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Registration number: 06253884

Central England Healthcare Limited

Annual Report and Financial Statements

for the Year Ended 28 February 2023

 

Central England Healthcare Limited

Contents

Company Information

1

Directors' Report

2

Strategic Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 7

Profit and Loss Account

8

Balance Sheet

9

Statement of Changes in Equity

10

Notes to the Financial Statements

11 to 22

 

Central England Healthcare Limited

Company Information

Directors

K K Kandola

S S Kandola

S S Kandola

Company secretary

S S Kandola

S S Kandola

Registered office

8 Clarendon Place
Leamington Spa
Warwickshire
CV32 5QN

Bankers

Barclays Bank PLC
1 Churchill Place
Canary Wharf
London
E14 5HP

Auditors

Hazlewoods LLP
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

 

Central England Healthcare Limited

Directors' Report for the Year Ended 28 February 2023

The directors present their report and the financial statements for the year ended 28 February 2023.

Directors of the company

The directors who held office during the year were as follows:

K K Kandola

S S Kandola

S S Kandola

Financial instruments

Objectives and policies

The director constantly monitors the group's trading results and revises projections as appropriate to ensure that the company can meet its future obligations as they fall due.

Price risk, credit risk, liquidity risk and cash flow risk

The company is exposed to the usual credit and cash flow risk associated with selling on credit and manages this through credit control procedures. The nature of its financial instruments are such that they are not subject to price risk and liquidity risk.

In accordance with the Financial Reporting Council's ' Going Concern and Liquidity Risk: Guidance for Directors of UK Companies 2009', the directors of all companies are now required to provide disclosures regarding the adoption of the going concern basis of accounting.

The company has sufficient resources available and continues to trade profitably generating cash. The director therefore has a reasonable expectation that the company has adequate resources to continue in operational existence for the forseeable future and has continued to adopt the going concern basis in preparing the financial statements.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

Hazlewoods LLP have expressed their willingness to continue in office.

Approved by the Board on 18 October 2023

.........................................
K K Kandola
Director

 

Central England Healthcare Limited

Strategic Report for the Year Ended 28 February 2023

The directors present their strategic report for the year ended 28 February 2023.

Principal activity

The principal activity of the company is that of providing residential and nursing care to the elderly.

Fair review of the business

The directors of the company considers that the financial position at the year end is satisfactory. The results for the year, which are set out in the profit and loss account, show turnover for the year of £1,944,055 (2022 - £1,777,960) and operating profit of £315,676 (2022 - £310,873). At 28 February 2022, the company had net assets of £179,837 (2022 - £135,971).

During the year the bank loan covenants were technically breached and this has continued post year end. The bank are supporting the group and have waivered the breach in covenants post year end.

Principal risks and uncertainties

The management of the business and the execution of the company's strategy are subject to a number of risks. The key business risks and uncertainties affecting the group are considered to relate to the continued provision of adequate government funding and the ongoing compliance with current and future legislation affecting the sector.

Approved by the Board on 18 October 2023

.........................................
K K Kandola
Director

 

Central England Healthcare Limited

Statement of Directors' Responsibilities

The directors are responsible for preparing the Directors' Report, Strategic 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:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards has been followed, subject to any material departures disclosed and explained in the financial statements; and

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 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.

 

Central England Healthcare Limited

Independent Auditor's Report to the Members of Central England Healthcare Limited

Opinion

We have audited the financial statements of Central England Healthcare Limited (the 'company') for the year ended 28 February 2023, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, and 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 company's affairs as at 28 February 2023 and of its 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 auditor 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 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 original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter 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 Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

 

Central England Healthcare Limited

Independent Auditor's Report to the Members of Central England Healthcare Limited

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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, or returns adequate for our audit have not been received from branches not visited by us; or

the 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 4, 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 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:

Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISA's (UK).

In identifying and assessing risks of material mis-statement in respect of fraud, including irregularities and non-compliance with laws and regulations, our procedures included the following:

• We obtained an understanding of the legal and regulatory frameworks applicable to the company financial statements or that had a fundamental effect on the company's operations. We determined that the most significant laws and regulations included UK GAAP, UK Companies Act 2006 and taxation laws.
• We understood how the company is complying with those legal and regulatory frameworks by making inquiries of management and those responsible for legal and compliance procedures.
• We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur.

Audit procedures performed by the engagement team included:

• Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
• Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process. Detailed analysis of journals posted through the accounting system during the year to 28 February 2022 has been undertaken;
• Understanding the controls in place to prevent and detect fraud. Reliance was not placed on controls for the entirety of the audit, instead taking a substantive testing approach, however controls were in place to prevent fraud, and they appeared to be working effectively;
• Challenging assumptions and judgements made by management in its significant accounting estimates.

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

 

Central England Healthcare Limited

Independent Auditor's Report to the Members of Central England Healthcare Limited

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.





Joanne Hartness (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Windsor House
Bayshill Road
Cheltenham
GL50 3AT

19 October 2023

 

Central England Healthcare Limited

Profit and Loss Account for the Year Ended 28 February 2023

Note

2023
 £

2022
 £

Turnover

3

1,944,055

1,777,960

Other income

4

7,392

90,903

Cost of sales

 

(1,135,315)

(1,070,858)

Gross profit

 

816,132

798,005

Administrative expenses

 

(508,272)

(498,808)

Other operating income

4

7,816

11,676

Operating profit

6

315,676

310,873

Other interest receivable and similar income

7

3,070,574

953,531

Interest payable and similar charges

8

(398,743)

(275,550)

Profit before tax

 

2,987,507

988,854

Taxation

11

(13,641)

(58,299)

Profit for the financial year

 

2,973,866

930,555

The above results were derived from continuing operations.

The company has no other comprehensive income for the year.

 

Central England Healthcare Limited

(Registration number: 06253884)
Balance Sheet as at 28 February 2023

Note

2023
 £

2022
 £

Fixed assets

 

Intangible assets

12

-

-

Tangible assets

13

2,207,063

2,222,450

Investments

14

1,301,974

1,301,974

 

3,509,037

3,524,424

Current assets

 

Stocks

16

3,000

3,000

Debtors: Amounts falling due within one year

17

187,100

129,479

Debtors: Amounts falling due after more than one year

17

1,949,834

503,688

Other financial assets

15

896,295

945,892

Cash at bank and in hand

 

5,680

98,601

 

3,041,909

1,680,660

Creditors: Amounts falling due within one year

18

(437,466)

(405,726)

Net current assets excluding bank debt

 

2,604,443

1,274,934

Bank debt due within one year

 

(131,524)

(132,536)

Net current (liabilities)/assets

 

2,472,919

1,142,398

Total assets less current liabilities

 

5,981,956

4,666,822

Creditors: Amounts falling due after more than one year

18

(5,765,863)

(4,492,827)

Provisions for liabilities

11

(36,256)

(38,024)

Net assets

 

179,837

135,971

Capital and reserves

 

Called up share capital

21

1,000

1,000

Profit and loss account

178,837

134,971

Total equity

 

179,837

135,971

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


K K Kandola
Director

 

Central England Healthcare Limited

Statement of Changes in Equity for the Year Ended 28 February 2023

Share capital
£

Profit and loss account
£

Total
£

At 1 March 2022

1,000

134,971

135,971

Profit for the year

-

2,973,866

2,973,866

Dividends

-

(2,930,000)

(2,930,000)

At 28 February 2023

1,000

178,837

179,837

Share capital
£

Profit and loss account
£

Total
£

At 1 March 2021

1,000

54,416

55,416

Profit for the year

-

930,555

930,555

Dividends

-

(850,000)

(850,000)

At 28 February 2022

1,000

134,971

135,971

 

Central England Healthcare Limited

Notes to the Financial Statements for the Year Ended 28 February 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:
8 Clarendon Place
Leamington Spa
Warwickshire
CV32 5QN

 

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 were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

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

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Summary of disclosure exemptions

The company has not presented a cash flow statement on the grounds that the company is a wholly owned subsidiary and a group cash flow statement is included in the financial statements of the ultimate parent company.

Name of parent of group

These financial statements are consolidated in the financial statements of Central England Healthcare (Holdings) Limited.

The financial statements of Central England Healthcare (Holdings) Limited may be obtained from Companies House.

Group accounts not prepared

The financial statements present information about the company as an individual undertaking and not about its group. The company has not prepared group accounts as it is exempt from the requirements to do so by section 400 of the Companies Act 2006 as it is a subsidiary undertaking of Central England Healthcare (Holdings) Limited, a company incorporated in England and Wales, and it is included in the consolidated accounts of that company.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Judgements and estimation uncertainty

These financial statements do not contain any significant judgements or estimation uncertainty.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the 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 and after eliminating sales within the company. 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.

 

Central England Healthcare Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

Tax

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

The current 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 on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

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, over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Land and buildings

1% of cost

Furniture, fittings and equipment

15% reducing balance

Freehold land

Nil

Intangible assets

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 held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.

Negative goodwill arising on an acquisition is recognised on the face of the balance sheet on the acquisition date and subsequently the excess up to the fair value of non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered.

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

Straight line over 10 years

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

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.

 

Central England Healthcare Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

Trade debtors

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

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. 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 debtors.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable 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 all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

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.

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.

 

Central England Healthcare Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

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.

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
 

 

Central England Healthcare Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

Financial instruments (continued)

Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
 

 

3

Revenue

The total turnover of the company has been derived from its principal activity wholly undertaken in the United Kingdom.

 

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2023
£

2022
£

Infection control grant

7,392

86,352

Workforce capacity fund income

-

4,551

Miscellaneous other operating income

7,816

11,676

15,208

102,579

 

5

Other gains and losses

The analysis of the company's other gains and losses for the year is as follows:

2023
£

2022
£

Fair value loss on other financial assets

(49,597)

(54,108)

 

Central England Healthcare Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

 

6

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

43,949

43,545

Operating lease expense - property

20,880

15,660

Operating lease expense - plant and machinery

32,456

30,189

 

7

Other interest receivable and similar income

2023
£

2022
£

Interest receivable on amounts owed from group undertakings

140,574

103,531

Dividend income

2,930,000

850,000

3,070,574

953,531

 

8

Interest payable and similar expenses

2023
£

2022
£

Interest on obligations under finance leases and hire purchase contracts

4,746

5,698

Interest expense on other finance liabilities

393,997

269,852

398,743

275,550

 

9

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
 £

2022
 £

Wages and salaries

804,446

854,276

Social security costs

107,855

94,295

Pension costs, defined contribution scheme

23,173

21,727

935,474

970,298

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2023
 No.

2022
 No.

Care staff

52

55

 

10

Auditors' remuneration

2023
£

2022
£

Audit of the financial statements

17,111

12,615

 

Central England Healthcare Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

 

11

Taxation

Tax charged/(credited) in the profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax

15,409

40,081

UK corporation tax adjustment to prior periods

-

9,785

15,409

49,866

Deferred taxation

Arising from origination and reversal of timing differences

(1,768)

8,433

Tax expense in the income statement

13,641

58,299

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of 19% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

2,987,507

988,854

Corporation tax at standard rate

567,626

187,882

Effect of expense not deductible in determining taxable profit (tax loss)

389

10,281

(Decrease)/increase in UK and foreign current tax from unrecognised temporary difference from a prior period

(1,768)

9,785

Tax increase from effect of capital allowances and depreciation

4,094

11,851

Tax decrease from effect of dividends from UK companies

(556,700)

(161,500)

Total tax charge

13,641

58,299

Deferred tax

Deferred tax assets and liabilities

2023

Liability
£

Difference between accumulated depreciation and capital allowances

36,256

2022

Liability
£

Difference between accumulated depreciation and capital allowances

38,024

 

Central England Healthcare Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

 

12

Intangible assets

Goodwill
 £

Cost

At 1 March 2022 and at 28 February 2023

476,000

Amortisation

At 1 March 2022 and at 28 February 2023

476,000

Carrying amount

At 28 February 2021 and at 28 February 2023

-

 

13

Tangible assets

Freehold land and buildings
£

Furniture, fittings and equipment
 £

Total
£

Cost

At 1 March 2022

2,355,208

422,938

2,778,146

Additions

18,865

9,697

28,562

At 28 February 2023

2,374,073

432,635

2,806,708

Depreciation

At 1 March 2022

276,587

279,109

555,696

Charge for the year

20,921

23,028

43,949

At 28 February 2023

297,508

302,137

599,645

Carrying amount

At 28 February 2023

2,076,565

130,498

2,207,063

At 28 February 2022

2,078,621

143,829

2,222,450

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

 

2023
£

2022
£

Furniture, fittings and equipment

44,423

47,031

     
 

Central England Healthcare Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

 

14

Investments in subsidiaries, joint ventures and associates

2023
£

2022
£

Investments in subsidiaries

1,301,974

1,301,974

Subsidiaries

£

Cost and carrying amount

At 1 March 2022 and at 28 February 2023

1,301,974

Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2023

2022

Subsidiary undertakings

Central England Healthcare (Stoke) Limited

Ordinary

100%

100%

 

England and Wales

     

Central England Healthcare (Wolverhampton) Limited

Ordinary

100%

100%

 

England and Wales

     

Central England Healthcare (Coventry) Limited

Ordinary

100%

100%

 

England and Wales

     

Central England Healthcare (Cannock) Limited

Ordinary

100%

100%

 

England and Wales

     

This principal activity of all subsidiaries is providing residential and nursing care to the elderly.

 

15

Other financial assets

Financial assets at cost less impairment
£

Current financial assets

Cost or valuation

At 1 March 2022

1,000,000

Prior period losses

(54,108)

Losses made in the period

(49,597)

Carrying amount

At 28 February 2023

896,295

 

Central England Healthcare Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

 

16

Stocks

2023
£

2022
£

Stocks

3,000

3,000

 

17

Debtors

2023
 £

2022
 £

Trade debtors

186,969

112,699

Prepayments

131

16,780

Amounts owed by group undertakings

1,949,834

503,688

 

2,136,934

633,167

Less non-current portion

(1,949,834)

(503,688)

Total current trade and other debtors

187,100

129,479

Details of non-current trade and other debtors

£1,949,834 (2022 - £503,688) of amounts due from group undertakings is classified as non-current.

 

18

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Loans and borrowings

19

153,624

149,048

Trade creditors

 

36,079

69,614

Social security and other taxes

 

22,417

26,937

Outstanding defined contribution pension costs

 

8,374

3,889

Other creditors

 

81,150

76,608

Accrued expenses

 

179,515

172,085

Corporation tax liability

11

87,831

40,081

 

568,990

538,262

Due after one year

 

Loans and borrowings

19

1,556,216

1,655,762

Amounts owed to related parties

25

1,246,544

1,214,627

Amounts owed to group undertakings

 

2,963,103

1,622,438

 

5,765,863

4,492,827

 

Central England Healthcare Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

 

19

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Bank borrowings

131,524

132,536

HP and finance lease liabilities

22,100

16,512

153,624

149,048

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

1,546,348

1,638,000

HP and finance lease liabilities

9,868

17,762

1,556,216

1,655,762

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

The loan incurs an interest rate of 2.35% above SONIA and is secured against all the assets of the company and by way of an intercompany guarantee. The loan is repayable in quarterly instalments up to 24 April 2025, when the loan falls due for repayment in full.

 

20

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £23,173 (2022 - £21,727).

Contributions totalling £8,374 (2022 - £3,889) were payable to the scheme at the end of the year and are included in creditors.

 

21

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary A shares of £1 each

900

900

900

900

Ordinary B shares of £1 each

50

50

50

50

Ordinary C shares of £1 each

50

50

50

50

 

1,000

1,000

1,000

1,000

Rights, preferences and restrictions

The different classes of share rank pari passu in all respects other than dividend rights.

 

Central England Healthcare Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

 

22

Obligations under leases and hire purchase contracts

Finance leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

22,100

16,512

Later than one year and not later than five years

9,868

17,762

31,968

34,274

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

4,255

15,855

Later than one year and not later than five years

1,122

5,377

5,377

21,232

 

23

Dividends

2023
 £

2022
 £

Dividends paid on Ordinary A shares

2,930,000

850,000

 

24

Financial guarantee contracts

The total amount of guarantees not included in the balance sheet is £10,347,070 (2022 - £10,982,438). The company is bound by an intra-group cross guarantee in respect of bank debt with other members of the group headed by its ultimate parent company Central England Healthcare (Holdings) Limited and including Central England Healthcare (Great Wyrley) Limited.

 

25

Related party transactions

Other related party transactions
 

At the balance sheet date, the company owed £1,246,544 (2022 - £1,214,627) to Central England Healthcare (Great Wyrley) Limited, a company controlled by K Kandola . These amounts are classified as non-current on the basis that the companies have confirmed unconditionally that the loans are repayable after more than one year. Interest of £94,660 (2022 - £91,000) has been charged to the company.

 

26

Parent and ultimate parent undertaking

The company's immediate parent is Central England Healthcare (Holdings) Limited, incorporated in England and Wales.

 The ultimate controlling party is K Kandola.