Company registration number 04746712 (England and Wales)
ABBEY TOTAL CARE GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
ABBEY TOTAL CARE GROUP LIMITED
COMPANY INFORMATION
Directors
Mr J Patel
Mrs D Patel
Secretary
Mrs D Patel
Company number
04746712
Registered office
9 Spareleaze Hill
Loughton
Essex
IG10 1BS
Auditor
Alwyns LLP
Crown House
151 High Road
Loughton
Essex
IG10 4LG
Business address
Accounts Office, Abbey Care Complex
27-29 Abbey Road
Newbury Park
Ilford
Essex
IG2 7NE
ABBEY TOTAL CARE GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 7
Independent auditor's report
8 - 10
Profit and loss account
11
Group statement of comprehensive income
12
Group balance sheet
13
Company balance sheet
14
Group statement of changes in equity
15
Company statement of changes in equity
16
Group statement of cash flows
17
Notes to the financial statements
18 - 35
ABBEY TOTAL CARE GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2023
- 1 -

The directors present the Annual Report for the year ended 30 April 2023.

Fair review of the business

The principal activities of the group continue to be that of ownership and the operation of nursing homes primarily for the elderly. The group owns 9 care homes providing nursing and residential care to 480 registered beds.

 

Abbey Total Care has had an excellent year, with revenues rising by 18.27% over the previous year. Profit before tax and the fair value gain on derivative financial assets for the year ended 30 April 2023 amounted to £4.27m (2022 Profit Before Tax £3.9m). Increased staff remuneration and agency costs have impacted the year’s results, however strict control over support costs is a testament to the group’s ability to excel in an otherwise challenging market. Local Authorities have continued to control tight budgets and are offering little or no increments in fees. The Group continues to maintain strict financial discipline and therefore has been resilient in keeping its cash generation capacity intact.

 

We are seeing good progress on customer numbers and are very optimistic about the future and confident that the Group is well placed to continue to perform strongly in the year ahead. With the addition to the existing team of highly competent experts, the Group continues to make significant progress in refreshing its strategic fundamentals. This move puts us in the best place for success into the future. The management is constantly aware of its Sustainability, Environmental, and Social and Governance (ESG) responsibilities and strives to abide by them.

 

Careful management of the finances has enabled the group to make substantial reinvestment into the business. There is a constant background of developing and improving the portfolio. As in previous years, steadily increasing group portfolio valuation reflects the quality of the assets from which the income is derived.

 

Strong governance, corporate responsibility and sustainability are integral to the Abbey brand’s success. The group is focused on meeting the challenging healthcare needs of its residents and society. Abbey remains well positioned to be a sector-leading entity on engagement, career development and training by investing in its people and services.

 

The second phase of works at the group’s flagship “Total Care” project - Forest Place is at its final stage. The redevelopment will ultimately result in 165 very high-quality care units including the provision of 45 extra care assisted living units and recreational facilities. Integrated in this development will be a hydrotherapy centre with ancillary medical facilities with consulting rooms and services including opticians, dentistry, physiotherapy and a pharmacy. The centre will also offer wellness facilities. As in the previous year, development has meant a temporary reduction in the number of available beds. Upon completion and maturity of the Forest Place project the value of the group portfolio is expected to significantly increase following a valuation carried out in May 2023 to £107m.

 

As the Forest Place Construction moves towards its final stages, planning permission is being sought to expand the Group's premises in Balham and Barnet, utilising additional premises acquired recently. Considerable development potential exists within the Group's existing property portfolio, partly as a result of recently acquired residential properties adjacent to the care homes and this will be explored to achieve maximum value as well as improving the facilities available to our residents. In the current year contract have been exchanged for the purchase of a fully operational 65 bed Uplands Care Home.

 

The group’s future looks promising with very strong foundations, a strong financial Balance Sheet and continued focus on meeting changing customers’ needs. As always, the structure and scope of our care quality is constantly monitored by the group’s Sounding Board, Governance Teams, Operational and Area Managers and Home Managers. The group’s key focus remains over and above regulatory, the local authority and NHS requirements.

 

We continue to invest and upgrade our management team with specialists, from in-house trainers, experts in Care Quality Commission matters, Local Authority Contracts Experts and Environmental Health Experts. Associate Medical Consultants and GPs are also playing a significant role in providing more specialist resident care, in liaising with NHS Clinical Commissioning Groups and local hospitals.

 

Abbey Total Care Group Limited’s homes continue to be regulated by the Care Quality Commission. The Care Quality Commission is responsible for making sure care homes and care services in England provide people with safe, effective, compassionate and high-quality care. The group endeavours to ensure it is fully compliant with all required health and safety regulations, labour and employment laws.

ABBEY TOTAL CARE GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 2 -
Principal risks

In addition to commercial and regulatory factors, the impact of rising cost of living and inflation continues to challenge the group’s operations. However the group continually monitors and understands the prevailing risk for its individual businesses and balance sheets by assessing how they interact. By understanding these risks, the group seeks appropriate opportunities for risk diversification and management are confident of responding to all such challenges. In view of local authorities and the NHS continuing to restrict annual fee increments and extending their payment periods, the group maintains adequate provisions in its cash-flow to deal with this.

 

During the period, the group increased its Term loan and acquisition banking facility. The acquisition and development facility will aid greatly in developing agreed projects, including the opportunistic acquisition of any peripheral properties that fit into the group's expansion plans. In addition the new facility provides funding for the acquisition detailed above.

 

The care market remains challenging, and the ravaging effects of the pandemic are not yet over. The recruitment of healthcare workers is an ongoing sector-wide issue, with rising inflation resulting in increasing costs for the businesses. The Group is in a good position to adapt to the changing circumstances, keeping in mind their customers, the need for growth, and sustainability.

Future Outlook

Looking ahead, conditions will continue to be challenging due to a number of economic uncertainties. The scale and further likelihood of which particular care homes being impacted cannot be predicted with any certainty. The group is however taking all possible precautions to minimise and mitigate the risk with continuous monitoring of the business. The group is well prepared in maintaining its growth momentum well into the foreseeable future.

Key performance indicators

The group’s Key Performance Indicators are continually reviewed. During the year the movement of these KPI’s were as follows: -

 

 

2022/23

2021/22

Analysis

Profit before Tax and fair value gains on derivative financial assets (£‘000)

£4,269

£3,912

Increased in profit is primarily due to the higher occupancy and an increase in average fee compared to previous year whilst efficiently managing the administrative cost.

Occupancy Percentage %

91%

84%

During the year, occupancy rates increased as a result of diversifying the provision of specialised care.

Available Beds

452

439

Currently registered beds with the Care Quality Commission are 480 and will increase to 620 upon registration of 75 additional beds from developments and 65 additional beds from acquisition.

 

ABBEY TOTAL CARE GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 3 -
S712 statement

The directors of the Company, as those of all UK companies, must act in accordance with a set of general duties. These duties are detailed in section 172 of the UK Companies Act 2006 which is summarised as follows:

 

‘A director of a company must act in the way they consider, in good faith, would be most likely to promote the success of the company for the benefit of its shareholders as a whole and, in doing so have regard (amongst other matters) to:

 

•    the likely consequences of any decisions in the long term;

 

•    the interests of the company’s employees;

 

•    the need to foster the company’s business relationships with suppliers, customers and others;

 

•    the impact of the company’s operations on the community and environment;

 

•    the desirability of the company maintaining a reputation for high standards of business conduct; and

 

•    the need to act fairly as between members of the Company.

 

Risk Management

As we grow, our business and our risk environment also become more complex. It is therefore vital that we effectively identify, evaluate, manage and mitigate the risks we face, and that we continue to evolve our approach. We have set out earlier in this report our principle risks and how we manage our risk environment.

 

Our people

The Group is committed to being a responsible business. Our behaviour is aligned with the expectations of our people, clients, investors, communities and society as a whole. For our business to succeed we need to manage our people’s performance and develop and bring through talent while ensuring we operate as efficiently as possible. We must also ensure we share common values that inform and guide our behaviour so we achieve our goals in the right way. Throughout the pandemic, the Group has supported its colleagues. Our colleagues have worked tirelessly throughout the pandemic, adopted various changes, to provide outstanding care to our residents.

 

Business Relationships

Our strategy priorities organic growth. To do this, we need to develop and maintain strong customer relationships. We value all of our suppliers.

 

Community and Environment

The Group’s approach is to use our position of strength to create positive change for the people and communities with which we interact.

 

Reputation maintenance

The board expects the highest standards of business conduct. The directors receive updates in respect of matters of regulatory compliance and further escalated issues.

 

Shareholders

The board contains all the company’s shareholders so there is never a conflict between the two parties.

ABBEY TOTAL CARE GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 4 -

The directors take this opportunity to thank all the stakeholders in supporting the operation of the business – that is all the frontline staff and management, the suppliers, the commissioning and contracting authorities, the social and healthcare workers – for their tremendous support during the very challenging period of the pandemic. The directors extend our thanks to all the families and relatives for their understanding and working in partnership with the group.

On behalf of the board

Mr J Patel
Director
24 October 2023
ABBEY TOTAL CARE GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2023
- 5 -

The directors present their financial statements for the year ended 30 April 2023.

 

Results and dividends

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £82,956. The directors do not recommend payment of a further 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 J Patel
Mrs D Patel
Financial instruments
Treasury operations and financial instruments

The group's principal financial instruments are credit facilities and loans, the main purpose of which is to finance the group's operations. In addition, the group has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from operations.

Liquidity risk

Liquidity risk is addressed by holding adequate liquid assets and through appropriate controls. The group continually reviews the residual risks arising and has mitigating actions in place to reduce the levels of these risks. Added to the liquid assets, a portion of the bank facility always remains undrawn to overcome unforeseen eventualities.

Interest rate risk

During May 2022 an interest rate cap was put in place over £20m of debt which capped the interest rate before margin at 1.5% per annum. The group is exposed to fair value interest rate risk on its borrowings over £20m and cashflow interest rate risk on bank overdrafts and loans. The group has agreed substantial interest rates on group cash credit balances which will help to manage interest cost on borrowing.

Credit risk

Investments of cash surpluses and borrowings are made through banks which must fulfil credit rating criteria approved by the Board. All service users enter into formal agreements with the group which stipulate payment terms. The directors regularly review trade debtors and pursue any outstanding debts on a timely basis. Where necessary, provisions are made for doubtful debts.

Employee involvement

Abbey Total Care Group Limited has continued its development of an in-house learning facility. The group ensures that all care employees are trained up to the industry standard (appropriate QCF levels). This learning facility provides in-house trainers and assessors to deliver appropriate instructions and evaluation. Our trainers are experts familiar with the company’s values, policies and procedures. These training sessions have been welcomed by employees for their the more interactive style and content.

 

The group's policy remains that of a positive approach to problem solving and improving efficiency through consultations and discussions with employees at staff councils and meetings, for matters likely to affect employees' interests. All matters of concern by individuals are resolved as they arise by the manager.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

ABBEY TOTAL CARE GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 6 -
Future developments

The Group is very pleased with the improving performance in health provision and aged care. We are doing everything we can to offer support to people in need. Our teams continue enthusiastically to deliver high standards of service for our customers at the same time as we transform the business.

 

The group continues to go from strength to strength, building on its solid foundation and years of expertise in the business. It has grown over the years by making progressive changes to existing buildings, conversions and new-builds. Importance is always given to developments that are superior and can provide a level of customer satisfaction which is exceptional. ‘Value for money and helping people live longer, healthier, happier lives’ are the key principles on which the Group’s foundations lie. We believe Abbey Total Care Group has an increasing part to play in the health of its customers.

 

Our ‘Care First’ approach will always be at the forefront all our activities. This approach has resulted in continuous training and development initiatives for all employees.

 

Forest Place, the group’s flagship home in Buckhurst Hill, located within the prestigious Epping Forest District of Essex, continues its Phase two development to supply additional beds, assisted living units for customers, restaurant facilities and an extensive medical centre.

 

Future planning includes new smaller developments at many of the group's other homes, to be rolled out soon after execution of the above project.

Auditor

The auditor, Alwyns LLP is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

Whilst the overall group has consumed more than 40,000 kWh of energy in this reporting period, none of the individual subsidiaries are large as defined by the Companies Act. In preparing this group Director’s Report, we have taken advantage of the option to exclude any energy and carbon information relating to those subsidiaries.

 

As the parent entity has very limited energy consumption, there is no energy and carbon information to be reported in respect of the parent entity.

Statement of directors' responsibilities

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

ABBEY TOTAL CARE GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 7 -
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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
Mr J Patel
Director
24 October 2023
ABBEY TOTAL CARE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ABBEY TOTAL CARE GROUP LIMITED
- 8 -
Opinion

We have audited the financial statements of Abbey Total Care Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and 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 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:

ABBEY TOTAL CARE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ABBEY TOTAL CARE GROUP LIMITED
- 9 -
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 their 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:

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 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 parent 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.

Audit procedures undertaken in responses to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claim; inspection of relevant legal correspondence; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As stated above, there is an unavoidable risk that material misstatements my not be detected, even though the audit have been planned and performed in accordance with ISAs (UK).

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.

ABBEY TOTAL CARE GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ABBEY TOTAL CARE GROUP LIMITED
- 10 -

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

David Stanley (Senior Statutory Auditor)
For and on behalf of Alwyns LLP
24 October 2023
Chartered Accountants
Statutory Auditor
Crown House
151 High Road
Loughton
Essex
IG10 4LG
ABBEY TOTAL CARE GROUP LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2023
- 11 -
2023
2022
Notes
£
£
Turnover
3
26,020,259
22,001,456
Cost of sales
(15,969,444)
(13,845,312)
Gross profit
10,050,815
8,156,144
Administrative expenses
(5,020,585)
(4,739,758)
Other operating income
401,834
1,148,477
Operating profit
4
5,432,064
4,564,863
Interest receivable and similar income
8
34,834
716
Interest payable and similar expenses
9
(1,197,314)
(653,795)
Fair value gains/(losses) on financial instruments
10
620,351
-
Profit before taxation
4,889,935
3,911,784
Tax on profit
11
(1,006,694)
(713,450)
Profit for the financial year
3,883,241
3,198,334
Profit for the financial year is attributable to:
- Owners of the parent company
3,831,617
3,147,371
- Non-controlling interests
51,624
50,963
3,883,241
3,198,334

The profit and loss account has been prepared on the basis that all operations are continuing operations.

ABBEY TOTAL CARE GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2023
- 12 -
2023
2022
£
£
Profit for the year
3,883,241
3,198,334
Other comprehensive income net of taxation
Revaluation of tangible fixed assets
6,783,937
-
0
Tax relating to other comprehensive income
(1,655,546)
-
0
Other comprehensive income for the year
5,128,391
-
0
Total comprehensive income for the year
9,011,632
3,198,334
Total comprehensive income for the year is attributable to:
- Owners of the parent company
8,960,008
3,147,371
- Non-controlling interests
51,624
50,963
9,011,632
3,198,334
ABBEY TOTAL CARE GROUP LIMITED
GROUP BALANCE SHEET
AS AT 30 APRIL 2023
30 April 2023
- 13 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
13
-
0
(18,882)
Tangible assets
14
83,570,973
74,878,771
83,570,973
74,859,889
Current assets
Debtors
17
9,143,554
7,283,788
Cash at bank and in hand
7,054,092
4,116,198
16,197,646
11,399,986
Creditors: amounts falling due within one year
18
(7,407,886)
(6,676,727)
Net current assets
8,789,760
4,723,259
Total assets less current liabilities
92,360,733
79,583,148
Creditors: amounts falling due after more than one year
19
(27,367,336)
(25,568,166)
Provisions for liabilities
Deferred tax liability
22
8,226,160
6,176,421
(8,226,160)
(6,176,421)
Net assets
56,767,237
47,838,561
Capital and reserves
Called up share capital
24
321
321
Revaluation reserve
32,165,189
27,080,300
Other reserves
(357,491)
(357,491)
Profit and loss reserves
23,988,906
20,240,245
Equity attributable to owners of the parent company
55,796,925
46,963,375
Non-controlling interests
970,312
875,186
56,767,237
47,838,561
The financial statements were approved by the board of directors and authorised for issue on 24 October 2023 and are signed on its behalf by:
24 October 2023
Mr J Patel
Director
Company registration number 04746712 (England and Wales)
ABBEY TOTAL CARE GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 30 APRIL 2023
30 April 2023
- 14 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
14
163,665
192,094
Investments
15
1,062,952
1,060,952
1,226,617
1,253,046
Current assets
Debtors
17
35,208,758
31,577,000
Cash at bank and in hand
1,938,793
1,456,859
37,147,551
33,033,859
Creditors: amounts falling due within one year
18
(9,026,772)
(7,674,902)
Net current assets
28,120,779
25,358,957
Total assets less current liabilities
29,347,396
26,612,003
Creditors: amounts falling due after more than one year
19
(27,367,336)
(25,568,166)
Provisions for liabilities
22
(206,263)
-
0
Net assets
1,773,797
1,043,837
Capital and reserves
Called up share capital
24
321
321
Profit and loss reserves
1,773,476
1,043,516
Total equity
1,773,797
1,043,837

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £812,916 (2022 - £215,049 profit).

The financial statements were approved by the board of directors and authorised for issue on 24 October 2023 and are signed on its behalf by:
24 October 2023
Mr J Patel
Director
Company Registration No. 04746712
ABBEY TOTAL CARE GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2023
- 15 -
Share capital
Revaluation reserve
Other reserves
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
£
Balance at 1 May 2021
321
27,080,300
(357,491)
17,175,830
43,898,960
824,223
44,723,183
Year ended 30 April 2022:
Profit and total comprehensive income
-
-
-
3,147,371
3,147,371
50,963
3,198,334
Dividends
12
-
-
-
(82,956)
(82,956)
-
(82,956)
Balance at 30 April 2022
321
27,080,300
(357,491)
20,240,245
46,963,375
875,186
47,838,561
Year ended 30 April 2023:
Profit for the year
-
-
-
3,831,617
3,831,617
51,624
3,883,241
Other comprehensive income net of taxation:
Revaluation of tangible fixed assets
-
6,783,937
-
-
6,783,937
-
6,783,937
Tax relating to other comprehensive income
-
(1,655,546)
-
-
0
(1,655,546)
-
(1,655,546)
Total comprehensive income
-
5,128,391
-
3,831,617
8,960,008
51,624
9,011,632
Dividends
12
-
-
-
(82,956)
(82,956)
-
(82,956)
Other movements
-
(43,502)
-
-
(43,502)
43,502
-
Balance at 30 April 2023
321
32,165,189
(357,491)
23,988,906
55,796,925
970,312
56,767,237
ABBEY TOTAL CARE GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2023
- 16 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2021
321
911,423
911,744
Year ended 30 April 2022:
Profit and total comprehensive income for the year
-
215,049
215,049
Dividends
12
-
(82,956)
(82,956)
Balance at 30 April 2022
321
1,043,516
1,043,837
Year ended 30 April 2023:
Profit and total comprehensive income
-
812,916
812,916
Dividends
12
-
(82,956)
(82,956)
Balance at 30 April 2023
321
1,773,476
1,773,797
ABBEY TOTAL CARE GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2023
- 17 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
6,334,270
4,795,112
Interest paid
(1,145,314)
(427,722)
Income taxes paid
(709,034)
(297,996)
Net cash inflow from operating activities
4,479,922
4,069,394
Investing activities
Purchase of tangible fixed assets
(2,553,517)
(4,664,778)
Interest received
34,834
716
Net cash used in investing activities
(2,518,683)
(4,664,062)
Financing activities
Proceeds from borrowings
99,703
99,703
Repayment of borrowings
(99,703)
(99,703)
Proceeds of new bank loans
3,197,860
5,216,894
Repayment of bank loans
(1,340,000)
(3,990,323)
Purchase of derivatives
(716,454)
-
Payment of finance leases obligations
(35,693)
(44,842)
Dividends paid to equity shareholders
(82,956)
(82,956)
Net cash generated from financing activities
1,022,757
1,098,773
Net increase in cash and cash equivalents
2,983,996
504,105
Cash and cash equivalents at beginning of year
3,965,059
3,460,954
Cash and cash equivalents at end of year
6,949,055
3,965,059
Relating to:
Cash at bank and in hand
7,054,092
4,116,198
Bank overdrafts included in creditors payable within one year
(105,037)
(151,139)
ABBEY TOTAL CARE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2023
- 18 -
1
Accounting policies
Company information

Abbey Total Care Group Limited ("the company") is a private company limited by shares incorporated in England and Wales. The registered office is 9 Spareleaze Hill, Loughton, Essex, IG10 1BS.

The group consists of Abbey Total Care Group Limited and all of its subsidiaries.

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 whole pound.

The financial statements have been prepared on the historical cost convention, modified to include the revaluation of freehold properties and derivative financial instruments. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group that prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

 

1.2
Basis of consolidation

The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination and includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date.

The consolidated financial statements incorporate those of Abbey Total Care Group Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

 

All financial statements are made up to 30 April 2023 and have consistent accounting policies.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

ABBEY TOTAL CARE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 19 -
1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company and its subsidiary undertakings have 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.

1.4
Turnover

Turnover represents amounts receivable for services provided.

1.5
Intangible fixed assets - goodwill

Goodwill represents the difference between the fair value of the consideration paid on the acquisition of a business and the fair value of the separable net assets. Goodwill is capitalised and amortised in equal annual instalments over its estimated useful economic life. The balance sheet carrying value of goodwill is reviewed for impairment at the end of the first full financial year following acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recovered.

1.6
Tangible fixed assets

Tangible fixed assets other than freehold land and buildings are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Freehold land and buildings are stated at valuation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Fixtures, fittings & equipment
25% reducing balance
Equipment (short life)
over a period of 3 years
Integral features
10% 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 recognised in the profit and loss account.

1.7
Fixed asset investments

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately through the profit and loss account, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

ABBEY TOTAL CARE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 20 -
1.9
Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities and bank overdrafts.

1.10
Financial instruments

The group and parent company have elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of their financial instruments.

 

Financial instruments are recognised in the balance sheet when the entity becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

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.

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 group 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 group after deducting all of its liabilities.

ABBEY TOTAL CARE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 21 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group and related companies 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 receipts 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

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 though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the group 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 group.

1.12
Taxation
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 group’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.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

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.

ABBEY TOTAL CARE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
1
Accounting policies
(Continued)
- 22 -
1.14
Retirement benefits

The group operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the period to which they relate.

1.15
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.16
Government grants

Government grants are recognised when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.17

Liquid resources

Liquid resources for the purpose of preparing the cashflow statement includes cash at bank and in hand.

ABBEY TOTAL CARE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 23 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Critical judgements and estimation uncertainty

The following judgements and estimates have had the most significant effect on amounts recognised in the financial statements.

Tangible fixed assets (note 14)

Freehold land and buildings are reflected at fair value based upon a valuation from qualified surveyors. Calculation of the valuation requires judgements to be made and estimates based on information at the time of the valuation including the competitive and economic environment.

Trade debtors (note 17)

At each reporting date the company assesses whether there is any indication of the non recovery of trade debts. If any such indication exists a provision is recognised based on the director's estimate of amounts recoverable.

3
Turnover and other revenue

The group's turnover is generated from its principal activity of the operation of care homes which is wholly undertaken in the United Kingdom.

4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(91,579)
(992,941)
Depreciation of owned tangible fixed assets
668,638
930,527
Amortisation of intangible assets
(18,882)
(32,404)
Operating lease charges
24,000
24,000
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
8,340
10,506
Audit of the financial statements of the company's subsidiaries
20,340
16,470
28,680
26,976
ABBEY TOTAL CARE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 24 -
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Resident welfare
497
458
-
-
Administration
42
45
6
7
539
503
6
7

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
13,107,546
11,347,379
668,090
650,097
Social security costs
1,214,020
1,129,378
93,554
85,896
Pension costs
447,069
413,781
201,486
201,156
14,768,635
12,890,538
963,130
937,149
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
317,018
321,599
Company pension contributions to defined contribution schemes
80,000
80,000
397,018
401,599

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
207,122
207,724
Company pension contributions to defined contribution schemes
40,000
40,000

Only the directors are considered to be the key management.

ABBEY TOTAL CARE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 25 -
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
34,834
716
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
1,122,465
597,467
Other interest on financial liabilities
11,219
3,894
Interest on finance leases and hire purchase contracts
2,276
379
Other finance costs
61,354
52,055
Total finance costs
1,197,314
653,795
10
Fair value gains/(losses) on financial instruments
2023
2022
£
£
Fair value gains/(losses) on financial instruments
Gain on financial assets held at fair value through profit or loss
620,351
-
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
614,592
619,125
Adjustments in respect of prior periods
(2,091)
(944)
Total current tax
612,501
618,181
Deferred tax
Origination and reversal of timing differences
394,193
95,269
Total tax charge
1,006,694
713,450
ABBEY TOTAL CARE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
11
Taxation
(Continued)
- 26 -

The charge for the year can be reconciled to the profit per the profit and loss account as follows:

2023
2022
£
£
Profit before taxation
4,889,935
3,911,784
Expected tax charge based on the standard rate of corporation tax in the UK of 19.50% (2022: 19.00%)
953,537
743,239
Adjustments in respect of prior years
(2,091)
(942)
Adjustments in respect of financial assets
45,378
-
0
Timing differences of capital allowances against depreciation and deferred taxation
29,098
(12,598)
Enhanced capital allowances
(31,163)
(16,991)
Other tax adjustments
16,495
742
Property impairment reversal
(4,560)
-
0
Taxation charge
1,006,694
713,450

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
1,655,546
-
12
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
82,956
82,956
ABBEY TOTAL CARE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 27 -
13
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 May 2022 and 30 April 2023
(293,584)
Amortisation and impairment
At 1 May 2022
(274,702)
Amortisation charged for the year
(18,882)
At 30 April 2023
(293,584)
Carrying amount
At 30 April 2023
-
0
At 30 April 2022
(18,882)
The company had no intangible fixed assets at 30 April 2023 or 30 April 2022.
14
Tangible fixed assets
Group
Freehold land and buildings
Fixtures, fittings & equipment
Total
£
£
£
Cost or valuation
At 1 May 2022
71,237,183
10,096,921
81,334,104
Additions
1,316,642
1,236,875
2,553,517
Revaluation
6,807,323
-
0
6,807,323
At 30 April 2023
79,361,148
11,333,796
90,694,944
Depreciation and impairment
At 1 May 2022
-
0
6,455,333
6,455,333
Depreciation charged in the year
-
0
668,638
668,638
At 30 April 2023
-
0
7,123,971
7,123,971
Carrying amount
At 30 April 2023
79,361,148
4,209,825
83,570,973
At 30 April 2022
71,237,183
3,641,588
74,878,771
ABBEY TOTAL CARE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
14
Tangible fixed assets
(Continued)
- 28 -
Company
Fixtures, fittings & equipment
£
Cost or valuation
At 1 May 2022
306,494
Additions
26,126
At 30 April 2023
332,620
Depreciation and impairment
At 1 May 2022
114,400
Depreciation charged in the year
54,555
At 30 April 2023
168,955
Carrying amount
At 30 April 2023
163,665
At 30 April 2022
192,094

Land and buildings were revalued during the current year based on a valuation concluded as at 24 May 2023 by Knight Frank LLP, independent valuers not connected with the group, on the basis of market value as defined in the publication RICS Valuation - Global Standards, which incorporate the International Valuation Standard and the RICS UK National Supplement.

If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:

2023
2022
£
£
Group
Cost
38,959,615
37,619,587
15
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
1,062,952
1,060,952
ABBEY TOTAL CARE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
15
Fixed asset investments
(Continued)
- 29 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 May 2022
1,060,952
Additions
2,000
At 30 April 2023
1,062,952
Carrying amount
At 30 April 2023
1,062,952
At 30 April 2022
1,060,952
16
Subsidiaries

Details of the company's subsidiaries at 30 April 2023 are as follows:

Name of undertaking
Class of
% Held
shares held
Direct
Abbey Care Centre Limited
Ordinary
100.00
Abbey Care Complex Limited
Ordinary
100.00
Abbey Care Services Limited
Ordinary
100.00
Abbey Cheam Centre Limited (Dormant)
Ordinary
100.00
Abbey Ravenscroft Park Limited
Ordinary
100.00
Martlane Limited
Ordinary
95.00
Moreland House Care Home Limited
Ordinary
100.00
Parkside Nursing Home Limited
Ordinary
100.00
Planshore Limited
Ordinary
99.00
Ryedowns Limited
Ordinary
99.90
Woodlands Total Care Nursing Home Limited
Ordinary
100.00
Abbey Uplands Care Home Limited (Dormant)
Ordinary
100.00
Abbey Kingston Care Home Limited (Dormant)
Ordinary
100.00

The principal activity of the above undertakings, apart from those identified as dormant, was the operation of care homes and ancillary services. All the above companies are registered in the United Kingdom which the same registered office as the parent undertaking.

 

ABBEY TOTAL CARE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 30 -
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,084,213
3,041,735
-
0
-
0
Corporation tax recoverable
29,401
29,401
29,401
29,401
Amounts owed by group undertakings
-
-
29,887,464
27,828,040
Other debtors
4,056,199
3,806,287
3,953,156
3,717,626
Prepayments and accrued income
636,936
406,365
1,932
1,933
7,806,749
7,283,788
33,871,953
31,577,000
Amounts falling due after more than one year:
Derivative financial instruments
1,336,805
-
1,336,805
-
Total debtors
9,143,554
7,283,788
35,208,758
31,577,000
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
1,468,037
1,439,139
1,468,037
1,393,037
Obligations under finance leases
21
35,693
35,693
35,693
35,693
Other borrowings
20
99,703
99,706
99,703
99,706
Trade creditors
2,461,897
2,103,318
55,684
30,692
Amounts owed to group undertakings
-
0
-
0
7,253,640
5,922,572
Corporation tax payable
354,592
451,125
-
0
-
0
Other taxation and social security
353,884
459,517
7,574
115,411
Other creditors
1,213,467
697,599
60,509
32,797
Accruals and deferred income
1,420,613
1,390,630
45,932
44,994
7,407,886
6,676,727
9,026,772
7,674,902
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
27,069,837
25,234,977
27,069,837
25,234,977
Obligations under finance leases
21
98,154
133,847
98,154
133,847
Other borrowings
20
199,345
199,342
199,345
199,342
27,367,336
25,568,166
27,367,336
25,568,166
ABBEY TOTAL CARE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 31 -
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
28,432,837
26,522,977
28,432,837
26,522,977
Bank overdrafts
105,037
151,139
105,037
105,037
Other loans
299,048
299,048
299,048
299,048
28,836,922
26,973,164
28,836,922
26,927,062
Payable within one year
1,567,740
1,538,845
1,567,740
1,492,743
Payable after one year
27,269,182
25,434,319
27,269,182
25,434,319

The bank debt is secured by a debenture and unlimited intercompany composite guarantee between the group and connected companies, supported by first legal charges over the assets of the group and connected companies.

 

The bank facilities, which were amended and increased during the previous year, comprise term loans with balances at 30 April 2023 of £25,360,644 and £3,197,860, repayable in instalments with bullet repayments at the end of the term. Interest is charged on the term loan at between 2.25% and 2.65% above SONIA and on the revolving credit facility at 3.35% above SONIA both adjusted for the median difference between SONIA and LIBOR over defined periods.

 

During May 2022 an interest rate cap was agreed with the group's bankers over £20,000,000 of debt which capped the interest rate before margins at 1.5% per annum.

 

Other loans represent the executive pension scheme which are secured over some of the group's properties, are repayable in instalments, have remaining terms of between one to five years and bear interest at 1% above bank base rate.

21
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
35,693
35,693
35,693
35,693
In two to five years
98,154
133,847
98,154
133,847
133,847
169,540
133,847
169,540

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

ABBEY TOTAL CARE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 32 -
22
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Group
£
£
Advanced capital allowances
682,397
494,467
Revaluation of freehold properties
7,337,500
5,681,954
Revaluation of derivatives
206,263
-
8,226,160
6,176,421
Liabilities
Liabilities
2023
2022
Company
£
£
Revaluation of derivatives
206,263
-
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 May 2022
6,176,421
-
Charge to profit or loss
394,193
206,263
Charge to equity
1,655,546
-
Liability at 30 April 2023
8,226,160
206,263
23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
447,069
413,781

Defined contribution pension schemes are operated for all qualifying employees. The assets of the schemes are held separately from those of the group in an independently administered fund.

24
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
321
321
321
321
ABBEY TOTAL CARE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 33 -
25
Related party transactions
Transactions with related parties
Group

During the year the group entered into transactions with related parties as follows:

2023
2022
£
£
Company with common directors and under common control
Repairs and maintenance expenses
623,712
629,730
Property development costs
1,316,642
1,143,720
Fixtures, fittings and equipment costs
1,048,491
910,771
2023
2022
£
£
Company in which a director is a member of key management personnel
Interest received
(59,079)
(38,197)
2023
2022
£
£
Close family members of the directors
Remuneration expenses
450,154
411,438
At the year end the following balances were outstanding:
2023
2022
£
£
Amounts owed by/(to) directors (interest free and repayable on demand)
64,674
(30,076)
Amounts owed by/(to) family members of directors (interest free and
43,784
41,806
repayable on demand)
Amounts owed by/(to) companies with common directors and
(28,608)
473,646
under common control
Amounts owed by company in which a director is a member of
3,860,247
3,166,770
key management personnel
Amounts owed (to) group pension scheme
(299,047)
(199,342)
Company
During the year the company entered into transactions with related parties as follows:
2023
2022
£
£
Company in which a director is a member of key management personnel
Interest received
(59,079)
(38,197)
2023
2022
£
£
Close family members of the directors
Remuneration expenses
376,499
336,826
ABBEY TOTAL CARE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
25
Related party transactions
(Continued)
- 34 -
At the year end the following balances were outstanding:
2023
2022
£
£
Amounts owed by/(to) directors (interest free and repayable on demand)
64,674
(30,076)
Amounts owed by family members of directors (interest free and
43,784
40,471
repayable on demand)
Amounts owed by/(to) company with common directors and
(55,177)
516,977
under common control
Amounts owed by company in which a director is a member of
3,816,191
1,707,668
key management personnel
Amounts owed(to) group pension scheme
(299,047)
(199,342)
26
Controlling party

The controlling party in both financial years is considered to be Mr J M Patel by virtue of his 100% shareholding.

27
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
3,883,241
3,198,334
Adjustments for:
Taxation charged
1,006,694
713,450
Finance costs
1,197,314
653,795
Investment income
(34,834)
(716)
Amortisation and impairment of intangible assets
(18,882)
(32,404)
Depreciation and impairment of tangible fixed assets
668,638
930,527
Reversal of previous impairment
(23,386)
-
Fair value gain on derivative
(620,351)
-
Movements in working capital:
Increase in debtors
(522,961)
(381,125)
Increase/(decrease) in creditors
798,797
(286,749)
Cash generated from operations
6,334,270
4,795,112
ABBEY TOTAL CARE GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2023
- 35 -
28
Analysis of changes in net debt - group
1 May 2022
Cash flows
Other non-cash changes
30 April 2023
£
£
£
£
Cash at bank and in hand
4,116,198
2,937,894
-
7,054,092
Bank overdrafts
(151,139)
46,102
-
(105,037)
3,965,059
2,983,996
-
6,949,055
Borrowings excluding overdrafts
(26,822,025)
(1,857,860)
(52,000)
(28,731,885)
Obligations under finance leases
(169,540)
35,693
-
(133,847)
(23,026,506)
1,161,829
(52,000)
(21,916,677)
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