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REGISTRAR OF COMPANIES

Registration number: 04541464

P & C Residential Services Limited

Unaudited Financial Statements

30 June 2023

image-name

 

P & C Residential Services Limited

Contents

Accountants' Report

1

Balance Sheet

2

Notes to the Financial Statements

4

 

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
P & C Residential Services Limited
for the Year Ended 30 June 2023

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of P & C Residential Services Limited for the year ended 30 June 2023 as set out on pages 2 to 13 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at http://www.icaew.com/regulation.

This report is made solely to the Board of Directors of P & C Residential Services Limited, as a body, in accordance with the terms of our engagement letter dated 5 July 2022. Our work has been undertaken solely to prepare for your approval the accounts of P & C Residential Services Limited and state those matters that we have agreed to state to the Board of Directors of P & C Residential Services Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than P & C Residential Services Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that P & C Residential Services Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of P & C Residential Services Limited. You consider that P & C Residential Services Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of P & C Residential Services Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.



Dodd & Co Limited
Chartered Accountants
Clint Mill
Cornmarket
PENRITH
CA11 7HW

18 September 2023

 

P & C Residential Services Limited

(Registration number: 04541464)
Balance Sheet as at 30 June 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

5

1,217,910

1,255,931

Investments

6

-

100

 

1,217,910

1,256,031

Current assets

 

Debtors

7

79,963

102,777

Cash at bank and in hand

 

264,770

22,695

 

344,733

125,472

Creditors: Amounts falling due within one year

8

(987,098)

(450,233)

Net current liabilities

 

(642,365)

(324,761)

Total assets less current liabilities

 

575,545

931,270

Creditors: Amounts falling due after more than one year

8

(15,431)

(429,356)

Provisions for liabilities

(72,242)

(73,334)

Net assets

 

487,872

428,580

Capital and reserves

 

Allotted, called up and fully paid share capital

70,002

70,002

Capital redemption reserve

330,000

150,000

Profit and loss account

87,870

208,578

Total equity

 

487,872

428,580

 

P & C Residential Services Limited

(Registration number: 04541464)
Balance Sheet as at 30 June 2023 (continued)

For the financial year ending 30 June 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 18 September 2023 and signed on its behalf by:
 

.........................................

P A Carruthers

Company secretary and director

 

P & C Residential Services Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Westwinds Residential Home
North Shore
Harrington
WORKINGTON
CA14 5QW

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

The company has net current liabilities at 30 June 2023 and meets its day to day working capital requirements through its bank overdraft facility which, in common with all such facilities, is repayable on demand. In addition the directors and the parent company have provided support by way of short terms loans. On the basis of this support, the directors consider it appropriate to prepare the financial statements on the going concern basis.

However, should the company not have the support of its bankers, and therefore be unable to continue trading, adjustments would have to be made to reduce the value of assets to their recoverable amounts, to provide for any further liabilities which might arise, and to reclassify fixed assets and long term liabilities as current assets and current liabilities.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities.


Other grants
Other grants in respect of capital expenditure are credited to a deferred income account and are released to profit over the expected useful lives of the relevant assets on a basis consistent with the depreciation policy.

 

P & C Residential Services Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)


Government grants
Grants relating to revenue are recognised in the profit and loss account on a systematic basis over the periods in which the related costs are recognised for which the grant is intended to compensate.

Grants for the purpose of giving immediate financial support with no future related costs to be incurred are recognised in the profit and loss account when the grant proceeds become receivable.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Land and buildings

2% on cost

Furniture, fittings and office equipment

15% reducing balance

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

100% on cost

 

P & C Residential Services Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

Investments

Fixed asset investments are stated at historical cost less provision for any diminution in value.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for the sale of goods or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method where due after more than one year.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

 

P & C Residential Services Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Preference shares are classified as debt when the shares are redeemable in the future at the option of the holder.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 99 (2022 - 96).

 

P & C Residential Services Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

4

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 July 2022

1,000

1,000

At 30 June 2023

1,000

1,000

Amortisation

At 1 July 2022

1,000

1,000

At 30 June 2023

1,000

1,000

Carrying amount

At 30 June 2023

-

-

 

P & C Residential Services Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

5

Tangible assets

Land and buildings
£

Furniture, fittings and office equipment
 £

Total
£

Cost or valuation

At 1 July 2022

1,099,464

891,681

1,991,145

Additions

-

41,544

41,544

At 30 June 2023

1,099,464

933,225

2,032,689

Depreciation

At 1 July 2022

202,989

532,225

735,214

Charge for the year

21,600

57,965

79,565

At 30 June 2023

224,589

590,190

814,779

Carrying amount

At 30 June 2023

874,875

343,035

1,217,910

At 30 June 2022

896,475

359,456

1,255,931

6

Investments

2023
£

2022
£

Investments in subsidiaries

-

100

Subsidiaries

£

Cost or valuation

At 1 July 2022

100

Disposals

(100)

At 30 June 2023

-

Provision

Carrying amount

At 30 June 2023

-

At 30 June 2022

100

 

P & C Residential Services Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

7

Debtors

2023
£

2022
£

Trade debtors

8,230

9,314

Other debtors

71,733

93,463

79,963

102,777

8

Creditors

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

9

224,569

198,598

Trade creditors

 

89,559

61,613

Amounts owed to group undertakings and undertakings in which the company has a participating interest

 

508,310

100

Taxation and social security

 

25,530

18,227

Corporation tax liability

 

42,111

66,955

Other creditors

 

97,019

104,740

 

987,098

450,233

Due after one year

 

Loans and borrowings

9

-

413,525

Other creditors

 

15,431

15,831

 

15,431

429,356

 

P & C Residential Services Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

9

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Bank borrowings

-

86,214

Bank overdrafts

1,562

1,215

Hire purchase and finance lease liabilities

21,973

27,858

Redeemable preference shares

-

80,000

Other borrowings

201,034

3,311

224,569

198,598

Current loans and borrowings includes the following liabilities, on which security has been given by the company:

2023
£

2022
£

Bank borrowings

-

86,214

Bank overdrafts

1,562

1,215

Hire purchase and finance lease liabilities

21,973

27,858

23,535

115,287

Bank borrowings are secured by fixed and floating charges over the company's assets.

Bank overdrafts are secured by fixed and floating charges over the company's assets.

Hire purchase and finance lease liabilities are secured on the assets to which they relate.

 

P & C Residential Services Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

-

291,496

Hire purchase and finance lease liabilities

-

22,029

Redeemable preference shares

-

100,000

-

413,525

Non-current loans and borrowings includes the following liabilities, on which security has been given by the company:

2023
£

2022
£

Bank borrowings

-

291,496

Hire purchase and finance lease liabilities

-

22,029

-

313,525

Bank borrowings are secured by fixed and floating charges over the company's assets.

Hire purchase and finance lease liabilities are secured on the assets to which they relate.

10

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £168,668 (2022 - £69,625).

These commitments represent operating leases for laundry equipment, telephones and computers.

 

P & C Residential Services Limited

Notes to the Financial Statements for the Year Ended 30 June 2023 (continued)

11

Related party transactions

Transactions with directors

2023

At 1 July 2022
£

Advances
£

Repayments
£

Other payments
£

Dividends credited
£

Interest
£

At 30 June 2023
£

P A Carruthers

Loan

(67,002)

(45,885)

29,994

-

37,698

(1,229)

(46,424)

               
         

R Dietzold

Loan

(3,074)

-

-

-

3,074

-

-

               
         

 

2022

At 1 July 2021
£

Advances
£

Repayments
£

Other payments
£

Dividends credited
£

Interest
£

At 30 June 2022
£

C Keough

Loan

(7,630)

(30,074)

-

-

38,089

(385)

-

               
         

P A Carruthers

Loan

(16,449)

(49,645)

-

-

-

(908)

(67,002)

               
         

R Dietzold

Loan

-

(3,074)

-

-

-

-

(3,074)

               
         

 

Directors' advances are repayable on demand.

Interest has been charged at rates of 2.25% and 2% on advances to directors.