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Registration number: 05174459

Aspirations (Midlands) Limited

Annual Report and Financial Statements

for the Year Ended 31 March 2023

 

Aspirations (Midlands) 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 19

 

Aspirations (Midlands) Limited

Company Information

Directors

C N Butcher

C I Cameron

Registered office

Corinium House
Barnwood Point Business Park
Corinium Avenue
Gloucester
GL4 3HX

Bankers

Clydesdale Bank
30 St Vincent Place
Glasgow
G1 2HL

Auditors

Hazlewoods LLP
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

 

Aspirations (Midlands) Limited

Directors' Report for the Year Ended 31 March 2023

The directors present their report and the financial statements for the year ended 31 March 2023.

Directors of the company

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

C N Butcher

C I Cameron

Financial instruments

Objectives and policies

The board constantly monitors the company's trading results and revise 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 group to which the company belongs is exposed to the usual credit and cash flow risks associated with selling on credit and manages this through credit control procedures.

The directors consider that, having reviewed both the funding arrangements for the group and the company and profit and cash flow forecasts for the next 12 months, that the company has sufficient resources to continue in operational existence for the foreseeable future and have continued to adopt the going concern basis in preparing the financial statements.

Future developments

The external environment is expected to remain competitive going forward, however the directors remain confident that the company will continue to improve its current level of performance in the future and will continue to trade as a going concern for the reasons identified in note 1 to the financial statements.


Important events to note

During the year, the company handed back the Northampton divisional packages to Northamptonshire County Council as a result of internal reorganisations and the packages no longer aligning with the company's future projections.

Post year end, the Nottingham division will be transferred into Aspirations Care Limited, a fellow group company. There is no set date for this to happen. After this occurs, Aspirations (Midlands) Limited will become dormant.

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 29 September 2023 and signed on its behalf by:


C I Cameron
Director

 

Aspirations (Midlands) Limited

Strategic Report for the Year Ended 31 March 2023

The directors present their strategic report for the year ended 31 March 2023.

Principal activity

The principal activity of the company is that of the provision of supported living services.

Fair review of the business

The director considers the results for the year and the financial position of the company at the year end to be unsatisfactory, but a reflection of the current sector issues regarding lack of labour, limited fee uplifts and rising input costs. However, there are indications that these factors are beginning to ease and so they remain positive regarding future trading.

The results for the year, which are set out in the profit and loss account, show turnover of £3,475,809 (2022 - £5,165,835) and an operating profit before exceptional items of £457,552 (2022 - £446,740). At 31 March 2023, the company had net assets of £2,372,102 (2022 - £1,892,210).

Given the nature of the business, the company's directors are of the opinion that key performance indicators are important. The company uses a number of indicators to monitor and improve the development, performance and the position of the business. Indicators are reviewed and altered to meet changes in both the internal and external environments. The directors do not consider the inclusion of an analysis using key performance indicators to be necessary to assist users of the financial statements in their understanding of the financial performance or position of the company.

Principal risks and uncertainties

The management of the business and the execution of the strategy of the group to which the company belongs 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 29 September 2023 and signed on its behalf by:


C I Cameron
Director

 

Aspirations (Midlands) 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.

 

Aspirations (Midlands) Limited

Independent Auditor's Report to the Members of Aspirations (Midlands) Limited

Opinion

We have audited the financial statements of Aspirations (Midlands) Limited (the 'company') for the year ended 31 March 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 31 March 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.

 

Aspirations (Midlands) Limited

Independent Auditor's Report to the Members of Aspirations (Midlands) Limited

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.

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’s 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.

Extent to which the audit was capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We considered the nature of the company’s industry and its control environment and reviewed the company’s documentation of their policies and procedures relating to fraud and compliance with laws and regulations. We also enquired of management about their own identification and assessment of the risks of irregularities.

We obtained an understanding of the legal and regulatory framework that the company operates in and identified the key laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements, including the UK Companies Act and tax legislation, and, those that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

 

Aspirations (Midlands) Limited

Independent Auditor's Report to the Members of Aspirations (Midlands) Limited

In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments; assessed whether the judgments made in accounting estimates are indicative of a potential bias; and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

In addition to the above, our procedures to respond to the risks identified included the following:

reviewing financial statement disclosures by testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatements due to fraud;

enquiring of management concerning actual and potential litigation and claims and instances of non-compliance with laws and regulations; and

reading minutes of meetings of those charged with governance.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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.

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.





Simon Worsley (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Windsor House
Bayshill Road
Cheltenham
GL50 3AT

29 September 2023

 

Aspirations (Midlands) Limited

Profit and Loss Account for the Year Ended 31 March 2023

Note

2023
 £

2022
 £

Turnover

3

3,444,499

5,165,835

Cost of sales

 

(2,730,524)

(4,311,334)

Gross profit

 

713,975

854,501

Administrative expenses

 

(290,970)

(407,761)

Operating profit before exceptional items

 

423,005

446,740

Exceptional items

5

(163,108)

(257,339)

Interest payable and similar charges

6

(5,000)

(6,000)

Profit before tax

 

254,897

183,401

Taxation

10

(31,552)

(57,326)

Profit for the financial year

 

223,345

126,075

The above results were derived from continuing operations.

 

Aspirations (Midlands) Limited

Balance Sheet as at 31 March 2023

Note

2023
 £

2022
 £

Fixed assets

 

Tangible assets

11

1,479

2,709

Current assets

 

Debtors: Amounts falling due within one year

12

250,761

629,014

Debtors: Amounts falling due after more than one year

12

7,088,310

5,549,179

Cash at bank and in hand

 

41,151

226,542

 

7,380,222

6,404,735

Creditors: Amounts falling due within one year

13

(151,566)

(268,866)

Net current assets

 

7,228,656

6,135,869

Total assets less current liabilities

 

7,230,135

6,138,578

Creditors: Amounts falling due after more than one year

13

(5,014,830)

(4,079,118)

Net assets excluding pension asset/(liability)

 

2,215,305

2,059,460

Net pension asset/(liability)

14

122,250

(167,250)

Net assets

 

2,337,555

1,892,210

Capital and reserves

 

Called up share capital

15

2

2

Retained earnings

2,337,553

1,892,208

Total equity

 

2,337,555

1,892,210

Approved and authorised by the Board on 29 September 2023 and signed on its behalf by:
 


C I Cameron
Director

 

Aspirations (Midlands) Limited

Statement of Changes in Equity for the Year Ended 31 March 2023

Share capital
£

Retained earnings
£

Total
£

At 1 April 2022

2

1,892,208

1,892,210

Profit for the year

-

223,345

223,345

Other comprehensive income

-

222,000

222,000

At 31 March 2023

2

2,337,553

2,337,555

Share capital
£

Profit and loss account
£

Total
£

At 1 April 2021

2

1,722,633

1,722,635

Profit for the year

-

126,075

126,075

Other comprehensive income

-

43,500

43,500

At 31 March 2022

2

1,892,208

1,892,210

 

Aspirations (Midlands) Limited

Notes to the Financial Statements for the Year Ended 31 March 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:
Corinium House
Barnwood Point Business Park
Corinium Avenue
Gloucester
GL4 3HX

 

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.

Exemption from preparing a cash flow statement

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, Pine Topco Limited.

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.

Name of parent of group

These financial statements are consolidated in the financial statements of Pine Topco Limited.

The financial statements of Pine Topco Limited may be obtained from Companies House.

Going concern

The directors consider that, having reviewed both the funding arrangements for the group and the company, profit and cashflow forecasts for the next 12 months, that the company has sufficient resources to continue in operational existence for the foreseeable future and have continued to adopt the going concern basis in preparing the 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 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.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

 

Aspirations (Midlands) Limited

Notes to the Financial Statements for the Year Ended 31 March 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

Fixtures and fittings

20% of cost

Office equipment

20% of cost

Cash and cash equivalents

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

Trade debtors

Trade debtors are amounts due from customers for 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.

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.

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.

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.

 

Aspirations (Midlands) Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

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.

Defined benefit pension obligation

The company set up a defined benefit contribution pension scheme for certain employees in October 2010, following their transfer of employment to the company from an NHS Trust.

In the current period there is now a cost to the company charged to the profit and loss account, as employer contributions are no longer refunded by the previous employer of the employees for whom the scheme was established.

Now the cost of providing benefits under the defined benefit plan is determined in accordance with FRS 102, using the projected unit method, which attributes entitlement to benefits to the current period (to determine current service cost) and to the current and prior periods (to determine the present value of defined benefit obligations) and based on actuarial advice. Past service costs are recognised in the profit and loss account on a straight line basis over the vesting period or immediately if the benefits have vested. When a settlement or curtailment occurs, the charge in the present value of the scheme liabilities and the fair value of the plan assets reflect the gain or loss which is recognised in the profit and loss account. Losses are measured at the date that the employer becomes demonstrably committed to the transaction and gains when all parties whose consent is required are irrevocably committed to the transaction.

The interest element of the defined benefit cost represents the change in the present value of the scheme obligations relating from the passage of time, and is determined by applying the discount rate to the opening present value of the benefit obligation, taking into account material changes in the obligation during the year. The expected return on plan assets is adjusted for the effect on the fair value of plan assets of contributions received and benefits paid during the year. The difference between the expected return on plan assets and the interest costs is recognised in the profit and loss account as other finance income or expenses.

Actuarial gains and losses arerecognised in full in the statement of recognised gains and losses in the period in which they occur.

The defined benefit pension liability in the balance sheet comprises the present value of the defined obligation (using the discount rate based on high quality corporate bonds), less any past service cost not yet recognised and less the fair value of plan assets out of which the obligations are to be settled directly. Fair value will be based on market price information and in the case of quoted services will be the current bid price.

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.

 

Aspirations (Midlands) Limited

Notes to the Financial Statements for the Year Ended 31 March 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

Turnover

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

 

4

Operating profit

Arrived at after charging

2023
£

2022
£

Depreciation expense

1,230

5,485

Operating lease expense - property

51,586

104,276

Operating lease expense - plant and machinery

3,672

3,725

 

Aspirations (Midlands) Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

 

5

Exceptional items

2023
 £

2022
 £

Exceptional expenses

163,108

257,339

Exceptional items in the current year consist of various closure costs in relation to the Northampton division as well as other non-recurring items.

Exceptional items in the prior year consisted of £251,100 in relation to the introduction of a defined benefit pension scheme liability (see note 14) and £6,239 of other non-recurring items.

 

6

Interest payable and similar expenses

2023
£

2022
£

Other finance costs

5,000

6,000

 

7

Staff costs

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

2023
 £

2022
 £

Wages and salaries

2,592,483

3,869,535

Social security costs

256,615

354,157

Pension costs, defined contribution scheme

52,984

95,125

2,902,082

4,318,817

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

118

184

Administration and support

6

6

124

190

 

8

Directors' remuneration

Directors' remuneration in both periods has been borne by other group companies.

 

9

Auditors' remuneration

Audit fees have been borne by a fellow group company, Aspirations Care Limited.

 

Aspirations (Midlands) Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

 

10

Taxation

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

2023
 £

2022
 £

Current taxation

UK corporation tax

-

55,430

UK corporation tax adjustment to prior periods

(40,448)

(8,629)

Group relief

49,500

21,875

9,052

68,676

Deferred taxation

Arising from origination and reversal of timing differences

22,500

(11,350)

Tax expense in the income statement

31,552

57,326

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

254,897

183,401

Corporation tax at standard rate

48,430

34,846

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

(16,935)

42,199

Deferred tax credit from unrecognised tax loss or credit

-

(11,350)

Decrease in UK and foreign current tax from adjustment for prior periods

-

(8,629)

Tax increase from effect of capital allowances and depreciation

57

260

Total tax charge

31,552

57,326

 

11

Tangible assets

Fixtures and fittings
 £

Office equipment
 £

Total
£

Cost

At 1 April 2022 and at 31 March 2023

31,054

20,540

51,594

Depreciation

At 1 April 2022

28,620

20,265

48,885

Charge for the year

600

630

1,230

At 31 March 2023

29,220

20,895

50,115

Carrying amount

At 31 March 2023

1,834

(355)

1,479

At 31 March 2022

2,434

275

2,709

 

Aspirations (Midlands) Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

 

12

Debtors

2023
 £

2022
 £

Trade debtors

131,464

428,704

Other debtors

95,003

189,000

Prepayments

24,294

11,310

Amounts owed by group undertakings

7,088,310

5,549,179

 

7,339,071

6,178,193

Less non-current portion

(7,088,310)

(5,549,179)

Total current trade and other debtors

250,761

629,014

Details of non-current trade and other debtors

£7,088,310 (2022 - £5,549,179) of amounts owed by group undertakings is classified as non-current.

 

13

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Trade creditors

 

58,719

6,700

Social security and other taxes

 

19,779

76,544

Other creditors

 

23,501

-

Accrued expenses

 

49,567

130,192

Corporation tax liability

10

-

55,430

 

151,566

268,866

Due after one year

 

Amounts owed to group undertakings

 

5,014,830

4,079,118

 

14

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 £52,984 (2022 - £95,125).

Defined benefit pension schemes

Scheme 1

The company operates a defined benefit pension scheme in the UK.

The date of the most recent comprehensive actuarial valuation was 31 March 2023. A full actuarial valuation was carried out as at 31 March 2023 by a qualified, independent actuary. The valuation for FRS 102 purposes as at 31 March 2023 was based on a set of assumptions and assumes that the experience of the fund will be in line with these assumptions.

The total cost relating to defined benefit schemes for the year recognised in profit or loss as an expense was £67,500 (2022 - £40,350).
 

 

Aspirations (Midlands) Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

Reconciliation of scheme assets and liabilities to assets and liabilities recognised

The amounts recognised in the balance sheet are as follows:

2023
£

2022
£

Fair value of scheme assets

819,000

760,000

Present value of defined benefit obligation

(656,000)

(983,000)

163,000

(223,000)

Deferred tax (liability) / asset

(40,750)

55,750

Defined benefit pension scheme surplus/(deficit)

122,250

(167,250)

Defined benefit obligation

Changes in the defined benefit obligation are as follows:

2023
£

Present value at start of year

983,000

Interest cost

27,000

Actuarial gains and losses

(316,000)

Benefits paid

(38,000)

Present value at end of year

656,000

Fair value of scheme assets

Changes in the fair value of scheme assets are as follows:

2023
£

Fair value at start of year

760,000

Interest income

22,000

Return on plan assets, excluding amounts included in interest income/(expense)

(20,000)

Employer contributions

95,000

Benefits paid

(38,000)

Fair value at end of year

819,000

Analysis of assets

The major categories of scheme assets are as follows:

2023
%

2022
%

Cash and cash equivalents

4

9

Equity instruments

73

73

Debt instruments

23

18

100

100

Return on scheme assets

2023
£

Return on scheme assets

296,000

The pension scheme has not invested in any of the company's own financial instruments or in properties or other assets used by the company.

 

Aspirations (Midlands) Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

Principal actuarial assumptions

The principal actuarial assumptions at the balance sheet date are as follows:

2023
%

2022
%

Discount rate

4.79

2.76

Future salary increases

3.43

3.83

Future pension increases

3.50

3.83

Inflation

3.43

3.08

Post retirement mortality assumptions

2023
Years

2022
Years

Current UK pensioners at retirement age - male

20

20

Current UK pensioners at retirement age - female

22

22

Future UK pensioners at retirement age - male

22

22

Future UK pensioners at retirement age - female

24

24

 

15

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

2

2

2

2

         
 

16

Parent and ultimate parent undertaking

The company's immediate parent is Maymask (183) Limited, incorporated in England and Wales.

 The ultimate parent is Pine Topco Limited, incorporated in England and Wales.

 The ultimate controlling party is Elysian Capital II LP.

 

17

Contingent liabilities

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 undertaking, Pine Topco Limited. The maximum amount the company could become liable for at 31 March 2023 was £1,750,000 (2022 - £3,000,000).