Company registration number 06447535 (England and Wales)
BIRCHGROVE HEALTHCARE (SUSSEX) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
PAGES FOR FILING WITH REGISTRAR
BIRCHGROVE HEALTHCARE (SUSSEX) LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 8
BIRCHGROVE HEALTHCARE (SUSSEX) LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2022
31 December 2022
2022
2021
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
5
6,368,185
6,180,000
Current assets
Inventories
5,220
5,076
Trade and other receivables falling due after more than one year
6
750,000
1,203,544
Trade and other receivables falling due within one year
6
2,606,785
1,478,121
Cash and cash equivalents
23,621
327,631
3,385,626
3,014,372
Current liabilities
7
(350,867)
(349,620)
Net current assets
3,034,759
2,664,752
Total assets less current liabilities
9,402,944
8,844,752
Provisions for liabilities
(546,600)
(376,500)
Net assets
8,856,344
8,468,252
Equity
Called up share capital
8
1
1
Revaluation reserve
9
2,171,143
2,274,743
Retained earnings
6,685,200
6,193,508
Total equity
8,856,344
8,468,252

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

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

The financial statements were approved by the board of directors and authorised for issue on 28 November 2023 and are signed on its behalf by:
Mr A S Shookhye
Director
Company registration number 06447535 (England and Wales)
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BIRCHGROVE HEALTHCARE (SUSSEX) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
Company information

Birchgrove Healthcare (Sussex) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 13 Oathall Road, Haywards Heath, West Sussex, RH16 3EG.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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 at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Revenue

Revenue is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, is shown net of VAT and on an accruals basis.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

1.5
Property, plant and equipment

Property, plant and equipment 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
Held at fair value
Plant and equipment
15% diminshing balance
Fixtures and fittings
15% diminshing 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.

 

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.

- 2 -
BIRCHGROVE HEALTHCARE (SUSSEX) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)

Revaluations are made with sufficient regularity to ensure that the carrying amount in the financial statements does not differ materially from that which would be determined using the fair value at the end of the reporting period.

 

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in profit or loss.

1.6
Impairment of non-current assets
- 3 -

At each reporting period end date, the company 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.

Recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

1.7
Inventories

Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial instruments and includes deposits held at call with banks.

1.9
Financial assets and liabilities

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 statement of financial position 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.

 

The company enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable and loans from related parties.

 

Debt instruments like loans and other accounts receivable and payable are initially measured at the transaction price (including transaction costs) and subsequently at amortised cost using the effective interest method; debt instruments that are payable or receivable within one year are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity. Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.

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.

BIRCHGROVE HEALTHCARE (SUSSEX) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
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.

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.

1.12
Employee benefits

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

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease.

1.15
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Fair value of property, plant and equipment

The director's valuation relating to the fair value of property, plant and equipment is based on their use of the professional valuation carried out on behalf of the company's lenders in May 2022 at £6.18million taking into account any additions, disposals and depreciation since this date. The valuation was carried out in accordance with The Royal Institution of Chartered Surveyors, undertaken by BNP Paribas, an independent firm of Chartered Surveyors with a recognised and relevant professional qualification and with recent experience in the location and category of the property, plant and equipment being valued. The valuations were both made on the basis of existing use as a fully-equipped operational entity having regard to trading potential in line with Section 27 of FRS 102.

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BIRCHGROVE HEALTHCARE (SUSSEX) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
3
Employees

The average monthly number of persons (excluding directors) employed by the company during the year was 53 (2021 - 46).

4
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2022 and 31 December 2022
1,800,000
Amortisation and impairment
At 1 January 2022 and 31 December 2022
1,800,000
Carrying amount
At 31 December 2022
-
0
At 31 December 2021
-
0
5
Property, plant and equipment
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost or valuation
At 1 January 2022
6,012,027
115,366
311,572
6,438,965
Additions
22,454
161,712
41,401
225,567
At 31 December 2022
6,034,481
277,078
352,973
6,664,532
Depreciation and impairment
At 1 January 2022
-
0
66,014
192,951
258,965
Depreciation charged in the year
-
0
15,740
21,642
37,382
At 31 December 2022
-
0
81,754
214,593
296,347
Carrying amount
At 31 December 2022
6,034,481
195,324
138,380
6,368,185
At 31 December 2021
6,012,027
49,352
118,621
6,180,000

There are fixed and floating charges held over the freehold land and buildings by the group's bankers.

The directors have valued property, plant and equipment as disclosed in note 2.

The revaluation surplus is disclosed in note 9.

- 5 -
BIRCHGROVE HEALTHCARE (SUSSEX) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
5
Property, plant and equipment
(Continued)

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

2022
2021
£
£
Cost
3,431,738
3,409,284
6
Trade and other receivables
2022
2021
Amounts falling due within one year:
£
£
Trade receivables
80,596
52,579
Amounts owed by group undertakings
2,360,192
1,309,934
Other receivables
165,997
115,608
2,606,785
1,478,121
2022
2021
Amounts falling due after more than one year:
£
£
Amounts owed by group undertakings
750,000
1,203,544
Total debtors
3,356,785
2,681,665

The directors have confirmed, with regards to the amounts owed by group undertakings, that although £2,360,192 of this balance is repayable on demand and hence receivable within one year, no repayment of the balance will be sought until the creditor company is in a position to make such payment. It is anticipated that this will not be for at least two years from the statement of financial position date. The directors have also confirmed the same treatment for the amounts owed by group undertakings and that no interest is to be charged on the long term element.

 

The going concern conclusions as disclosed in 1.2 have therefore been arrived at on the basis that this balance will not be received within 12 months of the signing of the audit report.

7
Current liabilities
2022
2021
£
£
Trade payables
93,810
83,247
Taxation and social security
24,904
22,229
Other payables
232,153
244,144
350,867
349,620
- 6 -
BIRCHGROVE HEALTHCARE (SUSSEX) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
8
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 50p each
2
2
1
1

 

9
Revaluation reserve
2022
2021
£
£
At the beginning of the year
2,274,743
980,579
Revaluation surplus arising in the year
-
0
1,597,764
Deferred tax on revaluation of property, plant and equipment
(103,600)
(303,600)
At the end of the year
2,171,143
2,274,743
10
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Alex Chidwick FCCA
Statutory Auditor:
Carpenter Box
11
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2022
2021
£
£
Within one year
788
860
Between two and five years
-
0
788
788
1,648
12
Financial commitments, guarantees and contingent liabilities

There is a cross guarantee and debentures in place between the company, Ashton Healthcare Group Limited, Adelaide Healthcare Limited and Grove Park Healthcare Limited dated 28 October 2022. The extent of the contingent liability at the year end amounted to £23,200,000 (2021 - £Nil).

- 7 -
BIRCHGROVE HEALTHCARE (SUSSEX) LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
13
Related party transactions

At the previous year-end a balance totaling £43,675, included within other receivables, was due from two connected companies under common control. During the prior year recharges were made to these companies of £1,862.

 

During the current year, following a group reconstruction, these companies are now 100% owned subsidiaries of the same group and therefore no disclosure of transactions or balances with them is required.

14
Parent company

The immediate and ultimate parent company is Ashton Healthcare Group Limited, a company controlled by Mr A S and Mrs M B Shookhye.

 

Ashton Healthcare Group Limited prepares consolidated financial statements and copies can be obtained from Companies House. The registered office of Ashton Healthcare Group Limited is 13 Oathall Road, Haywards Heath, West Sussex, RH16 3EG.

- 8 -
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