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REGISTERED NUMBER: 07703591 (England and Wales)















UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021

FOR

SPRINGCARE (KNUTSFORD) LIMITED

SPRINGCARE (KNUTSFORD) LIMITED (REGISTERED NUMBER: 07703591)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021










Page

Statement of Financial Position 1 to 2

Notes to the Financial Statements 3 to 9


SPRINGCARE (KNUTSFORD) LIMITED (REGISTERED NUMBER: 07703591)

STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2021

31.12.21 31.12.20
Notes £    £   
FIXED ASSETS
Tangible assets 4 5,653,313 2,813,250
Investments 5 100 100
5,653,413 2,813,350

CURRENT ASSETS
Stocks 1,286 1,149
Debtors 6 958,035 1,633,424
Cash at bank and in hand 197,430 15,696
1,156,751 1,650,269
CREDITORS
Amounts falling due within one year 7 (5,006,890 ) (5,097,483 )
NET CURRENT LIABILITIES (3,850,139 ) (3,447,214 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,803,274

(633,864

)

CAPITAL AND RESERVES
Called up share capital 100 100
Non-distributable reserve 2,660,409 -
Retained earnings (857,235 ) (633,964 )
1,803,274 (633,864 )

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2021.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2021 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for:
(a)ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

SPRINGCARE (KNUTSFORD) LIMITED (REGISTERED NUMBER: 07703591)

STATEMENT OF FINANCIAL POSITION - continued
31 DECEMBER 2021


The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 8 September 2022 and were signed by:





L D Cox - Director


SPRINGCARE (KNUTSFORD) LIMITED (REGISTERED NUMBER: 07703591)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021


1. STATUTORY INFORMATION

SPRINGCARE (KNUTSFORD) LIMITED is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address are as below:

Registered number: 07703591

Registered office: Nicholson House
Shakespeare Way
Whitchurch
SY13 1LJ

The principal activity of the company is that of the provision of residential and care services for the elderly.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Significant judgements and estimates
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Judgements

The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows:

The tangible fixed assets are regularly revalued based on independent valuations which adopt value in use as the valuation basis. Value in use is determined by considering various factors such as EBITDA, occupancy levels and trading potential. As the valuations are performed at a particular point in time, they may be subject to fluctuation depending on current trading conditions. Due to this, the director regularly reviews the value in use to ensure that it is still appropriate.

Key sources of estimation uncertainty

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:

As described in the accounting policies of the financial statements, depreciation of tangible fixed assets has been based on estimated useful lives and residual values deemed appropriate by the directors. Estimated useful lives and residual values are reviewed annually and revised as appropriate. Revisions take in to account actual asset lives and residual values as evidenced by disposals during current and prior accounting periods.

SPRINGCARE (KNUTSFORD) LIMITED (REGISTERED NUMBER: 07703591)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


2. ACCOUNTING POLICIES - continued

Going concern
The company is a connected company of the Springcare Limited Group because they are both under common control of the director Mr L D Cox and his close family.

The Springcare Group has been affected by the Covid-19 pandemic, as it has the whole care sector. Sadly, despite our best efforts, a sharp increase in the loss on resident numbers was seen in April 2020 in our homes as the first wave of the virus spread across the country.

Since then we have seen smaller waves of Covid-19 but significantly smaller than the one in April 2020. We have seen a significant reduction in Covid-19 infections amongst residents and staff and business is returning to some form of normality due to the success of the vaccination programme.

Occupancy levels for the Springcare Limited group are increasing steadily which encourages us to believe that our forecasts are achievable.

The company therefore continues to adopt the going concern basis in preparing the financial statements.

Revenue recognition
The company provides residential and care services to the elderly. The turnover shown in the profit and loss account represents the fees due for the services provided during the year.

Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings - 25% straight line

Depreciation on land and buildings is not provided, as any uncharged depreciation for the year and the accumulated uncharged depreciation would be immaterial in aggregate, as a result of the estimated high residual value of the properties.

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Tangible fixed assets are valued on a value in use basis as a fully operational entity including fixtures and fittings, tools and equipment held by the company and having regard to its trading potential. Due to the specialist nature of the valuations, no deferred tax has been provided on the increase in value.

SPRINGCARE (KNUTSFORD) LIMITED (REGISTERED NUMBER: 07703591)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


2. ACCOUNTING POLICIES - continued

Government grants
Due to the Covid-19 pandemic, the company has claimed government backed grants. Grants are recognised as other income when received.

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.

Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Debt instruments are subsequently measured at amortised cost.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.

Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability.

Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the 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.


SPRINGCARE (KNUTSFORD) LIMITED (REGISTERED NUMBER: 07703591)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


2. ACCOUNTING POLICIES - continued
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.

Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

Employee benefits
The company provides a range of benefits to employees.

Short term benefits, including holiday pay, are recognised as an expenses in the profit and loss account in the period in which they are incurred

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 34 (2020 - 33 ) .

SPRINGCARE (KNUTSFORD) LIMITED (REGISTERED NUMBER: 07703591)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


4. TANGIBLE FIXED ASSETS
Fixtures
Freehold and
property fittings Totals
£    £    £   
COST OR VALUATION
At 1 January 2021 2,791,732 686,897 3,478,629
Additions 103,037 97,119 200,156
Disposals - (12,468 ) (12,468 )
Revaluations 2,660,409 - 2,660,409
At 31 December 2021 5,555,178 771,548 6,326,726
DEPRECIATION
At 1 January 2021 - 665,379 665,379
Charge for year - 20,502 20,502
Eliminated on disposal - (12,468 ) (12,468 )
At 31 December 2021 - 673,413 673,413
NET BOOK VALUE
At 31 December 2021 5,555,178 98,135 5,653,313
At 31 December 2020 2,791,732 21,518 2,813,250

Cost or valuation at 31 December 2021 is represented by:

Fixtures
Freehold and
property fittings Totals
£    £    £   
Valuation in 2021 2,660,409 - 2,660,409
Cost 2,894,769 771,548 3,666,317
5,555,178 771,548 6,326,726

If had not been revalued would have been included at the following historical cost:

31.12.21 31.12.20
£    £   
Cost 3,666,317 3,478,629
Aggregate depreciation 673,413 665,379

The business was valued at £4,730,000 in November 2021 by Colliers International as a fully equipped operational entity, including fixtures, fittings, tools and equipment held by the company at the valuation date and having regard to its trading potential.

Also included in freehold property is a property currently under construction, this is held at cost of £923,313.

SPRINGCARE (KNUTSFORD) LIMITED (REGISTERED NUMBER: 07703591)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


5. FIXED ASSET INVESTMENTS
Shares in
group
undertaking
£   
COST
At 1 January 2021
and 31 December 2021 100
NET BOOK VALUE
At 31 December 2021 100
At 31 December 2020 100

6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.21 31.12.20
£    £   
Trade debtors 120,514 110,806
Other debtors 340,432 1,372,667
Amounts due from connected
companies 294,348 42,759
Deferred tax asset 200,717 102,345
Prepayments and accrued income 2,024 4,847
958,035 1,633,424

Amounts owed from connected companies are unsecured, interest free and are repayable on demand.

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.21 31.12.20
£    £   
Trade creditors 105,168 36,365
Amounts owed to group undertakings 4,202 -
Social security and other taxes 9,892 12,853
Other creditors 4,706 -
Amounts owed to connected
companies 4,783,615 4,935,579
Accruals and deferred income 99,307 112,686
5,006,890 5,097,483

Amounts owed to group and connected companies are unsecured, interest free and are repayable on demand.

8. CAPITAL COMMITMENTS
31.12.21 31.12.20
£    £   
Contracted but not provided for in the
financial statements 52,831 -

9. OTHER FINANCIAL COMMITMENTS

The amount of other commitments, guarantees and contingencies is £17,560 (2020: £25,249).

SPRINGCARE (KNUTSFORD) LIMITED (REGISTERED NUMBER: 07703591)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2021


10. EVENTS AFTER THE END OF THE REPORTING PERIOD

There were no other significant events up to the date of approval of the financial statements by the Board.

11. GOING CONCERN

The company is a connected company of the Springcare Limited Group because they are both under common control of the director Mr L D Cox and his close family.

The Springcare Group has been affected by the Covid-19 pandemic, as it has the whole care sector. Sadly, despite our best efforts, a sharp increase in the loss on resident numbers was seen in April 2020 in our homes as the first wave of the virus spread across the country.

Since then we have seen smaller waves of Covid-19 but significantly smaller than the one in April 2020. We have seen a significant reduction in Covid-19 infections amongst residents and staff and business is returning to some form of normality due to the success of the vaccination programme.

Occupancy levels for the Springcare Limited group are increasing steadily which encourages us to believe that our forecasts are achievable.

The company therefore continues to adopt the going concern basis in preparing the financial statements.