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REGISTERED NUMBER: 06500143 (England and Wales)















3AB CARE LIMITED

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023






3AB CARE LIMITED (REGISTERED NUMBER: 06500143)

CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023










Page

Company Information 1

Group Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Consolidated Income Statement 9

Consolidated Other Comprehensive Income 10

Consolidated Statement of Financial Position 11

Company Statement of Financial Position 12

Consolidated Statement of Changes in Equity 13

Company Statement of Changes in Equity 14

Consolidated Statement of Cash Flows 15

Notes to the Consolidated Statement of Cash Flows 16

Notes to the Consolidated Financial Statements 17


3AB CARE LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 MARCH 2023







DIRECTORS: Hitan Patel
Arvind Patel
Krishna Patel





REGISTERED OFFICE: The Heathers Quarry Road
Chipping Sodbury
Bristol
BS37 6AX





REGISTERED NUMBER: 06500143 (England and Wales)





AUDITORS: DTE Business Advisers Limited
Chartered Accountants
Statutory Auditors
The Exchange
5 Bank Street
Bury
Lancashire
BL9 0DN

3AB CARE LIMITED (REGISTERED NUMBER: 06500143)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023


The directors present their strategic report of the company and the group for the year ended 31 March 2023.

REVIEW OF BUSINESS
In the year to 31st March 2023, the group saw an increase in turnover of 23.6% and an increase in gross profit of 42.9%, a recovery from the Covid-19 pandemic.

Taking each group company in turn:

3ab Care Limited: The ultimate parent company does not trade as such but received some management fees, dividends from subsidiaries and paid admin salaries and some overheads, resulting in a profit before taxation for the year of £1,508,432.

Acacia Care Limited: Turnover increased to £1,739,527 from £1,539,601 with an increase in the gross profit to £676,663 from £580,206. Strong occupancy figures were achieved during the year and the Home is rated 'outstanding' by the Care Quality Commission. A pre-tax profit of £345,271 was reported.

Brookhouse Care Home Limited: Turnover increased to £2,085,185 from £1,692,263 with a corresponding increase in the gross profit percentage to 40.4% from 34.4%. A profit before taxation for the year of £367,606 was reported which is an improvement over the previous year.

Harley House Care Home Limited: Turnover increased to £1,697,393 from £1,297,591, a significant improvement from previous year. A gross profit percentage of 38.3% (2022: 30.1%) was achieved. A profit for the year before taxation of £349,126 was reported.

Westcroft Nursing Home Limited: Turnover for the year increased to £1,440,412 from £1,106,264 with an increased gross profit percentage of 31.4% from 20.8%. A profit before taxation of £162,218 was reported.

Ambourne House Limited: This company runs a day nursery and saw a recovery in turnover to £902,468 from £517,477. The gross profit percentage was up to 34.4% from 31.7%. The company generated a profit before taxation for the year of £148,557.

HS 228 Limited: This company did not trade during the year.

Painswick Road Care Home Ltd: Income of £1,691,807 was generated in the year, up from £1,469,712 in the previous year. A gross profit of £451,843 was achieved, up from £305,305. A pre-tax profit of £26,087 has been reported.

The Willows Care Home (Shepshed) Ltd: Turnover increased to £2,986,587 up from £2,523,902, with occupancy continuing to be at an acceptable level. This company reported a gross profit percentage of 41.6% up from 38.9% and a profit before taxation of £643,227.

The properties are held under the cost model in the financial statements as permitted by FRS 102. A professional valuation of the properties was obtained on 1 March 2022. The market valuation of all properties held as at the date of signing the strategic report was £20,490,000.

PRINCIPAL RISKS AND UNCERTAINTIES
The group is aware of the importance of sustaining high occupancy rates to maintain profits and management are very focused on ensuring that occupancy is reviewed on a daily basis and that each company's reputation maintains strong. This includes reviewing all operations of the business on a regular basis including staffing, properties, legal obligations and financing. The nature of the groups activities are such that they are somewhat protected from any economic downturn although management remain vigilant to this threat and will take any action which may be needed.

The group is exposed to the usual credit and cash flow risk where selling on credit is concerned and manages this through credit control procedures. Short term bank deposits are only placed with reputable blue chip banks. A number of bank loans are held within the group which use the bank base rates to determine the interest payable. This variable rate of interest does create some risk should the interest rates rise significantly.


3AB CARE LIMITED (REGISTERED NUMBER: 06500143)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

KEY PERFORMANCE INDICATORS
The group's key performance indicators are revenue, gross profit margin, occupancy rates and charge rates.

DEVELOPMENT AND PERFORMANCE
The directors consider the operating profit achieved, the state of affairs of the group and company at the year end and its prospects for the future to be satisfactory and are pleased with the performance of the group. The directors are pleased to report that trading since the year end is showing continued improvements.

ON BEHALF OF THE BOARD:





Hitan Patel - Director


7 September 2023

3AB CARE LIMITED (REGISTERED NUMBER: 06500143)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MARCH 2023


The directors present their report with the financial statements of the company and the group for the year ended 31 March 2023.

PRINCIPAL ACTIVITY
The principal activity of the company is the provision of management services. The principle activities of the group are running nursing homes and a day nursery.

DIVIDENDS
An interim dividend of £100 per share on the Ordinary £1 shares was paid on 5 July 2022. The directors recommend that no final dividend be paid on these shares.

No interim dividend was paid on the Ordinary B £1 shares. The directors recommend that no final dividend be paid on these shares.

The total distribution of dividends for the year ended 31 March 2023 will be £100,000.

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report.

Hitan Patel
Arvind Patel

Other changes in directors holding office are as follows:

Bipin Patel - resigned 11 November 2022
Krishna Patel - appointed 3 January 2023

DISABLED PERSONS
The group's policy is to give equal consideration to all applicants for employment including disabled people. Career development and training are available to all employees and those who become disabled are afforded every assistance to enable them to continue in their career including retraining where necessary.

ENGAGEMENT WITH EMPLOYEES
The company places considerable value on the involvement of its employees and has continued to keep them informed on matters affecting them as employees and on the various factors affecting the performance of the company. This is achieved through formal and informal meetings and through regular communication.

DISCLOSURE IN THE STRATEGIC REPORT
Identification of the information for which the group has chosen, in accordance with s414C(11) of the Companies Act, to set out in the group's strategic report which would otherwise be required by Schedule 7 of the 'Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008' to be contained in the directors' report.


3AB CARE LIMITED (REGISTERED NUMBER: 06500143)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MARCH 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS
DTE Business Advisers Limited has indicated its willingness to be reappointed for another term and appropriate arrangements are being made for it to be deemed reappointed as auditor in the absence of an Annual General Meeting.

ON BEHALF OF THE BOARD:





Hitan Patel - Director


7 September 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
3AB CARE LIMITED


Opinion
We have audited the financial statements of 3ab Care Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the group's and of the parent company affairs as at 31 March 2023 and of the group's profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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 the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
3AB CARE LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

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

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

As part of our planning process:
- We enquired of management the systems and controls the group has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The group did not inform us of any known, suspected or alleged fraud.
- We obtained an understanding of the legal and regulatory frameworks applicable to the group. We determined that the following were most relevant: FRS 102, Companies Act 2006, Health & Safety at Work 1974, Employment Act 2002 and General Data Protection Regulations (GDPR).
- We considered the incentives and opportunities that exist in the group, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.
- Using our knowledge of the group, together with the discussions held with the group at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.


REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
3AB CARE LIMITED

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
- Identifying and testing journal entries, in particular those that were significant and unusual.
- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to the calculation of depreciation.
- Assessing the extent of compliance, or lack of, with the relevant laws and regulations in particular those that are central to the entity's ability to continue in operation.
- Testing key revenue lines, in particular cut-off, for evidence of management bias.
- Performing a physical verification of key assets.
- Obtaining third-party confirmation of material bank and loan balances.
- Documenting and verifying all significant related party and consolidated balances and transactions.
- Testing all material consolidation adjustments.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Richard Taylor (Senior Statutory Auditor)
for and on behalf of DTE Business Advisers Limited
Chartered Accountants
Statutory Auditors
The Exchange
5 Bank Street
Bury
Lancashire
BL9 0DN

20 September 2023

3AB CARE LIMITED (REGISTERED NUMBER: 06500143)

CONSOLIDATED
INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023

2023 2022
Notes £    £   

REVENUE 3 12,543,378 10,146,811

Cost of sales (7,916,136 ) (6,913,186 )
GROSS PROFIT 4,627,242 3,233,625

Administrative expenses (2,893,069 ) (2,409,859 )
1,734,173 823,766

Other operating income 615 486,884
OPERATING PROFIT 5 1,734,788 1,310,650

Interest receivable and similar income 6,818 3,696
1,741,606 1,314,346

Interest payable and similar expenses 6 (214,345 ) (85,710 )
PROFIT BEFORE TAXATION 1,527,261 1,228,636

Tax on profit 7 (308,237 ) (166,933 )
PROFIT FOR THE FINANCIAL YEAR 1,219,024 1,061,703
Profit attributable to:
Owners of the parent 1,219,024 1,061,703

3AB CARE LIMITED (REGISTERED NUMBER: 06500143)

CONSOLIDATED
OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 1,219,024 1,061,703


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,219,024

1,061,703

Total comprehensive income attributable to:
Owners of the parent 1,219,024 1,061,703

3AB CARE LIMITED (REGISTERED NUMBER: 06500143)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 MARCH 2023

2023 2022
Notes £    £   
FIXED ASSETS
Intangible assets 10 - 23,271
Property, plant and equipment 11 7,348,007 5,177,216
Investments 12 - -
7,348,007 5,200,487

CURRENT ASSETS
Debtors 13 667,708 646,301
Cash at bank and in hand 2,859,627 2,617,014
3,527,335 3,263,315
CREDITORS
Amounts falling due within one year 14 (2,500,894 ) (1,920,114 )
NET CURRENT ASSETS 1,026,441 1,343,201
TOTAL ASSETS LESS CURRENT
LIABILITIES

8,374,448

6,543,688

CREDITORS
Amounts falling due after more than one
year

15

(5,722,768

)

(3,767,043

)

PROVISIONS FOR LIABILITIES 19 (53,936 ) (32,195 )
NET ASSETS 2,597,744 2,744,450

CAPITAL AND RESERVES
Called up share capital 20 1,226 1,300
Capital redemption reserve 21 74 -
Retained earnings 21 2,596,444 2,743,150
SHAREHOLDERS' FUNDS 2,597,744 2,744,450

The financial statements were approved by the Board of Directors and authorised for issue on 7 September 2023 and were signed on its behalf by:





Hitan Patel - Director


3AB CARE LIMITED (REGISTERED NUMBER: 06500143)

COMPANY STATEMENT OF FINANCIAL POSITION
31 MARCH 2023

2023 2022
Notes £    £   
FIXED ASSETS
Intangible assets 10 - -
Property, plant and equipment 11 3,975,939 1,886,439
Investments 12 675,103 675,103
4,651,042 2,561,542

CURRENT ASSETS
Debtors 13 2,663,394 1,365,233
Cash at bank 1,675,401 1,792,033
4,338,795 3,157,266
CREDITORS
Amounts falling due within one year 14 (1,667,790 ) (1,782,509 )
NET CURRENT ASSETS 2,671,005 1,374,757
TOTAL ASSETS LESS CURRENT
LIABILITIES

7,322,047

3,936,299

CREDITORS
Amounts falling due after more than one
year

15

(5,722,768

)

(2,491,239

)
NET ASSETS 1,599,279 1,445,060

CAPITAL AND RESERVES
Called up share capital 20 1,226 1,300
Capital redemption reserve 74 -
Retained earnings 1,597,979 1,443,760
SHAREHOLDERS' FUNDS 1,599,279 1,445,060

Company's profit for the financial year 1,519,949 634,702

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

The financial statements were approved by the Board of Directors and authorised for issue on 7 September 2023 and were signed on its behalf by:





Hitan Patel - Director


3AB CARE LIMITED (REGISTERED NUMBER: 06500143)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£    £    £    £   

Balance at 1 April 2021 1,000 1,781,447 - 1,782,447

Changes in equity
Issue of share capital 300 - - 300
Dividends - (100,000 ) - (100,000 )
Total comprehensive income - 1,061,703 - 1,061,703
Balance at 31 March 2022 1,300 2,743,150 - 2,744,450

Changes in equity
Purchase of own shares (74 ) (1,265,730 ) 74 (1,265,730 )
Dividends - (100,000 ) - (100,000 )
Total comprehensive income - 1,219,024 - 1,219,024
Balance at 31 March 2023 1,226 2,596,444 74 2,597,744

3AB CARE LIMITED (REGISTERED NUMBER: 06500143)

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£    £    £    £   

Balance at 1 April 2021 1,000 909,058 - 910,058

Changes in equity
Issue of share capital 300 - - 300
Dividends - (100,000 ) - (100,000 )
Total comprehensive income - 634,702 - 634,702
Balance at 31 March 2022 1,300 1,443,760 - 1,445,060

Changes in equity
Purchase of own shares (74 ) (1,265,730 ) 74 (1,265,730 )
Dividends - (100,000 ) - (100,000 )
Total comprehensive income - 1,519,949 - 1,519,949
Balance at 31 March 2023 1,226 1,597,979 74 1,599,279

3AB CARE LIMITED (REGISTERED NUMBER: 06500143)

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 2,521,443 1,656,570
Interest paid (214,345 ) (85,710 )
Tax paid (297,128 ) (251,070 )
Net cash from operating activities 2,009,970 1,319,790

Cash flows from investing activities
Purchase of tangible fixed assets (2,375,193 ) (165,785 )
Interest received 6,818 3,696
Net cash from investing activities (2,368,375 ) (162,089 )

Cash flows from financing activities
New loans in year 6,200,000 -
Loan repayments in year (4,233,252 ) (305,777 )
Share issue - 300
Share buyback (1,265,730 ) -
Equity dividends paid (100,000 ) (100,000 )
Net cash from financing activities 601,018 (405,477 )

Increase in cash and cash equivalents 242,613 752,224
Cash and cash equivalents at beginning of
year

2

2,617,014

1,864,790

Cash and cash equivalents at end of year 2 2,859,627 2,617,014

3AB CARE LIMITED (REGISTERED NUMBER: 06500143)

NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit before taxation 1,527,261 1,228,636
Depreciation charges 227,673 204,212
Finance costs 214,345 85,710
Finance income (6,818 ) (3,696 )
1,962,461 1,514,862
Increase in trade and other debtors (38,292 ) (308,344 )
Increase in trade and other creditors 597,274 450,052
Cash generated from operations 2,521,443 1,656,570

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 March 2023
31.3.23 1.4.22
£    £   
Cash and cash equivalents 2,859,627 2,617,014
Year ended 31 March 2022
31.3.22 1.4.21
£    £   
Cash and cash equivalents 2,617,014 1,864,790


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.4.22 Cash flow At 31.3.23
£    £    £   
Net cash
Cash at bank and in hand 2,617,014 242,613 2,859,627
2,617,014 242,613 2,859,627
Debt
Debts falling due within 1 year (263,270 ) (11,023 ) (274,293 )
Debts falling due after 1 year (3,767,043 ) (1,955,725 ) (5,722,768 )
(4,030,313 ) (1,966,748 ) (5,997,061 )
Total (1,413,299 ) (1,724,135 ) (3,137,434 )

3AB CARE LIMITED (REGISTERED NUMBER: 06500143)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023


1. STATUTORY INFORMATION

3AB Care Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 06500143 and its registered office address is The Heathers, Quarry Road, Chipping Sodbury, Bristol, BS37 6AX.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern
The directors have reviewed the activities of the company and its subsidiaries and have a reasonable expectation that the company and group have 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.

Basis of consolidation
The consolidated financial statements incorporate the results of 3ab Care Limited and all of its material subsidiary undertakings as at 31 March 2023 using the acquisition method of accounting. The results of subsidiary undertakings are included from the date of acquisition.

A subsidiary is no longer consolidated when control is lost. The difference between any disposal proceeds and the carrying amount of the subsidiary's net assets (including related goodwill) is recognised in the income statement as a gain or loss on disposal.

Significant judgements and estimates
In the application of the company's accounting policies, the directors are required to make estimates and judgements. The estimates are based on historical experience and other relevant factors. Actual results may differ from these estimates.

The estimates are continually evaluated. Revisions to accounting estimates are recognised in the period in which the estimate is revised.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

Estimating the useful economic life of an asset and the anticipated residual value are considered the key judgement in calculating an appropriate depreciation and amortisation charge.

Making judgement based on historical experience on the level of provision required for bad debts. Further information received after the statement of financial position date may impact on the level of provision required.

Revenue
Revenue is recognised at the fair value of the consideration received or receivable for services
provided in the normal course of business. Revenue comprises the invoiced value of services supplied by the group. The invoices are raised to residents, service users and some councils for care home services supplied.

Revenue is recognised as those services are provided.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of businesses, is being amortised evenly over its estimated useful life of ten years.

3AB CARE LIMITED (REGISTERED NUMBER: 06500143)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


2. ACCOUNTING POLICIES - continued

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Development costs are being amortised evenly over their estimated useful life of ten years.

Property, plant and equipment
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 2% on cost
Long leasehold - 25% on cost, 20% on cost, 10% on cost, over the period of the lease and Straight line over 10 years
Plant and machinery - 25% on cost
Fixtures and fittings - 25% on cost
Motor vehicles - 25% on cost and 10% on cost

The residual values, estimated useful lives and depreciation method of property, plant and equipment are reviewed, and adjusted as appropriate, at each statement of financial position date. The effects of any revision are recognised in the income statement when the change arises.

Land is not depreciated.

Government grants
Grants are accounted for under the accruals model as permitted by FRS 102.

During the prior year the company benefitted from the Government Coronavirus Job Retention Scheme ('Furlough'). Furlough income has been recognised in "other income" in the same period as the related wage costs.

Financial instruments
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to related parties.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the income statement.

Basic financial liabilities are initially measured at transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.


3AB CARE LIMITED (REGISTERED NUMBER: 06500143)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to the income statement on a straight-line basis over the period of the lease.

Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

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

3. REVENUE

The revenue and profit before taxation are attributable to the one principal activity of the group.

An analysis of revenue by class of business is given below:

2023 2022
£    £   
Care homes 11,640,910 9,629,334
Day nursery 902,468 517,477
12,543,378 10,146,811

All income is generated in the UK.

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 7,529,288 6,629,470
Social security costs 626,468 509,376
Other pension costs 135,653 118,799
8,291,409 7,257,645

3AB CARE LIMITED (REGISTERED NUMBER: 06500143)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


4. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
2023 2022

Directors 3 3
Administration 2 2
Care home 286 292
Nursery 27 18
318 315

2023 2022
£    £   
Directors' remuneration 210,912 200,381

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 82,500 92,325

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Other operating leases 51,872 132,983
Depreciation - owned assets 204,402 157,661
Goodwill amortisation 23,271 46,551
Auditors' remuneration 36,886 30,219
Government grants - (486,884 )

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest 214,345 85,710

3AB CARE LIMITED (REGISTERED NUMBER: 06500143)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 286,372 241,173
Under/(over) provision 124 1,892
Total current tax 286,496 243,065

Deferred tax 21,741 (76,132 )
Tax on profit 308,237 166,933

UK corporation tax was charged at 19 %) in 2022.

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 1,527,261 1,228,636
Profit multiplied by the standard rate of corporation tax in the UK of 19 %
(2022 - 19 %)

290,180

233,441

Effects of:
Expenses not deductible for tax purposes 7,647 1,004
Capital allowances in excess of depreciation (3,822 ) (90,386 )
Utilisation of tax losses - 19,760
Adjustments to tax charge in respect of previous periods 124 1,892
Other non reversing timing differences - 1,222
Effect of change in tax rate 14,108 -
Total tax charge 308,237 166,933

For financial years beginning after 1 April 2023, the corporation tax rate will be increased to 25% for profits over £250,000. A small profits rate (SPR) will also be introduced for companies with profits of £50,000 or less so that they will continue to pay corporation tax at 19%. Companies with profits between £50,000 and £250,000 will pay tax at the main rate reduced by marginal relief. The directors are not aware of any other factors that will materially affect the future tax charge.

8. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


3AB CARE LIMITED (REGISTERED NUMBER: 06500143)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


9. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £1 each
Interim 100,000 100,000

10. INTANGIBLE FIXED ASSETS

Group
Development
Goodwill costs Totals
£    £    £   
COST
At 1 April 2022
and 31 March 2023 465,514 12,816 478,330
AMORTISATION
At 1 April 2022 442,243 12,816 455,059
Amortisation for year 23,271 - 23,271
At 31 March 2023 465,514 12,816 478,330
NET BOOK VALUE
At 31 March 2023 - - -
At 31 March 2022 23,271 - 23,271

Company
Development
costs
£   
COST
At 1 April 2022
and 31 March 2023 12,816
AMORTISATION
At 1 April 2022
and 31 March 2023 12,816
NET BOOK VALUE
At 31 March 2023 -
At 31 March 2022 -

3AB CARE LIMITED (REGISTERED NUMBER: 06500143)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


11. PROPERTY, PLANT AND EQUIPMENT

Group
Freehold Long Plant and
property leasehold machinery
£    £    £   
COST
At 1 April 2022 6,204,936 202,153 2,063,665
Additions 2,089,500 - 213,077
At 31 March 2023 8,294,436 202,153 2,276,742
DEPRECIATION
At 1 April 2022 1,362,214 134,613 1,858,713
Charge for year - 18,748 159,025
At 31 March 2023 1,362,214 153,361 2,017,738
NET BOOK VALUE
At 31 March 2023 6,932,222 48,792 259,004
At 31 March 2022 4,842,722 67,540 204,952

Fixtures
and Motor
fittings vehicles Totals
£    £    £   
COST
At 1 April 2022 90,478 91,836 8,653,068
Additions 13,292 59,324 2,375,193
At 31 March 2023 103,770 151,160 11,028,261
DEPRECIATION
At 1 April 2022 79,463 40,849 3,475,852
Charge for year 13,413 13,216 204,402
At 31 March 2023 92,876 54,065 3,680,254
NET BOOK VALUE
At 31 March 2023 10,894 97,095 7,348,007
At 31 March 2022 11,015 50,987 5,177,216

No depreciation has been charged on freehold property as residual value is not considered to be materially different from net book value.

3AB CARE LIMITED (REGISTERED NUMBER: 06500143)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


11. PROPERTY, PLANT AND EQUIPMENT - continued

Company
Freehold
property
£   
COST
At 1 April 2022 2,388,241
Additions 2,089,500
At 31 March 2023 4,477,741
DEPRECIATION
At 1 April 2022
and 31 March 2023 501,802
NET BOOK VALUE
At 31 March 2023 3,975,939
At 31 March 2022 1,886,439

12. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 April 2022
and 31 March 2023 675,103
NET BOOK VALUE
At 31 March 2023 675,103
At 31 March 2022 675,103


Subsidiary undertakings

Name Registered office Holding Nature of business
Ambourne House Limited England 100% ordinary Day nursery
Brookhouse Care Home Limited England 100% ordinary Care home
Harley House Care Home Limited England 100% ordinary Care home
HS 228 Limited England 100% ordinary Dormant
Painswick Road Care Home Ltd England 100% ordinary Care home
The Willows Care Home (Shepshed) Ltd England 100% ordinary Care home
Westcroft Nursing Home Limited England 100% ordinary Care home
Acacia Care Limited England 100% ordinary Care home

3AB CARE LIMITED (REGISTERED NUMBER: 06500143)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Trade debtors 529,055 462,681 - -
Amounts owed by group undertakings - - 2,649,226 1,333,395
Other debtors 458 300 300 300
Corporation tax 2,875 19,760 - 19,760
Deferred tax asset - - 13,868 2,351
Prepayments and accrued income 135,320 163,560 - 9,427
667,708 646,301 2,663,394 1,365,233

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Bank loans and overdrafts (see note 16) 274,293 263,270 274,293 174,107
Trade creditors 173,862 186,334 896 2,346
Amounts owed to group undertakings - - 933,604 1,413,994
Corporation tax 163,420 190,937 - -
Social security and other taxes 145,003 126,379 30,610 7,557
Other creditors 262,856 180,301 123,999 31,200
Accruals and deferred income 1,481,460 972,893 304,388 153,305
2,500,894 1,920,114 1,667,790 1,782,509

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Bank loans (see note 16) 5,722,768 3,767,043 5,722,768 2,491,239

3AB CARE LIMITED (REGISTERED NUMBER: 06500143)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


16. LOANS

An analysis of the maturity of loans is given below:

Group Company
2023 2022 2023 2022
£    £    £    £   
Amounts falling due within one year or on demand:
Bank loans 274,293 263,270 274,293 174,107
Amounts falling due between one and two years:
Bank loans - 1-2 years 291,037 270,323 291,037 178,771
Amounts falling due between two and five years:
Bank loans - 2-5 years 984,113 3,496,720 984,113 2,312,468
Amounts falling due in more than five years:
Repayable by instalments
Bank loans more 5 yr by instal 4,447,618 - 4,447,618 -

17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Non-cancellable operating leases
2023 2022
£    £   
Within one year 2,905 120,000
Between one and five years 7,258 355,900
10,163 475,900

18. SECURED DEBTS

The following secured debts are included within creditors:

Group
2023 2022
£    £   
Bank loans 5,997,061 4,030,313

Bank loans are secured by way of a debenture over the group's assets as well as a charge over the properties and an unlimited inter-company guarantee.

3AB CARE LIMITED (REGISTERED NUMBER: 06500143)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


19. PROVISIONS FOR LIABILITIES

Group
2023 2022
£    £   
Deferred tax 53,936 32,195

Group
Deferred
tax
£   
Balance at 1 April 2022 32,195
Charge to Income Statement during year 21,741
Balance at 31 March 2023 53,936

Company
Deferred
tax
£   
Balance at 1 April 2022 (2,351 )
Credit to Income Statement during year (11,517 )
Balance at 31 March 2023 (13,868 )

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
926 Ordinary £1 926 1,000
300 Ordinary B £1 300 300
1,226 1,300

The Ordinary B shares rank after the Ordinary shares. The Ordinary B shares do not hold voting rights.

During the year, 74 ordinary shares were repurchased for £1,259,430.

21. RESERVES

The following describes the nature and purpose of each reserve within equity:

Retained earnings
All other net gains and losses and transactions with owners not recognised elsewhere.

Capital redemption reserve
This reserve records the nominal value of shares repurchased by the company.

3AB CARE LIMITED (REGISTERED NUMBER: 06500143)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023


22. RELATED PARTY DISCLOSURES

During the year the group was charged rent of £34,028 (2022: £120,000) by the group pension scheme.

23. POST BALANCE SHEET EVENTS

Dividends totalling £62,600 were declared on 14 April 2023.

24. ULTIMATE CONTROLLING PARTY

Mr A R Patel and his family and brothers are the controlling party by virtue of their 100% interest in the
issued share capital of the group.