Company registration number 02210745 (England and Wales)
VICTORIA NURSING GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
VICTORIA NURSING GROUP LIMITED
COMPANY INFORMATION
Directors
Mr P I Burns
Mrs S Burns
Secretary
Mr P I Burns
Company number
02210745
Registered office
81 Dyke Road Avenue
Hove
East Sussex
BN3 6DA
Auditor
Knill James LLP
One Bell Lane
Lewes
East Sussex
BN7 1JU
VICTORIA NURSING GROUP LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 22
VICTORIA NURSING GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -
The directors present the strategic report for the year ended 31 March 2023.
Review of the business
A summary of the financial results for the year ended 31 March 2023, the financial position as at that date and certain key financial performance indicators are set out in the table below.
The directors are satisfied with performance during the year having seen a marked improvement in demand for beds, occupancy having significantly improved to an average level of 95% (91% in 2022). The directors are happy with trading during the year with further improvements in occupancy and fee rate growth remaining robust. Ongoing issues with recruitment remain and concerns with significantly rising energy costs appear difficult to mitigate in the short to medium term. Regrettably, trading in Midhurst became increasingly challenging, post-covid, and so the decision was taken in August 2022 to close the site and to seek consent for alternative use and this process is on-going.
Principal risks and uncertainties
The principal risks facing the company are those associated with changes in law and regulations surrounding the provision of care, funding received from the Government and the policy of encouraging the elderly to remain in their own homes with an appropriate care package.
The company needs to ensure continued compliance with all relevant laws and regulations. These include reviews by the Care Quality Commission ("CQC").
The company also needs to ensure that each care home maximises quality to maintain competitive advantages.
The company is exposed to interest rate risk on interest expense arising on the company's bank facilities.
These risks are reviewed by the directors on a regular basis and mitigated as far as possible.
Mr P I Burns
Director
16 November 2023
VICTORIA NURSING GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
The directors present their annual report and financial statements for the year ended 31 March 2023.
Principal activities
The principal activity of the company continued to be that of the owner and operator of nursing homes.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £266,000. The directors do 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 P I Burns
Mrs S Burns
Auditor
Knill James LLP 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.
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.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr P I Burns
Director
16 November 2023
VICTORIA NURSING GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
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;
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.
VICTORIA NURSING GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF VICTORIA NURSING GROUP LIMITED
- 4 -
Opinion
We have audited the financial statements of Victoria Nursing Group Limited (the 'company') for the year ended 31 March 2023 which comprise 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 March 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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.
VICTORIA NURSING GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VICTORIA NURSING GROUP LIMITED
- 5 -
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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
In identifying and assessing the risk of material misstatement in respect of irregularities, including fraud, we:
obtained an understanding of the nature of the sector, including the legal and regulatory framework that the company operates in and how the company complies with the legal and regulatory framework;
inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud; and
discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.
VICTORIA NURSING GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VICTORIA NURSING GROUP LIMITED
- 6 -
As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, Companies Act 2006, the company's governing document and relevant tax legislation. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing the financial statements, including the Strategic Report, Directors' report and remaining alert to new or unusual transactions which may not be in accordance with the governing document.
The most significant laws and regulations that have an indirect impact on the financial statements are the compliance with relevant employment law, compliance with the CQC, Health and Safety regulations and the UK General Data Protection Regulation (UK GDPR). We performed audit procedures to inquire of management and those charged with governance whether the company is in compliance with these laws and regulations and inspected correspondence with regulatory authorities.
We identified the risk of management override of controls as the area where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included, but were not limited to, testing manual journal entries and other adjustments, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business and challenging judgments and estimates.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occuring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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.
J. Christopher Ketley FCA
Senior Statutory Auditor
For and on behalf of Knill James LLP
20 November 2023
Chartered Accountants
Statutory Auditor
One Bell Lane
Lewes
East Sussex
BN7 1JU
VICTORIA NURSING GROUP LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
7,421,959
7,684,453
Cost of sales
(5,945,749)
(5,974,990)
Gross profit
1,476,210
1,709,463
Administrative expenses
(681,068)
(854,384)
Operating profit
4
795,142
855,079
Interest receivable and similar income
7
6,715
Interest payable and similar expenses
8
(123,231)
(50,902)
Profit before taxation
678,626
804,177
Tax on profit
9
(184,603)
(346,007)
Profit for the financial year
494,023
458,170
Other comprehensive income
Revaluation of tangible fixed assets
(400,000)
703,349
Tax relating to other comprehensive income
100,000
(759,542)
Total comprehensive income for the year
194,023
401,977
The profit and loss account has been prepared on the basis that all operations are continuing operations.
VICTORIA NURSING GROUP LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
11,333,346
11,967,090
Investments
12
110,000
110,000
11,443,346
12,077,090
Current assets
Stocks
14
3,000
3,000
Debtors
15
341,860
503,700
Cash at bank and in hand
2,060,488
1,678,420
2,405,348
2,185,120
Creditors: amounts falling due within one year
16
(703,869)
(801,033)
Net current assets
1,701,479
1,384,087
Total assets less current liabilities
13,144,825
13,461,177
Creditors: amounts falling due after more than one year
17
(2,652,317)
(2,806,345)
Provisions for liabilities
Deferred tax liability
19
1,187,337
1,277,684
(1,187,337)
(1,277,684)
Net assets
9,305,171
9,377,148
Capital and reserves
Called up share capital
22
7,877
7,877
Revaluation reserve
23
4,739,200
5,039,200
Capital redemption reserve
24
2,501
2,501
Profit and loss reserves
25
4,555,593
4,327,570
Total equity
9,305,171
9,377,148
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true
The financial statements were approved by the board of directors and authorised for issue on 16 November 2023 and are signed on its behalf by:
Mr P I Burns
Director
Company registration number 02210745 (England and Wales)
VICTORIA NURSING GROUP LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2021
7,877
5,095,393
2,501
4,119,400
9,225,171
Year ended 31 March 2022:
Profit
-
-
-
458,170
458,170
Other comprehensive income:
Revaluation of tangible fixed assets
-
703,349
-
-
703,349
Tax relating to other comprehensive income
-
(759,542)
-
(759,542)
Total comprehensive income
-
(56,193)
-
458,170
401,977
Dividends
10
-
-
-
(250,000)
(250,000)
Balance at 31 March 2022
7,877
5,039,200
2,501
4,327,570
9,377,148
Year ended 31 March 2023:
Profit
-
-
-
494,023
494,023
Other comprehensive income:
Revaluation of tangible fixed assets
-
(400,000)
-
-
(400,000)
Tax relating to other comprehensive income
-
100,000
-
100,000
Total comprehensive income
-
(300,000)
-
494,023
194,023
Dividends
10
-
-
-
(266,000)
(266,000)
Balance at 31 March 2023
7,877
4,739,200
2,501
4,555,593
9,305,171
VICTORIA NURSING GROUP LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
938,484
640,335
Interest paid
(123,231)
(50,902)
Income taxes paid
(199,498)
(45,389)
Net cash inflow from operating activities
615,755
544,044
Investing activities
Purchase of tangible fixed assets
(74,608)
(241,287)
Revaluation
250,000
446,361
Interest received
6,715
Net cash generated from investing activities
182,107
205,074
Financing activities
Repayment of bank loans
(149,794)
576,147
Dividends paid
(266,000)
(250,000)
Net cash (used in)/generated from financing activities
(415,794)
326,147
Net increase in cash and cash equivalents
382,068
1,075,265
Cash and cash equivalents at beginning of year
1,678,420
603,155
Cash and cash equivalents at end of year
2,060,488
1,678,420
VICTORIA NURSING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
1
Accounting policies
Company information
Victoria Nursing Group Limited is a private company limited by shares incorporated in England and Wales. The registered office is 81 Dyke Road Avenue, Hove, East Sussex, BN3 6DA.
The company's principal activities and nature of its operations are disclosed in the Directors' Report.
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.
Consolidation
The financial statements present information about the company as an individual undertaking and not about its group. The company has taken advantage of section 402 of the Companies Act 2006 not to prepare consolidated financial statements as the directors consider that the company's subsidiaries may be excluded from consolidation as they are immaterial for the purpose of a true and fair view.
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 represents amounts receivable arising from the provision of health and social care, both short
and long term, mainly to individuals over 65 years of age. This is recognised in line with the date at which
the service is provided.
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:
Freehold land and buildings
Not depreciated
Fixtures and fittings
20% reducing balance or 20% straight line
Motor vehicles
20% reducing balance
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.
No depreciation is charged on freehold buildings as the carrying value is not considered to significantly exceed the residual value of buildings.
VICTORIA NURSING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 12 -
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.6
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.
1.7
Stocks
Stocks are stated at the lower of cost and net realisable value.
1.8
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.
1.9
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.
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.
VICTORIA NURSING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 13 -
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.
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.
VICTORIA NURSING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
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.
1.11
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.
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
VICTORIA NURSING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
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.
The key area of estimation relates to the carrying value of the company's freehold land and buildings.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Providing health and social care
7,421,959
7,684,453
2023
2022
£
£
Other revenue
Interest income
6,715
-
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
18,942
17,220
Depreciation of owned tangible fixed assets
58,352
54,296
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Nursing and support staff
167
174
VICTORIA NURSING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
5
Employees
(Continued)
- 16 -
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
4,348,194
4,159,559
Social security costs
390,105
352,861
Pension costs
81,507
80,376
4,819,806
4,592,796
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
17,550
17,568
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
6,715
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
6,715
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
123,231
50,902
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
174,950
199,498
Adjustments in respect of prior periods
(14,668)
Total current tax
174,950
184,830
VICTORIA NURSING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
9
Taxation
2023
2022
£
£
(Continued)
- 17 -
Deferred tax
Origination and reversal of timing differences
9,653
161,177
Total tax charge
184,603
346,007
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:
2023
2022
£
£
Profit before taxation
678,626
804,177
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
128,939
152,794
Tax effect of expenses that are not deductible in determining taxable profit
60,575
84,808
Permanent capital allowances in excess of depreciation
(14,510)
(38,104)
Under/(over) provided in prior years
(14,668)
Deferred tax
9,653
161,177
Other tax adjustments
(54)
Taxation charge for the year
184,603
346,007
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2023
2022
£
£
Deferred tax arising on:
Revaluation of property
(100,000)
759,542
10
Dividends
2023
2022
£
£
Interim paid
266,000
250,000
VICTORIA NURSING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
11
Tangible fixed assets
Freehold land and buildings
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2022
11,750,000
903,201
1,769
12,654,970
Additions
74,608
74,608
Revaluation
(650,000)
(650,000)
At 31 March 2023
11,100,000
977,809
1,769
12,079,578
Depreciation and impairment
At 1 April 2022
686,339
1,541
687,880
Depreciation charged in the year
58,295
57
58,352
At 31 March 2023
744,634
1,598
746,232
Carrying amount
At 31 March 2023
11,100,000
233,175
171
11,333,346
At 31 March 2022
11,750,000
216,862
228
11,967,090
Freehold land and buildings with a carrying amount of £11,100,000 (2022 - £11,750,000) have been pledged to secure borrowings of the company. See note 18 for further details regarding security given.
Land and buildings were revalued as at 1 November 2021 by Pinders Professional & Consultancy Services Ltd in accordance with The Royal Institution of Chartered Surveyors (RICS) on the basis of open market value.
The directors reviewed the carrying value of the care homes as at 31 March 2023 which resulted in a reduced valuation.
12
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
13
110,000
110,000
13
Subsidiaries
Details of the company's subsidiaries at 31 March 2023 are as follows:
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Victoria Nursing Home Limited
England & Wales
Dormant
Ordinary
100.00
Wells Care Limited
England & Wales
Dormant
Ordinary
100.00
VICTORIA NURSING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 19 -
14
Stocks
2023
2022
£
£
Finished goods and goods for resale
3,000
3,000
15
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
311,246
475,658
Other debtors
408
Prepayments and accrued income
30,206
28,042
341,860
503,700
16
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
18
170,265
166,031
Trade creditors
118,142
140,504
Amounts owed to group undertakings
110,000
110,000
Corporation tax
174,950
199,498
Other taxation and social security
90,956
79,024
Government grants
20
19,672
35,000
Other creditors
942
47,075
Accruals and deferred income
18,942
23,901
703,869
801,033
17
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
18
2,652,317
2,806,345
18
Loans and overdrafts
2023
2022
£
£
Bank loans
2,822,582
2,972,376
Payable within one year
170,265
166,031
Payable after one year
2,652,317
2,806,345
VICTORIA NURSING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
18
Loans and overdrafts
(Continued)
- 20 -
The bank loan is due for repayment in December 2027 and carries an interest rate of 2.9%. The bank loan is secured on the company's care homes as follows:
There is a Cross Guarantee and Debenture between Victoria Nursing Group Limited, Victoria Nursing Home Limited and Wells Care Limited in form and substance satisfactory to the Bank with supporting security in form and substance satisfactory to the Bank.
A legal charge over Spade House Radnor Cliff Crescent Folkestone Kent in form and substance satisfactory to the Bank.
A legal charge over 59 Dyke Road Avenue Hove East Sussex in form and substance satisfactory to the Bank.
A legal charge over Willow Lodge 60 Earls Avenue Folkestone in form and substance satisfactory to the Bank.
A legal charge over Residential Rest Home 81 Dyke Road Avenue East Sussex in form and substance satisfactory to the Bank.
A legal charge over land on the south west side of Dyke Road Avenue East Sussex in form and substance satisfactory to the Bank.
A legal charge over the freehold property known as Birch Tree Nursing Home, West Sussex in form and substance satisfactory to the Bank.
A legal charge over Nursing Home 63 Dyke Road Avenue East Sussex in form and substance satisfactory to the Bank.
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
164,480
154,827
Revaluations
1,022,857
1,122,857
1,187,337
1,277,684
2023
Movements in the year:
£
Liability at 1 April 2022
1,277,684
Charge to profit or loss
9,653
Credit to other comprehensive income
(100,000)
Liability at 31 March 2023
1,187,337
The deferred tax liability set out above is expected to reverse and relates to accelerated capital allowances that are expected to mature within the same period.
VICTORIA NURSING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
20
Government grants
2023
2022
£
£
Arising from government grants
19,672
35,000
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
81,507
80,376
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.
22
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
7,877
7,877
7,877
7,877
The company's shares, which carry no right to fixed income, each carry the right to one vote at the general meetings of the company.
23
Revaluation reserve
The revaluation reserve has arisen through the revaluation of the company's freehold properties to their market value on transition to FRS102, less deferred tax on the unrealised gain. This is a non distributable reserve.
24
Capital redemption reserve
The reserve arose from the purchase of the company's own shares and is a non distributable reserve.
25
Profit and loss reserves
Profit and loss reserves represent cumulative profit and loss net of distributions to owners.
26
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
VICTORIA NURSING GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
26
Related party transactions
(Continued)
- 22 -
The following amounts were (due)/ outstanding at the reporting end date:
2023
2022
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
(408)
37,248
Key management personnel
827
6,949
The amounts advanced to the company are interest free and repayable on demand.
27
Directors' transactions
Dividends totalling £199,508 (2022 - £187,508) were paid in the year in respect of shares held by the company's directors.
28
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
494,023
458,170
Adjustments for:
Taxation charged
184,603
346,007
Finance costs
123,231
50,902
Investment income
(6,715)
Depreciation and impairment of tangible fixed assets
58,352
54,296
Movements in working capital:
Decrease/(increase) in debtors
161,840
(56,104)
Decrease in creditors
(61,522)
(65,157)
Decrease in deferred income
(15,328)
(147,779)
Cash generated from operations
938,484
640,335
29
Analysis of changes in net debt
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
1,678,420
382,068
2,060,488
Borrowings excluding overdrafts
(2,972,376)
149,794
(2,822,582)
(1,293,956)
531,862
(762,094)
2023-03-312022-04-01falseCCH SoftwareCCH Accounts Production 2023.300Mrs S BurnsMrs S BurnsMr P I Burnsfalse022107452022-04-012023-03-3102210745bus:CompanySecretaryDirector12022-04-012023-03-3102210745bus:Director12022-04-012023-03-3102210745bus:CompanySecretary12022-04-012023-03-3102210745bus:Director22022-04-012023-03-3102210745bus:RegisteredOffice2022-04-012023-03-31022107452023-03-31022107452021-04-012022-03-3102210745core:RetainedEarningsAccumulatedLosses2021-04-012022-03-3102210745core:RetainedEarningsAccumulatedLosses2022-04-012023-03-3102210745core:RevaluationReserve2022-04-012023-03-3102210745core:RevaluationReserve2021-04-012022-03-3102210745core:RevenueReservesInvestmentFundsOnly2021-04-012022-03-31022107452022-03-3102210745core:LandBuildingscore:OwnedOrFreeholdAssets2023-03-3102210745core:FurnitureFittings2023-03-3102210745core:MotorVehicles2023-03-3102210745core:LandBuildingscore:OwnedOrFreeholdAssets2022-03-3102210745core:FurnitureFittings2022-03-3102210745core:MotorVehicles2022-03-3102210745core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3102210745core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-3102210745core:Non-currentFinancialInstrumentscore:AfterOneYear2023-03-3102210745core:Non-currentFinancialInstrumentscore:AfterOneYear2022-03-3102210745core:CurrentFinancialInstruments2023-03-3102210745core:CurrentFinancialInstruments2022-03-3102210745core:ShareCapital2023-03-3102210745core:ShareCapital2022-03-3102210745core:RevaluationReserve2023-03-3102210745core:RevaluationReserve2022-03-3102210745core:CapitalRedemptionReserve2023-03-3102210745core:CapitalRedemptionReserve2022-03-3102210745core:RetainedEarningsAccumulatedLosses2023-03-3102210745core:RetainedEarningsAccumulatedLosses2022-03-3102210745core:ShareCapital2021-03-3102210745core:RevaluationReserve2021-03-3102210745core:CapitalRedemptionReserve2021-03-3102210745core:RetainedEarningsAccumulatedLosses2021-03-310221074512022-04-012023-03-310221074512021-04-012022-03-31022107452022-03-31022107452021-03-3102210745core:LandBuildingscore:OwnedOrFreeholdAssets2022-04-012023-03-3102210745core:FurnitureFittings2022-04-012023-03-3102210745core:MotorVehicles2022-04-012023-03-3102210745core:UKTax2022-04-012023-03-3102210745core:UKTax2021-04-012022-03-310221074522022-04-012023-03-310221074522021-04-012022-03-310221074532022-04-012023-03-310221074532021-04-012022-03-3102210745core:LandBuildingscore:OwnedOrFreeholdAssets2022-03-3102210745core:FurnitureFittings2022-03-3102210745core:MotorVehicles2022-03-3102210745core:Non-currentFinancialInstruments2023-03-3102210745core:Non-currentFinancialInstruments2022-03-3102210745core:Subsidiary12022-04-012023-03-3102210745core:Subsidiary22022-04-012023-03-310221074512022-04-012023-03-3102210745bus:PrivateLimitedCompanyLtd2022-04-012023-03-3102210745bus:FRS1022022-04-012023-03-3102210745bus:Audited2022-04-012023-03-3102210745bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP