IRIS Accounts Production v23.3.0.418 SC695773 Board of Directors 28.2.23 1.3.22 28.2.23 28.2.23 operating care homes. true true true false true true false false false false false false false true false Ordinary 0 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWhSC6957732022-02-28SC6957732023-02-28SC6957732022-03-012023-02-28SC6957732021-02-28SC6957732021-03-012022-02-28SC6957732022-02-28SC695773ns10:Originalns15:Scotland2022-03-012023-02-28SC695773ns14:PoundSterlingns10:Original2022-03-012023-02-28SC695773ns10:Originalns10:Director12022-03-012023-02-28SC695773ns10:Original2022-03-012023-02-28SC695773ns10:Originalns10:Consolidated2023-02-28SC695773ns10:Original2023-02-28SC695773ns10:Originalns10:ConsolidatedGroupCompanyAccounts2022-03-012023-02-28SC695773ns10:Originalns10:PrivateLimitedCompanyLtd2022-03-012023-02-28SC695773ns10:Originalns10:Consolidatedns10:FRS1022022-03-012023-02-28SC695773ns10:Originalns10:Consolidatedns10:Audited2022-03-012023-02-28SC695773ns10:Originalns10:SmallCompaniesRegimeForDirectorsReport2022-03-012023-02-28SC695773ns10:SmallCompaniesRegimeForAccountsns10:Original2022-03-012023-02-28SC695773ns10:Originalns10:Consolidatedns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2022-03-012023-02-28SC695773ns10:LargeMedium-sizedCompaniesRegimeForAccountsns10:Originalns10:Consolidated2022-03-012023-02-28SC695773ns10:Originalns10:FullAccounts2022-03-012023-02-28SC695773ns10:Originalns5:Subsidiary12022-03-012023-02-28SC695773ns10:Originalns5:Subsidiary22022-03-012023-02-28SC695773ns5:Subsidiary3ns10:Original2022-03-012023-02-28SC695773ns10:Originalns5:Subsidiary42022-03-012023-02-28SC695773ns10:Originalns5:Subsidiary52022-03-012023-02-28SC695773ns10:Originalns10:OrdinaryShareClass12022-03-012023-02-28SC695773ns10:Originalns10:Consolidated2022-03-012023-02-28SC695773ns10:Originalns10:Director22022-03-012023-02-28SC695773ns10:Originalns10:RegisteredOffice2022-03-012023-02-28SC695773ns10:Originalns10:Consolidated2021-03-012022-02-28SC695773ns10:Original2022-02-28SC695773ns10:Originalns5:CurrentFinancialInstruments2023-02-28SC695773ns10:Originalns5:CurrentFinancialInstruments2022-02-28SC695773ns5:ShareCapitalns10:Original2023-02-28SC695773ns5:ShareCapitalns10:Original2022-02-28SC695773ns10:Originalns5:RetainedEarningsAccumulatedLosses2023-02-28SC695773ns10:Originalns5:RetainedEarningsAccumulatedLosses2022-02-28SC695773ns5:ShareCapitalns10:Original2021-02-28SC695773ns10:Originalns5:RetainedEarningsAccumulatedLosses2021-02-28SC695773ns10:Original2021-02-28SC695773ns10:Originalns5:RetainedEarningsAccumulatedLosses2022-03-012023-02-28SC695773ns10:Original12022-03-012023-02-28SC695773ns10:Originalns5:FurnitureFittings2022-03-012023-02-28SC695773ns10:Originalns5:MotorVehicles2022-03-012023-02-28SC695773ns10:Originalns5:ComputerEquipment2022-03-012023-02-28SC695773ns10:Original2021-03-012022-02-28SC695773ns10:Originalns5:CostValuation2022-02-28SC695773ns10:Originalns5:Subsidiary112022-03-012023-02-28SC695773ns10:Original3ns5:Subsidiary22022-03-012023-02-28SC695773ns5:Subsidiary3ns10:Original52022-03-012023-02-28SC6957737ns10:Originalns5:Subsidiary42022-03-012023-02-28SC695773ns10:Original9ns5:Subsidiary52022-03-012023-02-28SC695773ns10:Originalns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-02-28SC695773ns10:Originalns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-02-28SC695773ns10:Originalns10:OrdinaryShareClass12023-02-28
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: G A Russell
Mrs A T Russell



REGISTERED OFFICE: Barochan House Barochan Estate
Chapel Road
Houston
PA6 7AZ



REGISTERED NUMBER: SC695773 (Scotland)



AUDITORS: Bannerman Johnstone Maclay
Chartered Accountants
and Statutory Auditor
213 St Vincent Street
Glasgow
G2 5QY



BANKERS: Bank of Scotland
235 Sauchiehall Street
Glasgow
G2 3EY



SOLICITORS: MacRoberts
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:





G A Russell - Director


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.

G A Russell
Mrs A T Russell

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:





G A Russell - Director


8 September 2023

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.




Douglas Paton BSc CA (Senior Statutory Auditor)
for and on behalf of Bannerman Johnstone Maclay
Chartered Accountants
and Statutory Auditor
213 St Vincent Street
Glasgow
G2 5QY

8 September 2023

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 675,964 859,272
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 10 401 401
401 401

CURRENT ASSETS
Debtors 11 100 100

CREDITORS
Amounts falling due within one year 12 1,460 401
NET CURRENT LIABILITIES (1,360 ) (301 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

(959

)

100

CAPITAL AND RESERVES
Called up share capital 16 100 100
Retained earnings (1,059 ) -
SHAREHOLDERS' FUNDS (959 ) 100

Company's loss for the financial year (1,059 ) -

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 8 September 2023 and were signed on its behalf by:





G A Russell - Director


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 100 - 100

Changes in equity
Balance at 28 February 2022 100 - 100

Changes in equity
Total comprehensive income - (1,059 ) (1,059 )
Balance at 28 February 2023 100 (1,059 ) (959 )

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 private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the General Information page.

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


Monetary amounts in these financial statements are rounded to the nearest £.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings - 25% on cost
Motor vehicles - 25% on cost
Computer equipment - 25% on cost

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 176 247

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 401
NET BOOK VALUE
At 28 February 2023 401
At 28 February 2022 401

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Heathfield Care and Residential Homes Limited
Registered office: Barochan House, Barochan Estate, Chapel Road, Houston, PA6 7AZ
Nature of business: Residential care activities
%
Class of shares: holding
Ordinary 100.00

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

Wallacetown Gardens Limited
Registered office: Barochan House, Barochan Estate, Chapel Road, Houston, PA6 7AZ
Nature of business: Residential care activities
%
Class of shares: holding
Ordinary 100.00

Atlantic View Care Home Limited
Registered office: Barochan House, Barochan Estate, Chapel Road, Houston, PA6 7AZ
Nature of business: Residential care activities
%
Class of shares: holding
Ordinary 100.00

Whiteford House Limited
Registered office: Barochan House, Barochan Estate, Chapel Road, Houston, PA6 7AZ
Nature of business: Residential care activities
%
Class of shares: holding
Ordinary 100.00

Heathfield Care Services Limited
Registered office: Suite 112, 88 Queen Street, Sheffield, England, S1 2FW
Nature of business: Residential care activities
%
Class of shares: holding
Ordinary 100.00


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 - - 100 100
Prepayments 71,184 116,396 - -
463,847 686,065 100 100

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 - - 1,460 401
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 1,460 401

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: £    £   
100 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