Company registration number 08294946 (England and Wales)
JOHNSON CARE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
JOHNSON CARE LIMITED
COMPANY INFORMATION
Directors
Dr D S Vive-Kananda
Mr S J M Vive-Kananda
Secretary
N E Vive-Kananda
Company number
08294946
Registered office
57-59 Avenue Road
Westcliff-on-Sea
Essex
England
SS0 7PJ
Auditor
Francis James & Partners LLP
1386 London Road
Leigh on Sea
Essex
England
SS9 2UJ
JOHNSON CARE LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 6
Directors' responsibilities statement
7
Independent auditor's report
8 - 11
Profit and loss account
12
Group statement of comprehensive income
13
Group balance sheet
14
Company balance sheet
15
Group statement of changes in equity
16
Company statement of changes in equity
17
Group statement of cash flows
Company statement of cash flows
Notes to the financial statements
18 - 34
JOHNSON CARE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -

The directors present the strategic report for the year ended 31 December 2022.

Review of the business

The group, in common with many operators in the residential care sector has had another challenging years, with the on-going effects of the Covid-19 pandemic. The groups infection control procedures have continued to be effectively, ensuring that any outbreaks have been contained a far as possible.

 

In regards to Leicestershire County Care Limited:

The directors are pleased to report that the company has shown a steady improvement in its performance over the year under review. The remnants of the Covid-19 pandemic still effect many operators within the care home industry, with reduced occupancy and increased expenditure on personal protection equipment, increased utility costs and a shortage of suitable qualified staff. During the year the turnover has grown as the occupancy started to return towards its pre-pandemic levels.

Throughout the year the Directors and staff have continued to maintain the important relationship between the company and the Local Councils, Regulatory Authorities, residents and their families and the company's staff. These relationships remain important to the company. It was these relationships that helped to keep the homes as safe as possible during the Covid-19 pandemic.

The after effects of the pandemic continue to effect the company and the rest of the care industry. As always where the company has identified any problems it has ensured these were dealt with quickly and as soon as practical. The quality of care remains the driving force of the company.

The director's are please to report that the increases in occupancy during the year have been maintained and improved upon since the year end.

The director's have also continued to work with the Trustees of the Defined Benefit Pension Scheme which was established for the employees who joined the company directly from the local authorities, from which the care homes were originally purchased. Whilst the process of updating the pension scheme fully up to date, the director's have made the appropriate disclosures based upon their best estimates of the financial position of the pension fund. The recent reports received from the Schemes Actuary indicate that the funded percentage has increased significantly due to the increase in values of Gilts. They are currently waiting for the full results of the latest tri-annual review to include within the financial statements.

 

With regards to Essex County Care Limited;

The directors are pleased to report that the care home it operates in the South of Essex has continued with its good reputation and standing within the local community. The directors have been considering the development of a new state of the art residential care home on the site. However after carrying out various reviews and studies and looking at the overall impact such a development would have on the residents and the staff, it has been decided that the construction of a low impact extension would be more appropriate. The directors are in the process of formulating plans to discuss with the local authority to provide a much needed facility in the area. With regard to the moth-balled care homes in the North of Essex, at present the directors are continuing their review of the potential uses of the closed sites and are working with various bodies to bring them back into economic use. One of the homes continues to be let to an independent operator for specialist rehabilitation purposes.

 

In respect of the other subsidiaries;

The group has also previously purchased a freehold public house which includes a large freehold plot. MohanJane Limited was formed in order to operate the public house whilst the options concerning the freehold development are reviewed. In March 2020 the operation at the public house were required to close as part of the governments first lockdown. Due to problems with arranging the layout of the building for social distancing and changes in the market, it has been decided not to reopen the public house. The directors are considering alternative options for the property. Further details can be found within the individual company financial statements.

 

Full details of this are provided in the individual accounts for the subsidiaries.

JOHNSON CARE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
Principal risks and uncertainties

The directors have reviewed the risks and uncertainties which may effect the groups future performance. The group is dependent upon continuing to maintain its occupancy levels, in order to maintain the company's profitability. The directors and their staff are continuing to monitor the standard of care provided to ensure that it not only meets the standards required by any Regulatory Authority, but also exceeds the expectations of the residents. Where any problems with regard to the standard of care are discovered, these are dealt with promptly and all measures, especially further staff training, put in place. This factor is the main influence behind maintaining the necessary occupancy levels.

 

The group has also continued its policy of ensuring any factors such as the recent Coronavirus outbreak are taken into consideration and the appropriate precautions are taken. Staff have been fully trained in the necessary procedures for infection control for the safety of the residents, the staff and any other professionals who work within the care homes.

Key performance indicators

The Key Performance Indicators for the group are its bed occupancy rate and the proportion of the turnover spent on wages and agency costs. The directors monitor both of these indicators on an ongoing basis.

 

Like many businesses on the care sector these Indicators have been put under considerable strain during the Covid-19 pandemic.

 

The bed occupancy rate is considered important as it indicates how full the care homes are, and therefore how efficiently the resources available to the home are being used. During the period under review the occupancy level of the company has gradually increased. The whole care sector suffered a considerable fall in demand for new placements during the pandemic as the families of potential residents were concerned about placing their relatives in any care home, due to the media reports about outbreaks of Covid-19 within the care home sector. These concerns are continuing to subside and enquiries are gradually returning to pre pandemic levels.

 

Whilst the directors are pleased to report that the infection control measures put in place, prevented any major outbreak of Covid-19, the fear of an outbreak curtailed the usual demand for placements of new residents.

 

The turnover to wages percentage is important as it indicates that each care home is working efficiently, whilst still ensuring the quality of care given to the residents is kept to a high standard, as expected by the directors. Previously the results of this had been distorted by the takeover of some of the homes from Leicestershire County Council and Leicester City Council. As part of the takeover the staff employed by the homes at that time were transferred under the Transfer of Undertakings Protection of Employment (TUPE) legislation. Hence it will take some time for the wages and other employment costs of these employees to settle into the terms normally associated with the private sector. The directors are pleased to report that the high staff retention of staff who joined under TUPE has been maintained.

 

The turnover to wages percentage has also been distorted during the current year by the additional pressures placed by Covid-19. This has been caused by a combination of, staff needing to self-isolate, additional staffing requirements due to infection control and social distancing measures, and a reduction in fees received, which could not be mirrored by a reduction in staff, without it effecting residents care.

 

The directors are satisfied that given the current pandemic and its associated costs, the turnover to wages percentage was reasonable during the year under review. As the measures to control the pandemic take effect the directors expect the turnover to wages percentage to gradually return to its usual levels.

 

Other information and explanations

During the past years the group faced the need to purchase considerable extra Personal Protection Equipment PPE, for use by its staff. The worldwide shortage of PPE and difficulties in the UK based supply-chain, have now eased. However the costs of PPE have not reduced as much as expected. As well as this, the PPE volume requirements in order to protect the residents and staff of the homes also increased significantly.

 

The group has received assistance in the form of government grants towards these additional costs, but there has still been a considerable increase in the net cost to the company, compared to pre pandemic costs.

 

The group has received assistance in the form of government grants towards these additional costs, but the has still been a considerable increase in the net cost to the company.

JOHNSON CARE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
Section 172(1) Statment
The likely consequences of any decisions in the long term

The group and its directors continually review its short and long term plans together with any financial covenants it needs to take into consideration. Before any final decisions are made in respect of investment in the care homes currently operated by the group, or any proposed new care home, a further review is carried out to ensure that the investment is viable and will not adversely effect any other part of the group.

The need to foster the groups realtionships with residents, residends families, suppliers, the local community and the environment

The group continues to strive to put "care" as the focus of its operations. The care of its residents, from both a Regulatory and a reputational aspect, is central to all decisions made by the directors. It is of upmost importance to the directors that the residents and their families are confident that they are receiving the appropriate and compassionate care.

 

The directors also ensure that all supplier contracts are properly procured and managed. This has been particularly important during the recent period of inflationary pressure on all supplies, especially the company's energy use.

 

The directors appreciate that they provide an important role within the local communities that each home serves. They use their best endeavors to provide their staff, their residents and the residents families, together with the local communities around the homes, with a positive experience of the homes. The Covid 19 pandemic has made this task more difficult, but the directors continue to review these goals.

 

The group has taken this opportunity to review its energy efficiency policies and procedures. These reviews have taken place for both financial reasons, as the cost of energy through the year and after the year end have continued to rise. And to ensure that the groups operations cause as little impact on the environment, both locally and globally, as possible.

The interests of the groups employees

The directors appreciate that the groups greatest asset is its staff. The staff in the homes have worked tirelessly through the pandemic to ensure the best possible levels of care for the residents. The staff's wellbeing is therefore of great importance to the directors.

 

In this regard the directors are trying to ensure that they liaise with the staff and take on board the staff's feedback in respect of the care homes and the local communities they serve.

 

Likewise the directors have been trying to ensure that all staff are treated equally in terms their pay and benefits. In this respect the directors have been working with the staff to ensure there are uniform staff contracts and terms of employment across the company.

The desirability of the group to maintain a reputation for high standards of business conduct and to act fairly between members of the company

The directors appreciate the need to ensure a high standard of business conduct. This has a direct impact on the reputation of the group and a failure to follow a high standard could effect the reputation of the group and its future growth and sustainability.

 

When making decisions the directors are always mindful of any potential reputational risk, and try to ensure this is minimalised.

 

The group is wholly owned by the Vive-Kananda family and all decisions are made on a family basis

On behalf of the board

Dr D S Vive-Kananda
Director
30 September 2023
JOHNSON CARE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 4 -

The directors present their annual report and financial statements for the year ended 31 December 2022.

Principal activities

The principal activity of the company and group continued to be that of a holding company for two companies which provide residential care home and day care centres, a company which owns various ancillary properties on behalf of the group, and a company which operates a public house. As part of the governments first lockdown in March 2020 the public house was closed and has remained closed as the directors concentrated on the core business.

Results and dividends

The results for the year are set out on page 12.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

 

The group maintains its position of not paying dividends, but retaining its profits for future development and growth.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Dr D S Vive-Kananda
Mr S J M Vive-Kananda
Financial instruments

The group has maintained its traditional approach to financing its activities using only bank borrowings when necessary. During the year the company refinanced its operation with a new lender. The new facilities are on an interest only basis, fixed for 5 years. The directors are constantly reviewing the facility and similar products in the market, to ensure it remains the most suitable product for the the group.

 

The group will continue to maintain its low risk approach to funding its asset purchases and working capital requirements. It will use traditional bank finance wherever possible. The group will also continue in its policy of reinvesting surplus funds in its care homes.

Business relationships

The group agrees terms with all of its suppliers and endeavour to keep within these terms. If a problem arise with a supplier then the group makes every effort to resolve these problems mutually and amicably.

 

Its close working relationship with its suppliers has enabled a continuity of supply during the current difficulties.

 

The group has a strong working relationship with its customers, whether these are the local authorities who place residents, or the residents and their families. The local management of each home is responsible for liaising with the residents and families to ensure that any specific needs can be accommodated as far as possible.

 

This relationship also extends to the various regulatory bodies to whom the group must regularly report. The group works closely with bodies such as the Care Quality Commission and other regulators and in the event that a problem is found, then ensures this is dealt with swiftly.

JOHNSON CARE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 5 -
Future developments

The group has continued with its programme of upgrading the building stock under its control, as best it could during the pandemic. There is a phased five year plan with regard to the improvement programme. This programme includes the modernisation of the homes and the reconfiguration of certain homes to increase their capacity and the quality of the rooms available to the residents.

 

The previously mothballed care homes, which were under performing homes, remained so. This was to allow the directors to concentrate on the rest of its portfolio. The exception to this the closed care home in Leicestershire which has been repurposed as staff accommodation.

 

The Essex County Care Limited has been in continued negotiations with various bodies concerning alternative uses for the moth-balled properties in the North of Essex. The remaining two moth-balled homes are currently being reviewed and detailed plans being drawn up for their redevelopment and reconfiguration to meet the demands of the modern market.

 

Auditor

In accordance with the company's articles, a resolution proposing that Francis James & Partners LLP be reappointed as auditor of the group will be put at a General Meeting.

Corporate governance

The group is governed by its Board of Directors, headed by the Chief Executive Officer and founder Dr D Vive Kananda. As well as the Board of Directors, the group uses the services of various accountancy and legal professionals in order to advise the Directors and to ensure it is compliant with all of its legal obligations.

Energy and carbon report
2022
Energy consumption
kWh
Aggregate of energy consumption in the year
- Gas combustion
7,037,589
- Electricity purchased
1,465,044
- Fuel consumed for transport
93,796
8,596,429
2022
Emissions of CO2 equivalent
metric tonnes
Scope 1 - direct emissions
- Gas combustion
1,288.38
- Fuel consumed for owned transport
21.56
1,309.94
Scope 2 - indirect emissions
- Electricity purchased
311.06
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the
-
Total gross emissions
1,621.00
Intensity ratio
tCO2/per bed
3.13
JOHNSON CARE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 6 -
Quantification and reporting methodology

The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting

Intensity measurement

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per bed.

Measures taken to improve energy efficiency

The group has been carrying out an in depth analysis of its energy use. It is reviewing each of its sites to ensure that the any improvements in energy efficiency are considered when carrying out any refurbishment works. Due to the nature of the sites its operates, it is not possible to compare the energy usage directly to industry standards.

 

The company has also extended its use of video and internet based procedures for training and other meetings in order to reduce its staff travel between sites.

 

The above measures have all been taken to aim to reduce the groups carbon footprint, whilst also reducing the ongoing financial cost of its energy usage.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Dr D S Vive-Kananda
Director
30 September 2023
JOHNSON CARE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 7 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

JOHNSON CARE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF JOHNSON CARE LIMITED
- 8 -
Opinion

We have audited the financial statements of Johnson Care Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity and notes to the financial statements, including 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:

Basis for opinion

In respect solely of the limitation on our work relating to pension scheme disclosures described in note number 19 of the financial statements:

 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' 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 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 directors with respect to going concern are described in the relevant sections of this report.

JOHNSON CARE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JOHNSON CARE LIMITED
- 9 -

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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.

 

As described in the 'basis for qualified opinion' paragraph of our report, we were unable to fully satisfy ourselves concerning the quantification of the assets and liabilities of the defined benefit scheme of a group subsidiary at 31 December 2022. We have concluded that where other information refers to the defined benefit pension net liability or related balances, they may potentially be materially misstated for the same reason.

Opinions on other matters prescribed by the Companies Act 2006

Except for the possible effects of the matter described in the basis for qualified opinion section of our audit report, in our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

Except for the matter described in the basis for qualified opinion section of our audit report, in the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

Arising solely from the limitation on the scope of our work relating to a defined benefit pension scheme of a subsidiary of the group, referred to above:

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

JOHNSON CARE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JOHNSON CARE LIMITED
- 10 -

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

The matters discussed among the audit engagement team including significant component audit teams and involving relevant internal specialists, regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

 

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

 

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on laws and regulations that could give rise to a material misstatement in the financial statements, including, but not limited to, the company's regulator the Care Quality Commission, UK tax legislation and equivalent local laws and regulations.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.

Our procedures to respond to risks identified included the following:

 

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditors responsibilities. This description forms part of our auditor's report.

JOHNSON CARE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JOHNSON CARE LIMITED
- 11 -

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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Julian Francis FCA (Senior Statutory Auditor)
For and on behalf of Francis James & Partners LLP
30 September 2023
Chartered Accountants
Statutory Auditor
1386 London Road
Leigh on Sea
Essex
England
SS9 2UJ
JOHNSON CARE LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 12 -
2022
2021
Notes
£
£
Turnover
3
15,717,037
13,973,118
Cost of sales
(11,177,873)
(10,677,360)
Gross profit
4,539,164
3,295,758
Administrative expenses
(4,952,004)
(4,803,982)
Other operating income
1,049,800
1,331,248
Operating profit/(loss)
4
636,960
(176,976)
Interest receivable and similar income
7
1,601
-
0
Interest payable and similar expenses
8
(524,435)
(426,888)
Profit/(loss) before taxation
114,126
(603,864)
Tax on profit/(loss)
9
29,197
(47,926)
Profit/(loss) for the financial year
22
143,323
(651,790)
Profit/(loss) for the financial year is all attributable to the owners of the parent company.
JOHNSON CARE LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 13 -
2022
2021
£
£
Profit/(loss) for the year
143,323
(651,790)
Other comprehensive income
Revaluation of tangible fixed assets
-
0
6,998,172
Tax relating to other comprehensive income
(314,223)
(700,877)
Other comprehensive income for the year
(314,223)
6,297,295
Total comprehensive income for the year
(170,900)
5,645,505
Total comprehensive income for the year is all attributable to the owners of the parent company.
JOHNSON CARE LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 14 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
11
34,810,259
34,398,133
Current assets
Stocks
14
250
200
Debtors
15
8,927,180
4,376,700
Cash at bank and in hand
733,084
1,470,182
9,660,514
5,847,082
Creditors: amounts falling due within one year
16
(6,288,542)
(6,348,309)
Net current assets/(liabilities)
3,371,972
(501,227)
Total assets less current liabilities
38,182,231
33,896,906
Creditors: amounts falling due after more than one year
17
(9,380,496)
(4,538,670)
Provisions for liabilities
Deferred tax liability
19
4,721,747
4,436,722
(4,721,747)
(4,436,722)
Net assets excluding pension liability
24,079,988
24,921,514
Defined benefit pension liability
20
(2,427,363)
(3,097,989)
Net assets
21,652,625
21,823,525
Capital and reserves
Called up share capital
21
1,008
1,008
Revaluation reserve
22
21,039,576
21,353,799
Profit and loss reserves
22
612,041
468,718
Total equity
21,652,625
21,823,525
The financial statements were approved by the board of directors and authorised for issue on 30 September 2023 and are signed on its behalf by:
30 September 2023
Dr D S Vive-Kananda
Director
JOHNSON CARE LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2022
31 December 2022
- 15 -
2022
2021
Notes
£
£
£
£
Fixed assets
Investments
12
1,407
1,407
Current assets
Debtors
15
7,270,557
7,014,042
Creditors: amounts falling due within one year
16
(7,413,734)
(2,684,767)
Net current (liabilities)/assets
(143,177)
4,329,275
Total assets less current liabilities
(141,770)
4,330,682
Creditors: amounts falling due after more than one year
17
-
(4,401,662)
Net liabilities
(141,770)
(70,980)
Capital and reserves
Called up share capital
21
1,008
1,008
Profit and loss reserves
22
(142,778)
(71,988)
Total equity
(141,770)
(70,980)

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £70,790 (2021 - £6,387 loss).

The financial statements were approved by the board of directors and authorised for issue on 30 September 2023 and are signed on its behalf by:
30 September 2023
Dr D S Vive-Kananda
Director
Company Registration No. 08294946
JOHNSON CARE LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 16 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2021
1,008
17,736,201
(1,559,189)
16,178,020
Year ended 31 December 2021:
Loss for the year
-
-
(651,790)
(651,790)
Other comprehensive income:
Revaluation of tangible fixed assets
-
6,998,172
-
6,998,172
Tax relating to other comprehensive income
-
(700,877)
-
0
(700,877)
Total comprehensive income
-
6,297,295
(651,790)
5,645,505
Transfers
-
(2,679,697)
2,679,697
-
Balance at 31 December 2021
1,008
21,353,799
468,718
21,823,525
Year ended 31 December 2022:
Profit for the year
-
-
143,323
143,323
Other comprehensive income:
Tax relating to other comprehensive income
-
(314,223)
-
0
(314,223)
Total comprehensive income
-
(314,223)
143,323
(170,900)
Balance at 31 December 2022
1,008
21,039,576
612,041
21,652,625
JOHNSON CARE LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 17 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2021
1,008
(65,601)
(64,593)
Year ended 31 December 2021:
Loss and total comprehensive income for the year
-
(6,387)
(6,387)
Balance at 31 December 2021
1,008
(71,988)
(70,980)
Year ended 31 December 2022:
Profit and total comprehensive income
-
(70,790)
(70,790)
Balance at 31 December 2022
1,008
(142,778)
(141,770)
JOHNSON CARE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 18 -
1
Accounting policies
Company information

Johnson Care Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 57-59 Avenue Road, Westcliff-on-Sea, Essex, England, SS0 7PJ.

 

The group consists of Johnson Care Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Johnson Care Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2022. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

JOHNSON CARE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 19 -
1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of any sales related taxes.

 

Turnover in respect of the provision of care beds is recognised on the basis of the contractual commitment from the company's customers. All necessary adjustments in respect of prepaid beds, or beds paid for in arrears are made in the financial statements.

 

Rental income is recognised on a receivable basis

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

During the previous year the company carried out an impairment review of the value of the goodwill in respect of the care home purchased in 2010. It was decided that this home no longer carried a goodwill value and hence this has been written down to nil.

1.7
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:

Freehold land and buildings
in accordance with the property
Plant and equipment
25% on reducing balance
Fixtures and fittings
15% on reducing balance and 10% on reducing balance
Computers
33% on cost
Motor vehicles
25% on reducing balance

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 recognised in the profit and loss account.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

JOHNSON CARE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 20 -
1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.12
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

JOHNSON CARE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 21 -
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments 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. Amounts 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.

JOHNSON CARE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 22 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group 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 group.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

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 group’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 if, and only if, there is 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.

1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

JOHNSON CARE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 23 -
1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

 

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

 

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

1.17
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 leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.18
Government grants

Government grants are recognised at the fair value of the asset received 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.

JOHNSON CARE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 24 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Depreciation

When calculating the appropriate depreciation and amortisation rates, it is necessary to make judgements about the useful economic life of the assets. The future income streams those assets can assist the company in producing and the likely residual value of the assets.

Pension

When calculating the pension assets and liabilities the directors have taken the advice of the Schemes Actuaries when estimating discount rates, life expectancies and inflation. Variations in these rates can effect the valuation of the assets and liabilities.

Revaluation

The valuation of freehold property is a key critical judgement. This is the directors' estimate of the fair value of the properties which is based upon the external valuations provided by a qualified surveyor.

3
Turnover and other revenue
2022
2021
£
£
Other significant revenue
Interest income
1,601
-
Grants received
668,262
1,018,982

Government grants relate to monies received in regards to Infection Control, Rapid Testing, Workforce Capacity and the coronavirus job retention scheme. These government grants were made available to the adult care sector during the coronavirus pandemic. A contingency of these grants is that they are spent on a strict set of criteria and there is a requirement for periodic reports to be submitted to ensure compliance.

4
Operating profit/(loss)
2022
2021
£
£
Operating profit/(loss) for the year is stated after charging/(crediting):
Government grants
(668,262)
(1,018,982)
Depreciation of owned tangible fixed assets
498,174
477,693
Operating lease charges
217,720
189,530
JOHNSON CARE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 25 -
5
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
3,000
-
Audit of the financial statements of the company's subsidiaries
28,950
23,360
31,950
23,360
For other services
All other non-audit services
33,000
33,000
For services in respect of associated pension schemes
Audit-related assurance services
750
-
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2022
2021
2022
2021
Number
Number
Number
Number
Carers and household staff
617
618
-
-
Administration
23
23
-
-
Total
640
641
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2022
2021
2022
2021
£
£
£
£
Wages and salaries
10,464,831
10,081,942
-
0
-
0
Social security costs
681,538
557,822
-
-
Pension costs
232,661
221,789
-
0
-
0
11,379,030
10,861,553
-
0
-
0
7
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
1,601
-
0
JOHNSON CARE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
7
Interest receivable and similar income
(Continued)
- 26 -
2022
2021
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
1,601
-
8
Interest payable and similar expenses
2022
2021
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
491,774
401,591
Other finance costs:
Interest on finance leases and hire purchase contracts
4,644
18,673
Net interest on the net defined benefit liability
-
0
(7,628)
Other interest
28,017
14,252
Total finance costs
524,435
426,888
9
Taxation
2022
2021
£
£
Current tax
Adjustments in respect of prior periods
-
0
29,861
Deferred tax
Origination and reversal of timing differences
(74,555)
18,065
Changes in tax rates
45,358
-
0
Total deferred tax
(29,197)
18,065
Total tax (credit)/charge
(29,197)
47,926
JOHNSON CARE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
9
Taxation
(Continued)
- 27 -

The actual (credit)/charge for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2022
2021
£
£
Profit/(loss) before taxation
114,126
(603,864)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
21,684
(114,734)
Tax effect of utilisation of tax losses not previously recognised
-
0
(16,151)
Unutilised tax losses carried forward
-
0
100,313
Change in unrecognised deferred tax assets
-
0
18,065
Adjustments in respect of prior years
-
0
5,670
Group relief
(123,012)
-
0
Permanent capital allowances in excess of depreciation
(45,604)
29,803
Under/(over) provided in prior years
-
0
24,191
Deferred tax rate change
117,735
769
Taxation (credit)/charge
(29,197)
47,926

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2022
2021
£
£
Deferred tax arising on:
Revaluation of property
314,223
700,877
10
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2022 and 31 December 2022
21,786
Amortisation and impairment
At 1 January 2022 and 31 December 2022
21,786
Carrying amount
At 31 December 2022
-
0
At 31 December 2021
-
0
The company had no intangible fixed assets at 31 December 2022 or 31 December 2021.
JOHNSON CARE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 28 -
11
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2022
34,692,128
105,204
4,745,668
215,530
148,308
39,906,838
Additions
419,970
44,749
327,121
118,460
-
0
910,300
At 31 December 2022
35,112,098
149,953
5,072,789
333,990
148,308
40,817,138
Depreciation and impairment
At 1 January 2022
2,228,351
73,087
2,889,864
174,463
142,940
5,508,705
Depreciation charged in the year
169,585
10,914
262,014
54,319
1,342
498,174
At 31 December 2022
2,397,936
84,001
3,151,878
228,782
144,282
6,006,879
Carrying amount
At 31 December 2022
32,714,162
65,952
1,920,911
105,208
4,026
34,810,259
At 31 December 2021
32,463,777
32,117
1,855,804
41,067
5,368
34,398,133
The company had no tangible fixed assets at 31 December 2022 or 31 December 2021.
12
Fixed asset investments
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
1,407
1,407
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2022 and 31 December 2022
1,407
Carrying amount
At 31 December 2022
1,407
At 31 December 2021
1,407
JOHNSON CARE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 29 -
13
Subsidiaries

The results for all subsidiaries are included within these consolidated financial statements.

Details of the company's subsidiaries at 31 December 2022 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Leicestershire County Care Limited
England & Wales
Ordinary
100.00
Essex County Care Limited
England & Wales
Ordinary
100.00
Mohanjane Limited
England & Wales
Ordinary
100.00
Kananda Care Limited
England & Wales
Ordinary
100.00
Netto Care Limited
England & Wales
Ordinary
100.00
Housing & Emegency Admissions Limited
England & Wales
Ordinary
100.00
14
Stocks
Group
Company
2022
2021
2022
2021
£
£
£
£
Raw materials and consumables
250
200
-
-
15
Debtors
Group
Company
2022
2021
2022
2021
Amounts falling due within one year:
£
£
£
£
Trade debtors
186,800
137,705
-
0
-
0
Amounts owed by group undertakings
-
-
6,257,263
6,257,568
Other debtors
8,133,033
3,960,431
1,013,294
756,474
Prepayments and accrued income
607,347
278,564
-
0
-
0
8,927,180
4,376,700
7,270,557
7,014,042
16
Creditors: amounts falling due within one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans and overdrafts
18
19,599
856,468
-
0
588,740
Trade creditors
970,246
1,232,256
3,000
-
0
Amounts owed to group undertakings
-
0
-
0
7,407,735
2,093,027
Corporation tax payable
299,592
297,811
-
0
-
0
Other taxation and social security
3,121,460
2,136,543
-
-
Other creditors
1,099,766
1,119,488
-
0
-
0
Accruals and deferred income
777,879
705,743
2,999
3,000
6,288,542
6,348,309
7,413,734
2,684,767
JOHNSON CARE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 30 -
17
Creditors: amounts falling due after more than one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans and overdrafts
18
9,380,496
4,538,670
-
0
4,401,662
18
Loans and overdrafts
Group
Company
2022
2021
2022
2021
£
£
£
£
Bank loans
9,400,095
5,127,131
-
0
4,990,123
Bank overdrafts
-
0
268,007
-
0
279
9,400,095
5,395,138
-
4,990,402
Payable within one year
19,599
856,468
-
0
588,740
Payable after one year
9,380,496
4,538,670
-
0
4,401,662

The long-term loans are secured by fixed charges over some of the assets of Leicestershire County Care Limited, together with a cross party guarantee from all group companies.

The new loan is secured on the 12 operating properties of the group and is on an interest only basis for 5 years. The interest rate to be charged is at a fixed rate of 6.25% for the duration of the agreement.

 

The purpose of the new loan, was to settle the previous loan, to release funds held by the previous bank lenders as security and to provide funds for further investment in the care homes.

19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2022
2021
Group
£
£
Accelerated capital allowances
159,285
188,484
Revaluations
4,562,462
4,699,943
Impairments
-
(451,705)
4,721,747
4,436,722
The company has no deferred tax assets or liabilities.
JOHNSON CARE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
19
Deferred taxation
(Continued)
- 31 -
Group
Company
2022
2022
Movements in the year:
£
£
Liability at 1 January 2022
4,436,722
-
Credit to profit or loss
(29,198)
-
Charge to other comprehensive income
314,223
-
Liability at 31 December 2022
4,721,747
-

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

20
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
210,964
215,953

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

Defined benefit schemes
2022
2021
Key assumptions
%
%
Discount rate
2.7
2.7
Expected rate of increase of pensions in payment
3.2
3.2
Expected rate of salary increases
3.5
3.5
Mortality assumptions
2022
2021

Assumed life expectations on retirement at age 65:

Years
Years
Retiring today
- Males
85
85
- Females
88
88
Retiring in 20 years
- Males
88
88
- Females
90
90
JOHNSON CARE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
20
Retirement benefit schemes
(Continued)
- 32 -

The amounts included in the balance sheet arising from obligations in respect of defined benefit plans are as follows:

2022
2021
Group
£
£
Present value of defined benefit obligations
4,773,516
5,043,247
Fair value of plan assets
(2,346,153)
(1,945,258)
Deficit in scheme
2,427,363
3,097,989

The parent company does not operate a defined benefit pension scheme. The sums disclosed on a group basis relate to the defined benefit pension schemes of Leicestershire County Care Limited and Essex County Care Limited.

 

The deficits in respect of the Leicestershire County Care Limited and Essex County Care Limited defined benefit pension schemes will be funded from future cashflows and profits.

Defined benefit scheme - company
2022
2021
Key assumptions
%
%
Mortality assumptions
2022
2021

Assumed life expectations on retirement at age 65:

Years
Years

The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:

Company
2022
2021
£
£
Deficit in scheme
-
-
Total liability recognised
-
-
Group
2022
2021

Amounts recognised in the profit and loss account

£
£
Current service cost
104,214
112,012
Net interest on net defined benefit liability/(asset)
328,000
11,920
Restriction on net interest income credited to the income statement
(329,000)
-
Other costs and income
(1,895)
-
Total costs
101,319
123,932
JOHNSON CARE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
20
Retirement benefit schemes
(Continued)
- 33 -
Group
2022
2021

Amounts taken to other comprehensive income

£
£
Actual return on scheme assets
307,000
(7,628)
Less: calculated interest element
(307,000)
7,628
Return on scheme assets excluding interest income
-
-
Restriction on net interest income credited to the income statement
329,000
-
Actuarial changes related to obligations
(328,000)
-
Total costs
1,000
-
Group
2022

Movements in the present value of defined benefit obligations

£
Liabilities at 1 January 2022
5,043,247
Current service cost
104,214
Benefits paid
(20,000)
Actuarial gains and losses
(328,000)
Interest cost
21,000
Other
(46,945)
At 31 December 2022
4,773,516

The defined benefit obligations arise from plans which are wholly or partly funded.

Group
2022

Movements in the fair value of plan assets

£
Fair value of assets at 1 January 2022
1,945,258
Interest income
(307,000)
Benefits paid
(20,000)
Contributions by the employer
742,000
Other
(343,105)
At 31 December 2022
2,346,153

The actual return on plan assets was £- (2021 - £-).

JOHNSON CARE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
20
Retirement benefit schemes
(Continued)
- 34 -

Fair value of plan assets at the reporting period end

Group
2022
2021
£
£
Equity, bonds and cash
2,346,153
1,945,258
21
Share capital
Group and company
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
8
8
8
8
Non-voting shares of £1 each
1,000
1,000
1,000
1,000
1,008
1,008
1,008
1,008
22
Reserves
Profit and loss reserves

The transfer to reserves are shown within these financial statements.

23
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2022
2021
2022
2021
£
£
£
£
Within one year
103,435
134,045
-
-
Between two and five years
196,684
181,890
-
-
300,119
315,935
-
-
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