | STATUTORY INFORMATION |
Charing Care Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
These financial statements consolidate the financial statements of Charing Care Limited and all of its subsidiary undertakings. |
A subsidiary is an entity controlled by the Group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. |
The results of subsidiaries acquired or disposed of during the year are included from or to the date that control passes. |
All intra-Group transactions, balances, income and expenses are eliminated on consolidation. |
Turnover |
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised. |
Care related services |
Turnover from a contract to provide care related services is recognised in the period in which services are provided on an accruals basis. Turnover recognised is dependent upon the type of care and funding that a resident receives. Any fees invoiced in advance are included within deferred income until the service is completed. |
Goodwill |
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows: |
Goodwill - Straight line over 10 years |
Intangible assets |
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. |
CHARING CARE LIMITED (REGISTERED NUMBER: 04304495) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold property | - |
Fixtures, fittings and equipment | - |
Financial instruments |
The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties. |
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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 statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
CHARING CARE LIMITED (REGISTERED NUMBER: 04304495) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the Group. |
An analysis of turnover by class of business is given below: |
2021 | 2020 |
£ | £ |
Rendering of services | 7,641,139 | 7,846,604 |
7,641,139 | 7,846,604 |
An analysis of turnover by geographical market is given below: |
2021 | 2020 |
£ | £ |
United Kingdom | 7,641,139 | 7,846,604 |
7,641,139 | 7,846,604 |
4. | EMPLOYEES AND DIRECTORS |
2021 | 2020 |
£ | £ |
Wages and salaries | 4,179,363 | 4,500,850 |
Social security costs | 233,308 | 232,762 |
Other pension costs | 57,290 | 59,816 |
4,469,961 | 4,793,428 |
The average number of employees during the year was as follows: |
2021 | 2020 |
Care Assistants | 251 | 281 |
Managers | 8 | 8 |
Administrative | 8 | 8 |
2021 | 2020 |
£ | £ |
Director's remuneration | - | 49,000 |
CHARING CARE LIMITED (REGISTERED NUMBER: 04304495) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
2021 | 2020 |
£ | £ |
Hire of plant and machinery | 642 | 2,114 |
Depreciation - owned assets | 268,610 | 270,306 |
Goodwill amortisation | 77,333 | 115,999 |
6. | AUDITORS' REMUNERATION |
2021 | 2020 |
£ | £ |
Fees payable to the Company’s auditor for the audit of the parent Company and the Group’s consolidated financial statements |
7,920 |
7,680 |
Fees payable to the Company’s auditor for other services: |
- Audit of the Company’s subsidiaries | 30,840 | 30,000 |
- All other non-audit services | 4,068 | 9,863 |
Total amount payable to the Company's auditor | 42,828 | 47,543 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2021 | 2020 |
£ | £ |
Bank loan interest | 227,832 | 236,921 |
Other interest | 3,519 | - |
231,351 | 236,921 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2021 | 2020 |
£ | £ |
Current tax: |
UK corporation tax | 336,153 | 313,073 |
Deferred tax | 18,169 | 22,816 |
Tax on profit | 354,322 | 335,889 |
CHARING CARE LIMITED (REGISTERED NUMBER: 04304495) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
8. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2021 | 2020 |
£ | £ |
Profit before tax | 1,706,991 | 1,498,775 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2020 - 19 %) |
324,328 |
284,767 |
Effects of: |
Expenses not deductible for tax purposes | 372 | 19,950 |
Income not taxable for tax purposes | (372 | ) | (9,878 | ) |
Depreciation in excess of capital allowances | 11,453 | 17,873 |
Deferred tax | 18,169 | 22,816 |
Unused tax losses | 372 | 361 |
Total tax charge | 354,322 | 335,889 |
Factors that may affect future tax charges |
The UK Government reduced the rate of UK corporation tax down to 20% with effect from 1 April 2015 and then down to 19% with effect from 1 April 2017 which has remained to date. |
On 3 March 2021 the Chancellor of the Exchequer announced that the corporation tax rate would increase to a maximum of 25% with effect from 1 April 2023. This was substantively enacted on 24 May 2021. This was not in force at the Balance Sheet date and so has not been reflected in the measurement of deferred tax balances at the period end. |
9. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
10. | DIVIDENDS |
2021 | 2020 |
£ | £ |
Interim | 60,000 | - |
CHARING CARE LIMITED (REGISTERED NUMBER: 04304495) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
11. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 January 2021 |
and 31 December 2021 | 580,001 |
AMORTISATION |
At 1 January 2021 | 502,663 |
Amortisation for year | 77,333 |
At 31 December 2021 | 579,996 |
NET BOOK VALUE |
At 31 December 2021 | 5 |
At 31 December 2020 | 77,338 |
12. | TANGIBLE FIXED ASSETS |
Group |
Fixtures, |
fittings |
Freehold | and |
property | equipment | Totals |
£ | £ | £ |
COST |
At 1 January 2021 | 8,471,793 | 2,013,446 | 10,485,239 |
Additions | - | 104,867 | 104,867 |
At 31 December 2021 | 8,471,793 | 2,118,313 | 10,590,106 |
DEPRECIATION |
At 1 January 2021 | 1,471,057 | 1,499,983 | 2,971,040 |
Charge for year | 157,905 | 110,705 | 268,610 |
At 31 December 2021 | 1,628,962 | 1,610,688 | 3,239,650 |
NET BOOK VALUE |
At 31 December 2021 | 6,842,831 | 507,625 | 7,350,456 |
At 31 December 2020 | 7,000,736 | 513,463 | 7,514,199 |
CHARING CARE LIMITED (REGISTERED NUMBER: 04304495) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
13. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2021 |
and 31 December 2021 |
NET BOOK VALUE |
At 31 December 2021 |
At 31 December 2020 |
The Group or the Company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiaries |
Registered office: 368 Forest Road, London, E17 5JF |
Nature of business: |
% |
Class of shares: | holding |
2021 | 2020 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Profit for the year |
Registered office: 368 Forest Road, London, E17 5JF |
Nature of business: |
% |
Class of shares: | holding |
2021 | 2020 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
CHARING CARE LIMITED (REGISTERED NUMBER: 04304495) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
13. | FIXED ASSET INVESTMENTS - continued |
Registered office: 368 Forest Road, London, E17 5JF |
Nature of business: |
% |
Class of shares: | holding |
2021 | 2020 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Profit/(loss) for the year | ( |
) |
Registered office: 368 Forest Road, London, E17 5JF |
Nature of business: |
% |
Class of shares: | holding |
2021 | 2020 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
(Loss)/profit for the year | ( |
) |
Registered office: 368 Forest Road, London, E17 5JF |
Nature of business: |
% |
Class of shares: | holding |
2021 | 2020 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Profit for the year |
Registered office: 368 Forest Road, London, E17 5JF |
Nature of business: |
% |
Class of shares: | holding |
2021 | 2020 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
CHARING CARE LIMITED (REGISTERED NUMBER: 04304495) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2021 | 2020 | 2021 | 2020 |
£ | £ | £ | £ |
Trade debtors | 179,907 | 297,050 |
Amounts owed by group undertakings | - | - |
Amounts owed by connected undertakings | 10,333,573 | 8,758,573 | 10,153,573 | 8,578,573 |
Prepayments | 19,937 | 4,918 |
10,533,417 | 9,060,541 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2021 | 2020 | 2021 | 2020 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 17) | 763,289 | 7,168,652 |
Trade creditors | 99,835 | 108,373 |
Tax | 195,687 | 188,106 |
Social security and other taxes | 78,974 | 86,289 |
Other creditors | 486,326 | 533,484 | - | - |
Accrued expenses | 75,106 | 71,314 |
Fees received in advance | 72,321 | 115,686 | - | - |
1,771,538 | 8,271,904 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2021 | 2020 |
£ | £ |
Bank loans (see note 17) | 7,534,486 | 1,348,601 |
CHARING CARE LIMITED (REGISTERED NUMBER: 04304495) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2021 | 2020 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 763,289 | 7,168,652 |
Amounts falling due between one and two | years: |
Bank loans | 793,956 | 200,918 |
Amounts falling due between two and five | years: |
Bank loans | 2,438,865 | 602,755 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans | 4,301,665 | 544,928 |
CHARING CARE LIMITED (REGISTERED NUMBER: 04304495) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
17. | LOANS - continued |
Loan 1: |
Charing Oast Limited - Coronavirus Business Interruption Loan Scheme (CBILS) loan of £183,334 (2020: £200,000) is repayable over the period until 2026. Repayments began 12 months after drawdown of the facility. |
The rate of interest payable on the debt is 1.95% per annum over the Bank Base Rate. |
Under the Coronavirus Business Interruption Loan Scheme, interest due during the first 12 months after drawdown of the facility was payable by the UK Government. |
Loan 2: |
Charing Vale Limited - Coronavirus Business Interruption Loan Scheme (CBILS) loan of £201,667 (2020: £220,000) is repayable over the period until 2026. Repayments began 12 months after drawdown of the facility. |
The rate of interest payable on the debt is 3.05% per annum over the Bank Base Rate. |
Under the Coronavirus Business Interruption Loan Scheme, interest due during the first 12 months after drawdown of the facility was payable by the UK Government. |
Loan 3: |
Charing Park Investments Limited - Coronavirus Business Interruption Loan Scheme (CBILS) loan of £230,000 is repayable over the period until 2027. Repayments will begin 12 months after drawdown of the facility. |
The rate of interest payable on the debt is 3.53% per annum over the Bank Base Rate. |
Under the Coronavirus Business Interruption Loan Scheme, interest due during the first 12 months after drawdown of the facility will be payable by the UK Government. |
CHARING CARE LIMITED (REGISTERED NUMBER: 04304495) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2021 | 2020 |
£ | £ |
Secured Debts | 7,682,773 | 8,097,253 |
Loan 1: |
Charing Gardens Limited has bank loans secured by way of a fixed charge over its freehold property and a fixed and floating charge over all assets of the company. |
The bank loans of £6,633,226 (2020: £7,009,735) are repayable over the period until 2026. The rate of interest payable on the debt is 2.85% per annum over the Bank Base Rate. |
Loan 2: |
Charing Park Investments Limited has bank loan secured by way of a fixed charge over its freehold property and a fixed and floating charge over all assets of the company. |
The bank loan of £1,049,547 (2020: £1,087,518) is repayable over the period until 2032. The rate of interest payable on the debt is 3.5% per annum over the Bank Base Rate. |
19. | FINANCIAL INSTRUMENTS |
Carrying amount of financial assets and liabilities: |
2021 | 2020 |
£ | £ |
Financial assets measured at amortised cost | 15,028,794 | 13,791,363 |
Financial liabilities measured at amortised cost | 8,545,035 | 8,625,627 |
Financial assets measured at amortised cost comprise of trade debtors, cash at bank and in hand, prepayments and amounts owed by connected undertakings. |
Financial liabilities measured at amortised cost comprise of trade creditors, bank loans and other loans. |
20. | PROVISIONS FOR LIABILITIES |
Group |
2021 | 2020 |
£ | £ |
Deferred tax | 191,651 | 173,482 |
CHARING CARE LIMITED (REGISTERED NUMBER: 04304495) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
20. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2021 | 173,482 |
Provided during year | 18,169 |
Balance at 31 December 2021 | 191,651 |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2021 | 2020 |
value: | £ | £ |
Ordinary | £1 | 1,700 | 1,700 |
22. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 January 2021 | 11,587,213 |
Profit for the year | 1,352,669 |
Dividends | (60,000 | ) |
At 31 December 2021 | 12,879,882 |
Company |
Retained |
earnings |
£ |
At 1 January 2021 |
Deficit for the year | ( |
) |
Dividends | ( |
) |
At 31 December 2021 |
23. | RELATED PARTY DISCLOSURES |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
CHARING CARE LIMITED (REGISTERED NUMBER: 04304495) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
23. | RELATED PARTY DISCLOSURES - continued |
Group |
During the year the group entered into the following transactions with related parties: |
2021 | 2020 |
£ | £ |
Amounts owed by Connected Undertakings | 10,333,573 | 8,758,573 |
2021 | 2020 |
£ | £ |
Management services charged to Connected Undertakings | 88,344 | 30,609 |
Contribution to Self Investment Personal Pension | 40,000 | - |
Charing Oast Limited (a group undertaking) contributed £20,000 each (2020: £Nil) for the directors of that company, S Osman and C E Osman to a self invested personal pension scheme. The annual contributions payable are charged to the profit and loss account. |
Company |
During the year the company entered into the following transactions with related parties: |
2021 | 2020 |
£ | £ |
Amounts owed by Group Undertakings | 1,070,000 | 1,070,000 |
Amounts owed by Connected Undertakings | 10,153,573 | 8,758,573 |
2021 | 2020 |
£ | £ |
Amounts written off amounts owed by Group Undertakings | 1,959 | 439 |
Amounts written off amounts owed to Group Undertakings | - | (20,722 | ) |
Related Party Relationship: |
Group Undertakings: |
Charing Oast Limited |
Charing Healthcare Limited |
Charing Wells Limited |
Connected Undertakings: |
Eleiko (UK) Limited |
CHC Assets Limited |
Charing Investments Limited |
Charing Hill Limited |
Charing Court Investments Limited |
CHARING CARE LIMITED (REGISTERED NUMBER: 04304495) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2021 |
23. | RELATED PARTY DISCLOSURES - continued |
Connected Undertakings |
A company having the same or predominantly the same shareholders and or Board of Directors but which neither is a parent, subsidiary, fellow subsidiary nor associated company. |
24. | POST BALANCE SHEET EVENTS |
COVID-19 and its effects on the business represent a non-adjusting post balance sheet event. |
25. | ULTIMATE CONTROLLING PARTY |
The controlling party is C Osman. |