Company registration number 10649160 (England and Wales)
BONDCARE (LONDON) LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
BONDCARE (LONDON) LTD
COMPANY INFORMATION
Directors
Mr A L Levison
Mr A Goldstein
Company number
10649160
Registered office
1st Floor Cloister House
Riverside, New Bailey Street
Manchester
M3 5FS
Auditor
Lopian Gross Barnett & Co
1st Floor Cloister House
Riverside, New Bailey Street
Manchester
M3 5FS
Business address
Bondcare House
18 Lodge Road
London
NW4 4EF
BONDCARE (LONDON) LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Profit and loss account
10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 25
BONDCARE (LONDON) LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -
The directors present the strategic report for the year ended 31 December 2022.
Review of the business
The principal activity of the company during the period was that of operating residential and nursing homes, caring for the elderly.
The company profit and loss account for the year is set out on page 10 and shows turnover of £66,691,395 (2021: £58,635,984) and earnings before interest, tax, depreciation, amortisation, charitable donations, rent and management charges (EBITDARM) of £12,904,554 (2021: £12,634,881). EBITDARM is considered the most relevant measure of performance.
Principal risks and uncertainties
The directors consider the company is not exposed to significant price and credit risks since a significant amounts of the company's revenue is derived from publicly funded authorities.
The company's principal risks during the year was considered to be generating sufficient income to meet the landlords expectations and financial covenants as per the relevant leases and maintain sufficient cash resources to meet obligations. The company monitors cash flow as part of its day to day control procedures. The directors consider the current cash position and future cash requirements on a regular basis to ensure appropriate facilities are available to meet liabilities as and when they fall due.
Development and performance
The company commenced with the operation of five carehomes in July 2017, and added a further four homes during its first year. A further three carehomes were added in 2018 and another five in June 2020 bringing the total to seventeen carehomes. The directors are pleased with the company's performance since it commenced. The company has increased turnover and profitability of the homes since taking over and the directors are confident that the performance will be maintained and the company will continue to fully comply with the terms of the landlords leases.
Key performance indicators
The key performance indicators are turnover which for the year is £66,691,395 and EBITDARM which for the year amounted to £12,904,554 . EBITDARM is considered the most appropriate indicator of cash generation from the business.
Other performance indicators
Home occupancy, charge rates and staffing hours are other major performance indicators and are constantly monitored.
Section 172(1) Statement
The Directors of the company have acted in accordance with their duties codified in law, which include their duty to act in a way which they consider, in good faith, would most likely promote the success of the Company for the benefit of the members as a whole, having regards to all stakeholders and matters set out in s172(1) of the Companies Act 20016, including:
(a) the likely consequences of any decision in the long term;
(b) the interests of the company's employees;
(c) the need to foster the company's business relationships with suppliers, customers and others;
(d) the impact of the company's operations on the community and the environment;
(e) the desirability of the company maintaining a reputation for high standards of business conduct; and
(f) the need to act fairly as between members of the company.
BONDCARE (LONDON) LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
Mr A L Levison
Director
13 November 2023
BONDCARE (LONDON) LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2022.
Principal activities
The principal activity of the company continued to be that of operating residential and nursing homes, caring for the elderly.
Results and dividends
The results for the year are set out on page 10.
No ordinary dividends were paid. The director does not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr A L Levison
Mr A Goldstein
Financial instruments
Liquidity risk
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
Interest rate risk
The company is exposed to cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The company uses interest rate derivatives to manage the mix of fixed and variable rate debt so as to reduce its exposure to changes in interest rates.
Credit risk
Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.
Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Disabled persons
The company's policy is to recruit disabled workers for those vacancies that they are able to fill. All necessary assistance with initial training courses is given. Once employed, a career plan is developed so as to ensure suitable opportunities for each disabled person. Arrangements are made, wherever possible, for retraining employees who become disabled, to enable them to perform work identified as appropriate to their aptitudes and abilities.
Employee involvement
The company's policy is to consult and discuss with employees, through staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.
Auditor
Lopian Gross Barnett & Co were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
BONDCARE (LONDON) LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 4 -
Energy and carbon report
The following energy information relates to all the entities in the Bondcare (London) Group operating in the carehome sector.
2022
2021
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Gas combustion
6,090,919
10,737,065
- Electricity purchased
3,743,379
4,142,858
- Fuel consumed for transport
100,000
100,000
9,934,298
14,979,923
2022
2021
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
1,099.00
1,969.00
- Fuel consumed for owned transport
12.00
12.00
1,111.00
1,981.00
Scope 2 - indirect emissions
- Electricity purchased
763.00
915.00
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the
-
-
Total gross emissions
1,874.00
2,896.00
Intensity ratio
Tonnes Co2e per carehome bed
1.7
2.3
Quantification and reporting methodology
We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting.
Intensity measurement
The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per carehome bed.
Measures taken to improve energy efficiency
We constantly monitor energy usage within the carehomes and encourage and educate staff in efficient usage.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
BONDCARE (LONDON) LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 5 -
On behalf of the board
Mr A L Levison
Director
13 November 2023
BONDCARE (LONDON) LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 6 -
The directors are responsible for preparing the annual 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 then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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.
BONDCARE (LONDON) LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BONDCARE (LONDON) LTD
- 7 -
Opinion
We have audited the financial statements of Bondcare (London) Ltd (the 'company') for the year ended 31 December 2022 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 December 2022 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.
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's 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 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
BONDCARE (LONDON) LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BONDCARE (LONDON) LTD
- 8 -
Matters on which we are required to report by exception
In the light of the 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 or the directors' report.
We have nothing to report in respect of the following matters in relation to which 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 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 directors' responsibilities statement, 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.
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.
BONDCARE (LONDON) LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BONDCARE (LONDON) LTD
- 9 -
Due 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. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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.
Jonathan Brodie FCA
Senior Statutory Auditor
For and on behalf of Lopian Gross Barnett & Co
13 November 2023
Chartered Accountants
Statutory Auditor
1st Floor Cloister House
Riverside, New Bailey Street
Manchester
M3 5FS
BONDCARE (LONDON) LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
2022
2021
Notes
£
£
Turnover
3
66,691,395
58,635,984
Cost of sales
(47,575,148)
(43,537,305)
Gross profit
19,116,247
15,098,679
Administrative expenses
(16,790,753)
(13,822,609)
Other operating income
859,994
2,564,449
Operating profit
4
3,185,488
3,840,519
Interest payable and similar expenses
6
(756)
Loss on loan written off
7
(47,500)
-
Profit before taxation
3,137,232
3,840,519
Tax on profit
8
(772,889)
(835,452)
Profit for the financial year
2,364,343
3,005,067
The profit and loss account has been prepared on the basis that all operations are continuing operations.
BONDCARE (LONDON) LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 11 -
2022
2021
£
£
Profit for the year
2,364,343
3,005,067
Other comprehensive income
-
-
Total comprehensive income for the year
2,364,343
3,005,067
BONDCARE (LONDON) LTD
BALANCE SHEET
AS AT 31 DECEMBER 2022
31 December 2022
- 12 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
9
2,370,732
1,587,644
Current assets
Debtors
11
19,020,872
15,718,531
Cash at bank and in hand
1,347,559
1,024,275
20,368,431
16,742,806
Creditors: amounts falling due within one year
12
(14,001,206)
(12,062,643)
Net current assets
6,367,225
4,680,163
Total assets less current liabilities
8,737,957
6,267,807
Provisions for liabilities
Deferred tax liability
13
367,996
262,189
(367,996)
(262,189)
Net assets
8,369,961
6,005,618
Capital and reserves
Called up share capital
16
100
100
Profit and loss reserves
8,369,861
6,005,518
Total equity
8,369,961
6,005,618
The financial statements were approved by the board of directors and authorised for issue on 13 November 2023 and are signed on its behalf by:
Mr A L Levison
Director
Company Registration No. 10649160
BONDCARE (LONDON) LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2021
100
3,000,451
3,000,551
Period ended 31 December 2021:
Profit and total comprehensive income for the period
-
3,005,067
3,005,067
Balance at 31 December 2021
100
6,005,518
6,005,618
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
2,364,343
2,364,343
Balance at 31 December 2022
100
8,369,861
8,369,961
BONDCARE (LONDON) LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 14 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
19
2,907,022
519,302
Interest paid
(756)
Income taxes paid
(982,819)
Net cash inflow from operating activities
1,923,447
519,302
Investing activities
Purchase of tangible fixed assets
(1,552,663)
(1,181,952)
Repayment of loans
(47,500)
Net cash used in investing activities
(1,600,163)
(1,181,952)
Net increase/(decrease) in cash and cash equivalents
323,284
(662,650)
Cash and cash equivalents at beginning of year
1,024,275
1,686,925
Cash and cash equivalents at end of year
1,347,559
1,024,275
BONDCARE (LONDON) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 15 -
1
Accounting policies
Company information
Bondcare (London) Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 1st Floor Cloister House, Riverside, New Bailey Street, Manchester, M3 5FS.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
Straight line over 10 years
Fixtures and fittings
20% Straight line
Motor vehicles
25% Reducing balance
BONDCARE (LONDON) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 16 -
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
BONDCARE (LONDON) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 17 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
BONDCARE (LONDON) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 18 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
BONDCARE (LONDON) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 19 -
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.13
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Turnover and other revenue
2022
2021
£
£
Turnover analysed by class of business
Residential and nursing home provision
66,691,395
58,635,984
BONDCARE (LONDON) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
3
Turnover and other revenue
(Continued)
- 20 -
2022
2021
£
£
Other revenue
Grants received
859,994
2,496,449
4
Operating profit
2022
2021
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(859,994)
(2,496,449)
Fees payable to the company's auditor for the audit of the company's financial statements
84,000
83,941
Depreciation of owned tangible fixed assets
769,575
524,339
Operating lease charges
8,068,414
7,174,478
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Care home staff
1,779
1,766
Head office administration
38
38
Total
1,817
1,804
Their aggregate remuneration comprised:
2022
2021
£
£
Wages and salaries
36,337,829
32,372,974
Social security costs
3,222,024
2,634,427
Pension costs
602,335
461,969
40,162,188
35,469,370
6
Interest payable and similar expenses
2022
2021
£
£
Other finance costs:
Other interest
756
BONDCARE (LONDON) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 21 -
7
Amounts written off investments
fixed asset investments
2022
2021
£
£
Amounts written off current loans
(47,500)
-
8
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
667,082
736,308
Deferred tax
Origination and reversal of timing differences
105,807
99,144
Total tax charge
772,889
835,452
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2022
2021
£
£
Profit before taxation
3,137,232
3,840,519
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
596,074
729,699
Tax effect of expenses that are not deductible in determining taxable profit
192,627
92,215
Group relief
(30,778)
Permanent capital allowances in excess of depreciation
(90,841)
(85,606)
Deferred tax on timing differences
105,807
99,144
Taxation charge for the year
772,889
835,452
BONDCARE (LONDON) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 22 -
9
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2022
222,471
2,213,243
283,096
2,718,810
Additions
483,557
973,005
96,101
1,552,663
At 31 December 2022
706,028
3,186,248
379,197
4,271,473
Depreciation and impairment
At 1 January 2022
22,247
1,004,152
104,767
1,131,166
Depreciation charged in the year
70,603
632,077
66,895
769,575
At 31 December 2022
92,850
1,636,229
171,662
1,900,741
Carrying amount
At 31 December 2022
613,178
1,550,019
207,535
2,370,732
At 31 December 2021
200,224
1,209,091
178,329
1,587,644
10
Financial instruments
2022
2021
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
18,559,033
15,240,825
Carrying amount of financial liabilities
Measured at amortised cost
11,279,498
9,456,095
11
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
8,730,719
6,048,614
Amounts owed by group undertakings
341,163
212,707
Other debtors
9,461,817
8,992,170
Prepayments and accrued income
487,173
465,040
19,020,872
15,718,531
BONDCARE (LONDON) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 23 -
12
Creditors: amounts falling due within one year
2022
2021
Notes
£
£
Trade creditors
3,458,457
4,176,211
Amounts owed to group undertakings
50,000
40,755
Corporation tax
959,276
1,275,013
Other taxation and social security
580,749
429,946
Deferred income
14
1,181,683
901,589
Other creditors
3,977,873
2,033,579
Accruals and deferred income
3,793,168
3,205,550
14,001,206
12,062,643
13
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2022
2021
Balances:
£
£
Accelerated capital allowances
367,996
262,189
2022
Movements in the year:
£
Liability at 1 January 2022
262,189
Charge to profit or loss
105,807
Liability at 31 December 2022
367,996
The deferred tax liability set out above is expected to reverse within 48 months and relates to accelerated capital allowances that are expected to mature within the same period.
14
Deferred income
2022
2021
£
£
Arising from fee income received in advance
1,181,683
901,589
BONDCARE (LONDON) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 24 -
15
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
602,335
461,969
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
16
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
17
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2022
2021
£
£
Within one year
7,864,572
6,961,712
Between two and five years
33,889,509
31,506,142
In over five years
69,860,157
84,844,834
111,614,238
123,312,688
18
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
The following amounts were outstanding at the reporting end date:
2022
2021
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
2,055,514
582,804
The following amounts were outstanding at the reporting end date:
2022
2021
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
7,576,062
7,069,538
BONDCARE (LONDON) LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 25 -
19
Cash generated from operations
2022
2021
£
£
Profit for the year after tax
2,364,343
3,005,067
Adjustments for:
Taxation charged
772,889
835,452
Finance costs
756
Depreciation and impairment of tangible fixed assets
769,575
524,339
Other gains and losses
47,500
-
Movements in working capital:
Increase in debtors
(3,302,341)
(6,167,265)
Increase in creditors
1,974,206
2,325,497
Increase/(decrease) in deferred income
280,094
(3,788)
Cash generated from operations
2,907,022
519,302
20
Analysis of changes in net funds
1 January 2022
Cash flows
31 December 2022
£
£
£
Cash at bank and in hand
1,024,275
323,284
1,347,559
2022-12-312022-01-01falseCCH SoftwareCCH Accounts Production 2023.300Mr A L LevisonMr A Goldsteinfalse106491602022-01-012022-12-3110649160bus:Director12022-01-012022-12-3110649160bus:Director22022-01-012022-12-3110649160bus:RegisteredOffice2022-01-012022-12-31106491602022-12-31106491602021-01-012021-12-3110649160core:RetainedEarningsAccumulatedLosses2021-01-012021-12-3110649160core:RetainedEarningsAccumulatedLosses2022-01-012022-12-31106491602021-12-3110649160core:LeaseholdImprovements2022-12-3110649160core:FurnitureFittings2022-12-3110649160core:MotorVehicles2022-12-3110649160core:LeaseholdImprovements2021-12-3110649160core:FurnitureFittings2021-12-3110649160core:MotorVehicles2021-12-3110649160core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3110649160core:CurrentFinancialInstrumentscore:WithinOneYear2021-12-3110649160core:CurrentFinancialInstruments2022-12-3110649160core:CurrentFinancialInstruments2021-12-3110649160core:ShareCapital2022-12-3110649160core:ShareCapital2021-12-3110649160core:RetainedEarningsAccumulatedLosses2022-12-3110649160core:RetainedEarningsAccumulatedLosses2021-12-3110649160core:ShareCapital2020-12-3110649160core:RetainedEarningsAccumulatedLosses2020-12-31106491602021-12-31106491602020-12-3110649160core:LeaseholdImprovements2022-01-012022-12-3110649160core:FurnitureFittings2022-01-012022-12-3110649160core:MotorVehicles2022-01-012022-12-311064916012022-01-012022-12-311064916012021-01-012021-12-3110649160core:UKTax2022-01-012022-12-3110649160core:UKTax2021-01-012021-12-3110649160core:LeaseholdImprovements2021-12-3110649160core:FurnitureFittings2021-12-3110649160core:MotorVehicles2021-12-3110649160core:WithinOneYear2022-12-3110649160core:WithinOneYear2021-12-3110649160core:BetweenTwoFiveYears2022-12-3110649160core:BetweenTwoFiveYears2021-12-3110649160core:MoreThanFiveYears2022-12-3110649160core:MoreThanFiveYears2021-12-3110649160core:EntitiesWithJointControlOrSignificantInfluenceOverReportingEntity2022-12-3110649160bus:PrivateLimitedCompanyLtd2022-01-012022-12-3110649160bus:FRS1022022-01-012022-12-3110649160bus:Audited2022-01-012022-12-3110649160bus:FullAccounts2022-01-012022-12-31xbrli:purexbrli:sharesiso4217:GBP