Company registration number 03080899 (England and Wales)
MOUNDSLEY HALL NURSING HOME LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
PAGES FOR FILING WITH REGISTRAR
MOUNDSLEY HALL NURSING HOME LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
MOUNDSLEY HALL NURSING HOME LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
6
125,702
124,026
Current assets
Stocks
12,345
9,556
Debtors
7
810,533
489,222
Cash at bank and in hand
379,192
999,045
1,202,070
1,497,823
Creditors: amounts falling due within one year
8
(1,180,100)
(1,268,396)
Net current assets
21,970
229,427
Total assets less current liabilities
147,672
353,453
Provisions for liabilities
(7,621)
(25,496)
Net assets
140,051
327,957
Capital and reserves
Called up share capital
9
469,100
469,100
Profit and loss reserves
(329,049)
(141,143)
Total equity
140,051
327,957

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered 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 13 October 2023 and are signed on its behalf by:
Mr B M Gimson
Director
Company Registration No. 03080899
MOUNDSLEY HALL NURSING HOME LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
1
Accounting policies
Company information

Moundsley Hall Nursing Home Limited is a private company limited by shares incorporated in England and Wales. The registered office is Moundsley Hall, Walkers Heath Road, Kings Norton, Birmingham, West Midlands, B38 0BL.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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. 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 Moundsley Hall Limited. These consolidated financial statements are available from its registered office, Walkers Heath Road, Kings Norton, Birmingham B38 0BL.

1.2
Going concern

These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future.

The Directors have reached this opinion having considered the following specific matters and also those matters disclosed within note 12.

 

 

MOUNDSLEY HALL NURSING HOME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 3 -
1.3
Turnover

Turnover is recognised at the fair value receivable for care home services provided during the period in the normal course of business. Revenue received in advance is based on the contractual agreement with relevant council. Deferred income as at year end calculated and shown as liability on the balance sheet.

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.

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:

Plant and machinery
20% Straight line
Fixtures, fittings and equipment
20% Straight line
Computer equipment
20% Straight line
Motor vehicles
20% Straight line

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.

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.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

1.7
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.

MOUNDSLEY HALL NURSING HOME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 4 -
1.8
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.

Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'. Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.

 

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the debt instrument to the net carrying amount on initial recognition.

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.

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.

1.9
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.

MOUNDSLEY HALL NURSING HOME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 5 -
1.10
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.

1.11
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.

1.12
Retirement benefits

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

1.13
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.

1.14
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.

MOUNDSLEY HALL NURSING HOME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 6 -
1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

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.

Key sources of estimation uncertainty

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

Rental value

The parent and fellow subsidiary companies charge rent to Moundsley Hall Nursing Home Ltd. Directors have assessed the rental value on a comparable basis having regard to rents in the south Birmingham area with adjustments for location, accessibility and design.

 

Rent in respect of care homes, is based on the valuation approach as guided by the RICS Red Book is to assess the fair maintainable income and sustainable profit or EBITDAR (Earning Before Interest Tax Depreciation Amortisation and Rent).

3
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
11,500
10,050
MOUNDSLEY HALL NURSING HOME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 7 -
4
Employees

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

2022
2021
Number
Number
Directors
3
3
Direct Staff
130
149
Admin Staff
7
7
Total
140
159
5
Directors' remuneration
2022
2021
£
£
Remuneration paid to directors
46,304
126,286
6
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2022
1,857,160
Additions
59,549
At 31 December 2022
1,916,709
Depreciation and impairment
At 1 January 2022
1,733,134
Depreciation charged in the year
57,873
At 31 December 2022
1,791,007
Carrying amount
At 31 December 2022
125,702
At 31 December 2021
124,026
MOUNDSLEY HALL NURSING HOME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
7
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
427,104
380,130
Corporation tax recoverable
23,952
-
0
Amounts owed by group undertakings
322,731
73,178
Other debtors
521
495
Prepayments and accrued income
36,225
35,419
810,533
489,222
8
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
373,102
267,638
Amounts owed to group undertakings
351,250
461,302
Corporation tax
-
0
22,870
Other taxation and social security
38,664
42,536
Other creditors
243,797
232,322
Accruals and deferred income
173,287
241,728
1,180,100
1,268,396

On 25 January 2010, a debenture was entered with National Westminster Bank PLC. A fixed and floating charge over the undertaking and all property and assets of the company.

 

On 8 July 2019, a guarantee was entered with National Westminster Bank PLC confirming Moundsley Hall Nursing Home Limited and Moundsley Healthcare Group Limited jointly will cover any liability owed by Moundsley Hall Limited to the bank up to the total guaranteed amount of £3,936,901.

9
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
469,100
469,100
469,100
469,100
10
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Mr Steven McLoughlin FCCA
Statutory Auditor:
Jerroms Business Solutions Limited
MOUNDSLEY HALL NURSING HOME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
11
Related party transactions

The following amounts were outstanding at the reporting end date:

2022
2021
Amounts due from related parties
£
£
Other related parties
140
1,009
Other information

The company has taken advantage of the exemption available in accordance with FRS102 'Section 33 Paragraph 33.1A' not to disclose transactions entered into between two or more members of a group, as the company is a wholly owned subsidiary undertaking of the group to which it is party to the transactions.

12
Events after the reporting date

In September 2023, Birmingham City Council has issued a section 114 notice, an admission that it cannot manage its financial crisis without help. This decision was made as the council anticipated a gap of £87 million between income and expenditure for the 2024/25 financial year.

 

The government has appointed Commissioners to take over Birmingham City Council. Commissioners would be in charge of the council’s financial governance and scrutiny.

 

As per Section 114, no new expenditure is permitted. There are exceptions for funding statutory services, including safeguarding vulnerable people, and existing commitments and contracts will continue to be honoured, according to the Local Government Finance Act 1988, Section 114 (3).

 

Birmingham City Council continues to fund existing contracts in place with the company and have placed new contracts since the announcement at normal fee levels without interruption.

 

The Care Quality Commission is currently carrying out a review of one of the care homes in which Moundsley Hall Nursing Home Limited operates from. The outcome of this review remains unknown at the date of signing these financial statements. Historically, this care home has received positive ratings from the Care Quality Commission and we fully expect this to be the case with this review.

 

13
Parent company

The parent company of Moundsley Hall Nursing Home Limited is Moundsley Hall Limited, a company registered in England and Wales.

 

There is no ultimate controlling party.

14
Non-audit services provided by auditor

In common with many businesses of our size and nature we use our auditor to prepare and submit returns to the tax authorities and assist with the preparation of the financial statements.

15
Auditor's liability limitation agreement

The company has, by resolution, waived the need for approval of the auditors’ limitation liability, which has been set at £2,000,000 within the letter of engagement dated 4 August 2022. This approval has been confirmed in the letter of representation dated 6 October 2023.

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