REGISTERED NUMBER: SC695773 (Scotland) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
FOR |
AYRSHIRE CARE HOMES LIMITED |
REGISTERED NUMBER: SC695773 (Scotland) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
FOR |
AYRSHIRE CARE HOMES LIMITED |
AYRSHIRE CARE HOMES LIMITED (REGISTERED NUMBER: SC695773) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 |
Consolidated Income Statement | 7 |
Consolidated Other Comprehensive Income | 8 |
Consolidated Balance Sheet | 9 |
Company Balance Sheet | 10 |
Consolidated Statement of Changes in Equity | 11 |
Company Statement of Changes in Equity | 12 |
Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Financial Statements | 15 |
AYRSHIRE CARE HOMES LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
and Statutory Auditor |
213 St Vincent Street |
Glasgow |
G2 5QY |
BANKERS: | Bank of Scotland |
235 Sauchiehall Street |
Glasgow |
G2 3EY |
SOLICITORS: |
Capella |
60 York Street |
Glasgow |
G2 8JX |
AYRSHIRE CARE HOMES LIMITED (REGISTERED NUMBER: SC695773) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
The directors present their strategic report of the company and the group for the year ended 28 February 2023. |
The principal activities of the group in the year under review was that of operating care homes. |
REVIEW OF BUSINESS |
During the previous year, Ayrshire Care Homes Limited acquired the entire issued share capital of Heathfield Care and Residential Homes Limited in exchange for the issue of shares to shareholders on a one-for-one basis. |
As the restructuring represented a change of identity rather than a change in the activities of the business, it has been accounted for using merger accounting principals. |
The results for the year and financial position of the group are as shown in the attached financial statements. The directors are satisfied with the results for the year and the group continues to develop and provide quality care to our residents. |
Given the straightforward nature of the business, the directors are of the view that analysis using key performance indicators is not necessary for an understanding of the development, performance or position of the business. |
PRINCIPAL RISKS AND UNCERTAINTIES |
During the forthcoming year the directors consider the principal risks and uncertainties affecting the group to be: |
- Managing the impact of the difficult economic conditions as a result of the COVID-19 pandemic |
- Managing the operational aspects of the business due to the continued pressure in recruiting staff in the sector |
Having considered the risks to the business, the directors are of the opinion that the group can respond to and mitigate these risk and uncertainties. |
ON BEHALF OF THE BOARD: |
8 September 2023 |
AYRSHIRE CARE HOMES LIMITED (REGISTERED NUMBER: SC695773) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 28 February 2023. |
DIVIDENDS |
The total distribution of dividends for the year ended 28 February 2023 will be £ 4,000 . |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 March 2022 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Bannerman Johnstone Maclay, 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 |
AYRSHIRE CARE HOMES LIMITED |
Opinion |
We have audited the financial statements of Ayrshire Care Homes Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 28 February 2023 which comprise the Consolidated Income Statement, 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 28 February 2023 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
AYRSHIRE CARE HOMES LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
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 applicable to the group and the parent company and the sector in which they operate. We determined that the following laws and regulations were the most significant: the Companies Act 2006, UK corporate taxation laws and Health and Social Care Standards. |
- | We obtained an understanding of how the group and the parent company are complying with those legal and regulatory frameworks by making enquires to the management. |
- | We assessed the susceptibility of the group's and the parent company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included: |
- | identifying and assessing the design and effectiveness of controls management has in place to prevent and detect fraud; |
- | understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process; |
- | challenging assumptions and judgements made by management in its significant accounting estimates; |
- | identifying and testing journal entries, in particular any journal entries posted with unusual accounting combinations; and |
- | assessing the extent of compliance with relevant laws and regulations. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
AYRSHIRE CARE HOMES 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 |
Chartered Accountants |
and Statutory Auditor |
213 St Vincent Street |
Glasgow |
G2 5QY |
AYRSHIRE CARE HOMES LIMITED (REGISTERED NUMBER: SC695773) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 4,915,638 | 4,934,553 |
Cost of sales | 2,709,422 | 2,634,271 |
GROSS PROFIT | 2,206,216 | 2,300,282 |
Administrative expenses | 1,700,595 | 1,659,542 |
505,621 | 640,740 |
Other operating income | 124,573 | 418,101 |
OPERATING PROFIT | 4 | 630,194 | 1,058,841 |
Interest payable and similar expenses | 5 | 21,306 | 13,532 |
PROFIT BEFORE TAXATION | 608,888 | 1,045,309 |
Tax on profit | 6 | (67,076 | ) | 186,037 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 675,964 | 859,272 |
AYRSHIRE CARE HOMES LIMITED (REGISTERED NUMBER: SC695773) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 675,964 | 859,272 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
675,964 |
859,272 |
Total comprehensive income attributable to: |
Owners of the parent | 675,964 | 859,272 |
AYRSHIRE CARE HOMES LIMITED (REGISTERED NUMBER: SC695773) |
CONSOLIDATED BALANCE SHEET |
28 FEBRUARY 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 | 13,098,018 | 10,713,322 |
Investments | 10 | - | - |
13,098,018 | 10,713,322 |
CURRENT ASSETS |
Debtors | 11 | 463,847 | 686,065 |
Cash at bank and in hand | 43,050 | 70,568 |
506,897 | 756,633 |
CREDITORS |
Amounts falling due within one year | 12 | 7,764,760 | 6,172,916 |
NET CURRENT LIABILITIES | (7,257,863 | ) | (5,416,283 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
5,840,155 |
5,297,039 |
CREDITORS |
Amounts falling due after more than one year |
13 |
(479,600 |
) |
(414,889 |
) |
PROVISIONS FOR LIABILITIES | 15 | (96,274 | ) | (289,833 | ) |
NET ASSETS | 5,264,281 | 4,592,317 |
CAPITAL AND RESERVES |
Called up share capital | 16 | 100 | 100 |
Retained earnings | 17 | 5,264,181 | 4,592,217 |
SHAREHOLDERS' FUNDS | 5,264,281 | 4,592,317 |
The financial statements were approved by the Board of Directors and authorised for issue on 8 September 2023 and were signed on its behalf by: |
G A Russell - Director |
AYRSHIRE CARE HOMES LIMITED (REGISTERED NUMBER: SC695773) |
COMPANY BALANCE SHEET |
28 FEBRUARY 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Debtors | 11 |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
( |
) |
CAPITAL AND RESERVES |
Called up share capital | 16 |
Retained earnings | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) |
Company's loss for the financial year | (1,059 | ) | - |
The financial statements were approved by the Board of Directors and authorised for issue on |
AYRSHIRE CARE HOMES LIMITED (REGISTERED NUMBER: SC695773) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 March 2021 | 100 | 3,736,945 | 3,737,045 |
Changes in equity |
Dividends | - | (4,000 | ) | (4,000 | ) |
Total comprehensive income | - | 859,272 | 859,272 |
Balance at 28 February 2022 | 100 | 4,592,217 | 4,592,317 |
Changes in equity |
Dividends | - | (4,000 | ) | (4,000 | ) |
Total comprehensive income | - | 675,964 | 675,964 |
Balance at 28 February 2023 | 100 | 5,264,181 | 5,264,281 |
AYRSHIRE CARE HOMES LIMITED (REGISTERED NUMBER: SC695773) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 March 2021 |
Changes in equity |
Balance at 28 February 2022 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 28 February 2023 | ( |
) | ( |
) |
AYRSHIRE CARE HOMES LIMITED (REGISTERED NUMBER: SC695773) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 868,719 | 1,063,383 |
Interest paid | (21,306 | ) | (13,532 | ) |
Tax paid | (86,374 | ) | (99,644 | ) |
Net cash from operating activities | 761,039 | 950,207 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (2,494,846 | ) | (2,085,546 | ) |
Net cash from investing activities | (2,494,846 | ) | (2,085,546 | ) |
Cash flows from financing activities |
New loans in year | 200,000 | 50,000 |
Loan repayments in year | (114,595 | ) | (101,133 | ) |
Related party borrowings | 1,956,884 | 1,152,355 |
Amount withdrawn by directors | (332,000 | ) | - |
Equity dividends paid | (4,000 | ) | (4,000 | ) |
Net cash from financing activities | 1,706,289 | 1,097,222 |
Decrease in cash and cash equivalents | (27,518 | ) | (38,117 | ) |
Cash and cash equivalents at beginning of year |
2 |
70,568 |
108,685 |
Cash and cash equivalents at end of year | 2 | 43,050 | 70,568 |
AYRSHIRE CARE HOMES LIMITED (REGISTERED NUMBER: SC695773) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 608,888 | 1,045,309 |
Depreciation charges | 110,150 | 126,055 |
Finance costs | 21,306 | 13,532 |
740,344 | 1,184,896 |
Decrease/(increase) in trade and other debtors | 55,546 | (38,203 | ) |
Increase/(decrease) in trade and other creditors | 72,829 | (83,310 | ) |
Cash generated from operations | 868,719 | 1,063,383 |
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 28 February 2023 |
28.2.23 | 1.3.22 |
£ | £ |
Cash and cash equivalents | 43,050 | 70,568 |
Year ended 28 February 2022 |
28.2.22 | 1.3.21 |
£ | £ |
Cash and cash equivalents | 70,568 | 108,685 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.3.22 | Cash flow | At 28.2.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 70,568 | (27,518 | ) | 43,050 |
70,568 | (27,518 | ) | 43,050 |
Debt |
Debts falling due within 1 year | (95,660 | ) | (20,694 | ) | (116,354 | ) |
Debts falling due after 1 year | (414,889 | ) | (64,711 | ) | (479,600 | ) |
(510,549 | ) | (85,405 | ) | (595,954 | ) |
Total | (439,981 | ) | (112,923 | ) | (552,904 | ) |
AYRSHIRE CARE HOMES LIMITED (REGISTERED NUMBER: SC695773) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
1. | STATUTORY INFORMATION |
Ayrshire Care Homes Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
Monetary amounts in these financial statements are rounded to the nearest £. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The directors have considered a period of 12 months from the date of approval of the financial statements. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements. |
Basis of consolidation |
The group financial statements consolidate the financial statements of the company and its material subsidiary undertakings drawn up to 28 February each year. The results of subsidiaries acquired or sold are consolidated for the periods from or up to the date on which control passed. Acquisitions are accounted for under the acquisition method. |
Critical accounting judgements and key sources of estimation uncertainty |
The most significant estimation within the group's financial statements relates to depreciation. The directors review depreciation rates on a regular basis to ensure that the policy rate remains appropriate. |
The directors also require to exercise judgement is assessing recoverability of trade debtors and make provision where credit control procedures indicate that trade debtor balances may not be fully recoverable. |
Turnover |
Turnover comprises revenue recognised by the group in respect of goods and services supplied during the year. |
Revenue is recognised in the period it has been earned. The revenue earned is from the provision of care home services only. |
Tangible fixed assets |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
No depreciation is charged on land and buildings which are currently under the course of construction. |
AYRSHIRE CARE HOMES LIMITED (REGISTERED NUMBER: SC695773) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The group 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 group's balance sheet when the group 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 certain debtors and cash and bank balances, are initially measured at transaction price including transactions 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. |
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 certain creditors and loans from related undertakings, 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. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
AYRSHIRE CARE HOMES LIMITED (REGISTERED NUMBER: SC695773) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
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 |
2023 | 2022 |
£ | £ |
Wages and salaries | 2,929,999 | 2,896,982 |
Social security costs | 249,573 | 424,020 |
Other pension costs | 79,061 | 52,856 |
3,258,633 | 3,373,858 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Care Home staff |
The average number of employees by undertakings that were proportionately consolidated during the year was 176 (2022 - 247 ) . |
2023 | 2022 |
£ | £ |
Directors' remuneration | 11,600 | 12,100 |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | 9,000 | 8,670 |
Depreciation - owned assets | 110,150 | 126,055 |
Auditors' remuneration | 17,400 | 6,000 |
AYRSHIRE CARE HOMES LIMITED (REGISTERED NUMBER: SC695773) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest | 21,306 | 13,571 |
Interest on tax | - | (39 | ) |
21,306 | 13,532 |
6. | TAXATION |
Analysis of the tax (credit)/charge |
The tax (credit)/charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 126,483 | 86,374 |
Deferred tax | (193,559 | ) | 99,663 |
Tax on profit | (67,076 | ) | 186,037 |
Reconciliation of total tax (credit)/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: |
2023 | 2022 |
£ | £ |
Profit before tax | 608,888 | 1,045,309 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2022 - 19 %) |
115,689 |
198,609 |
Effects of: |
Expenses not deductible for tax purposes | 2,553 | 3,635 |
Income not taxable for tax purposes | (2,942 | ) | (1,996 | ) |
Capital allowances in excess of depreciation | (199,652 | ) | (113,874 | ) |
Deferred tax | (193,559 | ) | 99,663 |
Loss carried forward | 210,835 | - |
Total tax (credit)/charge | (67,076 | ) | 186,037 |
7. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
8. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £1 each |
Interim | 4,000 | 4,000 |
AYRSHIRE CARE HOMES LIMITED (REGISTERED NUMBER: SC695773) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
9. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | and | Motor | Computer |
property | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 March 2022 | 10,435,922 | 750,515 | 15,401 | 110,125 | 11,311,963 |
Additions | 2,358,970 | 126,888 | - | 8,988 | 2,494,846 |
At 28 February 2023 | 12,794,892 | 877,403 | 15,401 | 119,113 | 13,806,809 |
DEPRECIATION |
At 1 March 2022 | - | 496,781 | 15,401 | 86,459 | 598,641 |
Charge for year | - | 99,261 | - | 10,889 | 110,150 |
At 28 February 2023 | - | 596,042 | 15,401 | 97,348 | 708,791 |
NET BOOK VALUE |
At 28 February 2023 | 12,794,892 | 281,361 | - | 21,765 | 13,098,018 |
At 28 February 2022 | 10,435,922 | 253,734 | - | 23,666 | 10,713,322 |
10. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 March 2022 |
and 28 February 2023 |
NET BOOK VALUE |
At 28 February 2023 |
At 28 February 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Barochan House, Barochan Estate, Chapel Road, Houston, PA6 7AZ |
Nature of business: |
% |
Class of shares: | holding |
AYRSHIRE CARE HOMES LIMITED (REGISTERED NUMBER: SC695773) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
10. | FIXED ASSET INVESTMENTS - continued |
Registered office: Barochan House, Barochan Estate, Chapel Road, Houston, PA6 7AZ |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Barochan House, Barochan Estate, Chapel Road, Houston, PA6 7AZ |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Barochan House, Barochan Estate, Chapel Road, Houston, PA6 7AZ |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Suite 112, 88 Queen Street, Sheffield, England, S1 2FW |
Nature of business: |
% |
Class of shares: | holding |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 389,222 | 402,997 |
Amounts owed by related undertakings | - | 166,672 | - | - |
Other debtors | 3,441 | - |
Called up share capital not paid | - | - |
Prepayments | 71,184 | 116,396 |
463,847 | 686,065 |
AYRSHIRE CARE HOMES LIMITED (REGISTERED NUMBER: SC695773) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 14) | 116,354 | 95,660 |
Trade creditors | 89,917 | 39,778 |
Amounts owed to group undertakings | - | - |
Amounts owed to related undertakings | 4,698,744 | 2,908,532 | - | - |
Tax | 126,483 | 86,374 |
Social security and other taxes | 53,556 | 48,276 |
Other creditors | 19,819 | 16,207 |
Directors' current accounts | 2,342,691 | 2,674,691 | - | - |
Accrued expenses | 317,196 | 303,398 |
7,764,760 | 6,172,916 |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Bank loans (see note 14) | 479,600 | 414,889 |
14. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 116,354 | 95,660 |
Amounts falling due between one and two | years: |
Bank loans | 116,354 | 96,354 |
Amounts falling due between two and five | years: |
Bank loans | 260,229 | 289,062 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans | 103,017 | 29,473 |
AYRSHIRE CARE HOMES LIMITED (REGISTERED NUMBER: SC695773) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 28 FEBRUARY 2023 |
15. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax | 96,274 | 289,833 |
Group |
Deferred |
tax |
£ |
Balance at 1 March 2022 | 289,833 |
Provided during year | (193,559 | ) |
Balance at 28 February 2023 | 96,274 |
16. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |
17. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 March 2022 | 4,592,217 |
Profit for the year | 675,964 |
Dividends | (4,000 | ) |
At 28 February 2023 | 5,264,181 |