REGISTERED NUMBER: 02711769 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
FOR |
PORTHIA GROUP LIMITED |
REGISTERED NUMBER: 02711769 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTOR AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
FOR |
PORTHIA GROUP LIMITED |
PORTHIA GROUP LIMITED (REGISTERED NUMBER: 02711769) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 4 |
Report of the Independent Auditors | 5 |
Consolidated Profit and loss account | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
PORTHIA GROUP LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
DIRECTOR: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
The Old Carriage Works |
Moresk Road |
TRURO |
Cornwall |
TR1 1DG |
PORTHIA GROUP LIMITED (REGISTERED NUMBER: 02711769) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
The director presents her strategic report of the company and the group for the year ended 31 October 2022. |
REVIEW OF BUSINESS |
During the year, the group consisted of the group company and its subsidiaries Cornwallis Care Services Limited and Porthia Education Limited. |
Porthia Group Ltd's income relies, in the main, on the properties owned and let to Cornwallis Care Services Limited. These rentals were increased during the year. |
Property valuations have been undertaken by the directors for the purposes of the financial reports this year, and it is the director's intention to provide up to date RICS commercial valuations in the 2023 accounts. In the meantime, apart from the expansion and additional beds/leasehold improvements to Francis Bolitho and normal asset additions noted in the 31 October 2022 records, there have been no other material additions. |
The income and profits of the Porthia Group Limited entity were as follows: |
2022 | 2021 |
£ | £ |
Income | 2,922,593 | 1,960,735 |
Profit | 2,271,369 | 1,408,081 |
Cornwallis Care Services Ltd |
In this period, the difficult and ongoing situation within the NHS, in terms of bed admissions and bed blocking remained prevalent. |
Demand for care beds in the community remained high and in the last 18 months the number of care homes closing has led to reduced capacity within the local market. |
Severe pressures within the labour market for care staff generally meant that labour costs increased alongside the need to provide agency staff at higher cost. |
This was combated somewhat by the setting up of Cornwallis Xtra, an in-house agency model with a more flexible employment contract. Labour numbers were also supplemented by contracting with overseas staff on longer term contracts. |
Social changes to work patterns, post Covid, meant that there was an increasing requirement to provide the more balanced home/work arrangement in recruitment practices in order to accommodate this. |
Because of the changes in bed demand, changes were made at Karenza to transition from nursing to residential dementia care provision. Additional bed capacity at Francis Bolitho also had a positive effect on income. |
Profits for the year appear much reduced but that needs to be reviewed against the 2021/22 backdated rental increase of £900,000 that was paid to Porthia Group in this trading period. |
Looking forward the likely profit return in year end 22/23 should be in the region of £1.5m. |
PORTHIA GROUP LIMITED (REGISTERED NUMBER: 02711769) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
This will be achieved due to the increased bed capacity and the subsequent increase in income. Alongside this, particular attention has been made to increase permanent staff numbers thus reducing the need for and cost of agency staff. |
The income and profits of Cornwallis Care Services Limited were as follows: |
2022 | 2021 |
£ | £ |
Turnover | 17,157,749 | 14,899,666 |
Profit | 173,408 | 440,819 |
ON BEHALF OF THE BOARD: |
PORTHIA GROUP LIMITED (REGISTERED NUMBER: 02711769) |
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
The director presents her report with the financial statements of the company and the group for the year ended 31 October 2022. |
DIVIDENDS |
Dividends of £101,040 were paid during the year. No final dividend will be paid. The total amount distributed will be £101,040. |
DIRECTOR |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless she is 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 director is 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 director is 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 her to ensure that the financial statements comply with the Companies Act 2006. She is 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 director is 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 she has taken all the steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Lang Bennetts Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PORTHIA GROUP LIMITED |
Opinion |
We have audited the financial statements of Porthia Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2022 which comprise the Consolidated Profit and loss account, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 October 2022 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 director's 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 director with respect to going concern are described in the relevant sections of this report. |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, 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 Director 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 Director have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PORTHIA GROUP 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 Director. |
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 director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and determined that the most significant are those that relate to laws and regulations surrounding the provision of care services, employment matters, and the built environment. |
We assessed the risks of material misstatement in respect of fraud as follows: |
- we made enquiries of the directors and management of any non-compliance of laws and regulations, potential litigation and claims or any knowledge of actual, suspected or alleged fraud. |
- we reviewed regulatory compliance including reports produced by the Care Quality Commission. |
- we reviewed payroll records, testing pay and deductions and discussed the procedure for the calculation of furlough claims and tested samples within our audit work. |
- we considered the risk of fraud through management override. |
Based on the results of our risk assessment, we designed our audit procedures to identify and to address material misstatements in relation to fraud, as follows: |
- we reviewed legal fees to identify any potential non-compliance with laws and regulations. |
- we reviewed material manual journal entries for evidence of management override or fraud. |
- we reviewed information in relation to key operating compliance matters including the quality of care. |
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 |
PORTHIA GROUP 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. |
for and on behalf of |
The Old Carriage Works |
Moresk Road |
TRURO |
Cornwall |
TR1 1DG |
PORTHIA GROUP LIMITED (REGISTERED NUMBER: 02711769) |
CONSOLIDATED |
PROFIT AND LOSS ACCOUNT |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
2022 | 2021 |
Notes | £ | £ |
TURNOVER | 17,157,749 | 14,899,666 |
Cost of sales | 11,894,433 | 10,672,679 |
GROSS PROFIT | 5,263,316 | 4,226,987 |
Administrative expenses | 3,247,187 | 3,260,049 |
2,016,129 | 966,938 |
Other operating income | 414,710 | 671,433 |
OPERATING PROFIT | 4 | 2,430,839 | 1,638,371 |
Interest payable and similar expenses | 5 | 194,804 | 204,676 |
PROFIT BEFORE TAXATION | 2,236,035 | 1,433,695 |
Tax on profit | 6 | 363,970 | 291,990 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,872,065 | 1,141,705 |
PORTHIA GROUP LIMITED (REGISTERED NUMBER: 02711769) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
2022 | 2021 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,872,065 | 1,141,705 |
OTHER COMPREHENSIVE INCOME |
Revaluation of property | 16,549,734 | - |
Income tax relating to other comprehensive income |
(3,736,895 |
) |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
12,812,839 |
- |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
14,684,904 |
1,141,705 |
Total comprehensive income attributable to: |
Owners of the parent | 14,684,904 | 1,141,705 |
PORTHIA GROUP LIMITED (REGISTERED NUMBER: 02711769) |
CONSOLIDATED BALANCE SHEET |
31 OCTOBER 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 4,500 | 5,500 |
Tangible assets | 10 | 39,493,312 | 21,649,749 |
Investments | 11 | - | - |
Investment property | 12 | - | - |
39,497,812 | 21,655,249 |
CURRENT ASSETS |
Stocks | 13 | 13,500 | 13,500 |
Debtors | 14 | 1,742,398 | 1,034,478 |
Cash at bank and in hand | 1,025,717 | 1,089,967 |
2,781,615 | 2,137,945 |
CREDITORS |
Amounts falling due within one year | 15 | 4,699,897 | 4,156,878 |
NET CURRENT LIABILITIES | (1,918,282 | ) | (2,018,933 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
37,579,530 |
19,636,316 |
CREDITORS |
Amounts falling due after more than one year |
16 |
(5,921,241 |
) |
(6,350,329 |
) |
PROVISIONS FOR LIABILITIES | 19 | (5,340,288 | ) | (1,551,850 | ) |
NET ASSETS | 26,318,001 | 11,734,137 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 100 | 100 |
Revaluation reserve | 21 | 19,498,685 | 6,817,555 |
Retained earnings | 21 | 6,819,216 | 4,916,482 |
SHAREHOLDERS' FUNDS | 26,318,001 | 11,734,137 |
The financial statements were approved by the director and authorised for issue on 25 October 2023 and were signed by: |
Mrs A Ellsmore - Director |
PORTHIA GROUP LIMITED (REGISTERED NUMBER: 02711769) |
COMPANY BALANCE SHEET |
31 OCTOBER 2022 |
2022 | 2021 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
Investment property | 12 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
16 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 19 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Fair value reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 13,689,924 | 1,408,081 |
The financial statements were approved by the director and authorised for issue on |
PORTHIA GROUP LIMITED (REGISTERED NUMBER: 02711769) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
Called up |
share | Retained | Revaluation | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 November 2020 | 100 | 3,744,108 | 6,976,399 | 10,720,607 |
Changes in equity |
Dividends | - | (101,040 | ) | - | (101,040 | ) |
Total comprehensive income | - | 1,273,414 | (158,844 | ) | 1,114,570 |
Balance at 31 October 2021 | 100 | 4,916,482 | 6,817,555 | 11,734,137 |
Changes in equity |
Dividends | - | (101,040 | ) | - | (101,040 | ) |
Total comprehensive income | - | 2,003,774 | 12,681,130 | 14,684,904 |
Balance at 31 October 2022 | 100 | 6,819,216 | 19,498,685 | 26,318,001 |
PORTHIA GROUP LIMITED (REGISTERED NUMBER: 02711769) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
Called up | Fair |
share | Retained | value | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 November 2020 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | ( |
) |
Balance at 31 October 2021 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 October 2022 |
PORTHIA GROUP LIMITED (REGISTERED NUMBER: 02711769) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
2022 | 2021 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,774,970 | 1,393,450 |
Interest paid | (194,804 | ) | (204,676 | ) |
Government grants | 402,082 | 659,698 |
Tax paid | (216,713 | ) | (182,884 | ) |
Net cash from operating activities | 2,765,535 | 1,665,588 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (1,914,619 | ) | (2,365,752 | ) |
Net cash from investing activities | (1,914,619 | ) | (2,365,752 | ) |
Cash flows from financing activities |
New loans in year | - | 707,000 |
Loan repayments in year | (417,153 | ) | (401,583 | ) |
Amount withdrawn by former director | (170,597 | ) | (397,924 | ) |
Movement on inter-company balances | (226,376 | ) | 209,986 |
Equity dividends paid | (101,040 | ) | (101,040 | ) |
Net cash from financing activities | (915,166 | ) | 16,439 |
Decrease in cash and cash equivalents | (64,250 | ) | (683,725 | ) |
Cash and cash equivalents at beginning of year |
2 |
1,089,967 |
1,773,692 |
Cash and cash equivalents at end of year | 2 | 1,025,717 | 1,089,967 |
PORTHIA GROUP LIMITED (REGISTERED NUMBER: 02711769) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2022 | 2021 |
£ | £ |
Profit before taxation | 2,236,035 | 1,433,695 |
Depreciation charges | 621,790 | 561,237 |
Government grants | (402,338 | ) | (659,954 | ) |
Finance costs | 194,804 | 204,676 |
2,650,291 | 1,539,654 |
Increase in trade and other debtors | (342,082 | ) | (870,332 | ) |
Increase in trade and other creditors | 466,761 | 724,128 |
Cash generated from operations | 2,774,970 | 1,393,450 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 October 2022 |
31/10/22 | 1/11/21 |
£ | £ |
Cash and cash equivalents | 1,025,717 | 1,089,967 |
Year ended 31 October 2021 |
31/10/21 | 1/11/20 |
£ | £ |
Cash and cash equivalents | 1,089,967 | 1,773,692 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1/11/21 | Cash flow | At 31/10/22 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,089,967 | (64,250 | ) | 1,025,717 |
1,089,967 | (64,250 | ) | 1,025,717 |
Debt |
Debts falling due within 1 year | (416,176 | ) | (11,934 | ) | (428,110 | ) |
Debts falling due after 1 year | (6,350,329 | ) | 429,088 | (5,921,241 | ) |
(6,766,505 | ) | 417,154 | (6,349,351 | ) |
Total | (5,676,538 | ) | 352,904 | (5,323,634 | ) |
PORTHIA GROUP LIMITED (REGISTERED NUMBER: 02711769) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
1. | STATUTORY INFORMATION |
Porthia Group Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Revenue for provision of services is recognised when it is probable that an economic benefit will flow to the entity and the revenue and costs can be reliably measured. Where care home income straddles the year end, revenue is recognised on a time apportioned basis. |
Goodwill |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Freehold property | - |
Long leasehold | - |
Fixtures and fittings | - |
Motor vehicles | - |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Profit and loss account, 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 balance sheet date. |
PORTHIA GROUP LIMITED (REGISTERED NUMBER: 02711769) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | EMPLOYEES AND DIRECTORS |
2022 | 2021 |
£ | £ |
Wages and salaries | 8,823,260 | 8,574,617 |
Social security costs | 641,759 | 522,375 |
Other pension costs | 157,570 | 144,758 |
9,622,589 | 9,241,750 |
The average number of employees during the year was as follows: |
2022 | 2021 |
Head office and maintenance | 14 | 16 |
Care homes | 428 | 439 |
Nursery | 18 | 17 |
2022 | 2021 |
£ | £ |
Director's remuneration | 65,314 | 41,538 |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
2022 | 2021 |
£ | £ |
Hire of plant and machinery | 103,660 | 74,719 |
Other operating leases | 1,060 | 7,170 |
Depreciation - owned assets | 620,790 | 560,237 |
Goodwill amortisation | 1,000 | 1,000 |
Auditors' remuneration | 15,070 | 13,100 |
PORTHIA GROUP LIMITED (REGISTERED NUMBER: 02711769) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2022 | 2021 |
£ | £ |
Bank interest | - | 2 |
Bank loan interest | 193,988 | 202,946 |
Corporation tax interest | 816 | 1,728 |
194,804 | 204,676 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2022 | 2021 |
£ | £ |
Current tax: |
UK corporation tax | 312,171 | 189,252 |
Deferred tax | 51,799 | 102,738 |
Tax on profit | 363,970 | 291,990 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2022 | 2021 |
£ | £ |
Profit before tax | 2,236,035 | 1,433,695 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2021 - 19 %) |
424,847 |
272,402 |
Effects of: |
Expenses not deductible for tax purposes | 919 | - |
Capital allowances in excess of depreciation | (113,761 | ) | (81,755 | ) |
Adjustments arising on consolidation | 166 | (1,395 | ) |
Deferred tax | 51,799 | 102,738 |
Total tax charge | 363,970 | 291,990 |
Tax effects relating to effects of other comprehensive income |
2022 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of property | 16,549,734 | (3,736,895 | ) | 12,812,839 |
PORTHIA GROUP LIMITED (REGISTERED NUMBER: 02711769) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
6. | TAXATION - continued |
2021 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of tangible fixed assets |
Deferred tax impact of revaluation | (27,135 | ) | - | (27,135 | ) |
(27,135 | ) | - | (27,135 | ) |
7. | INDIVIDUAL PROFIT AND LOSS ACCOUNT |
As permitted by Section 408 of the Companies Act 2006, the Profit and loss account of the parent company is not presented as part of these financial statements. |
8. | DIVIDENDS |
2022 | 2021 |
£ | £ |
Ordinary shares of £1 each |
Interim | 101,040 | 101,040 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 November 2021 |
and 31 October 2022 | 20,000 |
AMORTISATION |
At 1 November 2021 | 14,500 |
Amortisation for year | 1,000 |
At 31 October 2022 | 15,500 |
NET BOOK VALUE |
At 31 October 2022 | 4,500 |
At 31 October 2021 | 5,500 |
PORTHIA GROUP LIMITED (REGISTERED NUMBER: 02711769) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
10. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | Long | and | Motor |
property | leasehold | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 November 2021 | 19,116,462 | 2,544,750 | 2,126,500 | 15,073 | 23,802,785 |
Additions | 1,486,374 | 27,379 | 400,866 | - | 1,914,619 |
Revaluations | 14,733,740 | 491,000 | - | - | 15,224,740 |
At 31 October 2022 | 35,336,576 | 3,063,129 | 2,527,366 | 15,073 | 40,942,144 |
DEPRECIATION |
At 1 November 2021 | 844,327 | 196,279 | 1,103,043 | 9,387 | 2,153,036 |
Charge for year | 336,367 | 69,925 | 213,645 | 853 | 620,790 |
Revaluation adjustments | (1,180,694 | ) | (144,300 | ) | - | - | (1,324,994 | ) |
At 31 October 2022 | - | 121,904 | 1,316,688 | 10,240 | 1,448,832 |
NET BOOK VALUE |
At 31 October 2022 | 35,336,576 | 2,941,225 | 1,210,678 | 4,833 | 39,493,312 |
At 31 October 2021 | 18,272,135 | 2,348,471 | 1,023,457 | 5,686 | 21,649,749 |
Included in cost or valuation of land and buildings is freehold land of £7,846,000 (2021 - £4,067,500) which is not depreciated. |
Cost or valuation at 31 October 2022 is represented by: |
Fixtures |
Freehold | Long | and | Motor |
property | leasehold | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
Valuation in 2012 | (858,844 | ) | (193,000 | ) | - | - | (1,051,844 | ) |
Valuation in 2014 | 97 | 34,500 | - | - | 34,597 |
Valuation in 2015 | - | 4,427 | - | - | 4,427 |
Valuation in 2016 | 1,546,472 | 616,877 | - | - | 2,163,349 |
Valuation in 2019 | 5,136,602 | 79,357 | - | - | 5,215,959 |
Valuation in 2022 | 14,733,741 | 491,000 | - | - | 15,224,741 |
Cost | 14,778,508 | 2,029,968 | 2,527,366 | 15,073 | 19,350,915 |
35,336,576 | 3,063,129 | 2,527,366 | 15,073 | 40,942,144 |
PORTHIA GROUP LIMITED (REGISTERED NUMBER: 02711769) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
10. | TANGIBLE FIXED ASSETS - continued |
Group |
If land and buildings had not been revalued they would have been included at the following historical cost: |
2022 | 2021 |
£ | £ |
Cost | 14,551,038 | 13,058,665 |
Aggregate depreciation | 2,221,975 | 1,981,137 |
Value of land in freehold land and buildings | 2,845,805 | 2,845,805 |
Land and buildings were valued on an open market basis on 31 October 2022 by the directors . |
Information on annual valuation adjustments is only provided for the last 10 years. |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 November 2021 |
and 31 October 2022 |
NET BOOK VALUE |
At 31 October 2022 |
At 31 October 2021 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Loss for the year | ( |
) | ( |
) |
PORTHIA GROUP LIMITED (REGISTERED NUMBER: 02711769) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
11. | FIXED ASSET INVESTMENTS - continued |
Registered office: |
Nature of business: |
% |
Class of shares: | holding |
2022 | 2021 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Bolitho School Penzance Limited, a subsidiary of Porthia Education Limited, was placed into a Creditors Voluntary Liquidation on 14 September 2016. Accordingly the company is excluded from the consolidation. |
12. | INVESTMENT PROPERTY |
Company |
Total |
£ |
FAIR VALUE |
At 1 November 2021 |
Additions |
Revaluations | 15,224,740 |
At 31 October 2022 |
NET BOOK VALUE |
At 31 October 2022 |
At 31 October 2021 |
Included in fair value of investment property is freehold land of £ 7,846,000 (2021 - £ 4,234,500 ) which is not depreciated. |
Fair value at 31 October 2022 is represented by: |
£ |
Valuation in 2011 | 1,771,505 |
Valuation in 2012 | (1,068,676 | ) |
Valuation in 2014 | 34,597 |
Valuation in 2016 | 2,163,349 |
Valuation in 2019 | 5,215,958 |
Valuation in 2022 | 15,224,741 |
Cost | 14,745,102 |
38,086,576 |
If Investment property had not been revalued it would have been included at the following historical cost: |
2022 | 2021 |
£ | £ |
Cost | 14,745,102 | 13,252,729 |
Investment property was valued on an open market basis basis on 31 October 2022 by the directors . |
PORTHIA GROUP LIMITED (REGISTERED NUMBER: 02711769) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
13. | STOCKS |
Group |
2022 | 2021 |
£ | £ |
Stocks | 13,500 | 13,500 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Trade debtors | 907,910 | 730,712 |
Amounts owed by group undertakings | - | - |
Other debtors | 834,488 | 303,766 |
1,742,398 | 1,034,478 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 17) | 428,110 | 416,176 |
Trade creditors | 858,178 | 843,447 |
Amounts owed to group undertakings | - | - |
Tax | 419,335 | 323,877 |
Social security and other taxes | 316,428 | 146,780 |
Other creditors | 1,985,446 | 1,541,166 |
Accruals and deferred income | 692,400 | 885,432 |
4,699,897 | 4,156,878 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Bank loans (see note 17) | 5,921,241 | 6,350,329 |
PORTHIA GROUP LIMITED (REGISTERED NUMBER: 02711769) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 428,110 | 416,176 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 440,754 | 427,132 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 5,480,487 | 5,923,197 |
The company has two loan facilities, one for £6.7m and carries a fixed interest rate of 2.962% for a period of 5 years until January 2025 with a 15 year repayment profile. The second loan is for £707,000 with a fixed interest rate of 2.680% with a 5 year term until November 2025 also with a 15 year repayment profile. |
18. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Bank loans | 6,349,351 | 6,766,505 |
Bank loans are secured on the various properties owned by the group. Hire purchase liabilities were secured on the assets to which they related. |
19. | PROVISIONS FOR LIABILITIES |
Group | Company |
2022 | 2021 | 2022 | 2021 |
£ | £ | £ | £ |
Deferred tax | 5,334,656 | 1,545,962 | 5,056,607 | 1,319,712 |
Other provisions | 5,632 | 5,888 | 5,632 | 5,888 |
Aggregate amounts | 5,340,288 | 1,551,850 | 5,062,239 | 1,325,600 |
PORTHIA GROUP LIMITED (REGISTERED NUMBER: 02711769) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
19. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 November 2021 | 1,545,962 | 6,144 |
Credit to Profit and loss account during year | - | (256 | ) |
Deferred tax on revalued |
tangible fixed assets | 3,565,775 | - |
Accelerated capital allowances | 222,919 | - |
Balance at 31 October 2022 | 5,334,656 | 5,888 |
Company |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 1 November 2021 |
Credit to Profit and loss account during year | ( |
) |
Deferred tax on revaluation of |
investment property | 3,565,775 | - |
Accelerated capital allowances | 171,120 | - |
Balance at 31 October 2022 |
The other provision represents a government grant received in 2008 for the building of the extension at Trecarrel. It is being released to the profit and loss account over a period of 50 years in line with the depreciation of this extension. |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |
21. | RESERVES |
Group |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 1 November 2021 | 4,916,482 | 6,817,555 | 11,734,037 |
Profit for the year | 1,872,065 | 1,872,065 |
Dividends | (101,040 | ) | (101,040 | ) |
Revaluation | - | 16,549,734 | 16,549,734 |
Transfer to profit and loss |
account | 131,709 | (131,709 | ) | - |
Deferred tax on revaluation | - | (3,736,895 | ) | (3,736,895 | ) |
At 31 October 2022 | 6,819,216 | 19,498,685 | 26,317,901 |
PORTHIA GROUP LIMITED (REGISTERED NUMBER: 02711769) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2022 |
21. | RESERVES - continued |
Company |
Fair |
value |
reserve |
£ |
At 1 November 2021 |
Revaluation | 15,224,740 |
Deferred tax on revaluation | (3,736,895 | ) |
At 31 October 2022 |
22. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Mr D B Ellsmore, a director until 29 April 2020 was owed £425,221 (2021: £595,818) by the group at the end of the year . |
The group has provided security for a loan made to Mr Ellsmore, by way of a charge over one of its properties. Mr Ellsmore lent the loan proceeds to the group and the amount loaned is included in the figure above. |
Porthia Group Limited had the following balances with companies in which a director has a significant or controlling interest: |
2022 | 2021 |
Debtor / (Creditor) | £ | £ |
Porthminster Beach View Limited | 372,291 | - |
Porthia Properties | 68 | - |
Porthia Limited | (324,845 | ) | (333,325 | ) |
Porthia Homes Limited | (290,526 | ) | (136,064 | ) |
During the year the group purchased goods and services from Porthia Homes Limited to the net value of £1,420,145 (2021: £1,147,588). |
A net amount of £8,480 (2021: £9,202) was also recharged to Porthia Limited during the year. An amount of £1,918 was charged to Porthia Properties (2021: £432 was charged by Porthia Properties). |
During the year the company purchased services in which the child of key management was a director. These services totalled £61,514 (2021: £Nil). At the year end the amount owed was £19,770 (2021: £Nil). |
During the year, a total of key management personnel compensation of £ 158,877 (2021 - £ 128,088 ) was paid. |
Key management personnel comprises of the directors of the group and subsidiary companies. |
23. | ULTIMATE CONTROLLING PARTY |