Company registration number 07562264 (England and Wales)
LEICESTERSHIRE COUNTY CARE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
LEICESTERSHIRE COUNTY CARE LIMITED
COMPANY INFORMATION
Directors
Dr D S Vive-Kananda
Mr S J M Vive-Kananda
Secretary
N E Vive-Kananda
Company number
07562264
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
LEICESTERSHIRE COUNTY CARE LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
5 - 7
Directors' responsibilities statement
4
Independent auditor's report
10 - 12
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
13
Statement of changes in equity
14
Notes to the financial statements
15 - 29
LEICESTERSHIRE COUNTY 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 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 bringing the pension scheme fully up to date continues, 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 future financial statements.

 

 

 

Principal risks and uncertainties

The directors have reviewed the risks and uncertainties which may effect the company's future performance. The company 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 company has also continued its policy of ensuring any factors such as the recent Coronavirus pandemic 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.

LEICESTERSHIRE COUNTY CARE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
Key performance indicators

The Key Performance Indicators for the company 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, have conitued to prevent 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 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 adoption of universal terms for staff who joined under TUPE and Non TUPE staff continues, as the directors strive to ensure all staff are treated equally. 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 continues to be distorted by the additional pressures placed by Covid-19 and a shortage of skilled staff in the sector. 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 situation, the turnover to wages percentage, whilst higher than pre pandemic rates, was reasonable during the year under review. It is expected that this improvement in the turnover to wages percentage will continue through out the year to 31 December 2023.

Other information and explanations

During the past years the company 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 company 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.

Section 172 statement
The likely consequences of any decisions in the long term

The company 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 company, 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.

LEICESTERSHIRE COUNTY CARE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
The need to foster the company's relationships with residents, residents families, suppliers the local community and the environment

The company 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 company 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 company's operations cause as little impact on the environment, both locally and globally, as possible.

The interests of the company's employees

The directors appreciate that the company's greatest asset is its staff. The staff in the homes 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 company 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 company and a failure to follow a high standard could effect the reputation of the company 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 company is wholly owned by its holding company and so all views are fairly represented in key decision making processes.

On behalf of the board

Mr S J M Vive-Kananda
Director
30 September 2023
LEICESTERSHIRE COUNTY CARE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 4 -

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

 

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

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

LEICESTERSHIRE COUNTY CARE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 5 -

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 providing residential care services to the elderly. The company also provides day care services from certain properties. Its current overall capacity was 489 beds at the year end.

Results and dividends

The results for the year are set out on page 8.

During the year the company did not vote any dividends. It remains the intention of the company to continue to reinvest all surplus funds into the upgrading and increasing the number of beds within its housing stock.

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 company 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 company and the group.

 

The company 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 company will also continue in its policy of reinvesting surplus funds in its care homes.

 

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training and support is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

 

The company considers on their merits, applications for employment from disabled persons and the opportunities that become available to any employee that becomes disabled during their employment with the company. Every effort is made to train, develop, and fairly promote disabled persons employed by the company, based upon the merits of that employee.

Employee involvement

The company's policy is to consult and discuss with employees, through staff meetings and at manager meetings, any matters likely to affect employees' interests.

 

The company uses its best endeavours to provide employees with the information regarding the company's performance and in particular the performance of the home in which that particular employee works. Where practical the employees are consulted about the matters which effect them in the development of the company and in particular the home in which they work.

The company operates an equal opportunities policy with regard to its employees. It seeks to ensure that no member of staff is discriminated against because of sex, age, race, sexual orientation, disability, religious beliefs or any other factor. All members of staff are offered the same opportunities for training and development.

LEICESTERSHIRE COUNTY CARE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 6 -
Business relationships

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 company also works closely with its suppliers to ensure that terms are agreed in advance that they are appropriate to both parties.

Future developments

The company 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 moth-balled care home has currently been re-purposed as staff accommodation.

 

Auditor

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

Energy and carbon report
2022
Energy consumption
kWh
Aggregate of energy consumption in the year
- Gas combustion
6,656,444
- Electricity purchased
1,385,699
- Fuel consumed for transport
88,715
8,130,858
2022
Emissions of CO2 equivalent
metric tonnes
Scope 1 - direct emissions
- Gas combustion
1,219.49
- Fuel consumed for owned transport
20.39
1,239.88
Scope 2 - indirect emissions
- Electricity purchased
294.23
Total gross emissions
1,534.11
Intensity ratio
tCO2/per bed
3.13
Quantification and reporting methodology

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2021 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.

LEICESTERSHIRE COUNTY CARE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 7 -
Measures taken to improve energy efficiency

The company has been continuing its 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 company's 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 company’s auditor 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 company’s auditor is aware of that information.

Fellow group companies

During the year the various companies within the group have continued to support each other. The assistance has been in various forms, including;

- shared knowledge and assistance

- financial support

- sharing staff and administration support

- other operational support.

 

By pooling its resources with its fellow group companies, the directors believe that this makes all of the companies within the group stronger.

On behalf of the board
Mr S J M Vive-Kananda
Director
30 September 2023
LEICESTERSHIRE COUNTY CARE LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
2022
2021
Notes
£
£
Turnover
3
14,632,263
13,136,059
Cost of sales
(10,370,274)
(9,900,172)
Gross profit
4,261,989
3,235,887
Administrative expenses
(4,016,263)
(3,466,661)
Other operating income
819,983
1,064,014
Operating profit
4
1,065,709
833,240
Interest receivable and similar income
8
1,601
-
0
Interest payable and similar expenses
9
(419,064)
(272,909)
Profit before taxation
648,246
560,331
Tax on profit
10
(117,735)
(438)
Profit for the financial year
530,511
559,893

The profit and loss account has been prepared on the basis that all operations are continuing operations.

LEICESTERSHIRE COUNTY CARE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
2022
2021
£
£
Profit for the year
530,511
559,893
Other comprehensive income
Revaluation of tangible fixed assets
-
0
6,998,172
Tax relating to other comprehensive income
(241,276)
(1,329,653)
Other comprehensive income for the year
(241,276)
5,668,519
Total comprehensive income for the year
289,235
6,228,412
LEICESTERSHIRE COUNTY CARE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LEICESTERSHIRE COUNTY CARE LIMITED
- 10 -
Opinion

We have audited the financial statements of Leicestershire County Care Limited (the 'company') for the year ended 31 December 2022 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the 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 17 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 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 qualified 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 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.

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 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.

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

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 company and its 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 the defined benefit pension scheme, 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 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 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.

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

LEICESTERSHIRE COUNTY CARE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LEICESTERSHIRE COUNTY CARE LIMITED
- 12 -

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/auditorsresponsibilities. This description forms part of our auditor's report.

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
LEICESTERSHIRE COUNTY CARE LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 13 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
11
26,362,200
26,173,043
Current assets
Debtors
12
15,492,612
5,388,420
Cash at bank and in hand
653,621
1,154,938
16,146,233
6,543,358
Creditors: amounts falling due within one year
13
(4,570,451)
(3,828,983)
Net current assets
11,575,782
2,714,375
Total assets less current liabilities
37,937,982
28,887,418
Creditors: amounts falling due after more than one year
14
(9,000,000)
-
0
Provisions for liabilities
Deferred tax liability
16
4,097,664
3,738,654
Defined benefit pension liability
17
2,496,363
3,094,044
(6,594,027)
(6,832,698)
Net assets
22,343,955
22,054,720
Capital and reserves
Called up share capital
18
100
100
Revaluation reserve
15,923,517
16,164,793
Profit and loss reserves
6,420,338
5,889,827
Total equity
22,343,955
22,054,720
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:
Mr S J M Vive-Kananda
Director
Company registration number 07562264 (England and Wales)
LEICESTERSHIRE COUNTY CARE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 14 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2021
100
10,496,274
5,329,934
15,826,308
Year ended 31 December 2021:
Profit
-
-
559,893
559,893
Other comprehensive income:
Revaluation of tangible fixed assets
-
6,998,172
-
6,998,172
Tax relating to other comprehensive income
-
(1,329,653)
-
0
(1,329,653)
Total comprehensive income
-
5,668,519
559,893
6,228,412
Balance at 31 December 2021
100
16,164,793
5,889,827
22,054,720
Year ended 31 December 2022:
Profit
-
-
530,511
530,511
Other comprehensive income:
Tax relating to other comprehensive income
-
(241,276)
-
0
(241,276)
Total comprehensive income
-
(241,276)
530,511
289,235
Balance at 31 December 2022
100
15,923,517
6,420,338
22,343,955
LEICESTERSHIRE COUNTY CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 15 -
1
Accounting policies
Company information

Leicestershire County Care Limited is a private company limited by shares incorporated in England and Wales. The registered office is 57-59 Avenue Road, Westcliff On Sea, Essex, England, SS0 7PJ.

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. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of Johnson Care Limited. These consolidated financial statements are available from its registered office, 57-59 Avenue Road, Westcliff-on-Sea, Essex, SS0 7PJ,

 

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.

1.3
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.

 

.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

LEICESTERSHIRE COUNTY CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 16 -

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
Not depreciated
Plant and equipment
25% on reducing balance
Fixtures and fittings
15% 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 credited or charged to profit or loss.

The company has adopted a policy of continually upgrading and developing its freehold, thus maintaining a value in excess to the original cost of the freehold properties. Therefore, no depreciation is provided in respect of freehold property.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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

 

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

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

1.6
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.

LEICESTERSHIRE COUNTY CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 17 -
1.7
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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 company 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 company after deducting all of its liabilities.

LEICESTERSHIRE COUNTY CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 18 -
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.

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 company’s contractual obligations expire or are discharged or cancelled.

1.8
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.9
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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

LEICESTERSHIRE COUNTY CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 19 -
1.10
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.

1.11
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.

1.12
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 leases 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.

1.13
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.

LEICESTERSHIRE COUNTY CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 20 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’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.

Valuation of freehold properties

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.

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.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2022
2021
£
£
Turnover analysed by class of business
Residential care services
14,632,263
13,136,059
2022
2021
£
£
Other revenue
Interest income
1,601
-
Grants received
657,949
869,818

 

All turnover and profit before tax are attributable to the one principal activity of the company, and was all derived from the United Kingdom.

Government grants relate to monies received in regards to Infection Control, Rapid Covid 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 requirement of these grants is that they are spent on a strict set of criteria and there is also a requirement for periodic reports to be submitted to ensure compliance.

LEICESTERSHIRE COUNTY CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 21 -
4
Operating profit
2022
2021
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(657,949)
(869,818)
Depreciation of owned tangible fixed assets
225,210
206,717
Operating lease charges
204,350
172,598
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 company
14,600
12,000
6
Employees

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

2022
2021
Number
Number
Care staff
575
574
Administration staff
20
20
Total
595
594

Their aggregate remuneration comprised:

2022
2021
£
£
Wages and salaries
9,622,526
9,239,555
Social security costs
621,310
504,121
Pension costs
218,702
195,963
10,462,538
9,939,639
7
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
32,167
26,000
Company pension contributions to defined contribution schemes
6,309
4,940
38,476
30,940
LEICESTERSHIRE COUNTY CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
7
Directors' remuneration
(Continued)
- 22 -

The number of directors for whom retirement benefits are accruing under defined benefit schemes amounted to 1 (2021 - 1).

8
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
1,601
-
0
9
Interest payable and similar expenses
2022
2021
£
£
Interest on bank overdrafts and loans
419,064
261,683
Net interest on the net defined benefit liability
-
0
1,847
Other interest
-
0
9,379
419,064
272,909
10
Taxation
2022
2021
£
£
Current tax
Adjustments in respect of prior periods
-
0
24,191
Deferred tax
Origination and reversal of timing differences
72,377
(23,753)
Changes in tax rates
45,358
-
0
Total deferred tax
117,735
(23,753)
Total tax charge
117,735
438
LEICESTERSHIRE COUNTY CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
10
Taxation
(Continued)
- 23 -

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

2022
2021
£
£
Profit before taxation
648,246
560,331
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
123,167
106,463
Change in unrecognised deferred tax assets
-
0
(23,753)
Group relief
(77,062)
(99,490)
Permanent capital allowances in excess of depreciation
(46,105)
(6,973)
Under/(over) provided in prior years
-
0
24,191
Changes in deferred tax rate
117,735
-
0
Taxation charge for the year
117,735
438

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
241,276
1,329,653
LEICESTERSHIRE COUNTY CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 24 -
11
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost or valuation
At 1 January 2022
25,132,744
105,204
2,399,778
164,012
12,593
27,814,331
Additions
9,841
44,749
251,106
108,671
-
0
414,367
At 31 December 2022
25,142,585
149,953
2,650,884
272,683
12,593
28,228,698
Depreciation and impairment
At 1 January 2022
-
0
73,087
1,431,955
127,030
9,216
1,641,288
Depreciation charged in the year
-
0
10,914
165,430
48,022
844
225,210
At 31 December 2022
-
0
84,001
1,597,385
175,052
10,060
1,866,498
Carrying amount
At 31 December 2022
25,142,585
65,952
1,053,499
97,631
2,533
26,362,200
At 31 December 2021
25,132,744
32,117
967,823
36,982
3,377
26,173,043

Freehold land and buildings with a carrying amount of £25,142,585 were revalued at 15, 16 and 23 November 2021 by Davis Coffer Lyons, independent surveyors who are not connected with the company, on the basis of open market value. The valuation conforms to International Valuation Standards with valuations based on market value as a a fully equipped operational entity having regard to trading potential.

Freehold land and buildings are carried at valuation. If freehold land and buildings were measured using the cost model, the carrying amounts would have been approximately £5,095,982 (2021 - £5,095,982), being cost £5,095,982 (2021 - £5,095,982) and depreciation £nil (2021 - £nil).

12
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
162,783
101,467
Amounts owed by group undertakings
8,335,089
2,530,401
Other debtors
6,462,083
2,560,479
Prepayments and accrued income
532,657
196,073
15,492,612
5,388,420
LEICESTERSHIRE COUNTY CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 25 -
13
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
760,204
990,712
Amounts owed to group undertakings
18,168
69,511
Corporation tax
273,588
273,588
Other taxation and social security
2,522,060
1,692,259
Other creditors
262,353
207,131
Accruals and deferred income
734,078
595,782
4,570,451
3,828,983
14
Creditors: amounts falling due after more than one year
2022
2021
Notes
£
£
Bank loans and overdrafts
15
9,000,000
-
0
15
Loans and overdrafts
2022
2021
£
£
Bank loans
9,000,000
-
0
Payable after one year
9,000,000
-
0

The long-term loans of the group are secured by fixed charges over the 12 operating care homes owned by the company.

The new loan is secured on the 12 operating properties of the company 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.

16
Deferred taxation

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

Liabilities
Liabilities
2022
2021
Balances:
£
£
Accelerated capital allowances
188,989
71,256
Revaluations
3,908,675
3,667,398
4,097,664
3,738,654
LEICESTERSHIRE COUNTY CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
16
Deferred taxation
(Continued)
- 26 -
2022
Movements in the year:
£
Liability at 1 January 2022
3,738,654
Charge to profit or loss
117,734
Charge to other comprehensive income
241,276
Liability at 31 December 2022
4,097,664

In the budget on 3rd March 2021, the UK Government announced an increase in the main UK Corporation Tax rate from 19% to 25% with effect from 1st April 2023. Deferred tax has been calculated at 25% which was the rate substantially enacted as at 31st December 2022.

17
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
197,005
195,963

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Defined benefit schemes

The company operates a defined benefit scheme for qualifying employees. Under the scheme the employees are entitled to retirement benefits varying between 19 % and 45 % of final salary on attainment of a retirement age of 65 . No other post retirement benefits are provided.

 

The most recent actuarial valuations of plan assets and the present value of the defined benefit obligation were carried out at 31st March 2019 by David Watson of Mercer, Fellow of the Institute of Actuaries. The present value of the defined benefit obligation, the related current service cost and past service cost were measured using the projected unit credit method.

 

The current funding of the deficit is to be paid by cashflows and profits of the company.

Valuation

The directors have been working with the scheme actuaries and Trustees to bring the full details of the scheme up to date. These matters have yet to be finalised and so the directors have made their best estimates of the scheme position at 31 December 2022, based upon the Tri-Annual valuation to the 31 March 2019. The directors are currently waiting for the Tri-Annual valuation to 31 March 2022 to be available for review.

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
LEICESTERSHIRE COUNTY CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
17
Retirement benefit schemes
(Continued)
- 27 -
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
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)
-
1,847
Other costs and income
(1,895)
-
Total costs
102,319
113,859
Actual return on scheme assets
-
1,847
Less: calculated interest element
-
(1,847)
Return on scheme assets excluding interest income
-
-

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

2022
2021
£
£
Present value of defined benefit obligations
4,112,516
4,010,197
Fair value of plan assets
(1,616,153)
(916,153)
Deficit in scheme
2,496,363
3,094,044
2022

Movements in the present value of defined benefit obligations

£
Liabilities at 1 January 2022
4,010,197
Current service cost
104,214
Other
(1,895)
At 31 December 2022
4,112,516

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

LEICESTERSHIRE COUNTY CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
17
Retirement benefit schemes
(Continued)
- 28 -
2022

Movements in the fair value of plan assets

£
Fair value of assets at 1 January 2022
916,153
Contributions by the employer
700,000
At 31 December 2022
1,616,153

The actual return on plan assets was £-- (2021 - £1,847).

2022
2021

Fair value of plan assets at the reporting period end

£
£
Equity, bonds and cash
1,616,153
916,153

None of the schemes assets consists of equity or debt in the company.

18
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
19
Operating lease commitments
Lessee

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

2022
2021
£
£
Within one year
65,879
84,317
Between two and five years
104,897
94,126
170,776
178,443
20
Related party transactions
Transactions with related parties

During the year the company shared certain overhead expenses with Strathmore Care Group, which is under common ownership and control along with the company. The sharing of these expenses is in respect of both, expenses paid by the company, but partly used by Strathmore Care Group, and expenses paid by Strathmore Care Group partly used by the company and its fellow subsidiaries.

 

The directors believe that the net cost to both parties is Nil, however both parties benefit from the economies of scale the sharing of expenses is able to give them.

2022
2021
LEICESTERSHIRE COUNTY CARE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
20
Related party transactions
(Continued)
- 29 -
Amounts due to related parties
£
£
Key management personnel
10,003
10,003

The following amounts were outstanding at the reporting end date:

2022
2021
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
6,108,832
2,560,479

At the balance sheet date the company was owed the sum of £6,108,832 by businesses under common control which are not part of the Johnson Care Group.

 

After the balance sheet date a freehold property was transferred from the associated business to a fellow group company, in part settlement of the funds due.

21
Ultimate controlling party

Johnson Care Limited is regarded by the company's directors as being the ultimate parent company.

Dr D S Vive-Kananda is a director and controlling shareholder of Johnson Care Limited the parent company.

These financial statements are included within the consolidated accounts of Johnson Care Limited. The consolidated statements are available from its registered office, 57-59 Avenue Road, Westcliff-on-Sea, Essex, SS0 7PJ.

 

Johnson Care Limited is considered to be the largest and small group into which these financial statements are consolidated.

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