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REGISTERED NUMBER: 11885403 (England and Wales)















UNITED HEALTH GROUP 2 LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023






UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403)






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




Page

Company Information 1

Group Strategic Report 2 to 3

Report of the Directors 4

Report of the Independent Auditors 5 to 8

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 to 26


UNITED HEALTH GROUP 2 LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 JANUARY 2023







DIRECTORS: P J Pearson
M T Cheriton-Metcalfe
S D Travers


SECRETARY: J L Flintham


REGISTERED OFFICE: The Old Coach House
Gainsborough Road
Drinsey Nook
Lincoln
Lincolnshire
LN1 2JJ


REGISTERED NUMBER: 11885403 (England and Wales)


SENIOR STATUTORY AUDITOR: Timothy Godson FCA


AUDITORS: Duncan & Toplis Audit Limited, Statutory Auditor
4 Henley Way
Doddington Road
Lincoln
Lincolnshire
LN6 3QR


BANKERS: HSBC Bank Plc
221 High Street
Lincoln
Lincolnshire
LN1 1TS

UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2023

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

REVIEW OF BUSINESS
We aim to present a balanced and comprehensive review of the development and performance of our group business during the period and its position at the period end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties that we face.

We still consider the key performance indicators of the group to be those that communicate the financial performance and strength of the group as a whole, these being turnover, profits before tax and net assets.

The current economic conditions continue to provide an element of uncertainty over the level of funding available for the types of services provided by the majority of the group.

In our opinion, the group will have sufficient resources available to manage its business risks and we expect that the present level of activity will be sustained for the foreseeable future.

Position at the financial reporting date
The directors consider the group to be in a solid financial position at the financial position date, with accumulated distributable reserves of approximately £2,912,000 (2022 - £2,409,000).

Management remains mindful of the competitive environment in which the group operates and the need to maintain close control over the group's working capital and financial position.

Borrowings and Risk Management
The group's principal financial instruments comprise bank balances, bank loans, trade creditors and trade debtors. The main purpose of these instruments is to raise funds for the group operations and capital investment. The group's approach to managing other risks applicable to the financial instruments minimised the risk to a level that the Directors consider acceptable.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

PRINCIPAL RISKS AND UNCERTAINTIES
The group is affected by a number of factors, the principal ones of which are:

- The group is exposed to the risk of negative developments in financial markets and the sectors in which it operates, either directly or through the impact on the group's bankers, suppliers or customers. These developments can result in recession, inflation, deflation, restrictions in the availability of credit, impact on demand from customers, problems in the supplier base, increases in financing costs or in the cost of utilities. Such developments might increase operating costs, reduce revenues, lower asset values or result in the businesses being unable to meet in full its strategic objectives.

- The group operates in a competitive market, and failure to compete effectively in terms of price and quality can have an adverse effect on demand and / or margins.

The group mitigates risk in several ways:

- The group has in place an organisational structure with clearly defined lines of responsibility and delegation of authority. There are established policies and procedures for the setting of corporate strategies; financial planning and budgeting; for information and reporting systems; for systems of operational and financial internal control; for assessment of risk; and for monitoring operations and performance.

- Management and staff at all levels work closely with customers and suppliers to operate as effectively and efficiently as possible, whilst maintaining long term working relationships, innovation and good lines of communication.

- The group operates a recruitment and selection process to ensure employees are experienced and competent in their work. The workforce is trained to be alert, responsive to customer needs, and to operate in line with the group's corporate objectives.


UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2023

FUTURE DEVELOPMENT
The group's strategy is to continue organic growth using the existing business model.

ON BEHALF OF THE BOARD:





P J Pearson - Director


22 October 2023

UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 JANUARY 2023

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

PRINCIPAL ACTIVITY
The principal activity of the group in the year under review was that of the provision of residential therapeutic and educational services for children with emotional and behavioural difficulties.

DIVIDENDS
No dividends will be distributed for the year ended 31 January 2023.

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

P J Pearson
M T Cheriton-Metcalfe
S D Travers

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.

ON BEHALF OF THE BOARD:





P J Pearson - Director


22 October 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
UNITED HEALTH GROUP 2 LIMITED

Opinion
We have audited the financial statements of United Health Group 2 Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 January 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 January 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
UNITED HEALTH GROUP 2 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 four, 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
UNITED HEALTH GROUP 2 LIMITED


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:

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.

The potential impact of different laws and regulations varies considerably. Firstly, the company is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management incentives and opportunities for fraudulent manipulation of the financial statements, (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimate and judgemental areas of the financial statements such as depreciation of tangible fixed asset, as well as the risk of inappropriate journal entries to increase reported profitability. Audit procedures performed by the engagement team included the identification and testing of material and unusual journal entries and challenging management on key accounting estimates, assumptions and judgements made in preparation of the financial statements.

Secondly, the company is subject to other laws and regulations where the consequence for non-compliance could have a material effect on the amounts or disclosures in the financial statements. We identified compliance with Care Quality Commission (CQC) regulations as most likely to have such an effect.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection. We inspected the latest CQC inspection reports from visits in the year for any instances of non-compliance and discussed with management the impact of the outcomes of these visits on operations of the care homes. Through these procedures, if we became aware of any non-compliance, we considered the impact on the procedures performed on the related financial statement items.

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 further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of the override of internal controls.

We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
UNITED HEALTH GROUP 2 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 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.




Timothy Godson FCA (Senior Statutory Auditor)
for and on behalf of Duncan & Toplis Audit Limited, Statutory Auditor
4 Henley Way
Doddington Road
Lincoln
Lincolnshire
LN6 3QR

24 October 2023

UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403)

CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2023

2023 2022
Notes £    £   

TURNOVER 4,579,050 4,902,310

Cost of sales 2,362,921 2,258,123
GROSS PROFIT 2,216,129 2,644,187

Administrative expenses 1,411,851 1,291,477
804,278 1,352,710

Other operating income 15,377 49,813
OPERATING PROFIT 4 819,655 1,402,523


Interest payable and similar expenses 5 185,762 103,670
PROFIT BEFORE TAXATION 633,893 1,298,853

Tax on profit 6 130,795 185,895
PROFIT FOR THE FINANCIAL YEAR 503,098 1,112,958
Profit attributable to:
Owners of the parent 503,098 1,112,958

UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403)

CONSOLIDATED OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 503,098 1,112,958


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 503,098 1,112,958

Total comprehensive income attributable to:
Owners of the parent 503,098 1,112,958

UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31 JANUARY 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 8 (1,626,590 ) (1,880,084 )
Tangible assets 9 6,795,249 6,468,108
Investments 10 - -
5,168,659 4,588,024

CURRENT ASSETS
Debtors 11 10,884,759 4,353,402
Cash at bank and in hand 1,169,221 1,683,093
12,053,980 6,036,495
CREDITORS
Amounts falling due within one year 12 9,808,078 3,360,268
NET CURRENT ASSETS 2,245,902 2,676,227
TOTAL ASSETS LESS CURRENT LIABILITIES 7,414,561 7,264,251

CREDITORS
Amounts falling due after more than one year 13 (4,347,750 ) (4,760,296 )

PROVISIONS FOR LIABILITIES 17 (59,758 ) -
NET ASSETS 3,007,053 2,503,955

CAPITAL AND RESERVES
Called up share capital 18 47,380 47,380
Capital redemption reserve 19 47,380 47,380
Retained earnings 19 2,912,293 2,409,195
SHAREHOLDERS' FUNDS 3,007,053 2,503,955

The financial statements were approved by the Board of Directors and authorised for issue on 22 October 2023 and were signed on its behalf by:





P J Pearson - Director


UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403)

COMPANY STATEMENT OF FINANCIAL POSITION
31 JANUARY 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 8 - -
Tangible assets 9 6,795,251 6,468,110
Investments 10 17,000 17,000
6,812,251 6,485,110

CURRENT ASSETS
Debtors 11 9,739,220 3,094,754
Cash at bank and in hand 316,488 644,401
10,055,708 3,739,155
CREDITORS
Amounts falling due within one year 12 11,259,110 4,203,564
NET CURRENT LIABILITIES (1,203,402 ) (464,409 )
TOTAL ASSETS LESS CURRENT LIABILITIES 5,608,849 6,020,701

CREDITORS
Amounts falling due after more than one year 13 (4,347,750 ) (4,760,296 )

PROVISIONS FOR LIABILITIES 17 (59,758 ) -
NET ASSETS 1,201,341 1,260,405

CAPITAL AND RESERVES
Called up share capital 18 47,380 47,380
Capital redemption reserve 47,380 47,380
Retained earnings 1,106,581 1,165,645
SHAREHOLDERS' FUNDS 1,201,341 1,260,405

Company's (loss)/profit for the financial year (59,064 ) 181,520

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 22 October 2023 and were signed on its behalf by:





P J Pearson - Director


UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403)

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

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

Balance at 1 February 2021 47,380 1,296,237 47,380 1,390,997

Changes in equity
Total comprehensive income - 1,112,958 - 1,112,958
Balance at 31 January 2022 47,380 2,409,195 47,380 2,503,955

Changes in equity
Total comprehensive income - 503,098 - 503,098
Balance at 31 January 2023 47,380 2,912,293 47,380 3,007,053

UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403)

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

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

Balance at 1 February 2021 47,380 984,125 47,380 1,078,885

Changes in equity
Total comprehensive income - 181,520 - 181,520
Balance at 31 January 2022 47,380 1,165,645 47,380 1,260,405

Changes in equity
Total comprehensive income - (59,064 ) - (59,064 )
Balance at 31 January 2023 47,380 1,106,581 47,380 1,201,341

UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403)

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

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 798,941 2,700,076
Interest paid (185,762 ) (103,670 )
Tax paid (185,895 ) (182,962 )
Net cash from operating activities 427,284 2,413,444

Cash flows from investing activities
Purchase of tangible fixed assets (490,187 ) (1,236,267 )
Sale of tangible fixed assets 5,858 1,295
Net cash from investing activities (484,329 ) (1,234,972 )

Cash flows from financing activities
New loans in year - 800,000
Loan repayments in year (382,900 ) (426,916 )
Amount introduced by directors - 317,941
Amount withdrawn by directors (73,927 ) (393,414 )
Net cash from financing activities (456,827 ) 297,611

(Decrease)/increase in cash and cash equivalents (513,872 ) 1,476,083
Cash and cash equivalents at beginning of year 2 1,683,093 207,010

Cash and cash equivalents at end of year 2 1,169,221 1,683,093

UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403)

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

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Profit before taxation 633,893 1,298,853
Depreciation charges (92,509 ) (195,860 )
(Profit)/loss on disposal of fixed assets (3,797 ) 3,924
Finance costs 185,762 103,670
723,349 1,210,587
Decrease in trade and other debtors 123,864 1,473,519
(Decrease)/increase in trade and other creditors (48,272 ) 15,970
Cash generated from operations 798,941 2,700,076

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 January 2023
31.1.23 1.2.22
£    £   
Cash and cash equivalents 1,169,221 1,683,093
Year ended 31 January 2022
31.1.22 1.2.21
£    £   
Cash and cash equivalents 1,683,093 207,010


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.2.22 Cash flow At 31.1.23
£    £    £   
Net cash
Cash at bank and in hand 1,683,093 (513,872 ) 1,169,221
1,683,093 (513,872 ) 1,169,221
Debt
Debts falling due within 1 year (437,165 ) (29,646 ) (466,811 )
Debts falling due after 1 year (4,760,296 ) 412,546 (4,347,750 )
(5,197,461 ) 382,900 (4,814,561 )
Total (3,514,368 ) (130,972 ) (3,645,340 )

UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403)

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

1. STATUTORY INFORMATION

United Health Group 2 Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


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.

Basis of consolidation
The group financial statements consolidate the financial statements of United Health Group 2 Limited and the entities it controls (its subsidiaries) drawn up to 31 January each year. Control comprises the power to govern the financial and operating policies of the investee via control of the issued share capital of those companies.

Subsidiaries are consolidated from the date of their acquisition, being the date on which the group obtains control, and continue to be consolidated until the date that such control ceases.

The financial statements of subsidiaries are prepared for the same reporting year as the parent company, using consistent accounting policies.

Subsidiaries acquired during the year are consolidated under the acquisition method of accounting, whereby underlying assets and liabilities, and the consideration paid, are recorded at their fair values. The deficit of the fair value of consideration paid less than the fair value of net assets acquired is presented as negative consolidation goodwill.

Intercompany balances and transactions, including unrealised profits arising from intragroup transactions, have been eliminated.

Significant judgements and estimates
In the application of the group's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 and are covered within the accounting policies:

(i) The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 10 for the carrying amount of the property plant and equipment, and accounting policy note for the usual economic lives of each class of assets.

(ii) The group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, ageing profile of debtors and historical experience. See note 12 for the net carrying amount of the debtors and associated impairment provision.

(iii) The group has an obligation to pay pension benefits to certain employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including; life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. Management estimates these factors in determining the net pension obligation in the statement of financial position. The assumptions reflect historical experience and current trends. See note 20 for the disclosures relating to the defined contribution pension scheme.

Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects.

UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403)

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

2. ACCOUNTING POLICIES - continued

Turnover
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for services rendered in the provision of care and education.

Turnover is recognised in the period in which the services are provided and comprises residents' fees, educational fees and other ancillary services.

Goodwill
Negative goodwill arising on consolidation has been capitalised and released over a period of ten years.

Tangible fixed assets
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
Fixtures and fittings - 20% on cost
Motor vehicles - 25% on cost

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

No depreciation is charged on freehold property on the grounds of immateriality. Freehold property is subject to regular maintenance and repair such that in the opinion of the directors the residual value is not materially different from the value in the financial statements and has a long useful economic life. The directors consider the need for impairment at each period end.

Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

For the purpose of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, as estimate is made of the recoverable amount of the cash- generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that included the asset and generates cash inflows that largely independent of the cash inflows from other assets or group assets.

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.

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 the income statement in the period to which they relate.

Leasing commitments
Lease payments are recognised as an expense over the lease term on a straight-line basis.

UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403)

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

2. ACCOUNTING POLICIES - continued

Financial instruments
The group has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments.

Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, unless the arrangement constitute a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

At the end of each reporting period, financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the income statement.

Basic financial liabilities, including trade and other 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 receipts discounted at a market rate of interest.

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. Accounts 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.

3. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 2,152,202 2,219,424
Social security costs 206,673 205,861
Other pension costs 39,871 42,045
2,398,746 2,467,330

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

Head office 13 13
Children's services 38 43
Education services 24 23
75 79

2023 2022
£    £   
Directors' remuneration 222,000 207,833

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 116,000 116,000

UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403)

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

4. OPERATING PROFIT

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

2023 2022
£    £   
Depreciation - owned assets 160,985 57,635
(Profit)/loss on disposal of fixed assets (3,797 ) 3,924
Goodwill amortisation (253,494 ) (253,494 )
Auditors' remuneration 28,459 24,974
Operating leases 18,000 18,035

5. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest 186,184 101,911
HMRC interest (422 ) 1,759
185,762 103,670

6. 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 71,037 185,895

Deferred tax 59,758 -
Tax on profit 130,795 185,895

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 633,893 1,298,853
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 -
19 %)

120,440

246,782

Effects of:
Expenses not deductible for tax purposes 93 (48,248 )
Capital allowances in excess of depreciation (49,496 ) (12,639 )

Deferred tax 59,758 -
Total tax charge 130,795 185,895

Factors that may affect future tax charges
In the UK Budget Statement on 3 March 2021 the Chancellor announced the intention for corporation tax to rise to a headline rate of 25% from 1 April 2023 for companies earning annual taxable profits in excess of £250,000. The Finance Act 2021, which incorporates this announcement, was substantively enacted on 24 May 2021.

UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403)

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

7. 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.


8. INTANGIBLE FIXED ASSETS

Group
Goodwill
£   
COST
At 1 February 2022
and 31 January 2023 (2,534,944 )
AMORTISATION
At 1 February 2022 (654,860 )
Amortisation for year (253,494 )
At 31 January 2023 (908,354 )
NET BOOK VALUE
At 31 January 2023 (1,626,590 )
At 31 January 2022 (1,880,084 )

Negative goodwilll arose on the purchase of United Children's Services Limited due to the net assets acquired being in excess of the consideration given.

9. TANGIBLE FIXED ASSETS

Group
Fixtures
Freehold and Motor
property fittings vehicles Totals
£    £    £    £   
COST
At 1 February 2022 6,280,642 813,769 197,668 7,292,079
Additions 411,000 48,098 31,089 490,187
Disposals - - (3,411 ) (3,411 )
At 31 January 2023 6,691,642 861,867 225,346 7,778,855
DEPRECIATION
At 1 February 2022 - 676,228 147,743 823,971
Charge for year 86,813 48,930 25,242 160,985
Eliminated on disposal - - (1,350 ) (1,350 )
At 31 January 2023 86,813 725,158 171,635 983,606
NET BOOK VALUE
At 31 January 2023 6,604,829 136,709 53,711 6,795,249
At 31 January 2022 6,280,642 137,541 49,925 6,468,108

UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403)

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

9. TANGIBLE FIXED ASSETS - continued

Company
Fixtures
Freehold and Motor
property fittings vehicles Totals
£    £    £    £   
COST
At 1 February 2022 6,280,642 196,553 73,292 6,550,487
Additions 411,000 48,098 31,089 490,187
Disposals - - (3,411 ) (3,411 )
At 31 January 2023 6,691,642 244,651 100,970 7,037,263
DEPRECIATION
At 1 February 2022 - 59,012 23,365 82,377
Charge for year 86,813 48,930 25,242 160,985
Eliminated on disposal - - (1,350 ) (1,350 )
At 31 January 2023 86,813 107,942 47,257 242,012
NET BOOK VALUE
At 31 January 2023 6,604,829 136,709 53,713 6,795,251
At 31 January 2022 6,280,642 137,541 49,927 6,468,110

Included in cost of land and buildings is freehold land of £ 2,075,000 (2022 - £ 0 ) which is not depreciated.

10. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 February 2022
and 31 January 2023 17,000
NET BOOK VALUE
At 31 January 2023 17,000
At 31 January 2022 17,000

The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following:

Subsidiaries

United Children's Services Limited
Registered office: The Old Coach House, Gainsborough Road, Drinsey Nook, Lincoln LN1 2JJ
Nature of business: Children's therapeutic and educational services
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves 1,833,550 1,819,570
Profit for the year 1,213,980 1,548,349

United Children's Services Limited owns 100% of the share capital of United Education Services Limited.

UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403)

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

10. FIXED ASSET INVESTMENTS - continued

United Education Services Limited
Registered office: The Old Coach House, Gainsborough Road, Drinsey Nook, Lincoln LN1 2JJ
Nature of business: The provision of educational services
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves 1,615,756 1,321,067
Profit for the year 494,689 529,597


11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Trade debtors 193,472 307,107 - -
Amounts owed by group undertakings 10,000 - 10,000 -
Other debtors 10,681,287 4,046,205 9,729,220 3,094,754
Prepayments and accrued income - 90 - -
10,884,759 4,353,402 9,739,220 3,094,754

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Bank loans and overdrafts (see note 14) 466,811 437,165 466,811 437,165
Trade creditors 114,944 91,731 5,667 2,456
Amounts owed to group undertakings - - 2,402,292 1,648,021
Taxation 71,037 185,895 - -
Other taxes and social security 53,657 45,620 18,083 18,155
Other creditors 353,353 241,814 238,560 132,814
Directors' current accounts 8,107,870 1,948,347 8,107,870 1,948,347
Accruals and deferred income 640,406 409,696 19,827 16,606
9,808,078 3,360,268 11,259,110 4,203,564

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

Group Company
2023 2022 2023 2022
£    £    £    £   
Bank loans (see note 14) 4,347,750 4,760,296 4,347,750 4,760,296

UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403)

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

14. 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 466,811 437,165 466,811 437,165
Amounts falling due between two and five years:
Bank loans - 2-5 years 4,347,750 4,760,296 4,347,750 4,760,296

15. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Non-cancellable operating leases
2023 2022
£    £   
Within one year 18,000 18,000
Between one and five years 39,000 57,000
57,000 75,000

Company
Non-cancellable operating leases
2023 2022
£    £   
Within one year 18,000 18,000
Between one and five years 39,000 57,000
57,000 75,000

16. SECURED DEBTS

The following secured debts are included within creditors:

Group Company
2023 2022 2023 2022
£    £    £    £   
Bank loans 4,814,561 5,197,461 4,814,561 5,197,461

HSBC UK Bank Plc holds a fixed and floating charge over all the assets of the parent and one of the subsidiaries.

17. PROVISIONS FOR LIABILITIES

Group Company
2023 2022 2023 2022
£    £    £    £   
Deferred tax
Accelerated capital allowances 59,758 - 59,758 -

UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403)

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

17. PROVISIONS FOR LIABILITIES - continued

Group
Deferred
tax
£   
Provided during year 59,758
Balance at 31 January 2023 59,758

Company
Deferred
tax
£   
Provided during year 59,758
Balance at 31 January 2023 59,758

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
94,760 Ordinary A £0.50 47,380 47,380

19. RESERVES

Group
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1 February 2022 2,409,195 47,380 2,456,575
Profit for the year 503,098 503,098
At 31 January 2023 2,912,293 47,380 2,959,673

Retained earnings
Includes all current and prior period retained profits and losses less dividends paid. All amounts are distributable.

Capital redemption reserve
This reserve arose on the purchase of the parent's own Ordinary B shares.

20. PENSION COMMITMENTS

Assets of the group's pension scheme are held separately in an independently administered fund. At the financial reporting date the group had pension commitments of £9,144 (2022 - £6,160).

21. CONTINGENT LIABILITIES

The group is a party to a composite cross guarantee given to the HSBC Bank Plc between Manor Homes (Yorkshire) Limited, United Health Group Limited, Barford Children's Services Limited, Creative Care & Therapy Limited, United Children's Services Limited, United Education Services Limited, United Health Group 2 Limited and Manor Homes Property Company Limited.

UNITED HEALTH GROUP 2 LIMITED (REGISTERED NUMBER: 11885403)

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

22. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 January 2023 and 31 January 2022:

2023 2022
£    £   
Mrs M T Cheriton-Metcalfe
Balance outstanding at start of year - 9,496
Amounts repaid - (9,496 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year - -

23. RELATED PARTY DISCLOSURES

Key management personnel of the entity or its parent (in the aggregate)
2023 2022
£    £   
Amount due to related party 8,312,246 1,948,347

Other related parties
2023 2022
£    £   
Amount due from related party 10,681,287 4,043,105
Amount due to related party - 79,871

During the year, a total of key management personnel compensation of £ 222,000 (2022 - £ 207,833 ) was paid.

24. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is P J Pearson.